L&T Technology Shares Tumbled Over 8% After Reorganisation of Business Segments

On April 25, 2024, a leading global digital engineering and R&D services provider, L&T Technology Services Limited (LTTS), through an exchange filing, announced that it will be streamlining and simplifying its organisational structure into 3 main segments to fuel future growth, scalability and technology innovation. As a part of its ‘Go Deeper to Scale’ strategy to meet evolving customer demands, LTTS will consolidate its existing 5 segments into 3: Mobility, Sustainability, and Hi-Tech.

The recently established segments are intended to be in line with the main LTTS sectors and to handle particular variations within each domain, enabling each segment to develop world-class assets and solutions and establish itself as the best in its field. Consequently, this is anticipated to promote improved client intimacy, tailored services and solutions, and a deeper focus.

The automotive, commercial vehicles and aerospace verticals will be included in the mobility category. Oil & Gas, FMCG, Electric & Power, Industrial Machinery & Building Technology, and Sustainability are all included. The verticals of MedTech, Semiconductors, Consumer Electronics, Hyperscalers, and NexGen Comm will be included in the Hi-Tech category.

LTTS will enhance and unify its technological domains into three overarching horizontals: AI & Software Defined Everything (SDx), Embedded Systems, and Digital Manufacturing Solutions, by utilising the commonality of engineering and technical expertise. Through this strategic realignment, LTTS will be able to use its labs, digital assets, and experience, providing cutting-edge solutions across several domains to a worldwide clientele and enhancing its innovation quotient.

LTTS is combining sales and delivery into a single, cohesive structure as part of this strategic realignment in order to improve agility and speed of decision-making, promote domain-specific synergies, scale operations and transactions, and provide more value to clients and staff.

“Over the past decade, LTTS has established itself as the largest pure-play engineering services provider based in India,” As technology cycles shorten and clients continue to look for specific solutions and domain expertise, we believe it is time to go deeper to scale. By consolidating into 3 unifying segments and 3 horizontals, we will enhance our ability to address the evolving needs of our customers across diverse industries and geographies. It will also enable LTTS to become the strategic partner across the Customer’s Life Cycle Journey, from the point of inception to guiding them through every stage of transformation”, said Amit Chadha, CEO & Managing Director, L&T Technology Services (LTTS).

On April 26, 2024, L&T Technology shares opened at ₹4,935.00 and touched the day low of ₹4,689.50 at 11:30 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.