India’s mid-sized IT services player L&T Technology Services (LTTS) has signed an approximately €45 million (around USD 48 million at current exchange rate) contract with European automotive parts manufacturer and supplier Forvia for engineering development activities for its clean mobility division.
“As part of this five-year partnership, approximately 300 engineers from Forvia’s Augsburg (Germany) and Bangalore (India) sites, have transferred to LTTS. This represents a 95% transfer success rate securing the skills of these teams who will develop internal combustion engine related engineering activities from within LTTS,” the Indian IT firm said in a regulatory filing.
With LTTS at the helm, these engineers continue their activities for Forvia from their current locations, guaranteeing seamless collaboration and ongoing support for end customers across Digital PLM initiatives, it added.
As part of the agreement, the engineers will also be trained and reskilled by the LTTS Global Engineering Academy.
Created in 2022 from the merger of France’s Faurecia and Germany’s Hella, Forvia claims to be world’s seventh-largest automotive technology supplier. In February, the French-German firm had announced plans to cut 13% of its workforce in Europe over the coming years to boost competitiveness and profitability in a sluggish and shifting car market.
“Our collaboration with Forvia underscores our proficiency in the transportation and automotive industry, while simultaneously reinforcing our dedication to spearheading progress in the field of traditional engine technologies and new-age digital transformation for ultra-low emissions and clean mobility,” said Amit Chadha, CEO and managing director of LTTS.
In FY24, LTTS closed one of its large deals worth USD 100 million (INR 800 crore) from Maharashtra State Cyber Department. Without giving the total deal size, LTTS had closed 25 large deals greater than USD 10 million deals in total contract value (TCV).
Its deal wins for FY24 were at one USD 100 million and USD 30 million each, and two each in TCV of USD 20 million & USD 10 million deals.
After the fourth and final quarter earnings announcement, the company said it is planning to add 500 employees during the April-June period. Its total headcount as on March 2024 stood at 23,812.
For Q4FY24 ending March, LTTS posted a muted 0.2% year-on-year (YoY) growth in net profit at INR 340 crore on a revenue growth of 7% at INR 2,537.5 crore. It also witnessed narrowing of margins to 16.9% from 17.9% a year ago.
For the full year FY24, its net profit grew 7.6% YoY to INR 1,303.7 crore on a 9.4% revenue growth to INR 9,647.3 crore.
For FY25, LTTS has given a guidance of 8-10% revenue growth in constant currency dollar terms, which grew 7% to USD 1.2 billion in FY24.
