“There is about 30 per cent of clients impacted by the war. Now, if I double click on it, the 70 per cent that are spending, their boards are asking them about artificial intelligence (AI) and what they are doing about AI. So, you are definitely seeing a lot more questions on AI coming to you once in a while,” Chadha said post the company’s fourth quarter results.
LTTS, an engineering research and development (ER&D) company, reported an 8.3 per cent rise in revenue in the fourth quarter but its dollar revenue growth was flat at 0.3 per cent.
The ER&D sector, which includes automotive, semiconductors, industrials, energy and utilities, telecom, healthcare and life sciences, and consumer electronics, has been one of the fastest growing ones in India’s technology industry, with 7 per cent year-on-year (Y-o-Y) growth.
The company downplayed the impact of the war in West Asia unlike larger IT companies such as Wipro and HCLTech, which have guided for muted growth this financial year.
“This will resolve itself at some point. The world is looking for technology and renewal cycles. In mobility, people are talking about software in mobility and autonomous cars and we are starting to pick up programs and work on that,” he added.
LTTS’ revenue is almost equally divided among three business units; mobility (36.4 per cent), sustainability ((34.8 per cent) and technology (33.4 per cent).
However, for the fourth quarter, the first and third business reported a drop in growth while sustainability was up 11 per cent.
It expects mobility business to stabilise this quarter, along with technology which will help fire in all cylinders. US automotive business is on a strong footing with companies deciding to go for hybrids.
In Europe, the situation still remains fluid and revenue dropped 1.8 per cent.
He said, “There is mobility, consolidation deals that are in play right now. In industrial products, there is work going on that we believe will be positive. Third, in the oil and gas energy, we believe we won some good contracts that will help us expand. So, we will see growth.” As part of a five-year strategy, LTTS will focus on software-defined vehicles (SDV), plant engineering, medical technologies, energy automation, and industrial automation.
Besides this, it will also concentrate on data centre build-out which includes compute, storage, semiconductor, hardware design and data engineering.
While headcount remained nearly flat with 23,830 employees, LTTS will add just 500 people this year, after inducting the same number in the fourth quarter of FY26.
He added, “We are improving our own utilisation continuously. We have redone the company's bands and gone from a pyramid to an Eiffel Tower model.
 "Amit Chaddha, chief executive officer (CEO) and managing director (MD), L&T Technology Services (LTTS)")