Engineering R&D major L&T Technology Services (LTTS), which is eyeing $1.5 billion revenue by 2025, is going big on fresher hiring as it plans to add 2,000 campus recruits in the next two quarters.
The company has already added 1,200 campus recruits between April and September 2021. With the demand for technology services increasing, talents have been one of the key challenges and a significant focus area for companies, who are facing rising attrition rates.
Though LTTS reported a 16.5 percent attrition rate for Q2 FY22, less than its peers, this is still a concern. Amit Chadha, CEO & MD, LTTS, said in a recent interaction with Moneycontrol, “We are lower than the competition and much lower than other companies have done. But honestly, I'm not satisfied. The demand is so great that engineers are finding opportunities.” The company is working on several interventions to address attrition.
One is stepping up fresher hiring. The company will hire about 3,200 freshers in FY22. This is a key change, as the company did not have a huge focus on campus hiring earlier.
“We are going to be taking on freshers consistently as we move forward. We want to build that engine. We were lower earlier. So you will see fresher hiring a continued focus area for us,” Chadha said.
The company is also launching the ‘Tech Stream’ programme where those with a non-technology background will be able to create a career path as technologists in the programme. This will be rolled out shortly.
In terms of hikes, the company rolled out two wage hikes in the year – effective April and July 2021, to retain talent. Chadha pointed out that the company will go back to its usual cycle next year. About whether the company will expand its existing stock option plan to senior hires, Rajeev Gupta, CFO, said, “It is a conscious effort on two counts. One, to continue to operate that program so that we have the leadership plus the second line. Second also to attract talent, use of stock options.” This is a bit to attract better leaders on board, he added.
Six strategic bets
LTTS reported one of its best results for the quarter ending September 2021 beating street estimates. The company reported $217.4 million in revenue, up 5.7 percent sequentially. The company also upped its guidance to 19-20 percent from 15-17 percent it had shared earlier. This comes on the back of a strong demand environment and its focus on six key areas paying off. The six strategic bets include - Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing, and Sustainability.
Amit Chadha, CEO, LTTS, in a recent interaction with Moneycontrol, explained that the company had a lot of success in the EACV, digital manufacturing, and digital product area. “So these three have done better good for us. And that has helped us fuel the growth engine further for us,” Chadha said. The success in digital products and digital manufacturing is helping in medical and industrial segments.
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