LTTS Q2 revenue rises 3.3% to $317 mn; eyes data centre biz growth | India Business News

LTTS CEO and MD Amit Chadha

Bengaluru: L&T Technology Services (LTTS) reported revenue of $317 million for the September quarter, up 2.3% sequentially and 3.3% year on year. In constant currency terms, revenue grew 2.7% quarter on quarter and 4.8% year on year.Its EBIT margin expanded 60 basis points sequentially and 220 basis points year on year to 16.3%.Large-deal total contract value exceeded $200 million, with artificial intelligence-led deals accounting for more than 50% of the total. Wins included a $75 million deal, a deal worth more than $30 million, a $25 million deal, and six deals exceeding $10 million each.Annualised engineering intelligence (EI)-led revenue has reached $120 million, supported by growing demand for AI-enabled engineering solutions.“Our pivot towards AI is helping us gain mindshare with customers as we work with them on transformation and integrating AI into their operations,” CEO and MD Amit Chadha said in an interaction with TOI.Data centres are emerging as another growth opportunity for LTTS. The company is building capabilities across infrastructure validation and working with original equipment manufacturers on network build-outs and cooling technologies.“We are building services around orchestration, token metering, observability and AI agents. This is a new service line that we started about two quarters ago,” Chadha said.The data centre business is part of LTTS’s six strategic growth bets, which currently contribute around 50% of revenue. The company expects their share to exceed 80% in about five years.LTTS has reskilled more than 65% of its workforce in AI. Chadha said AI-led delivery models could reduce the number of people required for some projects, but hiring would continue. The company added around 200-250 employees on a net basis during the quarter and expects further additions in the next quarter.LTTS has also launched an engineering intelligence lab with Nvidia to develop physical AI applications across manufacturing, robotics and supply chains.With its order backlog and pipeline higher than a year ago, LTTS expects revenue momentum to strengthen in the second half while sustaining healthy margins.“The second half of the year should be better than the first half,” Chadha said. The company’s five-year aspiration is to grow revenue by 13-15% annually, with EBIT margins in the 16-17% range.