5 hours Ago By NDTV Profit News
L&T Technology Services' Chief Executive Officer, Amit Chadha, said that the company plans to double the revenues of the recently acquired Intelliswift within the next three years. On Monday, LTTS had announced the acquisition of US-based Intelliswift Software Inc. and its Indian subsidiary Intelliswift Software India Pvt.
through an investment of $110 million. The acquisition of the company—focused on software product development, platform engineering, and AI—is expected to be completed by Feb. 2025.
Chadha said that Intelliswift generates $100 million in revenue, and this year it may rise slightly. “Our goal is to double Intelliswift revenues in three years. And that's what we would like to focus on as we move forward,” he told NDTV Profit .
He asserted that the acquisition was not done in haste and “it's in line with company strategy, in line with company values, vision, and we continue to focus on organic growth. This is an inorganic piece being brought in, but we will bolt on organic.” Commenting on the margin expectations from Intelliswift, the LTTS CEO bought time until January for specific figures.
“I am going through our own ramp-up in margins. I'm reconfirming 16% levels in EBIT for LTTS in FY25. Give us till January, we will come back and paint a path out for you.
” The top executive asserted that acquisitions like this one would help the company to scale its business faster. “The Smart World acquisition that we have done and now this one are both $100 million in revenue. And I believe that we need to make these sure-footed bets to take us forward and give us scale,” he said.
“If I look at our ratings now, we are top three globally when it comes to pure play engineering. This moves the needle to be able to move us to that top two or top one bracket faster,” Chadha added. Explaining the rationale behind the Intelliswift acquisition, the CEO pointed out that the domain in which the company operates represented a "white space" for LTTS.
“When it comes to software product development and platform and AI, we believe that we had a white space. So we looked around for acquisitions because we did want to get to it,” he said. Shares of L&T Technology Services Ltd.
shot up by 5% to Rs 5,370 apiece during Tuesday’s intraday trade on the NSE. The stock was trading at Rs 5,297.10 per share at 1:50 p.
m. in comparison to the benchmark Nifty 50, which was down by 0.76% at 23,957.
70. The company's stock closed 3.11% higher at Rs 5,270 apiece on the NSE on Tuesday against the benchmark Nifty 50, which declined by 1.
07% to 23,883.45..
