Engineering and R&D services firm L&T Technology Services Ltd. has bagged a five-year, multi-million-dollar deal from European luxury vehicle maker BMW Group to provide engineering services for the company’s suite of infotainment consoles in hybrid vehicles.
L&T Technology Services (LTTS), a listed subsidiary of Larsen & Toubro, will provide services in the areas of software and integration, infotainment validation and defect management. LTTS' existing near-shore centre provides engineering and R&D services for BMW Group’s infotainment consoles and hybrid electric vehicles.
"The proximity to BMW Group’s campus will enable LTTS’ engineers to work on a variety of solutions and offer services in real-time," says the company in an exchange filing. “Our transportation engineering services are enabling leading OEMs to build innovative and sustainable vehicles and achieve faster time to market using new age digital technologies,” says Abhishek Sinha, chief operating officer and board member, L&T Technology Services.
In Q1, L&T Technology Services says it won a total of seven deals with a total contract value of $10 million plus, which includes a $50 million deal and four $15 million deals. It says the aerospace and rail segment is seeing a revival of large deal bookings, with a $50 million deal in the first quarter. To cater to the new requirements of aerospace, the company recently came up with an engineering design centre in Toulouse, France.
At the end of June 30, 2022, the patents portfolio of L&T Technology Services stood at 913, out of which 625 are co-authored with its customers and the rest are filed by LTTS.
The development comes days after the hydrocarbon onshore division of L&T secured a large contract worth between ₹2,500 crore-₹5,000 crore from Indian Oil Corporation Ltd. The engineering, procurement, construction, and commissioning contract (EPCC) is for setting up a residue hydrocracker unit for this P-25 project.
Indian Oil is implementing the Panipat refinery expansion (P-25) project to enhance refining capacity from 15 million metric tonnes per annum (MMTPA) to 25 MMTPA to meet the growth in demand for petroleum products and to increase profitability and competitiveness. Earlier too, L&T had bagged an EPCC contract for setting up a unit under the same Indian Oil P-25 project at Panipat refinery.
L&T Technology Services' April-June quarter profit was ₹274 crore, up 4.7% QoQ and 26.9% YoY, while its net income margin was 14.6%. The company's revenue in the quarter stood at ₹1,873 crore; up 6.7% QoQ and 23.4% YoY. The earnings before interest and taxes stood at ₹343.4 crore for the quarter, while the EBIT margin was 18.3%.
The L&T Technology Services Ltd. stock is down 2.46% today at 3,579.75, largely in line with broader market performance.
