6th consecutive quarter on operating margin gains for L&T Technology Services | Q3 FY22 Conference Call Highlights

Revenue of ₹1,687 Cr for the quarter; up 5.0% QoQ and 20.5% YoY

Revenue of $225.1 million for the quarter; up 3.6% QoQ and 18.4% YoY; in constant currency up 4.2% QoQ and 19.5% YoY PROFIT IN INR

EBIT of ₹314 Cr for the quarter, EBIT margin at 18.6%. Company was able to increase the margin due to pyramid optimisation, currency depreciation partially offset by low utilisation and higher travel costs.

Net Income of ₹249 Cr for the quarter, up 8.2% QoQ and 33.7% YoY; Net Income margin at 14.7%

The deal conversions and pipeline in the six big bets - Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability – continues to see healthy improvement as the customers make steady progress on their long-term transformative journeys.

During the quarter, LTTS won a USD45 million deal and a total of 3 deals with Total contract value (TCV) of USD10 million plus.

Revenues from digital and leading-edge technologies stood at 56% during the quarter.

Patents at the end of Q3FY22, the patents portfolio of L&T Technology Services stood at 816, out of which 578 are co-authored with its customers and the rest are filed by LTTS.

Looking to restructure the media and communications portfolio. The margins which the company was expecting from this segment are not able to fructify. This decision will have a slight impact on the Q4FY22 but the FY22 guidance remains as is.

Pre-covid (8 quarters back) and the latest quarter the nature of verticals has changed for the company. Transportation vertical pre-covid was mainly into infotainment while now it has electric and connected segment more. Plant engineering used to dominate by oil and gas. Now the Chemicals and Consumer Products & Goods forms a substantial portion of the plant engineering.

Employee metrics: Invested in hiring and onboarding a record 1,900 plus trainees this quarter.