RICH ENGINEERING HERITAGE
Your company has evolved out of the technology vision we had articulated in 2009. Wesaw value in carving out a separate company from what was originally an internal wing ofthe parent organisation and allowing it to compete on level terms with peers across theworld. Your company's record of success and its growing reputation as one of the moretechnologically innovative companies in its space is an affirmation of our decision.
Today your company is closely attuned to the organisation's heritage of engineeringexcellence and is the Group's 3ag bearer into new digital arenas. It is harnessingopportunities in disruptive technology areas such as smart manufacturing and perceptualengineering. Smart solutions conceived by your company will be the building blocks forL&T's Smart World initiatives which are among the largest and most ambitious movementsin India.
LTTS has stayed ahead of the commoditization curve. It is engaged in engineeringspecialised new age products for global R&D brands. Its focus on advanced offeringslike digital engineering machine learning and collaborative robotics have given it marketsalience resulting in superior performance and better returns for investors.
LTTS closed the year with INR 37.4 billion in revenue which is an industry leadinggrowth of 15.4% YoY. Revenues from digital and leading-edge technologies have doubled to26% of total turnover holding out excellent prospects for the future. I am confident thatwith its rigorous 3scal discipline and focus on innovation LTTS will continue to exceedindustry expectations in the years ahead.
You will be happy that your company ranks among the most respected global ER&Dplayers with clients including 51 of the world's largest R&D houses and 52 Fortune500 companies. LTTS also garnered several accolades such as CII Industrial InnovationAward 2017 and Golden Peacock Innovation Award 2018.
Globally the world is witnessing a sharpening of social and political dividestriggering a search for quick-3x solutions like policy interventions. These can oftendistort the free play of market forces. In addition to apprehensions that differences overtariff trade treaties can adversely impact the global economy volatile crude prices andcurrency are also matters of concern.
Amid these uncertainties it is heartening to note that manufacturing and ER&Dspends around the world continue to rise. This augers well for a pure ER&D player likeLTTS. Demand in the US and Europe is on the rebound driven by new product launches IoTapplication development and smart manufacturing all sectors where your companyenjoys a strong competitive advantage.
Under an effective leadership team that maps likely trends your company is developingnew expertise ahead of the curve. In the transportation segment for example LTTSanticipates a global shift towards electric and hybrid vehicles and has alreadyestablished its own prototype electric vehicle and is also working with global OEMs tocreate the next generation of electric and hybrid automobiles.
In the plant engineering space where LTTS is an acknowledged leader the company isdeveloping technologies for Industry 4.0 and automation to build the digital factories ofthe future. The telecom & hi-tech vertical is witnessing sustained growth in thesemiconductor space driven by more needs in the smart home healthcare automotive AI andbig data areas. The medical devices sector is witnessing an upswing due to expandingdemand for domiciliary care. Your company is responding positively to these developments.
Having established itself as the leading ER&D Services brand out of India today myvision is for LTTS to emerge as a global business leader in ER&D. The technologies andinnovations which originate in your company's labs have a ripple effect all throughsociety and can pave the way for to a happier and more prosperous future for all.
I look forward to another year of excellence and technological accomplishments.
A. M. Naik