Overview
-Revenue grew by 6% QoQ with broad-based growth across all the segments.
- Improvement was driven by combination of higher utilization, improvement in offshore revenue mix.
- Segmental margin improvement also saw improvement across the board.
- Industrial products, plant engineering and telecom & Hi-tech grew in access of 5%
- Sequential margin improvement from Q2 to Q4.
- Free cashflow generation continues to be robust
- Last quarter LTTS won its biggest deal ever with a TCV of USD 100 million plus from a global O&G major to be the primary engineering partner.
- Deal pipeline is healthy.
- LTTS is the leader in Digital Engineering, IoT & AI which forms the backbone of new product development
Verticles
1) Transportation:
- Sequential growth 3.1%.
- Outlook in commercial auto is still challenged, the company see consolidation and product software opportunity.
- Spending continues to rise in electric, autonomous, and connected vehicle space.
- Company won 3 deals greater than 10 millions dollars. Company see multiple deals in the pipeline in autonomous and EV space
2) Telecom & Hi-tech
- Organic growth 3.7%
- Opportunity continues to be in localization and electrification.
- In Semiconductor, company is seeing deal improvement towards new generation chips which gives opportunity in design chip verification.
- Company is participating network virtualization in 5g activities.
3) Plant engineering
- Good quarter with 9.2% qoq.
- In FMCG & chemicals company see projects related to brownfield expansion and low cost automation of plants.
- Growth momentum will continue.
4) Industrial products
- Demand was driven by digital, In creating smart products, value engineering of existing products and productivity improvement initiative from the shop floor.
- Company is setting up specialized labs in creating solution in cyber security.
- Sustainability trend is driving more spend towards alternative energy. Company is leveraging its domain and technical strengths to assist with the technology framework in this area.
5) Medical
- Soft quarter of 2.4%
- Some caution in spending because of resurgence of covid cases.
- New growth areas for the company telehealth & population health management.
Operations front
1) Training & upskilling
- Invested in global engineering academy, able to provide upskilling to 9K employees
- Focus on design labs, made company become only India based service provider to support amazon's Alexa voice service integration.
- Company has inhouse asset management portal, which has seen good traction.
2) Utilization
- Improved it in past 2 quarter which has improved the margin level.
- Employees have been getting back to office.
- Tried to adapt the Covid times
R&D expenditure
- Company is seeing R&D spend in the areas of digital engineering and medical engineering.
- Commercial aerospace will take a little bit of time, the company is focusing on defense area in US.
On Deals
- Decision making happening at a faster pace than the last 2 quarter.
- For 100 millions dollar deal, the ramp up will start in a gradual manner. It has not contributed the revenue till now. It is going to contribute in a big way by next year.
Digital engineering
- 49% of business comes from digital engineering.
- DE is divided into product, design, cloudification, analytics, creating cyber security product and remote design collab.
- The other part of DE is smart manufacturing.
Margins
- Headwinds including variable pay & sub contracting costs.
- As pandemic came, automotive customer asked for more discount than any other vertical.
- Aerospace business took a big hit which affected the company.
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• Continue to see pickup in saving business.
• Growth is there both in volume of policy and increase in ticket size.
• Market share remained increasing at 27% and is increasing gradually.
• Solvency Ration remained at 202%.
• Bank Assurance Channel has grown 22%. Agency Channel continuous to gain growth. HDFC Bank remained growth drive.
• Company is continuously partnering with new channel partners.
• Risk Management has been constantly watched and remained on track.
"Target to purchase 20% of the new music this year for the next 30 year"
Here are the key highlights of the call 😀👇
Business Updates:
• There has been slow and steady growth and the industry is slowly coming out of Covid.
• Entertainment and Education has seeing a good growth in digitization.
• Saregama is in a good position to take the advantage of the digitization.
• Cost has been tightened over the past 2 quarter.
• Company debt company last year, has been reduced a lot.
Growth Driver:
• Primary driver for the 24% sales growth is the Carvaan sales and the music right.
- Specialty chemical: There were enhanced volumes across products. Enhanced volume led to better utilization of capacity of multi product and dedicated plants as well
- Capex is on track.
- Revenue from existing products continue to improve.
Technical textile business: this segment gave a steady business as there was faster than expected recovery in Tyre industry.
- Domestic demand for refrigerants is picking up.
- Company will focus on sales ramp up from newly commissioned plants in Thailand and Hungary.
Business Update:
• Business has been reveamped and seen good growth.
• Tier 2 and Tier3 has seen good growth.
• Q3 turned out to be more than what we expected.
• EBIDTA Margins attained a new higher.
Gas Price:
• Remained same than that of past quarter. Avg Price in Northern India is 25-26 price, which was 30-31 last year
• Out of this around 50% of this price is for long term
Segment:
Bathware & Sanitary is already CF +. Ply will take more 2 year for generating cash flow.
Business Updates:
• Company has managed to maintain the new normal and looking for steady growth.
• Business has returned to new normal.
• Second wave of covid has lesser impact
• Over past 3 months company has maintained operational efficiency
• Collaborated with Deerfield Discovery and Development (3DC) to advance integrated drug discovery projects
• Co. has also collaborated with virtual system in order to communicate with the clients easily.
• Expansion Hyderabad facility will increase the operational aspect