I WRITE TO YOU AT A TIME WHEN THE GLOBAL ECONOMY SEEMS BESET WITHCHALLENGES ACROSS MULTIPLE DIMENSIONS. ON THE BACK OF SUCCESSIVE WAVES OF THE PANDEMICCOMES THE FALLOUT OF A PROTRACTED WAR IN EUROPE THAT HAS THROWN SUPPLY CHAINS OUT OF GEARAND SENT RIPPLES ACROSS THE GLOBAL ECONOMY. IT SPEAKS OF OUR ORGANIZATION?S INNATERESILIENCE THAT WE HAVE BEEN ABLE TO FACE UP TO THESE CHALLENGES WHILE SUSTAINING BUSINESSCONTINUITY.
Last year I had touched upon the growing role of technology in shapingour future and its power to do good.? FY 22 has borne further witness to thisvision as the global economy had revived and rescaled to the pre-pandemic levels. It ismy firm belief that in the future focused technology initiatives will continue to powergrowth and inclusive development.
Delivering New Age Transformation Journeys
LTTS has continued to build upon its core engineering legacy derivedfrom its parent the Larsen & Toubro Group. Your Company?s innovation-led R&Dfocus and the ability to identify and address emerging customer demand in an agile andinnovative manner has reaffirmed its leadership in the global ER&D space. With anexpanded bouquet of offerings and stronger market presence your Company is truly abellwether in its segment.
YOUR COMPANY?S INNOVATION-LED R&D FOCUS AND THE ABILITY TOIDENTIFY AND ADDRESS EMERGING CUSTOMER DEMAND IN AN AGILE AND INNOVATIVE MANNER HASREAFFIRMED ITS LEADERSHIP IN THE GLOBAL ER&D SPACE.
Leading industry reports indicate that the current global pandemic hasaccelerated the demand for digital transformation and other software-led businessjourneys. This has had a direct positive impact on offshoring to key R&D destinationsincluding India. With FY22 global spending expected to continue its upward momentumanalysts are predicting that the ER&D industry would witness a 9% CAGR growth to beworth $ 2.1 trillion by 2024.
I feel that R&D investments alone would grow by 10-20% for over athird of the leading global technology firms as they build new products and services tomeet evolving customer demand patterns. It will be vital for us to capitalize on theseemerging opportunities.
Towards a Technology-driven Future
The global ER&D sector continues to be on a robust demandtrajectory. Pandemic-induced economic stimuli especially in the developed economiesincluding the US Europe and Japan has resulted in a rapid transformation of existingbusiness paradigms one that will reward organizations which embody a culture ofinnovation and are sensitive to evolving customer requirements.
India continues to feature prominently among the most attractivelocations for ER&D Services. These efforts are backed by a large young skilled andcost-competitive talent pool an extensive network of ER&D hubs and the sustainedrise in the number of global ER&D firms choosing to set up operating bases in India.
As India?s largest independent engineering services company and aleading global contender LTTS is positioned to leverage and capitalize on these emergingopportunities.
Industry-leading Growth: Redefining Performance Paradigms
LTTS has continued its promising growth pattern delivering breakoutsequential growth through the fiscal. The year has been marked by several large wins mostnotably a marquee $ 100 million deal in the Electric Air Mobility space and a $ 45million EV deal from a U.S. automotive customer with the project being delivered fromLTTS? new ER&D center in Krakow Poland.
LTTS? MARKET LEADERSHIP CONTINUES TO BE REAFFIRMED BY THEGLOBAL ANALYST COMMUNITY WHICH HAS CONSISTENTLY RATED YOUR COMPANY AS AN ER&D SERVICESLEADER ACROSS MULTIPLE TECHNOLOGY DOMAINS INCLUDING AI DIGITAL ENGINEERING 5G ANDSEMICON.
During FY22 your Company registered revenue of Rs. 65697 million agrowth of 21% Y-o-Y and Net profit of Rs. 9570 million a growth of 44% Y-o-Y.
We are confident that the present growth momentum will be sustained andbuilt upon during the current fiscal.
LTTS? market leadership continues to be reaffirmed by the globalanalyst community which has consistently rated your Company as an ER&D services leaderacross multiple technology domains including AI Digital Engineering 5G and Semicon.The rankings are further strengthened by recognition from reputed global consultancies andindustry bodies.
As we continue to build on our successes I take this opportunity tothank our shareholders for the trust reposed in the leadership of your Company. I alsothank my colleagues on the Board for their contribution in delivering industry-leadinggrowth.
With best wishes for a safe healthy and prosperous future.
A. M. Naik