LTTS — earnings call

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Prepared remarks

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to L&T Technology Services Limited Q3 FY23

Questions and answers

Moderator · Conference Operator

The first question is from the line of Bhavik Mehta from JPMorgan.

Bhavik Mehta

A couple of questions.

Firstly, to Amit.

If I look at what happened in 3Q, was it just a function of furloughs or whether also cases where, let's say, a lot of the deals you had won over the last eight to nine months did not ramp up as per your expectations?

And how should we look at 4Q then, what are you hearing from clients when it comes to conversion of those deals into revenues so that's one.

And secondly, to Rajeev on 3Q performance on margins despite flat growth.

So outside of SWC, can we expect 18.5% as a new base of margins going forward?

Or do you think that 18% is the normal range to look at outside of SWC?

Amit Chadha

So, number one, I am confirming that Q3, you see normally, if you look at Q3, it has a lesser number of working days, right.

I mean that's about, if I may be exact, I am an engineer & that's the problem we want to be exact.

So about 3% lesser working days are there.

So, we know that and that's how we had said we'll have a muted quarter.

We got hit by additional furloughs as we call it, because there were customers that came back and said that they would like to slow down the projects, etc. in Plant Engineering.

But the good news is that they've since come back and they confirmed at the time when they were slowing it down that it will come back up on January 2nd onwards as 1st is holiday.

And it did ramp back up from January 2nd, the team started again.

So therefore, it was a furlough impact more than anything else, and that's how I would leave it.

From a deal velocity standpoint, I will say similar TCV, 3-digit of total deal closures that we have had.

We are happy to share that the $10M+ deals that we have had.

So, three of those clearly in Industrial Products, which is a high-margin business for us, one of them in Plant Engineering, which is again higher margin and the fifth one in T&OH for us, so which is Transportation.

We've had that plus there are multiple $5M deals that we have signed in Medical, in Telecom and Hitech, etc. Deal velocity is similar & we talked about the empanelment as well, and that also came through last quarter, so I do see that.

In fact, I do want to say that other than Hitech, which we have called out in my commentary, the three sub segments that are there, we are seeing project approvals and continuation of teams, etc. In fact, we have done well on utilization last quarter.

What we've done is that we've again given you a number, quantified the least possible increase in headcount.

We're fairly comfortable at this stage.

Now with that, Rajeev, margins?

Rajeev Gupta

In respect of margins, Bhavik, I just would like to say a few things.

One, if you look at across all the five segments, we are certainly showing improvement in terms of EBITDA.

I think the operating model that we've been talking about in the past, including the economies of scale has played out quite well for us.

We remain fairly comfortable that we should be able to hold for LTTS, the margin improvement that has come about.

I did indicate that with consolidation of SWC in Q1 FY24, we should see Q3 FY23 Earnings Call January 19, 2023 a dip of 180-200bps, but that's something that would have been with any acquisition.

But to sum it all, the operating model, the economics of scale have played out well for us.

That gives us the confidence in terms of maintaining the margin going forward.

Moderator · Conference Operator

The next question is from the line of Kawaljeet Saluja from Kotak Securities.

Kawaljeet Saluja

Just a couple of questions.

The first is on demand.

Amit, you did mention that the demand impact is largely furloughs, but when I look at your guidance, the guidance cut is $5M to $15M in revenues, whereas basis of furlough impact, the impact should not happen more than $2M to $3M So just trying to reconcile some basic numbers behind the guidance cut.

Is there more to it rather than just furloughs, which would have led to a change in your guidance that's the first question.

The second question is more on relative comparison.

That's something which I hate relative comparison but tempted to ask this for the first time.

When I look at a company based in Delhi, a company, which has a business mix and portfolio similar to yours, they seem to be doing better on the far larger scale on growth.

Whereas LTTS, despite strong win announcements had continued moderation in growth rate.

So is there any, I mean, shift in share or loss of share, which one needs to contend we're probably worried about in your case.

So yes, those are a couple of questions, I’d appreciate it if you can answer them.

Amit Chadha

So, the change in guidance, we are saying we'll deliver 15% is basically based on muted Q3. So that's where that is, and that's where that stands.

Now in terms of comparison, it was a specific Plant Engineering issue that I believe is since resolved.

But of course, finally proof is in the pudding.

You will see that at the end of Q4 when we come back and declare that to you.

I would, in fact, say that if I look at our market share and our size that we have got going on, I think we are expanding with our clients.

In fact, if I look at the total number of clients itself, if I look at it year-on-year, I would say we've gone from 318 clients to 343.

And you've seen a number of clients growing in the $1M bracket, the $5M bracket, the $10M, the $20M as well as the $30M.

I also want to add that I have visibility to the current run rate that we think we'll end up in Q4. And I can confirm to you that market share has expanded rather than declining.

We were not getting invited to certain Telecom specific RFPs in network engineering given the size of the deals and what we had as capabilities in spite of buying Orchestra Technologies and growing organically, so we went in for this (SWC acquisition).

I do believe that we stand in a position now, having crossed $1B revenue in constant currency and with now with Smart World, I do believe that we are head-to-head with a lot of people that are there and our aspirations to get to $1.5B, as confirmed by Rajeev FY25, remain.

Moderator · Conference Operator

We'll take the next question from the line of Mukul Garg from Motilal Oswal Financial Services.

Q3 FY23 Earnings Call January 19, 2023

Mukul Garg

Amit, I just wanted to follow up on the guidance part only.

We have seen historically, you tend to be fairly conservative when you provide your revenue growth guidance like generally not like to kind of cut it back as you had to do this quarter.

There is obviously this is happening in the backdrop of the macro constraint which you are seeing across the board.

Are there any signs which have now started becoming visible whether the increased furloughs in Q3 also were a factor of the macro pressure and does this increases the risk to how you are kind of visualizing qualitatively despite FY24 spend from corporates?

Amit Chadha

I want to give you a long-ish answer, if you don't mind here.

So, let's go segment-wise.

When you look at Transportation, right, we have not seen any moderation in spend.

In fact, we've seen the growth in that as well in spite of a, shall I say, smaller quarter seasonally.

And we do see new programs kicking in, etc. And that's across Auto, Aero and T&OH.

Industrial Products is spending in specific areas of digital manufacturing as well as digitization of their products and that continues to happen, we don't see any slowdown.

You've seen that in the growth as well as our commentary for Q4. Now Medical that you have has always been traditionally, the work we do, a very conservative sector.

But given the QARA pressures that they are under and notices they're receiving from various agencies and their need to check that, etc, as well as digitalization, we are seeing spend and you will start seeing that growth, right?

Fourth is Hitech.

I will say this that there are five sub segments in Hitech.

There's ISV, there is Consumer Electronics (CE), there's Semiconductor, there is Media & Entertainment (M&E) and then there is Telecom.

We have not seen any cutback in Telecom, which is Infra and OEMs or in M&E.

However, in ISV, CE and Semiconductor, we've seen a fair degree of caution that they were exercising last quarter also & this quarter also.

But we believe that the growth in Telecom and M&E should be able to overcome that.

In Medical, forgot mentioning one thing - Healthcare is investing.

Finally, come to Plant Engineering.

Like I said, again, Plant was a one-off issue in the quarter (Q3), since addressed.

I'm going to assure you that the Plant Engineering will come back in Q4 and beyond.

We are actively hiring, ramping up in Baroda and Chennai as well as in the US and Europe for this particular segment.

So that's how I see this.

Finally, other than parts of Semiconductor, ISV, CE, mostly, you see a company-specific cut in terms of spending, but not a sector-wide.

So, I'm still cautiously optimistic about CY23.

Moderator · Conference Operator

We'll take the next question from the line of Vibhor Singhal from Nuvama Equities.

Vibhor Singhal

So, two questions from my side.

Amit, you mentioned, I mean, we saw a very strong growth in the Transport division in this quarter.

And we also had all these deals with the Airbus as well.

So just wanted to basically understand the traction that we are seeing in the Aerospace division.

We've seen travel rebound significantly across the globe.

Q3 FY23 Earnings Call January 19, 2023 And is it that kind of leading to more traction in this division?

And do you think it can sustain going forward in the next year, I mean, as an industry, do you think there could be more similar kind of deals either for us or for the industry as a whole in this segment over the coming quarters, given that most of the Airlines’ profitability and other values are basically now into the green again, and they might start spending again on both the fronts.

Secondly, my question was just a big basically, a quick clarification of the SWC margin thing.

As we have mentioned that the first quarter of next year, we will see a 180-200bps impact of margins.

Would there be any non-recurring impact of that as well?

Or is it just the integration, which is going to reset the margin to that level?

And then gradually, we're going to wrap it up as the growth comes in and as we basically rationalize the operations.

So that's the two questions from my side.

Amit Chadha

One on Airbus, I do want to acknowledge one thing.

Dr. Panda, as you're aware, is an Aerospace engineer & this account is very close to his heart.

So, we did start trying to pursue this while he was CEO.

And I'm happy that after years, we got empaneled first as a provider and then got selected.

In fact, he was in our Board meeting today, and he said one thing – “you delivered very nicely done.” It has been a dream, right?

So, I do want to say for an aerospace engineer, getting Airbus empanelment for digital manufacturing etc. is a dream.

I do think and a lot of people to thank, compliment, etc. Having said that, I'll tell you Aerospace, the spend that is coming back is one there are design cycle that is starting again for the next-gen aircraft, right?

People are looking at smaller aircraft, they're looking at single aisle.

There are people that are talking about it.

You can read the press on that.

There is hybrid aircraft that people are talking about, etc. So those design cycles, concept cycles are starting.

These are generally about a seven-to-ten-year cycle, right?

So that is starting up.

So that's good news, number one & this is not just for us, but everybody.

So you will see more spend coming out for structures or avionics, etc. Second, what's happening is there is a technology conversion happening from mechanical to electric, power electronics, et cetera, within the existing aircraft.

That again is a smaller cycle, that's about maybe a five-year cycle.

So that's kicking off as well.

So that's number two.

Number three, the digital manufacturing part that they are bringing to a shop floor for a more integrated delivery, full life cycle system as they deliver aircraft and people take deliveries.

So that is what is happening.

So you will see spend in Aero growing as you move forward, right?

So that's that.

In fact, one more thing was that you remember at one time, Japan, they were trying to do something and they stalled it because of COVID, again starting to have conversations where it should come back, et cetera.

So a lot of positivity in that sector that I believe gives a lot of breather to a lot of people.

Rajeev Gupta

Let me take the question on the consolidation impact.

In the previous analyst call, I did indicate that the SWC margin is in the range of 8% to 10%.

So, Q1 truly is the impact of consolidating Q3 FY23 Earnings Call January 19, 2023 the two financials and of course, the impact in terms of acquisition, etc. But from thereafter, it is going to be a progressive improvement, looking at both revenue synergies and cost synergies.

What we believe is quarter-on-quarter, you will see that progressive improvement coming through, which is where our aspiration is to come back in terms of 18% EBIT in H1 of FY26.

Moderator · Conference Operator

The next question is from the line of Ravi Menon from Macquarie.

Ravi Menon

Well, two questions.

First, within transportation, would you say that at least this year, Automotive is

Moderator · Conference Operator

Sorry to interrupt you, please use the handset mode.

The audio is not clear.

Ravi Menon

So within Transportation, would you say that Automotive is the fastest-growing this year, followed primarily by Off-highway with Aerospace a little further behind.

Amit from the way you sounded it looks like Aerospace is going to pick up.

So how should we think about growth within Transportation overall for CY23?

Amit Chadha

Ravi, can you repeat that, please?

Ravi Menon

I was saying within Transportation over this year, would you say that Automotive was the fastest growing and maybe followed by Off-highway and Aerospace further behind?

And how should we think about CY23?

Amit Chadha

Number one, Transportation did grow, right?

And let's wait for April to conclude which grew the fastest and slowest.

But I will say this to you that for CY23, see, there are a few trends that we definitely see happening.

A) One is a lot more electrification of Automotive, so that will continue.

Companies, however, have to remain profitable to be able to spend.

B) T&OH - Construction of highway is seeing added autonomous as well as electrification and connected spend coming in.

So, that is definitely happening.

C) Aerospace, we believe, is starting a design cycle, but more than mechanical, we believe this will be more avionics and electrification, etc. led and digital manufacturing led.

The reason I make that point is that earlier design cycles used to be a lot more mechanical led.

This time, we are seeing a change in that.

And we believe that we are well positioned in that area because we are more electrical embedded driven than mechanical driven in this area.

So overall, do I see the growth?

I absolutely see good growth coming in this area, continuing in CY23

Ravi Menon

And a follow-up on the Telecom & Hitech. you mentioned that in ISV, there was some pressure.

So how should we think about this?

Will ISV shut down some of these older legacy products that should we say - do we see a hit?

Or do you think that more shifts offshore will actually compensate for that or maybe even provide some growth?

Amit Chadha

See, for those that have followed us two years now and talk to us, ISV is one of our smaller sub segments, right?

Our exposure to ISV is fairly limited from a hit standpoint.

Having said that, ISVs are reconsidering their spends.

There was a lot of pie in the sky ideas and projects that were getting talked about.

All that definitely is taking a back - shall I say back bench because they Q3 FY23 Earnings Call January 19, 2023 also want to start delivering profit, they want to look at, etcetera.

So that's there.

But Telecom & Hitech, I do want to say that 5G spends are on and will continue to do that.

Second, ISVs are trying to stop some area of spending, but they are starting to spend in devices that they are building that will work with 5G and then tomorrow, 6G, WiFi 6, etc. So I do believe that, that part will continue to grow.

I am hopeful Semcom will definitely come back because the amount of semiconductor required in Auto that's required in data center is there.

Yes, the number of people buying laptops has gone down because all of us purchases a laptop they wanted to & going back to work now.

But having said that, it's just temporary because if you look at the kind of production capacities that companies are building and design there are talking about, I do believe it will come back.

So overall, I do think that the Hitech recovery may start in the second quarter calendar year and then go up from there.

That's how I broadly see it -- for us specifically, though my commentaries hold that I do see our Q4 Telecom & Hitech being better.

Moderator · Conference Operator

We'll take the next question from the line of Sulabh Govila from Morgan Stanley.

Sulabh Govila

So a couple of questions from my side.

One is on the Auto vertical, particularly, which has been doing well for us as well as industry as a whole.

There seems to be no major wins listed this quarter, but so I just wanted to understand, has there been a change incrementally in the way clients are awarding deals?

Or is it just a timing issue in this quarter?

And the second is on the $30M client bucket, there's a moderation in that number QoQ.

So, is that also related to the Plant Engineering related furloughs or that's related to some other client?

Amit Chadha

The number one, Auto, not having a single $10M deal.

Again, I said this to some of you once that engineers think like engineers, they don't think like businesspeople, they don't know that $9M is not counted in $10M deals.

I would confirm to you that there are deals in Automotive as well.

In fact, there are incremental deals.

I don't know whether we’ve made it press or not.

There were a couple of new ODCs inaugurated in this last quarter.

Maybe - they have asked us for names to not be published, so we didn't, but there are a couple of new ODCs that have been published.

There were earlier wins that have ramped up in Auto as well.

There are some exciting deals in progress in Auto as well.

And I believe that some of them, they're already closed or are closing in the current quarter.

So, I would not be worried about not announcing a deal in Auto.

I was focused more on making sure that we get - because last quarter, we got feedback on this, the $9M is $9M and it’s not $10M.

So, we made sure that there are some deals between $10M, nearly close to $20M also.

But we haven't called them out as $20M because we believe in the practice of being a little conservative on these things.

But I would not worry about Automotive -- all I would say is that we continue to grow in this area, expand, hire, etc. Now in fact, we are doing walk-ins in Munich.

So, anybody who has friends can even recommend people and in Bangalore & Mysore.

Q3 FY23 Earnings Call January 19, 2023 Now let me go on to the $30M.

I agree with you that that $30M, there was one client, in fact, less in sequential LTM,.

In fact, not just $30M, we were flat in $20M as well.

Though $10M+ grew one sequentially and $5M grew one sequentially.

And of course, $1M grew by 8.

So I have access to Q4 data, which I expect we will do.

And you will see some of these furloughs did have an impact across, right, everybody there was a shorter quarter, etc. So, what I can confirm to you is that this will correct itself.

As we move forward, our focus on account mining scale continues to be laser sharp so that we can expand.

Moderator · Conference Operator

The next question is from the line of Mihir Manohar from Carnelian Asset Management.

Mihir Manohar

Largely, I wanted to understand on the North American geography side, I mean, North America hasn't grown for this particular quarter.

So any signs of demand moderation across this particular geography?

I mean your comments with respect to this geography.

That will be helpful.

And my second question was on this Airbus notification that we made.

Earlier also, we were like a strategic engineering partner, and now we are there for advanced capabilities.

So just wanted to understand, given the fact that our penetration and our capabilities are improving on the Aero side.

So, what kind of spend could be there for us specifically over the next year from the Aero side?

I mean could it be like $5M kind of a spend per quarter?

Could that be the potential opportunity?

So I wanted to understand that.

And my third question was on the guidance that we have given the 15% constant currency guidance that we have given, and it implies 4.5% to 5% kind of a growth for balance part of the year.

So, I mean what is bringing us that confidence that given a muted growth this quarter, we are still hopeful about having 4.5% to 5% growth for the balance part of the year?

Yes, those were the questions.

Amit Chadha

So Mihir, here are the answers.

Number one, you can see that North America, actually, there was a 0.7% de-growth it shows here because of this revenue, the way we count currency, but India shows 6.4%.

I can confirm to you that we don't work in India, right?

Largely, our India revenue that we report is actually INR billing, but it is done for US and European customers.

So, I would like to confirm to you that Europe, North America - both of these and ROW have grown, the India growth that you see, you should actually count it towards the 3 Geos because for India, we do very little, maybe some $1M/$2M per quarter to that extent, $3M.

So please read it like that.

In fact, next year, we will review this and see if there's another way to present this because we get asked this question every quarter.

So, we'll review this.

Second, Airbus.

See, please understand, Airbus is a very -- shall I say, -- I want to find the right word for you.

They have a very process-oriented methodical empanelment exercise, etc. So, what happened last time around when we announced it was we have been chosen by Airbus for Skywise platform and they had empaneled us as a vendor and given us MSA, etcetera, signed global really, which was earlier only in India MSA.

Now what they have done is, specifically in digital manufacturing and the other area, they have qualified a spend and said we will spend X amount of money, and we have been empaneled as Q3 FY23 Earnings Call January 19, 2023 one of I again can't give a number who are not liberty by Airbus to do that, but one-off say N number of suppliers and N is a very small number.

So, they will spend that XX dollars amongst those very little vendors in those two particular areas.

They've in fact given us a ramp-up plan, etcetera.

The reason I am again not quantifying it is because that is a discussion we've had with Airbus on.

But I'm fairly confident that it will ramp up.

We actually started recruiting, training, etcetera, as well as building team organization structures, etc. I will actually request my colleague, Abhishek, our COO, to talk a little bit about the process he does to get ready for such ramp-ups.

Third, Aero do we see growth?

In avionics and digital manufacturing.

Lastly, guidance, 15% constant currency amounts to more than 3% growth as far as we are concerned.

And a point was asked earlier, were we slowing down.

So see, we were at about a 4% growth rate in last year, and we had done that whatever, 19% to 20% that we grew last year.

This year, we've been a 3%+ range.

Quarter 3 was muted.

And next quarter, we see it's not played out yet.

That's why we give guidance and let's say, don't give a firm number.

We still have to bill, we still have to invoice, to collect.

I can assure you that it will be greater than 3%.

Will it be 4%, will it be more is to be seen.

Abhi, would you like to add on Aero specifically what we're doing in terms of that?

Abhishek Sinha

I think you all would have heard about the center we opened in Toulouse about 4 months back.

And no one invests in a center in France, if they don't have the confidence of growing in the region, and it was for Airbus, and that's the reason we opened that center.

If you look at of course can't share number, but if you look at our growth, of Airbus in the last couple of quarters, it has been actually one of the fastest-growing accounts for us.

And this is all in the backdrop of a very structured academy program that we have, training program that we have created in partnership with the Airbus all our training materials, the way we go about it, there’s an engine running and how we hire people and train them & internally move people into the account.

Our relationship with Airbus is at a very advanced very strategically placed.

We have even won some awards again can't share details.

But I think we are in a good space and this partnership that Amit spoke of that we won the empanelment.

I think that augurs well for us in the digital manufacturing space, especially.

Moderator · Conference Operator

We'll take the next question from the line of Akshay Ramnani from Axis Capital.

Akshay Ramnani

So, first question was on offshoring.

So, in your opening remarks, you mentioned that we see offshore revenue mix going up to 60%.

I wanted to understand what are the drivers of this trend and which are the verticals where we expect this to be play out?

Amit Chadha

So let me start by sharing the verticals, and then I will request Abhi, my colleague, COO to address the drivers for offshoring to increase.

From a vertical standpoint, see, as you look at it, we expect it to be, and I want to say this, you'll see this across verticals.

It's not a vertical or a second vertical, you'll see this across verticals.

I would also say that digital engineering – digital Q3 FY23 Earnings Call January 19, 2023 products and services as well as embedded, testing, parts of digital manufacturing.

We'll see this a lot more, right?

So, it's across.

It's not like it's one or the other.

Abhi, would you like to give the drivers for offshoring?

Traditionally.

Abhishek Sinha

Yes.

I think when we looked at our operational strategy, while everyone knows utilization freshers pyramid, these are all usual levers that you look at for margin growth.

But offshoring is probably one of the biggest levers that we have, as a company, decided to work on.

Our near- term aspiration is to go to 60% of our revenue coming from offshore.

And we know that, that's a big lever from a margin perspective.

One of the things we have done well this quarter and hope to continue to in the coming quarters is a very high degree of focus on fresher utilization.

The freshers that we take every quarter anywhere between 500 to 600 freshers that we take every quarter.

Not only do we make sure that they are ready to get into billable projects that helps in margins, but more importantly, that also help in pulling more work offshore.

The last point I would like to mention is we have very actively started engaging with our customers in pushing the work to offshore, we have kind of created an ‘offshorablity index’ of our various service offerings.

And we engage with -- we have started engaging with the customers actively on why a certain piece of work must be done offshore and of course, leveraging the whole hybrid working model that the COVID has taught us to see this work can be done from outside office, can be done anywhere.

That whole engine between sales and delivery are starting to show results.

We have been working on this for some time, and I expect this to continue.

Akshay Ramnani

And second one was on headcount addition.

This has been soft for past four quarters now.

So would it be fair to say that our utilization, which came back to about 75% would have now normalized to the comfort range of 78% to 80%.

And here on, we would need to add headcount going forward.

Is that the situation now?

Amit Chadha

Yes.

So, number one, we did -- so number one was, yes, Q2 and Q3 saw us improving utilization, rationalizing pyramid, etc. I do want to confirm that Q4 onwards, I do believe that headcount addition sequentially will come back.

We've reached levels that we are comfortable with because we are a tech company.

We do invest in labs, we invest in people working in labs, people creating solutions, practices, widgets, etc. We are comfortable with the utilization that we see now.

And therefore, you will see headcount increasing now sequentially as we move forward quarterly.

Moderator · Conference Operator

We'll take the next question from the line of Kawaljeet Saluja from Kotak Securities.

Please go ahead.

Kawaljeet Saluja

My question is for Rajeev.

Rajeev now when you are doing some back of the envelope calculation on margin guidance.

And it seems that the way you have given guidance implies no contribution or a bit from the acquisition, SWC acquisition.

Now is this largely because of Q3 FY23 Earnings Call January 19, 2023 amortization charge?

Or do you expect the core organic margins also to deteriorate from that 18.5% you reported?

Rajeev Gupta

Let me clarify, this does not bake in any deterioration on the organic margin.

I did mention it earlier that given we've done 18.7% EBIT in Q3 with all the operational levers and improvement in offshore and many of those things that we've talked about earlier, we do see a fair bit of comfort of sustaining this margin organically as we spoke.

As far as the SWC acquisition, there is part of amortization also baked into it.

Plus, there may be some investment that we would have to make.

And as you would appreciate, the strategy that Amit talked about in terms of Next-gen Communication, Sustainable Spaces and Cybersecurity, we will bring in experienced sales leaders to be based in respective geographies where we want to drive growth, right, and be able to position this to the existing customers and also solicit newer customers.

So, part of that will be investments.

But like I have said earlier that progressively, we should be able to see both revenue synergies and cost synergies play out.

Kawaljeet Saluja

So, Rajeev, what would be the EBIT margin?

Let say you given the EBITDA margin for SWC, 8% to 10%.

What would the EBIT margin be?

How much do you think it trends down to before it starts recovering once the synergies kick in?

Rajeev Gupta

So, Kawaljeet, I can answer to what is historical.

Like I've said, we've been in an EBITDA range of 8% to 10%.

In terms of EBIT, very similar.

I mean, there is not much of cost between EBITDA and EBIT that that business entails.

So that is where it is.

To your specific question, I may have said this in the previous call also, as we get more color, we will certainly provide that when we come back in Q1 FY24.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, that was the last question.

I would now like to hand the conference over to Mr. Pinku Pappan for closing comments.

Pinku Pappan

Thank you, everyone, for being present on the call today.

And we hope we have answered most of your questions.

We'll be happy to connect with you during the course of the quarter to clarify any other questions that may remain.

With that, I would like to say bye and wish you all a very good day.

Thank you.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, on behalf of L&T Technology Services Limited, that concludes this conference call.

Thank you for joining us, and you may now disconnect your lines.

Note

This transcript has been lightly edited for clarity and accuracy.