L&T Technology Services Ltd. · NSE:LTTS
L&T Technology Services — Q1 FY2022 Earnings Presentation
27 slides from L&T Technology Services's earnings presentation, July 2021
Slide 1: L&T Technology Services
L&T Technology Services | www.LTTS.com
Slide 2: Disclaimer
Disclaimer This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 3: L&T Technology Services – At a glance
L&T Technology Services – At a glance Global Leader: Pure Play Engineering Services Company 305 Global Clients 719 $ 737 MN Patents FY21 Rev 90% $ 206 MN Repeat Business Q1 FY22 Rev 16,900+ 17.3% Employees Q1 FY22 EBIT margin 69 28 Innovation Sales Offices Labs L&T Technology Services | www.LTTS.com
Slide 4: Our Engineering heritage and multi-domain capabilities
Our Engineering heritage and multi-domain capabilities… Industrial Products Medical Devices Consulting, Domain & Design 45% Transportation Telecom, Consumer Electronics, Semiconductors Skill Based 55% Process Industry L&T Technology Services | www.LTTS.com 3
Slide 5: Supported by best-in-class infrastructure
…supported by best-in-class infrastructure SMART MANUFACTURING IoT LAB INNOVATION LAB TEAR DOWN LAB LAB POWER ELECTRONICS LAB WIRELESS LAB IMAGING LAB L&T Technology Services | www.LTTS.com 4
Slide 6: End-to-end engineering partner for our clients
…allows us to be the end-end engineering partner for our clients Testing and Manufacturing Certification Support Inject Innovation Improve Quality & Reliability Design & Product Development Maintenance Optimize Cost of Development Product Product Conceptualization Launch Support Accelerate Time-to-M
Slide 7: LTTS Evolution
LTTS Evolution… DO IT TRANSFORM BUSINESS DO IT CHEAPER DO IT BETTER IMPROVE BUSINESS DIFFERENTLY Discrete business Consolidation and Building capabilities Org and operational ENGINEERING units working in building synergy through investments re-structuring THE CHANGE silos 15% 27% 49% 25% 85% 51% 40%
Slide 8: Innovation, Platforms and Solutions
1 Customer requires partners with… AGILITY, ENGINEERING AND DOMAIN EXPERTISE TO DRIVE CLIENTS' TRANSFORMATIONAL Innovation, Platforms and Solutions Hi-Tech REQUIREMENTS Medical Industrial Products Plant Engineering Transportation 35% Workforce 65% Workforce Embedded Horizontals Application Engineeri
Slide 9: Multi-vertical and multi-domain capabilities
2 Customer requires partners with… Leaders Other Positions No Positions MULTI-VERTICAL AND MULTI-DOMAIN CAPABILITIES ENABLING TO LEVERAGE ADJACENCIES… Ve r t i c a l R a n k i n g s Horizontal Rankings Consumer Plant Auto Off-highway Aero Medical Telecom Semicon Industrial Chemicals O&G FMCG IoT IIO
Slide 10: Solutions in digital and new tech areas
3 Customer requires partners with… MEDICAL ▪ Real-time Remote Monitoring ▪ 3D Printing …SOLUTIONS IN DIGITAL & TRANSPORTATION ▪ AI in Medical Imaging NEW TECH AREAS ▪ Digital Cockpit ▪ Additive Manufacturing ▪ Autonomous Car Middleware ▪ Active Safety ▪ EV/ Hybrid ENABLING DIGITAL ▪ V2X PLATFORMS TE
Slide 11: Digital & leading-edge tech is 54% of LTTS revenue
Digital & leading-edge tech is 54% of LTTS revenue $Bn 2,196 Digital Engineering Spend 1,358 1,153 53% OF ER&D SPEND BY 2025 1,103 403 204 Increase in Digital Engineering 889 954 1,043 2.9X Spend by 2025 2013 2019 2025E Legacy ER&D Spend Digital Engg. Spend L&T Technology Services | www.LTTS.com Sou
Slide 12: Marquee list of clients
We have a marquee list of clients today … 8 of Top 10 8 of Top 10 Transportation Hi-Tech R&D R&D spenders spenders 57 OF TOP 100 R&D SPENDERS 3 of Top 5 7 of Top 10 Medical R&D Industrial and Process Spenders R&D spenders L&T Technology Services | www.LTTS.com 11
Slide 13: Long runway for growth
…which gives us a long runway for growth RELIABLE AND PREFFERED PARTNER FOR FUTURE Our Customers 57 of Top 100 among Top 117 of Top 500 R&D Spenders Revenue $1.7 Revenue Trillion 12 % $5.3 Trillion 8.7% 117 Customers Investment T-30 Customers 6+ Yrs R&D $75 Avg. Customer Billion 4% Relationship for
Slide 14: Diversified Customer Base
Diversified Customer Base Top Clients Contribution Scale-up of million dollar clients 60% % of Revenue (LTM) 55% 50% 44% Customer Revenue FY19 FY20 FY21 Q1 FY22 (USD Mn) 40% 50 Million + 2 0 0 0 30% 27% 30 Million + 3 2 0 0 20 Million + 5 8 3 5 20% 10 Million + 16 21 20 20 5 Million+ 41 43 39 43 10%
Slide 15: Diversified Business and Geographical Mix (Q1FY22)
Diversified Business and Geographical Mix (Q1FY22) By Vertical Onsite vs. Offshore Split 12% 31% Transportation 15% 42% Industrial Products Onsite Telecom and Hi-tech 58% Offshore 22% 20% Plant Engineering Medical Devices Fixed Price vs. T&M By Geography 8% 13% North America 34% Europe Fixed Price 1
Slide 16: Transportation: Co-creating the next-generation of mobility
Transportation: Co-creating the next-generation of mobility Body Engineering and Revenue: USD255mn+ Safety Restraints (Q1FY22 annualized) An automotive engineering service Powertrain & Alternate Infotainment & Driver provider with strong expertise across Propulsion Systems Information Systems the va
Slide 17: Telecom & Hi-Tech: Strengthening Connectivity
Telecom & Hi-Tech : Strengthening Connectivity Blockchain Revenue: USD180mn+ Smart Home (Q1FY22 annualized) 3D Imaging & OTT Platform & Depth Perception 5G & Smart Appliances Applications nb-IoT stack LTTS stood out for clients’ very Speech Recognition positive impressions of its operations VOD & We
Slide 18: Industrial Products: Infusing Technologies
Industrial Products: Infusing Technologies Revenue: USD160mn+ (Q1FY22 annualized) IMAGINEERING ENGINEERING ANCILLARY SERVICES L&T Technology Services’ deep multi- Building Energy vertical expertise, rich IP portfolio Management Lighting & Systems HVAC such as UBIQWeise™, iBEMS, Building W.A.G.E.S an
Slide 19: Plant Engineering: Extending Industry 4.0
Plant Engineering: Extending Industry 4.0 Revenue: USD125mn+ Consumer Energy & Speciality Chemicals (Q1FY22 annualized) Packaged Goods Utilities Industry 4.0 Enablers Monitoring and Control L&T Technology Services’ deep ▪ IoT and M2M Consulting ▪ SCADA understanding of Plant Engineering ▪ Analytics
Slide 20: Medical Devices: Touching Lives
Medical Devices: Touching Lives Revenue: USD95mn+ Patient Mobility Therapeutic & Life Science (Q1FY22 annualized) • Critical Care Bed • Oncology The ability to pro-actively build and • Patient Handling • Drug Delivery demonstrate proof-of-concepts, take • Surfaces • Inhalable risks, and explore new
Slide 21: LTTS Platforms & Solutions
LTTS Platforms & Solutions Priority1 Intelligent Building Experience Management System New platforms… System of Systems | Advanced Analytics Security Engineering Connected Platforms (WAGES+ Mcare+ RAPM+ Ubiqweise) Predictive Maintenance| Energy Utilization| Analytics NB-IoT Protocol Asset Tracking |
Slide 22: Performance Highlights
Performance Highlights FY16 FY17 FY18 FY19 FY20 FY21 Parameters Q1FY22 468 484 580 723 786 737 Revenue from Operations (USD mn) 206 30,662 32,483 37,471 50,783 56,191 54,497 Revenue from Operations (INR mn) 15,184 15.0% 16.1% 13.0% 16.0% 16.5% 14.5% EBIT Margin 17.3% 845 561 1,910 2,209 1,726 1,082
Slide 23: Financial performance – Q1 FY22
Financial performance – Q1 FY22 Amount in ₹ million Income Statement Q1 FY21 Q4 FY21 Q1 FY22 QoQ YoY Revenue 12,947 14,405 15,184 5.4% 17.3% Cost of sales 9,479 9,755 10,118 Gross Profit 3,468 4,651 5,066 8.9% 46.1% Selling, General & Administration 1,409 1,719 1,889 Expenses EBITDA 2,059 2,931 3,17
Slide 24: Financial performance – Q1 FY22
Financial performance – Q1 FY22 Amount in ₹ million Amount in ₹ million Balance Sheet FY21 Q1 FY22 Cash Flow Summary FY21 YTD FY22 Assets Net cash provided by operating activities 13,273 951 Property and equipment 6,379 6,058 Capex -756 -264 Intangible Assets and Goodwill 6,564 6,541 Free Cash Flow
Slide 25: Case Study: Turnkey SoC
Case Study: Turnkey SoC Project Highlights 4 • Complete physical design and verification including mass Firmware Board production of image processing SoC 3 Development Design • Executed chip development plans using low power process 5 methodology • Achieved high chip processing efficiency by optimiz
Slide 26: Factory Digital Twin
FACTORY ‘DIGITAL TWIN’ WHAT WE ENABLED • Digital Simulation of an entire factory using real-time data from the plant • Optimal Utilization of Workforce & Robotic Systems • Efficient Inventory Management • Real-time Material Tracking INVENTORY DOWN BY 40% PRODUCTIVITY ENHANCED BY 15% ANNUAL SAVINGS O
Slide 27: Architecting the smartest campus in the world
ARCHITECTING THE SMARTEST CAMPUS IN THE WORLD Powered by iBEMSTM - Ingenious platform for smart buildings WHAT WE ENABLED • Integrated View of complete facility operations • Enabling Net Zero Buildings and environmental certifications • Predictive Maintenance of Building Assets • Customized experien
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