Look at L&T Technology Services, says Sumit Bilgaiyan

Senior Technical Lead: With a median annual salary Rs 12,00,000 going up to Rs 25,00,000 per annum, an expertise in designing and building software products, in collaboration with the sales and design verticals, is the main job description. A key skill is to analyze user requirements to ensure customer satisfaction. (Image: Pixabay)

Sumit Bilgaiyan

Equity99

L&T Technology Services (LTTS) is the third-largest pure play ER&D services provider globally. Its broad based services portfolio, presence in underpenetrated market segments and deep rooted client footprint, 43 of the top 100 global ER&D spenders, places it well to address the opportunity emerging from the shifts in global ER&D spend.

During Q1FY19, company had more than double net profit while it’s revenue increased by 40 percent. On a sequential basis, revenue and net profit increased by 9.2 percent and 24 percent, respectively.

In US dollar terms, revenue stood at USD 169 million; growth of 5.6 percent QoQ in constant currency, 32 percent YoY. EBITDA margin improved 170 bps at 17 percent from 15.3 percent in previous year quarter.

LTTS has won five multi-million dollar deals across process industry, telecom & hi-tech, industrial products and transportation.

We believe LTTS is well set to tap the shift in ER&D spending from products to software and services, and a rising preference for third-party players.

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