“This acquisition will enable LTTS to strengthen its footprint in the telecom OEM (original equipment manufacturer) and service provider space. Orchestra will help bolster LTTS investments as part of open network forums ONF and TIP across key elements of 5G like ORAN, private networks, narrowband IoT,” LTTS said in the filing.
Orchestra had turnover of around Rs 110 crore in the year 2019, and currently employs around 80 people. LTTS said the deal is expected to close by December 2020.
The Larsen and Turbo owned company reported 42.5% decline in consolidated net profit at Rs 117.3 crore for the first quarter ended June 30, 2020, compared with Rs 203.9 crore in the same period last year. On the quarter-on-quarter basis, the profit fell 42.7% from Rs 204.8 crore in the March quarter of FY20.
While the total revenue registered 3.8% at Rs 1,294.7 crore in June quarter of 2020 compared with Rs 1,347.5 crore in the year-ago period, LTTS revenue on a sequential basis declined 10.7% as against Rs 1,446.6 crore in March quarter.
Commenting on the company’s performance, L&T Technology Services Limited CEO & Managing Director Dr Keshab Panda said with many industries operating at limited capacity on account of the pandemic, Q1 was a challenging quarter as expected.
“Still, we had a good performance in two of our segments – Telecom & Hitech and Medical, and our large deal engine continues to churn wins. Free cash flow generation was strong during the quarter and the healthy cash position sets us up well for the future. Looking ahead, we see a path for a recovery backed by good order bookings and a healthy pipeline. We expect both revenue and operating margin to show sequential improvement over the remaining quarters of the current fiscal,” said Commenting on the company’s performance, L&T Technology Services Limited CEO & Managing Director Dr Keshab Panda.
L&T Technology Services Limited CEO & Managing Director Dr Keshab Panda the acquisition of Orchestra will enhance our offerings in the areas of Network Engineering & Enterprise Mobility and provide us strategic access to Telecom service providers who are investing in next-generation digital systems for 5G and IoT networks.
L&T Technology Services Limited CEO & Managing Director Dr Keshab Panda said as customers redraw their business plans, the company is working with them to improve operating efficiency, finetune sourcing and production plans, and prepare for faster go-to-market.
“Our newer set of offerings like Frugal Manufacturing, Telehealth solution and i-BEMS Shield are seeing good traction in the market. The large deal discussions we are having with customers are a notch higher in terms of criticality and adoption of new-age technologies, which we believe will pave the way for greater mind share and competitive differentiation”, said Commenting on the company’s performance, L&T Technology Services Limited CEO & Managing Director Dr Keshab Panda.
During the quarter, LTTS won 9 multi-million dollar deals across all major industry segments which includes one deal with TCV of USD30mn plus and two deals with TCV of $15 million-plus. On a YoY basis, LTTS has increased its $10 million + clients by 5 and its $1 million clients by 3.
- TechCircle honoured LTTS with the Business Transformation Award in the “New Markets” category to our IT and HR functions jointly for leading digital transformation at LTTS with innovative solutions.
- Enterprise IT magazine conferred LTTS’ IT Team with the “COVID-19 Super Hero Award” for their tireless efforts to help LTTS’ workforce during the lockdown.
At the end of the first quarter, the patents portfolio of L&T Technology Services stood at 525, out of which 385 are co-authored with its customers and the rest are filed by LTTS. The employee strength of the company at the end of Q1FY21 stood at 16,641.