L&T Technology Services Limited (LTTS) Earnings Call Transcript & Summary

Hello, and welcome to IAD 2021. I am Pinku, heading Investor Relations. And I'm talking to you live from Bangalore today. We have our senior management team joining us here with you from New Jersey, Mumbai and Bangalore. This is our third Investor Analyst Day, and we are really excited about the chance to connect with you and to showcase some of the cool stuff that our engineers have built. Every IAD, we have a theme. What's the theme for this IAD? It's engineering scale. Now when we think about where we are, it's really an exciting point of time where we see a clear path ahead to achieve scale. And scale for us means both thinking for the outside and from the inside. In the inside, it means our people, our culture and our innovation. On the outside, it means our customer centricity and our responsibility to the society as a corporate citizen. Now I'm not going to steal the thunder of my colleagues here who come after me. But you're going to hear a lot about how we're going to think about engineering scale for the future. Let me now take the opportunity to brief you about the agenda. We have about 4 hours today. The first half of the session is going to be the CXOs. We will start with Amit Chadha, our CEO; Alind Saxena, our Chief Sales Officer; followed by Abhishek Sinha, who is our Chief Operating Officer. Then we will have the first Q&A, which is focused exclusively on the strategy. We will have a short break after that. And then we're going to showcase to you the cool stuff, the exciting stuff engineering world of LTTS with a deep dive into 3 of the large big bets we are focusing on: ESEV, digital manufacturing and AI and digital products. We're also going to have a very, very cool virtual lab walk through, right? And we're going to showcase to you an EV car built by LTTS end-to-end and a 5G lab. So stay put for that. And we also will have a customer session where you can hear perspectives from 2 of our very important customers and how they think about leveraging technology and LTTS in the future. The last part of the second session will be the CFO wrapping up and giving you insights about our financial strategy. I want you to be comfortable in your seats. So we're going to have all the presentations and the decks uploaded to our website as soon as this session concludes. Let me now introduce our keynote speaker, Amit Chadha. Amit Chadha joined LTTS in 2009, has been with the executive leadership team of the company ever since. He has been heading the sales function. In addition, he has been leading the digital organization of the company, the digital portfolio of the company. Young, dynamic, Amit, let me now take the stage -- hand over the stage to you. Thank you.

Thank you, Pinku, for teeing this up. Good morning, good afternoon, good evening. Welcome to our third Investor and Analyst Day. We're happy to have you here today. I wish and hope that you all are doing well, family is safe and things stable. We are in a very different situation than we met 3 years ago in Mumbai. I wish we could have done this face-to-face, but we are on camera, virtual. And we're going to take the day today and talk to you about the vision and the way forward for the company. I particularly will cover 5 parts. I'll talk about technology as we see it today. I'm going to talk about LTTS, the journey so far. I'm going to talk about our vision for the future, talk about our strategy and way forward and finally summarize with numbers to keep ourselves focused on our goal as we move forward. If I was to go back to basics and actually go back to Abraham Maslow. Maslow in 1943 went ahead and wrote a paper on the theory of human needs. I'm sure a lot of you read this during various courses in the management school. In 1954, he wrote a book on motivation and personality. And as he did that, he talked about deficiency needs and growth needs. So he took physiological needs like air, water, food, sleep, clothes. He took safety, which was physical health, emotional, financial. He took belongingness around love, social, well-being, friends, family, et cetera. He took esteem and self-esteem, and he clubbed them as deficiency needs. And then he called self-actualization out and said these were growth needs. Now if I stand -- as I stand here today, and I couple this with technology and know-how, et cetera, we can't talk about physiological needs without WiFi and mobile phones and touchscreen phones, et cetera. We can't talk about safety without iPhone and the apps that go on your watch or Life360 that allows you to monitor the well-being of your family and friends. If I talk about belongingness, I can't not mention Facebook and the likes you get on your profile picture, et cetera, that you post. If you look at esteem, it's measured by the number of followers you've got on LinkedIn and the number of likes and shares and shares again that you get on LinkedIn. Of course, self-actualization is a different discussion for a different day. But the point I'm trying to drive here is technology has changed the way we behave, the way we think about our needs or the very existence that we lead. Let me take you to some numbers to be able to reemphasize the point. There used to be about $800 million -- 800 million devices, IoT devices in 2010. Not so long ago, this number was about 9 billion, slated to get to 25 billion global IoT devices by 2030. If I look at then the industrial robots that have been installed, in 2010 was at about 120,000. Has moved to becoming about 465,000 -- 0.5 million in 2020, 2021. But 2030 will potentially see 20 million of industrial robots. If I take then for example, the COVID cases that are there today, and I actually say this is here right now a reality for us. And the only thing that I have seen consistent through this COVID period of course, #1 is empathy, very important. But #2 is technology. The way we've been able to adapt, been able to call in to our doctors and get advice on a telemedicine basis, able to virtually see each other and be able to conduct business, be able to do reviews, be able to write programs, be able to build new businesses, launch new platforms. I can say all of that is because of technology. In fact, the ER&D spend that we thought at onetime was declining because of COVID is actually stated to expand to become from the current $1.4 odd trillion to becoming a $2 trillion industry as we move forward. Allow me to paint a picture by vertical for you, so I can share with you as to how we see this by vertical. If I take, for example, the home. For us to be more energy efficient, secure, we have sustainable homes and be able to continue to conduct business out of our homes, we believe 75% of devices and appliances will be remotely monitored and controlled. We also believe that 71% of vehicles will be fully electric by 2030. 51% of people respondents have said they believe there'll be a hyperloop, Pune to Mumbai and back, SF to L.A. and back. And I can keep on counting twin cities, almost twin cities like this that the hyperloop will create. Not so long ago, this was actually part of an animation figment maybe in a James Bond movie. If I then look at 5G. There was 4G not so long ago. There's 5G today, be it the millimeter wave, be it sub-3 spectrum, whatever have you or WiFi 6 or 6G. We do believe the world is moving in technology to a faster, more redundant, better latency speed kind of connectivity that then allows us to allow them, not just in the home, but in various fields. Moving on to the medical sector. If we move on to the medical sector, 80% of at-home applications will diagnose our symptoms and potentially offer us some treatment. 80% of all our records, medical records will become electronic. We do -- by 2030, it is forecasted that 83% of us will have personalized preventive plans for our health care, allowing us to be tailor medication, et cetera, just for ourselves. If you then move to factories and brick-and-mortar, they will not be left alone. Technology will ensure that potentially 20 million robots will ensure smooth functioning of factories. You will need humans, but 20 million robots in factories is a huge number of robots. We -- there is also a forecast that brick-and-mortar stores are not going to go away. 45% of the people will shop virtually but also go into the shops. But as they go into the stores, 81% digital technologies will be prevalent there. Before I move to our journey, I just want to pause and make sure we all understand the impact that this is going to create on our lives here, now, today. This was one prevalent thing that came out as a message over the last few months and quarters as I had the opportunity to talk to a number of people, talk to CXOs across the world that technology was here to stay. The business that LTTS is in is on solid foundation and has a huge market upside. If I was to then take a step back and talk about LTTS from FY '17, when a lot of you saw us go public, we listed on the NSE and the BSE. And we started our journey publicly declaring results per quarter, et cetera. We were at about a $480 million, $484 million clip and saw us expand. In fact, if I just take FY '17 to '20, our CAGR growth has been 17.5%. Of course, if I take '21, that drops down to 11%. If I then, just not looking at the numbers, focus on what we were doing behind the curtains or focused on was, so in FY '17, as we went public, we launched our CTO office about the same time. We also launched our digital offerings, which were less than about -- were in single -- were in actually low teens as a percentage of our revenue. As some of you may have known me, I had the charter before my current role to build the digital offering for the company. We also realize at the same time that chips were going to be a very important component for future technology and science. And we decided that VLSI design services had to be central to our existence and our growth. We also realized about the same time that just setting up an India center and working in India and U.S. and India and Europe and India and Japan ain't going to work. We will have to start setting up proximity centers in the locations where we service our clients. So if I look at our trajectory from FY '17 to FY '21, we launched digital as well as a CTO office in FY '17. We then moved on from there and also bought Esencia Technologies in VLSI design services in the Bay Area in FY '17. We doubled down on the same area in FY '19 and did a second acquisition of Graphene Semiconductor in India, and we have since been able to grow that business. We realized that proximity center for automotive in Dublin was a good start, so we expanded in FY '18 and set up a security practice in Jerusalem in Israel. In FY '19, we expanded our digital engineering center to Gothenburg in Sweden. We realized in FY '20 before that, that defense spend was something that was coming up. And we had not seen COVID at that time. But thankfully, we established an ITAR design center in Rockford, Illinois, that has played well for us in the last few quarters. And finally, in '21, in spite of the COVID environment, we saw that electric vehicles were there to stay and grow in autonomous and connected vehicles, et cetera. So we doubled down and invested in a transportation center of excellence in Munich, Germany. We also started our large deals pursuits way back in about FY '16, '17, but '18 saw us sign our first $100 million deal with a high-tech major. Of course, part of that got unwinded as we moved along, et cetera. But FY '21 saw us sign a second $100 million deal in a different segment. It gave us confidence, if you ask me, that large deals were a way forward of our lives and therefore, was the right investment to make. I also want to spend a little bit time of clients. If you remember, when we went IPO, we used to have about 223 clients. We talked about our T30:A3 strategy to go deeper and have 3 adjacent logos. Happy to share that we've not gone off the rockers and got 500 clients. We have done a very calibrated increase in clients. We're about 306 as of FY '21 and keenly watching as we add more and go deeper. What gives me pride is a fact patents that used to be at 250-odd patents in FY '17. In FY '21, we ended up with 650 patents. We did not lose our way of being a technology and engineering company but kept at it as we moved along. If I move on and talk about how the world sees us today, these are now ratings as we measure up against competition. And if I look at us from a qualitative standpoint, and I look at our solutions, scale, et cetera, on one side, and our R&D practice maturity on the other side, I'm happy to share that your company is amongst the top 5 worldwide when it comes to qualitative ER&D service ratings. Last year allowed us to be able to do a lot of soul searching. If I move to the next slide, and I look at where we are currently, we've got 5 segments: medical, transportation, hi-tech, industrial and plant. We have 4 horizontals: VLSI embedded, mechanical, digital manufacturing and digital products. If I look at the expense that we have in the geos, we've got a presence in U.S., multiple centers. Europe, I talked about Munich and Gothenburg, Israel, Japan and then India. And in India, in 5 cities. If I look at the CTO office that was established, and I talked about it, it has been institutionalized in the company and incubates next-gen solutions. Having said that, 54% of our revenues are digital for quarter 1 results, 57, and they used to be 51 in the last IAD. So from 51, we've gone to 57 of top 100 spenders as our clients. And we have an innovation culture that exists in the company. 719 patents out of quarter 1. 188 are ours and 531 belong to our clients. Now if I look at all of this, last year allowed me to be able to sit down and conduct interviews with about 200 of our stakeholders. These were clients, analysts, employees, well wishers, mentors across the Bay Area, Seattle, L.A., the Midwest in Chicago and Detroit, New Jersey, up in Boston, down in Houston and Dallas, and then again in Europe, India, Japan, a couple of them in Singapore and Hong Kong. It allowed me to be able to sit down and talk to them. So I did about -- did this as virtual interviews with them and spent about a good part of last year to be able to do that. And what I realized was that what I'm sharing with you as the cornerstones, the segments, the horizontals, the digital revenue, the deep client relationships, the innovation culture, the CTO office, these -- and the presence in the geos came out as key items that these stakeholders talked about as our strengths. I also was able to uncover and curate that there was clear trends, as I have shared with you, around home, around medical area, around the transportation area, around the hi-tech area, around the plant engineering area, the key areas that exist here and now that allow us the opportunity to be able to expand in a meaningful manner. It allowed me to sit down and look at our strengths, see how we could combine them across -- without creating any new segments and any new horizontals, but be able to call out, curate and create something for the future. I am happy to share with you that after this -- these interviews, this conversation, going back, brainstorming with all our leaders, our Board, we would like to state that we -- as our vision for the future is to be amongst the top 5 global pure-play engineering service provider of choice. That is what we are setting ourselves up as far as the vision. Now let me pause here for a second. This vision cannot be achieved if we don't look at things in the current paradigm. There is demographics that is changing along with technology. We need to stay current. And we need to be able to look at a multi-dimensional world. And therefore, for ourselves, we have created a 6-dimensional glide path as we move forward. We believe that these 6 dimensions done together are the ingredients that are required for us to move on to the future and achieve our vision: industry leading growth, customer centricity, people engagement, technology quotient, a sustainable operating model and a keen eye on environmental social governance principles I believe are required as we move forward. Let me explain. Industry-leading growth for me is how we do against the ER&D spenders and other service providers. Happy to share that part of this strategy has worked. Last 4 quarters has seen us at 4% plus, almost 4% organic growth sequentially. I do believe that the team is tuned to stay and improve from here. Customer centricity. I would like us or we would like ourselves to be obsessed about our clients, about their satisfaction, about our customers' needs and satisfaction. If we think like our customers is when we can really be strong in terms of relationship with them, feel for them, feel with them, think for them, think with them, innovate with them and improve our Net Promoter Score, our client referrals and get repeat business. Third dimension, people. We, as a company, are built on our teams. I often acknowledge and I would like to again acknowledge the spirit of team LTTS. I do believe that if we can bring everybody together and the pride and camaraderie of team LTTS, I do believe we have an ability to scale to achieve our vision. And therefore, that is an important dimension for us. There are multiple streams running in that area, Project Rendezvous, Project Avatar. I spoke to some of you about it. I'll cover more details later. But -- and as we continue to meet, share results, report success, but focused on people engagement as we move along. Fourth is the technology quotient. For us to be relevant in this industry and for us to progress forward it is important to focus on technology. Technology is not just a buzzword. For me, technology -- and all of us at LTTS, technology means the patents that we file for ourselves and the ones we file for our customers, white papers and publications that we write and then we present, industry events that we are able to attend and contribute meaningfully, build reusable assets that we can then create to help leapfrog client design cycles, technical certification of our employees to help them grow plus being able to develop products that are technically viable and ahead of the market. SMEs that we can hire, offerings and their maturity. That, for me, is technology quotient. Our CTO office is focused in that area, democratizing technology, if I may, across and thought process across our employees to be able to bring that together. Having said all this, unless we have a sustainable operating model that can help us win deals, not just win deals but service deals, defect free, first time right, also have predictable margins, make intelligent investments that have returns and then make further investments. And finally, have a keen eye on our environment. We are socially responsible citizen. You are no longer working just from office. You actually are working from a home office. This is a virtual world. People see you in your buildings, in your apartment buildings, in your complexes, et cetera. What you carry as brand LTTS or whatever brand that you may carry matters. And your social strata is built on the brand. And therefore, it's important for us to be absolutely clear that ESG is an important area that we need to focus on if we want to be able to bring everybody together. I believe and my colleague later today, Alind, will speak about industry-leading growth and what we are focused on doing that. My colleague, Abhishek, will speak about our sustaining operating model as well as some parts of how we're enabling the technology quotient, how we are engaging people. And finally, Rajeev will bring out stuff around ESG as we stand today and the way forward. But net-net, I do believe that these 6 dimensions and them being equally important are required as an interplay to be able to provide a profitable, sustainable and inclusive growth path to our vision. If I was to double-click next, on the technology side, we haven't left things to just abstract. But we actually used, like I said, the last year to curate 6 strategic investment growth areas for ourselves. We call these the 6 bets internally, big bets. And I will spend time on each of them. And later in the day today, some of them will be covered by my colleagues. So the #1 bet for us is EACV, which is electric, autonomous, connected vehicles. Electric for me is onboard and offboard, charging as well as managing the battery, et cetera. Autonomous is the autonomous vehicle. Connected is taking advantage of what we've got in hi-tech and bring it here. My colleague, Shailendra and Seema, will cover more details later today with you and actually walk you through some of the case studies that we have done. And this bet has been curated between transportation and industrial products together along with our embedded horizontal as we go forward. The second bet for us is med tech. Med tech for me, and I will personally cover some more details today because med tech, we are not showing you in detail because given time limitations, we'll do it next time. So I'll cover more details on that. But that's being dealt with by our Medical segment as well as the horizontal supporting them. The third bet for us is 5G. Giri, my colleague is going to be walking you through some of the labs that we have built, but 5G for us is from chip to cloud and back. And I'll again cover some more details around it later today in the presentation. The fourth bet for us is digital products and AI. When I say digital products, and Nitin will cover more details with you, but digital products for us is around connected products, collaborative products and intuitive products. The AI part brings out the intuitive products part. And we'll give you more case studies of work we are doing. I do believe that connected, collaborative, we are fairly there. We are building out in the intuitive area. And I believe that's, again, a growth trajectory and factor for us. Digital manufacturing for us is around a connected value chain, digital assets in security and intelligent manufacturing. My colleague, Prabhakar, later today will cover more details. And then when we come back towards the end, we'll be here to answer any questions for you. And finally, sustainability. I believe that carbon neutrality as well as preserving resources that we have today for the future is extremely important, not just for our generation, for the generations to come. And I'll spend more time and talk to you about sustainability and what we have gathered in terms of offerings in this area. Now having said that, before I move on, in these 6 strategic areas, in the last few months, we have sat down, we have defined the total addressable market. We then defined what we had as pluses and defined the service offering in these areas. We've actually already defined service offerings. We have gone ahead and built some labs, some we announced, some we are announcing as we move forward. We have built reusable assets, but there is work in progress. And in all these areas, we're actually building a pipeline and closing deals. And subsequent presentation, we'll share with you some quantified numbers around pipeline and deals in each of these areas. I do believe that these 6 bets, played well, can help us with our vision and the numbers we are looking at for the future and will grow faster than company growth. I move on and double-click on the medical sector for you. The medical bet for us is around device engineering, digital decision support systems and QARA regulatory compliance. When I talk about device engineering, I mean product design services, software engineering, value engineering and product testing and sustenance. There is stuff that we've already built. There's an infection management platform that we have built in conjunction with IIT Madras. There is an endotrainer that was already launched in the market that basically with AR/VR technology is able to control laparoscopic arms given -- and we've actually replaced some of the mechanics there to be able to provide cheaper solutions. And this endotrainer is used to train surgeons. We've got patents in this area. Third is a low-cost ventilator, ambulatory ventilator that we are developing with IISc Bangalore. Now these are examples in device engineering that we are doing. In themselves, you may say, "That's fine. It's been done many times over. Why are you doing it?" The reason we're doing it is building an entire product allows you to appreciate how everything plays together. What is the below material? What is the cost of the below material? What are the components that go in? Can you lightweight it? Can you have alternative materials? Can you build en masse the entire 9 yards? I truly believe that device engineering, which is a cornerstone for us in our med tech area, will play us well. And these examples are just case examples for you to realize the depth that we have got in this space. Digital decision support systems. I'm sure a lot of your organizations you work for would have opened up telehealth lines during this COVID crisis. We did, and we have had people using it. Now this cannot happen if we don't have digital decision support systems that are connected, that are collaborative and then finally become intuitive. We worked on an AI, Chest AI -- rAI solution that is already launched being used by radiologists today. It allows us to be able to read chest x-rays, define symptoms. From symptoms, deduce what kind of disease you may have. COVID is one of them, unfortunately. But we've been able to leverage this. We're at about 95% accuracy. I do believe we should get to about 99%, but we've only seen so many records. We need to get to the millions of records to be able to do that. Given that this is all a very regulated industry, it's, again, an example of what we have done in digital and decision support systems. Because we believe that if we understand the whole 9 yards, we will be able to create lot more solutions in this area. Finally, QARA regulatory standards. Regulatory compliance is key for any kind of work being done in medical, and that's another area that we are double clicking on for med tech. I'll move on, and I hope I'm doing okay on time. If I was to look at 5G, which is the next frontier in reliable and fast connectivity. For us, 5G means new product development with device and chip. So that's chip design, et cetera, et cetera. Private networks. There's a lot of use cases of 5G with private networks and brick-and-mortar industry using it. So we will be actually helping our clients do network deployment, services and private networks as well as managed services. Network assurance around design, deployment and service assurance. We, in fact, have our own intelli-agent pool that can actually do an end-to-end testing. And finally, lab as a service. These 5 will be our double clicks, if I may, in the 5G area as we move along. Moving to our third bet because other 3 will be covered by my colleagues. Sustainability. There were 17 goals that are defined by the United Nations. I do believe that LTTS can meaningfully address about 6, 7 of these dimensions, like clean water sanitation, affordable housing, on and on. And what we can do for these is around green product compliance, light weighting, green sourcing, zero liquid discharge and water management and renewables and energy management. This particular bet is being worked on by our plant engineering, industrial products and mechanical and embedded horizontal. And we are bringing this together and making some success. I do believe that this will be the sixth bet that we have curated will -- may start off a little later, but I do believe this has an exponential potential to expand. Having said that, if I don't talk about software and move on, I'll be unfair. So we actually created a path to improve our digital quotient further by focusing on software in product engineering. So we are actually scaling up. And you can see I've tried to create some indication here. The blue is the invest, which means that we are actually starting to build the service offering or curating and finalizing service offering. Build is where the service offerings are already there and created and now need to scale. And scale, of course, is that we are already on their way to scaling up further. I've given you a 3-year horizon around FY '22, FY '23 and FY '24. And if I was to then go down that list and very quickly let you know, digital twin for us is around virtual precision simulations, and how precise we are as you simulate the digital twin. And that's something that's already scaling, along with cloud native, micro services and service mesh. In AI, which is embedded AI as well as hardware accelerators, automation, analytics, security, cybersecurity, node-based computing and APIs, we've already curated our service offerings. And we are on a way to scale them. I believe the scale-up will only happen next year. We are doing POCs with multiple clients in these areas and successful POCs, mostly successful POCs. And I do believe this will scale next year onwards. Edge compute as well as gesture-based interaction. So you don't -- you can cut my voice off and only based on my hand signal make out what I'm trying to let you know. But I believe that this is a thing that we are still working on. Very honestly, the CTO office is engaged in the edge compute and gesture-based interaction. It will take us next year to be able to complete the offerings in this space and scale beyond that. But net-net, if you ask me, the 6 bets, the softwarization of our product engineering business is key as we move forward on our growth journey. If I was to then talk about our team, it's key for us to realize that we can only do so much alone. It is the team that brings it together. Happy to share with you that the team that you see on this slide has between itself collectively more than 550 years of experience. Each one of these people individually, executives has between 2 to 4 decades of experience. And most of them have spent more than 5 years with L&T or LTTS. I'm fortunate and humble -- fortunate, and actually, it is an honor to be leading and humbled by the fact that I'm leading a team of such great veterans. I do want to say that we work on a 4-in-a-box model at a very broad, high level. Sales has got 4 leaders. Alind leads Americas and Asia, and you'll talk to him later today, and then we've got a gentleman heading Europe. We've got somebody heading India and Middle East and somebody running large deals, and that's sales, and that reports before -- report to me directly. Our horizontals, and our vertical heads and some of those that you will meet today, later today, they report into my colleague on the Board, our Chief Operating Officer and Whole Time Director, Abhishek Sinha. And then we've got the functions like the CFO, CHRO, CMO and our Head of Strategy that work with me directly. Our CTO is responsible for next-gen solutions, and he works with me directly as well. One change that we have made in the last 12 months is we used to have a delivery offsite center in North America. We've actually now created a delivery offsite center in Europe with the Munich center and the Gothenburg center and all -- and Israel, and we are putting focus to establish local footprint in Europe. The point that I'm trying to make here is that please rest assured, your company is in safe hands with a team like this. If I was to then focus on a subject that's very close to my heart, that is developing leaders for tomorrow. Because we are good today, we are good tomorrow, but day after, are we still strong enough to sustain and grow? So there are 3 things that we are focusing on. One, with changing demographics, it's very important that we are affiliated in leadership and lead from the center. Like an orchestra, where the conductor or the maestro stands in between, and you've got the flute, you've got the drums, you've got the guitar, you've got the cello playing at different times in perfect harmony, I do believe that we need to come together in a collaborative manner. And what we are banking ourselves on is affiliative leadership. The second principle or b part of this is building and nurturing high performance. We used to have a CEO club. We've started a star squad now. The whole idea is to bring people together and be able to solicit ideas, give them more autonomy, demand results and make it a happier place. Finally, we are a technology company. Unless we differentiate between technology and management, it will not work. So we've actually taken the various cadres in the company are in the process of right now dividing up the organization between managerial talent and technical talent in various places, so that somebody who wants to be a technologist can end up as a CTO as a potential progression in the organization. This, we believe, along with partnerships with the IISc and Coventry University and many others, I believe, will help us create technical trailblazers as we move ahead. Having said that, I talked about ESG. Society is an extremely important part of our being. The last few months saw us question our own being a number of times. And it gave us an opportunity for us to be able to understand that if we don't give back to society, it does not work well. We've, of course, given the L&T parentage, given our earlier CEO, Dr. Panda's passion. Our Chairman, Mr. Naik. Our Vice Chair's passion and passion of all our employees. We've actually focused on 3 broad areas in CSR: health care, education and the reskilling skilling, sanitation as well as providing an environment homes to people. Now on the slide, you see this makeshift hospital, some homes, ambulances that we've given out. But it's an ongoing effort for us as an organization to stay engaged and give back where we can in the cities that we operate. If I was to then come to my summary and as we stand today, our aim quantifying is to get to $1 billion run rate in the next 12 to 15 months. That puts us in Q2, Q3 of FY '23. And a $1.5 billion run rate in FY '25 with 18% EBIT and then look at the $2 billion beyond. I do believe, ladies and gentlemen, colleagues and friends, that if we look at our -- follow our 6-dimensional glide path, we focus on our 6 bets, we will be able to get to this in a profitable, sustainable, inclusive growth manner. Thank you so much for listening to me. I look forward to taking your questions right after this and then engaging with you beyond this and stay committed to working with you. Thank you so much. And again, wish you all the best. Stay safe, stay strong. Thank you.

Thank you, Amit, for outlining the vision and the strategy. To double-click on the customer centricity, I would now like to invite Alind Saxena, Chief Sales Officer, Americas and Asia. Alind has been with LTTS for more than 10 years, and he has built the transportation sales engine from grounds up. Alind, the stage is yours. Thank you.

Good morning, good afternoon and good evening, everyone. Thank you so much for joining us today. Very happy to be here look forward to spending about 20 minutes with you, walking you over what we have been through in the last few quarters and what we expect to see in the next few quarters to come. So if there is one thing that the pandemic has taught us is that it's very important for us to focus on long-term trends. And that's exactly what a lot of leaders across the world have done. If you look at after the initial problems, which were there when the budgets were frozen and there was difficulty in understanding what was going to happen next, the leaders have come back and committed their investment dollars across the board. Now these dollars are finding their way into many different programs and projects and opportunities for all of us. And we expect this trend to continue over the next 18 to 24 months. The CEOs all across are fairly positive about 3 things. One, they do think that the outlook is positive. Two, they are fairly sure that technology is going to be front and central in anything and everything that they do, which is going to transform their organization. And three, that the hiring is going to pick up. Now the hiring is very important for us because that's where the services revenue comes for us, and we are very happy that this is a long-term trend that we are seeing. Next slide. Now as our customers are deciding their own strategies of growth and margins, we are having to play with them in both these sides. Now the growth side of it is where they decide their product portfolios, and the margin side of it is where they decide their cost portfolios. Now if we look at the legacy engineering services that we have been providing for a very long time and when our customers are defining their portfolio, they are able to give us a long-term trend on how and what their product portfolio structure is going to be. We look at it from new product development. We look at it from cost, which is value engineering, which is what we do. And plus, our customers are looking at their sustainability metrics as well, which is making fundamental changes in the plants that they have. So plant engineering also benefits from that. It's particularly true when you're talking about an oil and gas company or a chemical company for that matter. So for legacy engineering, we see a fair amount of expansion happening based on what we are hearing from the customers. Now there is another trend which is picking up very, very quickly is that the company's revenue is no longer going to come only from products. So they are looking at revenue coming from the sale of the product, for sure, but that is becoming a smaller amount compared to the overall revenue that they expect to earn from these services. Now when you talk about services revenue for these organizations, they haven't done that before. And that means that for that, they have to build a smarter, more intelligent product, which communicates with them; and two, they also have to look at treating those fundamental, what we call platforms, that they will use to work with their own customers. Now they haven't done that before. They call on us, and we are engaging with them. For example, there is an industrial customer that we have been working with in North America. And they came to us when they started their journey a few years back. And since we had already developed some of these platforms, we were able to engage with them and help them get that -- get there faster. Not only that, we have been able to use that platform to take that to other customers as well and to implement that in their divisions. So it's becoming a very pronounced way for us making revenue and for us -- for our customers to get there faster. Now similarly, once they have seen the benefit of that, they are opening up their minds to doing digital manufacturing or digital engineering in the manufacturing sector as well. So that's where the Industry 4.0, or asset reliability, or AI-enabled processes all come in and which are all contributing towards the growth of the revenues for us in that sector. Now whatever we have talked about so far, we have had a good customer view. The ER&D research firms are also confirming that view. So one, we are clearly looking at the overall growth in expansion between 2020 to 2023. So the revenue is going to grow. And two is that each of the sectors that we work in today are going to have their own trajectory in how that revenue is going to happen. Now it's very interesting that each one of them have their same path. And you probably heard Amit talk about it a little bit earlier for transportation, and we have a separate session that we would want you to pay attention in here. But I'm going to take a couple of minutes and talk about hi-tech, where we see enormous changing happening. So if you were to look at hi-tech and let's -- within hi-tech, we just focus on telecom. In telecom, there is what we call democratization, which is happening. Now the democratization which is happening means that the hardware and the software are getting separated. So what that means is that many new players, which were initially not able to come in because the cost of the infrastructure was very high, are able to come in because they are able to create that software, which is bringing those changes. And able to bring those platforms, which can be used now worldwide. We are very happy that we have been able to associate ourselves with some of these players, and they are contributing to the expansion of our revenue as well. And we do see this trend to continue. The second thing which happened is on the semiconductor side. So semiconductors, and I'm sure you are hearing all about it in the papers and otherwise, they are being moved across for 2 reasons. One, the number of connected devices overall is only at about 9% or so on where -- what everybody feels they could be. So that means just more and more intelligent semiconductors need to go there. And the technology for building the semiconductors is dropping now from being somewhere around 9 nanometers, 10 nanometers, 12 nanometers to coming down to 3, and in some cases, 2 nanometer. So that's bringing in a lot of design changes that are required in semiconductors. And two is that the geopolitical scenarios where they were these established design houses and manufacturing houses, they are also getting spread out in the regions. Both of them spread very truly to the opportunities that we see in the market as we go along. So net-net, digital will increase at a much faster pace than legacy, but it doesn't mean that we will not expand in the legacy engineering part of it as well. So where does that lead us? As you have probably heard by now, our focus has always been customer, and we will always remain a very customer-centric organization. We have earlier talked to you about T30 and A3, which is basically a mining strategy and growth strategy, which now called adjacent. So those fundamentals are not going to change. We have been fairly consistent in our performance using the same strategies. But given the pandemic and the challenges and the opportunities that the pandemic is bringing now, we are tweaking those. And we are optimizing and we are expanding these fundamental 4 pillars that we have always had into something more constructive and a lot more productive. So let me talk to you about the next -- in the next few minutes about these 4 pillars, which is super sizing of accounts, mega deals, adjacents or hunting and our geo strategy as we go along. Okay. So -- and I'm going to take some time on this. So follow me over here. So one of our customers, a North American med device customer with who we have been working for the last 6, 7 years, it has grown by about [ 4% ] in the last 18 months or so. And I may be off by a few percentage points here. And if I were to break down that growth, and talk to you about the reasons why that growth has happened because of the strategy that we have put in, and I'll walk you through one of them, each one of them. So the fundamental is delivery has to be important. So we have looked at delivery, and we have looked at delivery in 2 ways. One, while delivering the -- in delivery, we have created what we call practices. When my colleague, Abhi, talks to you, he is going to cover that in a little bit more detail. So those practices are very close to our customers in their domain. And that's very important for us because the customer then relates much more to us. And two is we have empowered the leadership that we have on the ground with the customer. And you can imagine this is because of pandemic and people not being able to travel and so on. This empowerment of leadership means that they are able to work much more closely with our customers, come up with solutions, put those proactive proposals back to our customers and enable a change at a faster node. So that's clearly helped us. The next 4% to 5% of the growth has come from our ability to work with them in different regions and different divisions. But the biggest piece of growth, I would say, between 10% and 15% of the growth per annum has come in, in some of the changes that have happened. So one is that the customer has started relooking at what core and noncore is for him. And what that has led to deliver to us is that they are much more happier giving us a complete [indiscernible] or a complete product to support as opposed to giving up pieces. Now this has led to carve-outs and a lot of large deals that we have won over the last few years. Two, we have been able to go in areas or budgets within our customers that we weren't going earlier. So for example, marketing or supply chain or customer service or operations were some of the areas that we were not engaged in, but the customer is very happy to engage us in these areas because we are able to do that through digital means across the board. And lastly, we know that the problem that we're trying to solve for our customers are becoming much and much more complex. And we know that we alone can't bring all the solutions. So we have been working with partners to bring those solutions together and to be able to create the effectiveness that we can generate because of partnering with someone. So all of this put together roughly brings up roughly about 15% to 20% growth per annum with our customers. And the same template we have used very successfully across the board to bring similar growth to our customers. We should see this reflecting and we are already seeing this reflecting. We are fairly positive that we will have a more balanced portfolio as we go along. We are fairly sure that we are going to mature our customers beyond this as well as we go along. But so far, we see all the movements in the right directions. Okay. One of our -- see, one thing which you have to understand is that engineering and IT are 2 different things. And no matter what one tells you, we don't get RSPs to respond to. We have to work with our customers to develop them. So an example here that comes to mind is in a recent -- in the telecom space. And remember, we talked about the democratization, where this was a smaller organization that we had been working with for the last, I would say, about a year or so. And we have been partnering with them on their product development. And we saw that they have been winning orders fairly consistently in the last 6 months. But they didn't seem to have a plan in place on how they are going to test the product, which is required for those -- for fulfilling of those orders and also integrate some other products that are required to make that happen. So we looked at that problem, and perhaps we looked at it slightly earlier than the customer did. We created a solution for them. We ideated along with them. And then they really liked our idea. We sat down and created what we call a statement of work on how this is going to play out. And we were able to create a 5-year deal working with them solely in that particular area. So imagine the customer was fairly happy because he didn't have to worry about that side of the problem. And we were very happy because we got to work on a new technology that was something which was not there in the market yet. So a win-win for all of us in that particular case. And this is not something isolated. This is something that we see again and again. So what we needed to do was to make sure that we have an organization which is able to cater to that. So we created a part of the organization which was focused on what we call structured ideation process so that we could keep generating these ideas and we could keep having these learnings that we have from other customers flow into those -- that ideation team. And then we created a large deals team. It's been about a year or so since we created that, whose whole purpose in life is to take those ideas and bring them to maturity as we go along. Now the areas that these ideas have been working on have been fairly consistent. So whether it's scale and velocity that our customer is looking at or digital transformation or carve-outs, as we talked about, each of these areas are the ones that are helping us with the growth of creating these large mega deals. And again, most of the deals are a combination of these ideas, not one by itself. In fact, for one of our customers in the EV area, we were able to scale roughly about 250 people in less than 4 months, and he really needed that because he had won orders that he didn't have earlier and here to service those orders fairly quickly. So hunting our adjacents, as we call it, remains core to our strategy. We must get new clients in fairly quickly. And we have done a good job so far. Now the way that we are looking at these customers is slightly different now. Of course, we have these conventional customers with whom we have worked forever. But what's coming into the market is what we call disruptive customers. So these disruptive customers are the ones who are bringing 3 things: one, they are very well funded. So money is not an option, not a problem for them; two is the 1 scale and velocity, which we talked about in the previous slide, which is, again, very important for us as we want to grow quickly; and three is they are working on new technology. And that, again, is very, very important because when we work with them in these new technology areas, we are able to take and understand that and also take to our second and third customer groups, which are there in adaptive and conventional. So net-net, we remain focused on working across the board. Of course, we manage our risks on who we work with. But we are fairly confident that this trend, again, is there to stay. And if we pick the right winners, we can grow very quickly along with them. So I won't spend too much time here. Our geo strategy remains the same. We are very clear that we want to expand in different geos. In fact, during the pandemic, one of our customers came to us and he wanted to fix a supply chain issue in Europe. And we had no option but to help them support in Europe, and you can imagine doing this during a pandemic. And if he had not invested in a local team in Europe who understood the ecosystem, we wouldn't have been able to support that. So we will continue down that trend. We are actually strengthening more and more our leadership, our subject matter experts, and we are creating this ecosystem of partners in geographies. We are doing it for all the 3 geographies that we are focused on. And you will see more and more investments going there. We do believe that Europe is going to expand a little bit more than North America as we see. And medical and high-tech are again a few of the verticals that are getting fast attention. So what has all this led to? The next 3 slides, we will talk to you about how we have been able to harness this whole strategy into creating outcomes from -- for us. So 20% growth over the last 5 quarters, 4% organic growth, where we're considering double-digit growth in each of the verticals that we see, and a very positive outcome as we see across automotive, industrial products, CPG and high-tech over the next 18 to 24 months. So we remain very positive about that. Two, large deals. The system that we have put in place seems to be working. We have got a fair amount of large deals across, including winning the $100 million of contract that you are all very well aware of during these very difficult times and equally excited about our sales team being able to win new logos across geographies. And again, been doing that in these very difficult times where you can't sit and work with the customers directly. So we remain very positive about this momentum to continue as we go along. Okay. Remember, we talked about long-term trends. And we had invested with them and we've been fairly glad that the organization -- our organization has taken a long-term view on these trends, and we continued that investment over pandemic. In fact, we inaugurated 1 of our electric vehicles lab that my colleague is going to talk about during that time as well. And all those investments have had us -- or provided us major wins across all the big bets that we have talked about. Not just that, we have a very healthy pipeline as we see going forward as well. So watch this space as we see. In summary, we are very excited about the future. It's not very often that you are in the middle of a huge technology boom that's happening. We are very glad that we have 57 of the top 100 spenders and expanding as our customers. We are also very glad that the assistance that we offer are going from silicon design to -- all the way to cloud management. And see is that the investments that we have been making, the solutions that we have been creating in the areas that we have been talking about in big bets and so on, they have become very, very critical to our customers as they plot their own journey from moving from physical to digital. So I have no doubt in my mind that we would remain preferred partners to our customers, at least for the foreseeable future, and that will provide us the growth and the opportunity that we have been looking for. Thank you so much for joining us in the presentation. I truly appreciate your time. I'm available for questions during the Q&A sessions in about 1 hour or half an hour from now. I look forward to speaking to you then. Thank you so much. Goodbye.

Greetings, everyone. I'm Abhishek Sinha, Chief Operating Officer of L&T Technologies. Amit spoke of the 6 dimensional glide path and, of course, the 6 big bets. Alind spoke of the large deals focus, supersizing of accounts, adjacencies. In my presentation today, I will focus on the execution angle of these strategies. But before that, let me share with you how we have operationally done over the last few years. We live and breathe technology because we are a technology and services organization. However, we have been able to keep our operations strong over the last 4 years. Our utilization has gone up by 400 basis points, offshoring up by 700 basis points. We have checked our pyramid. And as you see, our CNB, as a percentage of revenue, has gone down by 700 basis points. And all in all, we have been able to deliver 400 basis points improvement in gross margins. All of this without taking our eyes off technology. We have continued to invest in innovation labs, increase our engineers on filing patents. The icing on the cake has been the Net Promoter Score, which is a reflection of customer satisfaction. It has gone up by 1,800 basis points. And we have, of course, kept our eyes on gender diversity. Our company's operational framework is founded on 4 key tenets of engineering the change: number one, we celebrate technology every day; two, we excel and we obsess about our customer delivery excellence; three, we believe in nurturing our talent; and four, investing in cognitive systems. Let me double-click on each of these tenets. Technology. We will be irrelevant if we do not continue to invest in technology every day. Our innovation programs like TECHgium that taps into the talent from global universities, our programs like reveries and hackathons collect ideas from our own engineers. We have amazing partnerships with universities like Coventry in U.K., IITS, Indian Institute of Science, where we do joint R&D programs. Our CTO organization invest in R&D for the future, 3, 5 years ahead. Our businesses and practices invest in technologies of here and now. All of this comes together for us to decide what our 6 big bets were. So what I'm saying is this was a very structured program how we decide where we want to invest in. Now technology for the sake of technology doesn't mean anything unless our customers value what we deliver. We are present in 5 segments: transportation, industrial, high-tech, medical and plant engineering. Our customers love us because of our CROSS POLL!NNOVATION strategy. Now let me explain what it is. 5G testing, high-tech skills, delivered for a transportation customer, done. Creation of welding robot design for oil and gas majors, done. Annotation work, which is extremely relevant in autonomous driving, applied in medical radiology, piece of cake. How does this happen? It happens because we deeply invest in technologies, in our innovation labs. You can think of our innovation labs as places where we breed technology. Last year was a COVID year, yet we invested in 5G lab, EV lab, sensor lab, some of which you'll be seeing later during the day. And why do we do these investments? Because our customers need it. Our employees need it. And trust me, we have to if you have to be relevant in this world. This next tenet, customers and delivery. We believe we are primed for the next big leap. Alind spoke of the last deal that we have been winning and a good pipeline of large deals that we have. Now from a delivery perspective, it's extremely critical that we start green and stay green. Now what's start green? It means start the projects well, make sure they don't get into amber or red zone, have solid governance around those programs. Because if we run the large deals well from an execution perspective, we will be able to easily supersize our accounts. Now in the past, we have had accounts. We have a 2 in a box model. We have a sales leader, a delivery leader who run the account. But we believe the next era will result into changing the structures or evolving the structure of these accounts. We will see the introduction of customer technology officers in each of these accounts. Now these people will be accountable for technology across the customer base. We have already started investing in LTTS custom academies. These are academies which ensure that every engineer that joins the account is certified to work for the customer. That's what gives the customer confidence and that's what helps us superscale these accounts. We'll also see practice-based organizations emerging. We already started that in our transportation segment where we have autonomous connected functional CP kind of practices built into the segment. We will see more and more of this happening in other segments as well. Now the scale is not possible if we do not invest in the leaders of tomorrow. I'm very proud to say that as a company, we have an amazing framework for succession planning and leadership development. There's a CEO Club, there is YABC, Leaders League and many more through which we tap into the leadership talent at every level and make sure that they grow through the ranks. The scale will also result in extreme offshoring. Let me talk about that in the next slide. Now what's extreme offshoring? I truly believe we are entering the era of extreme offshoring. You look at results across companies, most of them have clearly delivered higher revenue from offshore in the last few quarters. We ourselves have hit around 58% in offshore revenues. Now why is that happening? It's happening because customers are clearly realizing that the work can be done from anywhere. So why not take advantage of that? The question is, how are we prepared to embrace this change? What we have done is, the first step we have taken is our strategy on delivery-led growth. We have handpicked some of our best delivery leaders, about 15, 20 of them, and we have put them in our strategic accounts. These leaders are closely going to work with the customers, give them comfort that their projects are in good hand even though the offshore percentage has gone up. The regulatory standards are changing. We see the emergence of safety standards, sustainability, new quality standards coming up, extremely critical that the large offshore talent pool understands these standards and thereby able to deliver predictable quality of products to the customer. That is key. The other division of extreme offshoring is, how do customers get more visibility of what's happening back in India? Now this is where we invested in a platform called AURA, which stands for A Universe of Reusable ASSETs last year. We have hundreds of our reusable assets already on this platform. We also have many of our innovation labs digitally enabled, which can be virtually shown to customers worldwide. That brings the customers closer, too. So while they can't travel, we are taking our assets to the customer digitally. We are also seeing evolving talent demographics as we move forward. An interesting thing is while technology is getting more complex, we see the future state where there will be more junior talent, fresh talent. And the reason for that is it is far easier for the younger talent to soak in technology than probably will be for the older talent. So we will see a shift in pyramid. Of course, it helps cost as well, but we definitely will see a shift in pyramid. We will see an increased percentage of masters and PhDs in our talent pool. We also see an emergence of gig workers. There's a lot of talk about it. We are watching that space closely, but we will invest. And we see a shift in contractors, gig workers coming in as well. And finally, we absolutely will continue to focus on the gender divesting organization. No presentation can be done without talking of work from anywhere or WFX. Now while the world is talking of WFX in terms of what is the percentage of engineers that will come to office, we believe that's the wrong question to ask. Yes, the percentages may vary from 10% to 90%, does not matter. What truly matters is how do you deliver projects to the customer. The core of WFX is the project manager. Why? Because it is the project manager who is answerable to the customer, making sure the product stays good, the projects are delivered on time with high quality. It is the project manager who is responsible for connecting with the employees, the talent working on the project, making sure that they are fine. They have all the tools to deliver on the project, irrespective of where they are. And it's the project manager who's answerable to senior management of the company if things go wrong. So we decided last year to invest in the project manager, and we came up with WFX certification program. More than 200 of our project managers are certified on this WFX certification program. And they have the tools to stand in front of the customer and employees and deliver better. And that is what the future is going to be, and we will continue to invest in that. Of course, it's true that hot desking is going to be the norm where an employee would come in and plug the laptop and will not have his or her own seat. And that will definitely result into some cost saving administratively because the offices of tomorrow will never see 100% attendance. That's the truth and we better embrace it. And the savings that we get from there, we are going to pump that vigorously into strengthening our IT, our security because that's something that our customers will be worried about. We're going to invest that saving into our HR and how we engage with our employees. We are going to invest in talent development of our employees irrespective of where they are. So how is this investment in talent going to be going forward? I'm very proud to say that last year, I think we made a massive change and a big step we took in setting our Global Engineering Academy, which I think has worked [indiscernible]. With the last year, we have more than 200 certification programs, over 2,000 various engineering skills. We were able to virtually connect with engineers even before they joined us through our step-in program. They had genesis program after they joined us. And the laterals who joined us go through a step-up program before we put them in customer engagements. Our whole academy is built on amazing systems and tools because we have invested in them and we have, I think, a very high-class digital learning management system today. So what's the road ahead for academy? First and foremost, it's amazing to see that customers are now reaching out to us and saying, "We want joint training programs with you." So academy customer partnership is definitely strengthening as we move forward. We are setting up academies. I already spoke about that for many of our customers. We are also strengthening our partnership with universities and making a 360-degree relationship on 4 dimensions: one, of course, for hiring talent; two, joint R&D programs at universities; three, faculty exchange program, we have faculty, they have faculty, why do we not exchange faculty with each other; and four, higher education for employees. While our academy does provide training to talent worldwide, this year, we have also started hiring fresh engineers in the local geographies, and we will see [ GA ] getting engaged with this fresh engineers, enabling them and helping them get into customer engagements. The fourth dimension is our digital systems. All this is good, but we have to invest in their digital systems, which are extremely critical for our organization's strength. We talk of machine learning and AI for our customers, and we do that every day for our customers. The question is, how do we use AI in our own organization? How do we walk the talk? We will be investing in technologies which applies AI on hiring data, on employee satisfaction data, on customer satisfaction data so that we can predict where the loyalties are, what actions we need to take beforehand so that we can avoid mishaps. It's extremely important to invest in automation tools. I already spoke about AURA. All of this will help in improving productivity, which is going to be very key as we go forward. Over the years, we have built our application through bespoke tools. Right now, we're in the middle of SAP HANA implementation, where we're getting it all together and creating a collaborative platform. We truly believe that this will help our employees be more agile and take faster decisions. With the WFX model and employees all over the place at home, at work and sometimes education as well, it's very important that we take the data, business data, of course, in a secure manner to the employee's mobile. And we are developing many applications and chat bots and tools which can reside in the mobile and help the engineers. And finally, I truly believe that not just in our company, but in our industry, there's a lot of talent -- I should say, a lot of surplus intellect that is available. Engineers, especially the young engineers, whenever we talk to them, they all say we can do more, throw more challenges at us. We will stretch and deliver. We believe if we have a crowdsourcing platform where we can throw good technical challenges where our engineers can tap in and work extra or even work smarter, I should say, in delivering on these platforms, creating assets, I think keep them engaged better. It will be great for the engineering community as a whole. So all of this is good, but there is clearly an elephant in the room, I must say, that needs addressing. The question is, right now, across the industry, the attrition is very high. So what's happening? I truly believe that this is a phase, and this will stabilize over the next few quarters. So what are we doing about it? Our approach is very clear. We will focus on fundamentals, fundamentals of employee engagement and not take any major reactions. So what is special about work at LTTS? I often talk to engineers, junior engineers, middle managers and ask them, why do you love LTTS? What makes you taking here? And the first answer you always hear is, of course, brand is great, but LTTS is clearly the largest pure-play engineering player here in India. And we feel that we are the first citizen in LTTS. And when you probe further, say, you know what, when we work in other companies, we are a second citizen because they also do engineering. They do IT and they also do engineering. So the IT guys always look like first citizens and we are the distant second cousin. But as here, we feel at home. We are a first citizen. We get to CROSS POLL!NNOVATE, we get to apply technologies across industries. There's so many labs. We get to think in the lab. We can experiment. We can innovate. You guys encourage us so much about technologies, creating patents. That keeps us excited. We have never been told no for any idea that we had. Learning -- technical learning is amazing. Leadership learning is amazing. Last year, we started, for example, a club called YABC, Youth Advisory Board to COO. And this was a council where we are the young engineers, the millennials and Gen Zs. We're only allowed in this council, by the way, to give ideas and advice to senior leadership like myself on any issues and challenges that we face. And I have been blown over by the amazing ideas that these young kids come up with. And these are the kind of things that our employees just love. Technology always has been a core of the company. Another very interesting aspect that came out last year was the extent of connect employees failed in the COVID times. The fact that we invested in isolation centers, we had any-time doc, you could call a doctor anytime, vaccination drives. Of course, we are still driving those. We had a one-touch program where the leaders would call employees, we test more than 80% employees in the company. And the call was not to check how the project is going. The call was to check how are you doing? How is your family? And every single employee have spoken to -- said, "That made me feel so special and so human." And I think these are the kind of things that really makes LTTS special for our employees, and we will not change that. So where are we now? We continue to celebrate technology every day. We continue to obsess on delivery excellence and our customers. We continue to nurture our best-in-class engineers and talent. And we will continue to invest in intelligent cognitive systems. Of course, without taking our eyes off those operational levers, which will keep us going and which will keep the company -- make the company better and better. For those of you who are into F1 car racing, you will know that it's most difficult to navigate in the turns. And the cars who have mastered that and who can lead in the turns are the ones that win. We are in an era where things are changing extremely rapidly. The future looks bright, but the change is here to stay. There's work from anywhere coming in. There is digital transformation happening every day. Extreme offshoring happening every day. The change looks like is only constant. We are L&T Technology Services, here to engineer the change today and tomorrow. Thank you.

Thank you, Abhi. So now we have heard from Amit talk about the strategy, Alind talk about the customer centricity and Abhi talk about the operational strategy. I think you might have a lot of questions right now. So we will have the Q&A on strategy today, now. And I'm going to invite the 3 leaders who presented before and Rajeev, our CFO, to answer those questions that you have. Before we get there, a few instructions. For those of you on the Zoom platform, the way to ask a question is to raise your hand in the Zoom and you can do that by pressing the reaction button or the more button depending on which platform you are in. Once you raise a question -- once you raise your hand, then I can call out your name. And when I call out your name, you can then unmute yourself and switch on the camera so that we can see you. I will also request you to maybe restrict your questions to 2, so that we have time for all the participants here. This Q&A on strategy will have -- will be just about for 30 minutes. Can I now request the senior management to be broadcasted live, please? Amit and Alind, I hope the weather in New Jersey has improved. Can you hear me?

We had some very interesting rains, but yes, we made it through.

So is it like storm in a teacup, is it?

Yes.

Rajeev and Abhi, are you okay? Can you hear me?

Doing well, Pinku. We can hear you absolutely fine.

Wonderful. Great. So to the participants, I think if you can raise your hands, I can start calling out. Yes. We have the first question from Pankaj of CLSA. Pankaj, can you come in the camera, please?

This is Pankaj. And an excellent session so far, so congratulations to all of you. I have 2 questions. First, so I understood the technology difference between digital and what you have been doing in the past. If you can also help me understand how our digital engineering projects different from the traditional business in terms of deal commercials and execution? That is my first question. And my second question is, the only area where I think you have probably not achieved the targets that you had initially aspired for is the IP monetization. So any updated view on that? Is that still an area you are focusing on? And if so, how are you changing your track to get better results?

Sure. So I'll take that. Thank you so much. Can you hear me fine, Pinku?

A bit louder, Amit, if you can.

Okay. Now?

Yes. Better. Thanks.

Perfect. Okay. So Pankaj, thank you so much. So number one, if you look at engineering and technology, as we see it, Pankaj, when it comes to digital, what we saw, say, 2 years ago or 4 years ago, when we started it, there was a lot of POCs that were happening. And then over a period of time, those POCs converted to -- these projects converted to full-blown implementations of the platforms, of rollouts, et cetera. So if you look at digital projects, and then from there, some of these digital projects have actually moved to actually sustenance more. So if I look at it, the color of these 2 projects, duration has slightly changed, if I may, and they become larger envelope sizes as opposed to being short burst POC. So that's one. Second, sustaining our digital platform and sustaining a legacy platform that's not digital is about the same, if you ask me, from a process standpoint. Of course, digital platforms and projects that we execute require a lot more of scrum models and scrum teams, et cetera. That legacy doesn't. But one thing we're sure that we've seen, and maybe COVID could have accelerated some of this, that we do see that digital is -- the work that we're doing is actually more amenable to a lot more offshoring, one; second, it still does command a premium today. This is always a moving factor, but it does command a premium. So those are 2 things on digital and traditional. Thank you for asking us about IP monetization. I was expecting this to come up from somebody. So here's what we have done, okay? If I -- if you heard me, we've taken the 6 -- the 5 segments. We've taken the 4 horizontals, and we've actually focused them in 6 areas or 6 bets as we call them. And therefore, for these 6 bets, there will be a lot of reusable assets. As Shail and Seema will cover later today, and then Prabhakar will talk, you will see some of those reusable assets being showcased to you. We have got a team that focuses only on sale of reusable assets, but we are majorly trying to take this as accelerators that we can take to our clients. Are we successful in terms of monetizing the IP? I will honestly admit to you there is work to be done in that area. But I believe that as we progress the bets forward, we'll be able to take it forward. I was in the Bay Area last week. Last week, I was in the Bay Area and met a client who was one of those Maslow logos, right? And proud to share that our testing tool called [indiscernible] has been purchased by them to be able to be leveraged for testing for themselves. So you will not see a lot of big bank coming out in that in terms of us making large announcements, but we'll do it in conjunction with the bets. But reusable assets is absolutely a part and parcel of the journey, and monetization will happen, but a lot more work to be done. Thank you.

Thank you, Amit. We can take the next question from Vibhor Singhal of PhillipCapital. Vibhor, are you there?

Yes. Can you hear me?

Yes, loud and clear.

Yes.

So Amit, 2 questions from my side. So one, I wanted to check with you, like -- we have seen in the IT services industry because of the pandemic, basically, a lot of changes have happened and a lot of things have got preowned. So let's say, the cloud adoption got preowned. And basically, there's increase in demand from Europe, which is probably expected sometime later, but its kind of work accelerated. So any such changes that we have seen in our engineering services domain in terms of, let's say, more accessibility of our services, new domains, which we are expecting to probably open up in 3, 4 years' time, opening up right away. Any sustainable changes that you might have seen? And my second question is, it's been over a year since Altran was acquired by Capgemini. It's completely integrated to their business as of now as we speak. Any change in the competitive landscape that you have seen because of the integration? Are they more aggressive now? Are they more selective? Or is it status quo? And how has that impacted our, let's say, bidding ability or our growth potential in both the business?

Sure. So Vibhor, in terms of changes that COVID has created, right, I'll be honest in everything, that the pace of digitization or digitalization absolutely accelerated. I mean -- so let me explain. If I do -- so for us, digital is digital products and digital manufacturing, two parts, right? And again, I don't want to steal thunder away from my colleagues as they will talk later today. You switch on and say the presentations are over. I want you to hear it because there's a lot of stuff they will cover. See, I believe when you look at digital products, right, there are 3 components, right? I do believe that products talking to each other has definitely accelerated, earlier used to have a one-to-one relationship, right? You are seeing many-to-many relationship happening between devices and people accelerating to [indiscernible]. Second thing is, with absenteeism going up in factories, right? And not that people are being lazy, it's just because of the COVID and the environment. At the same time, businesses do continue. We've all realized. I mean like I said, at the Bay Area coming back, about 9 hours shortly airport door to airport door with a mask, right? It's not easy. We feel like pinching the nose and saying, what the hell, let me get it. Let me take the mask off, right? But you have to continue. You have to go on with that. So the point I'm making is that, that digital has and technology adoption has definitely accelerated, so that's one change. Second is that -- the second thing that we see that is happening right now is that the offshore acceptability, my colleague, Abhi talked about it, the offshore acceptability has definitely gone up, right? And that, I think, is something that has again accelerated because of COVID and the environment we are in, right? Third thing that we've seen is that people are becoming a lot more care about a secure environment. See, we were worried at one time that there's so many gig workers, right? People will give work out and people like us will be cut loose, et cetera. That's not happened. They want to work with gig workers, but they want to work through us because they want that security bubble to come in through us or the consistency bubble or the process bubble to come through us. So I do see that these 3 things significantly have changed, but you will -- when Prabhakar talks, when Nitin talks, Shailen talks, Seema talks, they will bring out that part with you in the fireside chat that we have later. We will talk to you as well about the pace. But these 3 things for digital, offshoring and ability to cybersecurity, et cetera, thinking that we have seen. Your second question was around Altran and Cap coming together. Look, we respect competition. We appreciate what they bring to the world. Many years ago, younger, we would have told you what competition? But we all get gray hair, no hair, all that and become wiser. And I'll tell you that there is competition, right? But I will -- let me peel the onion to you on that. See, in the U.S., I don't see them, right? Very honestly. I see them in Europe, right? But more than in the areas of product engineering, I see them more in the digital supply chain side, definitely. Because see, again, you understand digital manufacturing as -- so we go from -- so there's sensors. There is -- so there are sensors. There's PLCs. There is SCADA, HMI. Then you've got MES and then you got ERP. That's the stuff, right? So Cap has a strength of coming in from ERP to MES. And we go from sensors to MES, right? As that MES layer, will you rub against each other? We respect the work they do, the maturity they bring. The biggest thing is that they are more a local player in France, right? France is not a big geo for us. But I will say that Europe, we do see them, and we have our fair share of wins. They have their fair share of wins. But has it become expounded because they merged? I don't think so. I mean they've always been there, a respectable company. We respect competition.

Thank you, Amit, for the detailed answer. We can have the next question from Pareekh Jain of Pareekh Consulting. Pareekh, are you on?

Yes.

Pareekh, you don't post us on LinkedIn. You can ask anyway.

Okay. Okay. So first of all, I think good to hear about your $1.5 billion vision. So my question is like, Amit, what you said about the technology is like, in this decade, a lot of technology spend will increase. And you said that the client acceptance of offering has increased. So we believe the inflection point has come, that we will have the next growth slope. But we are not seeing it yet in the numbers. So when do you think that we will start seeing in the numbers also at this inflection point that many large programs like you won the $100 million deals and all and other things start coming in?

So Pareekh, there are 2 things here. One is that -- and you do a lot of analysis of spend, et cetera. You'll agree with me that the ER&D addressable spend is going to increase. Last year was a bad year and the spend came down by 6%, not for us, but worldwide, right? And they went from 1.49 -- from 1 data point I saw, they went from 1.5 trillion down to 1.4 trillion. We were supposed to get to 1.6 trillion, right? But we do expect that this will accelerate and go up -- or accelerate or expand from 1.4-odd trillion to about 1 point -- anything between 1.8 trillion to about 2 trillion. So we see that we're all seeing the need. Second, what's happened is that we've seen -- consistently, we've been delivering at about 4% sequential growth quarter-on-quarter over the last 4 quarters, right? And I'm sure when Rajeev talks to you see the numbers amount, and you will see that happen. We've also provided a guidance of between 15% to 17% growth this year, organic growth this year, right? That's the range we've already talked about. Of course, we aspire to do whatever or can happen, et cetera. I'm excited about the fact that the number of conversations -- for me, the lead indicator always is number of conversations, number of meetings, et cetera, right? And how many people are truly willing to meet you and talk to you, et cetera? I was in the Bay Area and L.A. area the last 2 weeks. Across 5 days, we had about 15 meetings. One of those was a private event that was hosted by academia, which I attended about 10 CXOs. We were together for about 3 hours. Other 14 were face-to-face meetings. Interestingly, some of them were by a business park that the hotels have created next to pool side, right, to make sure everybody meets outside. But people are meeting -- even though 1 conversation, did not hear a pullback, right? So I do believe that -- and it's not just me, my colleague, Rajeev and Abhi, Abhi is in Bangalore today, they are meeting some people -- some of our local customers there. Alind, my colleague on the call, has been doing travel, et cetera. So it's coming back. So I believe the conversations are happening. The spends are coming up. It takes a little bit of time. And it also is, how soon do you ramp up, et cetera? So there's multiple factors there. But rest assured, Pareekh, that we're not going to stop at $1.5 billion. We will drive -- aim is to get to $2 billion. How soon and how fast? We are as impatient to do it. Our Board is impatient to do it. We'll see.

Thank you, Amit and Pareekh. We can take the next question from Mukul Garg of Motilal. Mukul, are you on?

Very interesting commentary. And Amit, first of all, about your FY '25 target. Interesting to see $1.5 billion. And just a couple of thoughts or points around that. You have, in past, struggled to kind of maintain or meet the targets. What steps have you undertaken this time given that this is a 5-year view to avoid those pitfalls? Another way to put this is what are the key risks you see for your aspirations over the next 5 years? The second question, Amit, is basically the flip of this. And if you look at your guidance, $1.5 billion by FY '25, in a market which is multiple times bigger than this, leaving you still a smaller player in the overall ER&D ecosystem, what is the limiting factor for you to just aspire for $1.5 billion? Is scale a factor which is inhibiting ability to take on larger deals? Or is there anything else which is kind of keeping your [indiscernible] to $1.5 billion?

Sure. Thank you. So I'm going to try and address some of these, Mukul, and then I want to request my colleague, Rajeev, to pitch into this as well. So number one, Mukul, every business has risks, right, that we will deal with. And what we've seen that has unsettled us, so if we look at our trajectory at 4 84, And for some of you that have followed us for some more time are aware that when we started this journey in 2009, we were at about $60-odd million, and then we run for 3 years. We added -- our ESP has merged, came together, and became LTTS, and grew from there. So we saw ourselves in the past delivered. So we went from 484 to 580 to 723 to 786. So the growth years that we had was because we were able to ramp up with our deals, et cetera. Our ability to add revenue did not go down. The reason we slowed down in FY '20, and of course, we grew in FY '21. The FY '20 impact was truly because of 2 client events, one which -- decided -- major client decided to in-source and seeing the strategy, and the second one that shut down their -- their own 5G operation and sold it off. So these are client events, if I may. What did we learn from that, and Alind tried to talk to that as well, is that how do we make sure we derisk by having multiple clients of a certain size as opposed to 1 or 2, right? So -- and that has been one strategy that we've implemented fairly strongly. So whenever we see a client coming up [indiscernible] about $30 million or $20 million, we want to make sure which are the other 3 that are the same size so we don't have a problem [indiscernible], right, in this. The -- is that within the same client, we go wider, different personalities, different business owners, et cetera. So one business unit shutdown or whether it is there. Having said that, do I have all the answers on a client run? I do not, right? But that's what is our major one risk that we continue to work on, on an ongoing basis. Second, of course, a risk that we have is attrition. And are we then able to manage by being able to backfill talent, et cetera? Abhi spoke a lot about it in terms of being able to manage it by different schemes and programs that we are doing. I can assure you that our attrition will be lower than industries that -- I want to be -- growth want to be higher than industry, but attrition would be lower than industry. These 2 things we will play with these -- both of these, right? So those are the 2 risks that we have. And I want to -- once I finish the pure play part, I want to -- why only 1.5, I would request Rajeev to answer this part and others. But if I look at, why 1.5 and why not 2, and then what is inhibiting the growth? So if you look at our business basics, a part of our revenue or addressable market also get some clients themselves. I mean they are not marketing companies. These are data manufacturing, engineering companies on their own right and they have a right to be able to do their own major designs, et cetera. Every client that we have, they keep on having the discussion what is core, what is noncore? What is core to me? And that changes, right? And they may want to give you a little bit of a core to accelerate their development. Noncore, they'll give you for cost, right, and ease, et cetera. So these things continue to change. So the numbers that we have put up or what we think that we'll be able to get to, I do not want to miss guidance that I have given, right? And not to say that earlier, we wanted to do it, and now we are trying to do differently. Absolutely not. We never, never ever want to miss guidance that we've given. I feel this is a good number to go after, be able to get to. If I look at my numbers in quarter 1 itself, we are on $820-odd million run rate already. And I do believe that we are fairly certain that we'll be able to get to these numbers. But inhibiting us, I don't think that the size inhibits us. We are able to leverage beyond our size if we need to. I have never not been invited to an RFP or a process or a contest because I was $700 million or $600 million. So I do believe that there is a lot more that can happen. Rajeev, would you like to add, please? I will actually just take the line [indiscernible].

So Mukul, an interesting one. Maybe I'll add a few points to what Amit already talked about. You may have already seen in Alind's presentation, and some of these are numbers that are visible in terms of the analyst reports. So if you look at the R&D industry, it's needed to grow from about $1.5 billion that it stands to be today to about $1.9 trillion over a 3- to 4-year period, right? And that's something Alind talked about. Now why am I citing these numbers is because, essentially, the way we are looking at growth for LTTS, right, and our aspiration of $1.5 billion by FY '25 is really on 2 counts. The market where it is really heading. Second is if you really look at our growth over the last 4 to 5 years, we've grown at a CAGR of almost 17% plus. So our ability to demonstrate over the next 3 years really comes out from the market and, of course, what we've delivered in the past. The second thing, when I talk about the risk that you say to these numbers, one, our ability to broad based. So if you look at all our segments over the past 4 quarters, we've consistently seen growth across all the segments. The fact that we can see broad-basing allows us to manage both the macro and the micro risk. And some of this, I will, of course, cover in my presentation towards the latter part of the day. So by addressing the macro and the micro risk of one segment, we can still see relatively growing across. So today, apart from the fact that we will see another black swan event, we don't think that there are going to be major risks. Of course, there will be technologies. There will be other aspects that will come in, but we are well poised to capitalize and optimize on some of those developments that come forward.

Thank you, Amit and Rajeev. We'll take the next question from [ Apurva Prasad ] of [indiscernible] Capital. Apurva, looks like you're having some difficulty joining. I think we'll move to the next participant. Can I have Kunal Tayal of Bank of America? Kunal are you on?

Yes, I am. I mean, I was hoping to understand a bit more about this -- are you also beginning to see from the clients that they are willing to consider engineering outsourcing as a more structured program? So maybe because of the fact that digital engineering is so much more important now, maybe back into market, it's had a bit important part [indiscernible] your clients or customers. Going ahead, do you see more definitive allocation of budgets towards the engineering programs as opposed to just discussing it on an add-on basis? And again, what I'm looking to get is, sure, growth prospects' churn rate, is there a change on the visibility part as well?

Sure. So Kunal, 2 things here. Number one is that clients normally leverage us. So many years ago, it all started about cost. Let's be very honest about it. It all started with cost. But over the last few years, it's changed. So if I -- without boring you on the trajectory, if I look at today, there are actually 4 levers that people come to us for to address speed, scale, cost and talent, right? Those are 4 levers that they come to us for again and again, right? Now the way to address it is not by throwing only people at it. We're actually developing technology accelerators, reusable assets, components that we can take. And I want to request my colleague, Abhi, after I finished to actually add color to this on how he is delivering to some of these aspects when clients come to us, right? And maybe you'll take a couple of examples already simply what's happened. But if you look at -- so that's one, right, in terms of where they are, why they are leveraging us. Second, what this also means is that we've seen our clients also mature over a period of time, can't do it like we say, we have to coexist with the India centers of our clients. We have also turned around and they say now that there is stuff that is core that I will do. There's stuff there is core, but needs speed. I'll let you do it, and then I'll put it back in-house and do the rest of it myself, right? Or are you augmented, et cetera? There are times they say, for the scale part, I need you because I will never need scale or forever and ever. I was, in fact, talking to one of our -- one of the meetings I had in the area, he was saying there's a lot of demand, but I do believe that some of this demand is being double counted. And he said, if I look at it, I think about 20% is doubly counted in terms of 2 people requiring the same, right? For example, and I'm not confirming or denying it is a client, but let's say, a telecom major is doing a 5G rollout. Two companies are bidding on it. So they are asking for work to be done, but only one will win, right? That's the reality. So -- but instead there's about 80% of the demand is here to stay. And that's why we are ramping up with the way we are ramping up with you. And not 1 conversation, and touch wood, is there's only about 12 months or -- no, not 12, we're in September, right? So April, May, June of last year, April, May of last year, we saw enough cancellation notices coming. So it was not so long ago, right? But we haven't seen any sign of stuff leveling off coming back people are talking about demand, and we are excited about the prospects. Abhi, would you like to add about how we are sustainably trying to deliver, please?

Yes. Thanks, Amit. And Kunal, like Amit said, we clearly see a shift in the way the work is coming to us, and I think this is there to stay. It's not about bodies and the -- how it used to be earlier. So when you said, are we seeing more outsourcing like in the IT side where the work is [ backed ] and is given to you, do we see more of that happening? Absolutely, yes. I think when I mentioned about extreme offshoring, I was also trying to allude to that. You cannot extremely offshore unless you're willing to give away. And many examples where, in fact, even if you look at the nature of business and the business models, commercial models, there's a shift. We are starting to see where customers are not just seeing timing material or fixed price, there are deals that are coming in outcome-based pricing. There are deals, which are just -- earlier, we were discussing a deal with the customer, which is based on scrum-based pricing. So you deliver a scrum, and you get paid with a scrum, right? It is not how many people you put in the scrum. There is a scrum. There's a number of -- there's a number of weeks for a scrum, simple, medium, complex, delivered, get paid. It's a very different shift, and these are the leading customers. These are not small guys because ideally we work with the large customers. So I clearly see a shift in outsourcing patterns itself and more confidence to service towards [indiscernible].

Alind, would you like to add something on the remark before we go to the next question?

Yes. Sure, Amit. I'll do it very quick. So if you think about the way that the customers are spending, they're all looking for those long-term trends, which is where they want to be. If you look at the fundamental areas that they are talking about, like we saw electric vehicle or 5G and sustainability, these are all things that could happen over the next 3 to 5 years. The outcome is not going to come in a year or so. So what that has changed in the last, I would say, 12 months or 18 months or so is that -- they are looking at picking up partners who are going to be with them through that journey. And that's exactly what Abhi and Amit were talking about that these are programs that we are signing up for with them, where they'll know that we are going to be with them through the journey for the next 3 to 5 years. And this is helping us prepare well, deliver well. And this trend is going to continue as we see for the next 18 to 24 months for sure, and we signed up more and more customers.

We're also trying to get more -- so Kunal, we're trying to get more lab deals, others, so that we are more a sticky business and stays around as well. So that's part of what we do.

Thanks to the management team. I think we are just over the 30-minute mark. There are some raise questions, raised hands, and we will take them on priority at the end of the second half, where we have the full hours to do open -- with the senior leadership again. We'll take a short break now. We'll see at the other end of the break with a more exciting stuff about what we have done in our labs. The deep dives into the 5-day bets and more. So stay tuned. And meanwhile, you can see a countdown timer on your screens to help you know when we are back. All right. Thank you.

Thank you.

Thank you. [Break]

[Presentation] Welcome back. I hope you had enough time for a refreshing coffee break. So the second half of this IAD is going to be about what we do in the world of engineering. How is the engineering scale? What are our plans to scale up some of these big bets that we talked about? We're going to have the leaders of 3 of those big bets talk to you about their plans to scale. EACV, which is electric, autonomous and connected vehicle, followed by digital manufacturing services and AI and digital products. Over to you, Shail, with EACV.

A very good afternoon to all of you. I'm Shailendra Shrivastava, Global Head Transportation Vertical. Me, along with Seema Ghanekar, Global Head Industrial and Consumer Products, will be presenting one of the big bets for LTTS. The big bet is EACV, that is electric, autonomous and connected vehicles. Let me share my presentation with you. Over the decades, the transportation industry has seen a significant change. From being a mechanical-focused industry, it has moved into a software-focused industry. Earlier people used to look at interiors, the body type, which was more mechanical-oriented. But now, people talk about features, which is electrification, connected, the infotainment, all of which is basically a software. So for -- the products, are the automotive is becoming a software-driven entity. I'm sure all of you would have heard ACES acronym, which basically means automated, connected, electrified and shared mobility. This is a trend. This is where the investments are going on. The governments have put severe restrictions on the carbon emission. And most of our customers, the OEMs, have already declared that they would be going electric by 2030 or 2035. In line with the trends which are there in the market, LTTS has also defined its strategy along the same areas: electrification, connected and autonomous. Electrification has 2 aspects. One is the onboard, everything that goes on the car. And secondly, is offboard, which basically is the charging infrastructure. Connected as infotainment, connected solutions, V2X, and autonomous has various features of lane detection, signage detection, drive without a driver. These are the areas where LTTS is also focusing on. In the next few slides, we'll demonstrate to you the areas where LTTS has invested. So many of you, who are part of our last meet would have seen the car, which we are showing on the left. This was our first generation car, which we electrified. Again, this was a non-auto-grade electrification, which we did to demonstrate our end-to-end capabilities in electrification. Again, every part of this electrification was done by our team. Now I would like to introduce eVOLTTS. That's our next-generation electrified car. We have taken the sedan, which was an IC engine. We removed it, and we electrified it. Here also, every component which we are designing and developing, is in-house. And everything is with auto grade and auto standards. We have followed functional safety. We have followed [indiscernible] and also [ ISO ] levels for this. Every product cost system, which we have designed, is a reusable system, be it an inverter, be it a converter, motor, transmission, everything is scalable. Over and above this, we have designed certain frameworks and new technology. For example, the rapid prototyping suite which we have. Here, it's a multi-physics, multi-model suite. We have to give the parameters which are required for our car, and it will give the design parameters for individual components. And once we have designed, we can bring those software and test it if it is performing in the same way or not. So that technology they like bridge, it's a single board. A lot of work is going on across various OEMs and Tier 1s in this area. We have been able to deliver a product, which can be used as a single board, either for taking the power from grid to the batteries or from the batteries to the grid, just by changing the software. So a lot of investments and research we are putting together in this area. We have been talking about end-to-end services. We talked about design. We talked about development, but testing also is equally important when it comes to the EVs. We realized this we're ahead that EV testing is going to be critical. So we have set up a lab in Bangalore, which can test different components of EV. This lab can test motors, inverters, converters, even the battery packs. We can perform endurance test, performance test and functional test on it. Now we can use this as individual components or we can put all the components together and test it as a system. Our investment in the car and this lab has generated significant interest from our customers. In last 2 quarters, we have been able to win certain engagements with our customers, where we want to provide them end-to-end solutions in the EV products. I will like to hand it over to Seema now who will talk about the off-board charging and also the connected vehicles. Seema, over to you.

Thanks, Shailendra. In the industrial products business segment, we are working with many electrical OEMs in the area of AC to DC and DC to DC, chargers, converters, inverters and battery storage units. Good experience in the renewable energy space also, both in solar and wind. And we are leveraging this experience to -- for -- into the off-board charging infrastructure space. We have set up our off-board charging station in our Valodara campus. We are providing multiple source inputs for the energy, solar, battery as well as coming from the main grid. And we are in the process of installing the hydrogen fuel cells also. We will provide the AC charging as well as the fast DC charging options. The highlight of this particular setup is the optimized hybrid energy controller unit, which actually ensures that the domain experience which we have over the years from the electrical OEMs is used in providing the effective and intelligent charging materials. The experience which we have in setting up the infrastructure will help us understand the nuances in designing a multisource complex hybrid setup infrastructure and providing design services to utility companies as well as setting up charging infrastructure for large complexes, smart cities as well as for capital plan. From the electrical charging aspect, let us now shift our gears to the cool aspect that is a connected car technology. We have experience in working on multiple facets for connected car. We have designed a digital cockpit, which integrates different display units, like infotainment, navigation and clusters. We have worked on patented Bluetooth multi-casting technology and also worked for camera-based gesture control units. The digital product services team, which he has, it helps us to provide the mobile adaptation as well as the cloud connectivity for the connected car. The diverse industry segment experience, which LTTS has, is a true differentiator. And the cross poly innovation has definitely benefited all the business segments, which LTTS serves. We all know that consumer electronics is a very fast-moving industry, and we have good experience on working on 5G modem development and integration for the consumer electronic devices. So when the 5G started getting integrated in automobile devices, we have actually used that experience and supporting multiple 4G, 5G testing scenarios as well as handover technologies and vehicle-to-vehicle testing. Another technology from consumer electronics, which is getting very popular in automobiles is [indiscernible]. They are Alexa service integration partner from Amazon, and we are using this experience to develop the built-in Alexa device for multiple car accessories based on multiple automobile OEM requirements. We'll be demoing many of these features in the demonstration, which you will be seeing soon. I'm requesting Shailendra to take over the autonomous vehicle experience, which we have in LTTS. Thank you.

Thanks, Seema. Now let's start on the autonomous vehicle. As I have been telling that LTTS always believed in end-to-end solutions, here also, we are taking the same approach. While many of the algorithms are developed and deployed by various agencies, we believe it's not only about algorithms, but also the control systems, the mechatronics part of it actually. So we have integrated our algorithms, our capabilities on mechatronics and also sensor fusion in this particular vehicle. We have a LIDAR. We have 2 cameras. We have 1 radar and about 14 ultrasonic sensors utilized to define this autonomous vehicle. All the algorithms are homebuilt, homegrown and integrated into this. This gives our customers a view of our end-to-end capabilities on the autonomous vehicle. While we have shown these capabilities, while we work on upcoming areas, while we understand what is required in the market, we always focus on our drive framework, which is, we keep developing competencies for the next-generation products. We keep redefining our skill sets, our game plan based on what is required in the market. We innovest, the classic example is our lab. Velocity, we work with our customers in defining how fast we can build the teams, how fast we can deliver the solutions. And engage, we engage with our customers, we engage with our partners to provide right type of solution to our customers. Thank you.

Thank you, Shail. My name is Prabhakar Shetty. I head the Digital Manufacturing Services at Larsen & Toubro Technology Services. I'm going to take you through the journey in terms of how we are following customers' manufacturing-related problems. Most of the customers are looking at ways of improving the value chain performance across design and manufacturing. Industry 4.0 has infused a new purpose to the whole activity. Two other elements which are going to really impact this will be: one, the technology advancements, whether it is hardware, software, the application landscape, the cost of technology, the development options; and second is the last few years of COVID. This has brought in a huge mindset change in terms of openness to adopt new technology ideas, openness to adopt remote areas, openness to adopt, what I call as, our transformational business, transformational, I guess. This is actually reflected in the screen you're seeing now. Most of the projects now are moving away from pilot to actual implementation and activation phase. Moving on to the next slide. If you look at the customer context, since this whole activity means a lot of transformation, which also brings in the amount of disruption, we see most of the customers doing these projects in-house. Only about 8% to 10% are outsourced to services or consulting partners, which definitely shows that there's a headroom in terms of growth for those players who can sort of get their act right in terms of combination of services, solutions and technology. One other element is the Industry 4.0 digital transformation initiatives in this sector are not any more limited to manufacture operations. They're going beyond that into aftersales, into design, into supply chain. That is something which will give wider opportunities and also newer challenges in terms of volume structure. When we look at this problem and ways of settling this opportunity tsunami, which is coming, we considered 3 elements. One is designed to retire, that is a product element. Second is supplier to customers, which is the supply chain element. And third is automation shop floor to top floor, which is the enterprise element. Now this obviously means that it's not about just looking at manufacturing. It is not about just looking at the OT architecture or just the manufacturing side of technology, it is transformation of entire enterprise itself, which will bring me to the next point, how do you sort of approach this kind of problem? Your definition of use cases need to change. Your problem statements are growing more integrated. For example, if I'm talking about collaborative design, a collaborative design will not only involve the design function, but also involve the manufacturing, the aftersales and probably the customer also participates. Can blockchain influence your supply chain integrity? Can it help make your supply chain more robust in terms of managing alerts, events, so on and so forth? I think many of these technologies are leveraged better if we have answers with use case and problems, different definitions, cutting across functions. How do we solve this problem? We started this activity of investing in, not only people, but technology as well as an organization structure about 5 years back. We deliver this kind of solutions through a structure of 5 core practices, which fundamentally address core functions like design, manufacturing, asset, life cycle, fund and engineering process. Each of these practices come with a deep domain expertise and functional expertise and they leverage best-of-breed technologies in that area. Like for example, BLM might work with Siemens, [indiscernible], okay? And most important, we bring together all these 3 elements by getting in use cases, which is predicting on our vertical knowledge. Like for example, a heavy machinery can be seen as simplistic. Heavy machinery [indiscernible]. That's not the case. The machinery could be different, having different attributes for, say, medical devices. It could be having a very distinct attribute for industrial products. So we can appreciate and sort of bake into our solutions and proportion simply because we come from more like a brick-and-mortar bottoms up approach. Moving on. As I said earlier, there are key technologies, which is really impacting this landscape, whether it's cloud, AR, VR, analytics, digital twin or 5G or IIoT. But what is important is how you make these technologies solve your actual problems on the ground. Can it be a top-down approach? Then you might not achieve much, but we take bottoms-up approach. Cutting across 2 dimensions, one is you're looking at the functions itself. That is the design manufacturing or operations. Second is which sector is a problem being solved, whether it is foundational, operational or cognitive. As you can see on the screen, the cross section of this means we are pointing to a specific problem in that area and addressing a solution or building a solution. Like for example, 5G for us is not the exact way. 5G for us is something which is problem -- probably solving the age-old problem of what we call as the wired networks in the shop floor. 5G can solve my problem in terms of machine connectivity. Cloud for me is something which will help me get a lot of data in one place. Cloud for me is pre-configured solutions, okay? So effectively, what we are telling is many of these solutions have to be sort of paraphrased into particular sectors, particular context. Then probably the adoption is now far more easier and there is a realization of value too. Now when you have a plethora of technologies, what 3 we would want to invest? We have picked up cloud, digital twin and IIoT base for 2 reasons. One, as I said, this helps me solve the problem across the value chain, as I said, the integrated use cases. Second, these are the areas where we see maximum investment happening because these are the areas which are driving the change. Then if you look at cloud, our approach to cloud is not from an infrastructure standpoint. Our approach to cloud is, can I build a prefabricated PLM solution, which allows 25 processes? We have that like APQP, PPAP everything built in and have an ALM solution, which is pretty competitive. We have a factory next framework, which helps any large customer migrate from an in-premise engineering application framework with [indiscernible]. Similarly, if you look at digital win. Again, win can be complex, but can you sort of decompose that into problems at different layers? It could be processed. It could be asset. It could be a line. That is one way of looking at it. Then graduate it to different functions. It could be a design win. It could be operations [indiscernible] and service tray, okay? And when we look at building win, we keep our options open. Many times, we've built the wins based on the enterprise applications of our partners. So for example, the [indiscernible] 3DS platform. It is [indiscernible] works, okay? Depending on the customer context, we take this approach. Second, if there is a manufacturing operation problem, we would use our existing line PLCs and use cognitive learning or machine learning algorithms based into these line PLCs and build that so that the customer's investment is protected. And we are again contextualizing the digital twin to solve problems or operation. And third most important element is when you have this plethora of data coming in, what are we going to do with data? We have built a conceptualized enterprise manufacturing intelligence, which collects data from 3 areas. One, we collect this live data coming from your alerts, data points, applications. Second is what we call as raw data, okay? This could be coming from your sensors, PLCs and [indiscernible]. And the third most important is calculated data. It could be a predictive maintenance in simulation, engines and all. We are trying to aggregate all this as what we call as enterprise manufacturing bus. And on that, just suppose or build our use cases in terms of solving actual, practical problems for customers. And we are able to do that simply because, as I mentioned earlier, our approach to problem is more hands on. And I would say, more domain-centric rather than trying to say that technology is the starting point. It's a problem statement, which is a starting point for us. Now one of the problems we observed in our industry for cases or the experience of our customers that are having is lack of confidence of key stakeholders. This is simply because when they start the pilot or any implementation, the time to value, time to realization, time to a key stakeholders seeing what is in it for them is very, very long, or is it too complex or he's not involved in it. To expedite this, we have built a set of about 25-hour solutions like what you see on the screen, which are prefabricated. We have baked in complex use cases with the clear KPIs and outcomes. It is built on [ Modbus ] technology platform, and this can be implemented within a short period of time. It simply means that user sees the outcome probably in a month's time or a few weeks' time, and the overall confidence in an implementation road map for a larger transformation our Industry 4.0 project is much better and there's a huge participation from the stakeholders. Now coming to the overall summary and substance of what we are doing. Like I mentioned, one, the industry is changing, technology is changing. The use cases and problem identification have to be center. We have to align in -- we have to bring in what I call as the newest technologies, whether it's the twin or anything else to sort of decompose that into what I call a specific contextual problems. Some of the examples you can see on the screen, I can touch on a couple of them. Like the first one is for a beverage major, we are building what is called as the paperless factory. The entire initiative is also where we are replacing the traditional manufacturing execution systems and all processes, which are going to take more than 20 minutes, which needs human interaction into the system, okay? And this is going to be a huge exercise because customer has about 90 plants. We are going live with about 3 plants. And this is also going to set the context of how we are going to look at this industry sector in the future. And this is built on an IoT platform. And we are also baking in a lot of other solutions as we are going on this journey. I would also like to touch on the last one, which is energy and sustainability manager. This is a solution we have built with 2 purposes. One is active energy management. The enterprise application for energy management is not just about audit. This is based on ISO 50001. It can baseline energy. It has energy performance indicators. It has noncompliance monitoring. Noncompliance can be converted into key projects or what I call as improvement projects. Customer can do spot buying of energy. We also added a sustainability element to it because that is something which is coming up very, very fast on the rearview mirror. We are using both [ SPT ] as well as greenhouse gas [indiscernible]. And since we have an application which sort of sits on all the control systems and energy managers, we can monitor and track most of the, what I call as the sustainability parameters. So the combination of all this means that when we go to the customer, we are doing a peer-level conversation, which most of our key stakeholders appreciate rather than trying to grow complex technology at hand. So I would like to thank you, and I would like to invite my colleague for the next session.

Hello, everyone. I'm Nitin Jain. I'm the Global Head of Digital Products and Services at LTTS. If we split the last 250 years into innovation cycles, you'll see that we are in the sixth innovation cycle right now. This innovation cycle is primarily driven by 3 things: one, IoT and AI; two, robotics and drones; and three, clean technology. It clearly is driven. All of these things are clearly driven by the fact that the world of digital and physical is coming together. Now what does that mean? And a lot of our clients are also telling us that traditional sectors, sectors that are now facing, what I call it, a digital or debt scenario, where they know that they will not be able to survive without making smart products and converting their physical products into digital products or smarter products. At LTTS, we call the whole phenomenon as digical, which brings the artificial intelligence piece, the gamut of digital technologies and the physical products together to create a very unique proposition at LTTS. We saw the whole phenomena starting about a couple of years back, and COVID has now accelerated the whole thing up. Let's double click into digical and see what it really means for us. Digical is a world of connected, collaborative and intuitive products. Connected is when a physical product is smart enough to generate data, and that data can be analyzed by people and right actions can be taken based on that data. Collaborative is when you take that to the next level where the product is now smart enough to even analyze that data on its own and take appropriate actions. Not only that, the product can also talk to other products. And intuitive is taking that to the next level, where not only the products is smart enough to take action based on the data it analyzes, it actually knows how to work in an ecosystem of other products and take the whole automation and experience to the next level. This is more a human like, and will change. This is like smart homes 10 years from now, and that's what will change the world that we are living in. Now if you would take this industrial product example, a machine can be connected when the machine is generating data and that data can be analyzed by people, and appropriate actions can be taken. It moves into the collaborative stage when the machine is generating data and bases that data it knows, it needs to be healed. It sends the signal to the healing team, to the mechanical team, to the mechanics who can then take appropriate action to come and fix it. And in an intuitive world, the machine is not only analyzing data, and it knows that it needs to be fixed, it's sending a signal to a human-like robo who can come and fix the machine as well, and that's a new version of a human-like version of self-healing machines. That's digical for us. Now all of this -- in terms of technology, when we peel the layers, becomes even more impressive. Let me take you through that. Let's take a look at what it means to us from a technology standpoint. When we look at creating connected, collaborative and intuitive products, I'll give you a very simple 5 steps from a technology standpoint. The first step is where our physical product is taken, and sensors are added or what I call as iotization that's done for the product to be able to generate data. That's step number one, iotization. Step number 2 is what I call as user simplicity. Why? Because if you create a smart product, you create a skill gap, gap for the users to be able to use that product, gap for people to be able to service that product. So user centricity is important. The third is what I call as modernization. From infrastructure as a service to software as a service, to platform as a service to now products as service. This is where the entire cloud processing or high compute power, the security piece of it, the DevOps piece of it will settle. The fourth is data insights. You cannot have smart connected, collaborative intelligent products without data insights. And the fifth is what I call is IT/OT convergence because all of this is operational technologies, and it has to be integrated with the IT world in order to be able to use all of these products as a part of an ecosystem. So each of these 5 steps and the technology is used in each of these steps, at LTTS, we've got digital practices catering to each of those. Practices across cloud, IoT, DevOps, security, analytics, this kind. Let me give you one example. If you look at artificial intelligence, which is what makes the product connected, and then it's now slowly moving to embed AI, and embedded AI is the future of AI. We said that already. And then we are seeing a shift happening from processing on cloud to processing on devices. But from [indiscernible], the future of AI would become explainable AI, which means that humans are now able to understand how machines are learning wherever they are. And we'll be able to certify that. Now that's going to be an absolute disruption in the medical world because when humans are able to certify whatever the machine has learned, the possibilities -- immense possibilities will open up. And from explainable AI, we then move to journal AI, which is the ability of a machine to be able to understand emotions, human emotions, human expression, which makes it very intuitive and then human-like experience. So that's the evolution of AI. And similarly, you will see evolution of other technologies happening as well. What makes me super excited is also that as we work with our clients to make connected, collaborative and intuitive products, the spend continues to increase as well. So we know that from a future standpoint, we are working in an area that's very relevant to us. Let's take a look at it from an industry standpoint as well. If you look at the industrial products, and I was touching about this -- talking about self-healing machines a while back. But industrial is going to be seeing a massive shift. I mean if you have -- if you've got a machine out there that knows how to self heal, it's -- imagine the kind of possibilities that the savings that will get generated from there. The connected IoT is here and now, moving into an absolute digital twin. And we are seeing digital twin already happening. But digital twin of the earth is what I'm talking about here from an industrial -- complete rehaul to self-healing machines, for example, or a game of that nature, where intelligence and intuitiveness is going to go to the next level. Imagine the possibilities in the health care world, the medical technologies world, and we all know the kind of digital disruption happening in that sector. Connected hospitals, connected devices, moving into surgical roles. I mean -- and I will talk about an example, but in my next couple of slides, but imagine, creating robo that will work 24/7 endlessly to train doctors. Or imagine the precision that surgical robos can have and humans are able to certify that they are taking the right decisions. And the entire personalized health care, 360-degree personalized health care, where we all wear a smart watch and watch the number of steps we take, and we all know that at some point of time, our insurance company is going to charge us based on the number of steps for our activity or physical activity that our smart device is actually giving to them, the information is giving to them. But the whole integrated health care, patient care, connected hospitals and devices moving to that level will change the world in the medical technologies world are as well. All of this is going to require an expertise that we at LTTS call as chip to cloud and back. It sounds like to the moon and back, but it really is very, very powerful. And let me take you through that. Chip to cloud and back is a very, very unique proposition that LTTS has that puts it right on top of the pedestal. Our ability to what we call as [indiscernible], right, from 1 extreme where you're talking about system on chips, you're talking about complex chip designing to moving to devices where embedded hardware and software engineering comes into play to move into networks, where the entire connectivity piece comes in, and then connected products, connected user experiences, connected businesses, all of those things. So from one spectrum -- one end of the spectrum to the other end of the spectrum is what we call as our chip to cloud story. And with the law of processing now happening back on the device side, we realized that it's extremely important for us to have our ability to be able to go back to the chip from here is going to be equally important. So chip to cloud and back is that unique proposition. LTTS takes a lot of pride, and we, at L&T, take a lot of pride in our core engineering capabilities. We know and the world knows that we are super strong in that area. Our unique proposition comes in when we integrate that with our super strong digital capabilities and create one of the world's very unique chip-to-cloud-and-back offering that will take us from connected to collaborative to intuitive in the world of digital products themselves. Let's double click a little. How are we able to do this? We call it the 4Es that we have, which includes complex engineering, digital engineering, design engineering and business engineering is how we enable digical at LTTS. Complex engineering is our ability to bring the actual physical product on to the digital world. Digital engineering is our strong offering and capability in the digital technologies per se. Design engineering is all about user centricity and our ability to put the user in the middle, our ability to think, design or think user -- think experiences first. And business engineering is our ability to be able to understand the domain world, so we can talk the same language as our customers do, and we are able to help them with the right solutions because we understand the domain that they operate. Let's take an example. For a large client in the world of utilities and bar, and they also have a lot of products -- hardware products that we're working in, a client that we've been working for the last 10 years or so, we digitized a lot of their products. And not only that, we created an IoT platform that integrated the entire sort of product lines with that and brought everyone together on that same platform. We did not stop at that. We created a go-to-market strategy with the client to be able to take their IoT platform and tag team with them to be able to bring on other companies onto their platform. This entire, what I call, as complex engineering offering that we provided to our customer helped them gain more than 25% productivity just because of this automation. And the examples are immense, as you can see on this slide. But this is not the only reason why our clients come to us. We have 238 frameworks across segments. And when our clients come to us, they know that we are the experts when it comes to digital. But they also know that we are invested into solution accelerators, solutions, reusable components in order to deliver faster and much better quality. And in today's world, we all know that speed is a new cost. And that is what we try to help our customers with by having these frameworks, solution accelerators and solutions and reusable components. And here, you see that we've got segment-wise split of what do we have today and what are the areas that we're investing in some of these. And by the way, we have some of our clients tagging team with us in order to do testing for us so that we are always very aware that we are making it relevant for the market. And again, this kind of -- this is a cherry on top. And while you would be thinking that this is all looking so good, so where are you placed? We are right at the top when it comes to nesting digital technologies. And this is what [indiscernible] is saying. This is what the BIG Innovation 2021 survey said. This is what ISG said. And this is what Frost & Sullivan also said, provide across digital engineering to IoT, to digital threats, AI engineering and cybersecurity. And that is what we bring to the table. Thank you.

Thank you, Shail, Seema, Prabhakar, and Nitin for the deep dive into 3 of our big bets that we talked about. So now you have heard us talking about engineering. Time to see some of that engineering in action. We're going to show you a virtual walk-through of 2 of our labs, EV lab and the 5G lab. And we're going to have you see what our engineers are really building in these labs. Let's see them now.

From presentation, let's move more towards the demonstrations of the physical products. These are our investments in the new technologies of autonomous and electric vehicles. This vehicle is our first-generation ADAS vehicle. ADAS is basically advanced driver assist system. It has one LiDAR, one camera. It can identify the objects, it can identify lanes, it can identify signs. With the LIDAR, it gives us a distance, and these are indicated to driver and driver has to take action. It basically indicates this is the advanced driver assist system only gives an indication. So this is our first generation which we have invested in building the basics of an autonomous vehicle. From here, we move to our autonomous vehicle. This vehicle, whatever we have generated, the ADAS features in the earlier car, we have taken that. This has 1 LIDAR, 2 cameras, 1 radar and about 14 ultrasonic sensors. It has a control insight. It has a control unit. So the ADAS features basically identify those objects, calculate the distances and the control unit takes a decision by processing all these signals. That's what is called the autonomous vehicle. Beyond just doing the integration of these sensors and signal processing, this also has mechatronics because we have integrated various actuators on the steering, accelerators and brake. Now let me talk about the electric vehicle. Who had been part of our first Investors Day meet, you would have seen this vehicle. This vehicle basically is our first-generation electric vehicle. The complete system was designed by us. Though it was not an auto grid component, but it was a system design which we have done. So from there, now we graduated, and let me introduce our next-generation electric vehicle, which is eVOLTTS. This is our next-generation electric vehicle. I'll take you through several components which we have designed. This vehicle is a complete auto-grid vehicle, which basically has all components which are auto-grid. And we have followed all practices of automotive, which is FuSa and ASPICE and others while doing the projects. Let me show you some of the components. So this part is called the e-Powertrain. There are various components in this. We have motor, transmission. We have several controls in that. So this black, what you see, is an integrated inverter and converter. Below that is a motor. And on the other side, we have the transmission. All high voltage harnesses has been designed -- developed by us. This is a vehicle control unit. Basically, this is where all the signals are processed and appropriate actions are defined. For example, if the power required is there. So it will tell to the battery of how much power is required, and the BMS will provide that power. Behind that is a power distribution unit. Now this is also very critical because in electric vehicle, there are several challenges which we face. One is the thermal management and second is the arcs which may come up because of the high voltage which we use. The PDU, the power distribution unit, will identify any high voltages or any sparks coming and it will automatically isolate the network and make sure that the vehicle is safe. This is the pump, which is used for coolant. You see these pipes. The complete thermal management has been done by us. The cooling has been designed in a way that the temperature doesn't go beyond the ambient temperature. Let's get into the car and see what is there in the car. So inside the vehicle, for the electric vehicle, there are 2 critical items. One is the battery pack and the BMS and second is the onboard charger. There are 2 battery packs and 2 BMSs. This BMS has been designed in a way where safety is in-build. It has a high-voltage interlocking mechanism. The moment the voltage goes beyond particular limit, it will disconnect the connectors and make the battery safe. What you see all these pipes here are basically for the cooling parameters for the thermal management of battery pack. The other critical part of this vehicle is a digital cockpit. This digital cockpit is a single ECU, which can control 3, 4 different displays. Here, we have put 2 displays. One is the cluster and second is the infotainment system. This has several features which are patented like Bluetooth multicast. This also has a connected feature and auto Alexa in-built. So let me demonstrate 2 applications of the connected cars. One is the connected companion app and second is Alexa that is auto Alexa. [Presentation]

This is a connected car app. Now on this, you see all the driving parameters here and all the parameters which come are captured. This is on the cloud, and we can analyze the data based on our requirement. So other feature which we have added to the connected car application or to the electric vehicle is an SOS mode. Suppose you have a particular charge-on battery and you want to drive more than what it is. Suppose you have a 15% charge and you have to go 50 kilometers, what you have to do is you have to go a battery saver mode and select battery saving mode. It will automatically get converted. The car will start taking the control of how much torque to give, how much battery to utilize so that it can extend the charge for your drive. So from the onward part of it, where we do the system design for electric vehicle, let me take you to the electric vehicle testing center. This is an EV testing lab. It has 2, 3 different parts. One of them is the [ dine ]. This [ dine ] is for automotive grade testing, which has to be done with a torque of about 1,800 newton-metre and top speed of 25,000 RPM. It has 2 spindles, from 0 to 12,500; and other, up to -- from 12,500 to 25,000. This is a motor which has been designed by us, which is fitted in the vehicle. And there's a customer project going on, so we'll not be able to show you the details, but they are testing the motor for an electric vehicle. From [ dine ], this is our -- another area where we test the individual components. Right now, there's an inverter which is getting tested. This test system also has the climatic control. This climatic control basically controls the temperature and humidity so that we can define the profiles of how the vehicle is tested. Basically, if you really look at it, based on the region where it is driven, we have to do the test so that the component performs in a way in all the different climatic zone. Now let's get in on the main area of the control center for EV test lab. So this is a control center. This is the main unit where you get the power from outside. And these are other panels where we have inverters and converters which basically can provide us power based on our needs. So if you want high power or low power, this can control those and provide it to us for testing. The other critical part of this is the supervisory control. This is critical because this is connected to all the different equipments, and it gives us indication of what exactly is going on. In case there is some problem anywhere in the complete circuit, it will give us the indication and the engineers will be able to take appropriate action. Here, we have the controls where they generate the profile of what testing has to be done. For example, the temperatures, the humidity and the power, all those are programmed here and then fed to the system. And now, right now, what they're doing is they're getting the data from the test which is going on and collecting it and analyzing it so that the appropriate reports can be generated and data given to the customer. The other critical part here is the hill system. This hill system is an NI-based system. Like I talked about the profile which we generate, the profiles are generated and fed into this system. And this is the system which gives command to the test setup and appropriate test gets done based on that. The data from the sensors get collected and gets represented to us on the control center. So this is a complete setup for EV testing. Here, we can do performance testing, we can do functional testing and we can do endurance testing. We can do testing for individual components or we can do testing for the complete system, everything put together. So you have seen the onboard facility for us, the onboard system design development activities on the car. You have seen the lab where we can do the testing. With this together, we can provide end-to-end services and solutions to our customers. These 2 facilities or these 2 competencies which we have showcased has generated a lot of interest from our customers and we have been able to win some of these major engagement with the ePT and e-Powertrain manufacturers of automotive. We always believe in end-to-end solution, and this is one of the best examples of providing end-to-end solutions on e-Powertrain. Thank you.

5G is going to change where we communicate, where we interact. Having said that, what does 5G mean to LTTS? We are the engineering partner to our customers in the areas of semiconductor, 5G device companies, network OEMs and service providers and also for the enterprise customers ranging from industrial, medical and transportation. What we offer to our customers? We offer a complete range of services starting from new product development, test and automation, Lab-as-a-Service for semicon companies, 5G device companies, network OEMs and network service providers. We also offer network assurance to network OEM companies and service providers. For enterprise customers, we build and deploy private networks and applications. Now I'm excited to talk about Lab-as-a-Service in LTTS. We are building multiple labs across locations with multimillion dollar investments. We have labs across the U.S., 1 in Dallas, 1 in Bangalore, 1 in Mysore. We are also building labs for our customers to carry out development and testing of 5G networks. Today, we have more than 25,000 square feet of labs established already. Now I'm going to show you the installation of a few radios in one of our lab with approvals from our customers. This is a radio unit normally fitted in a tower to transmit 5G frequencies. This unit today, to do the experiment in the lab, we need to seek approval from government of India, that we got the approval for n78 and n77 bands. This is the device connected to radio for a testing purpose. We have seen the radio side of the story. Now we see the other conference network. 5G network is the segregated one, where it consists of various network virtualized components hosted on a private cloud. What you see here is a server setup, which is hosting such cloud where including pre-integration, testing and automation of various network components. So far, we have seen the 5G network side of the lab. Now we take you through our 5G device and chip enablement capabilities. This is our hardware and embedded large setup where we carry out 5G device design and development capabilities, where we also enable chips for 5G devices. We partnered with multiple test equipment vendors where we carry out the various complex 5G devices and chip enablement testing using these equipments. For example, our engineers are working on a prototype for a sensor product. This is the product, which is a penny size, which is for an industrial IoT application. This is done for a semiconductor customer. What we do here is complete audio development, software development and end-to-end testing. This product is also connected to our NB-IoT solution to our 5G network. This product is completely prototyped and shipped to our customer from our facility. As you have seen during our walk-through, we are well positioned to address end-to-end 5G needs of our customer from chip to cloud. This is possible by leveraging our deep multi-domain interdisciplinary industry vertical and technology expertise to help our customers engineer the change.

Thank you, Shail and Giri, for the very insightful walk-through of our labs. So now we have seen us and heard us talk about engineering. Time for a new perspective. Next, we have a fireside chat hosted by our Chief Technology Officer, Ashish Khushu. And along with him, they're going to have senior representatives from 2 of our customers, very important customers, and let's hear them talk about what's exciting in the world of technology and how LTTS is going to figure in that world. Over to you, Ashish.

Welcome to the fireside chat with 2 very distinguished leaders from the industry, from 2 companies that are pioneers and leaders in their own industry segments. My name is Ashish Khushu, CTO in LTTS, and I'm going to be the host of this session. The 2 guests that we are privileged to have with us are Mr. Chris Kmetz and Stephan Krebber. Chris is senior -- Chris is Senior VP Engineering at Carrier based out of U.S. He leads the company's effort in R&D, technology and innovation, leading a team of about 4,500 distinguished engineers across the globe, an alumnus of University of Notre Dame and an MBA from Arizona State University. Happy to have you here with us, Chris.

Thank you.

The second guest that we have with us Mr. Stephan Krebber, VP and a gentleman who's driving digitalization, technology and operations in Covestro based out of Germany. And he's also responsible for global -- he's also the global process owner for engineering and ops. Stephan has been with Covestro for more than 30 years, having worked across the globe in different locations, doing different type of jobs. And more importantly, he's also a tech geek flying drones and playing out with gadgets. Stephan, welcome and look forward to talking to you.

Thank you.

Gentlemen, in the next 25 odd minutes, what we would like to do is try to understand from the experiences of what Chris and Stephan have undertaken in their organizations, what is the type of trends that they see, the areas and the compulsive disruption that's happening, which is driving and influencing investments that they're making. Chris, I have to start with you with sustainability. Finally, after more than 2 decades, sustainability is back center stage, getting the type of attention that corporates always should have given it. Does it look to you that sustainability goals can only be met if engineering plays a very critical role in the scheme of things? What are your comments to that?

Good question, Ashish, and thanks for the opportunity to be here. So I wish everyone a good afternoon, good evening, good morning. Sustainability is something that's just essential to Carrier's strategies going forward. We are a global provider of HVAC solutions, both commercial, residential, access control solutions. And if you look at the HVAC industry as a whole, we're responsible for 40% of the energy consumption in a large city and 15% of the world's greenhouse gas emissions. So if there was ever an industry that's poised to make a substantial improvement, it's ours. So we are committed to healthy, safe, sustainable and intelligent solutions for our customers. And it's an imperative not just for us, but for the planet. We've published our ESG report where we've committed to carbon neutrality in our operations by 2030, helping reduce our customers' greenhouse gas and carbon footprint by 1 gigaton over the same time period. And that's going to require USD 2 billion investment over the next 10 years. So clearly, engineering is going to play a pivotal role from a research and development perspective in delivering those more energy-efficient solutions that are going to help drive to that gigaton reduction. We'll improve efficiency in our products. We will drive to incorporate lower GWP refrigerant solutions. And we'll focus a lot on reducing food waste in the cold chain. 1/3 of the food globally is wasted, and 1 out of every 9 people goes to bed hungry. So not only can we help significantly with carbon emissions in the food chain, but we can help with the problem of hunger as well. So we just published our latest ESG report. We saved 68 million tons of greenhouse gas last year. So we're off to a good start. But engineering is going to carry the day with the new products and the investments to allow us to do better than that 1 gigaton commitment.

Thanks, Chris. This has been a perpetual point of discussion that if sustainability -- issues related to sustainability have to be solved, it has to be new technologies. I just wanted to hear from you that it's not only new technologies, but core engineering is where a lot more investments will go on. Picking up the queue from there, Stephan. You're Covestro, industry leaders and pioneers in polymers, and when you look at sustainability, everybody is talking of alternate materials and that's a very, very complex topic and subject. What are you hearing from your customers? And how is that influencing the type of investment decisions you believe will happen in the future?

I have to say I'm an engineer, not a sales guy. So I'm -- you ask me about my company. I'm Vice President asked to answer a question on the digitalization. Give me short -- give a short introduction on sustainability for my company. It goes from top to down, I would say. Sustainability, and you're right, comes from the customer demand, from the environment. We do products for our people, for our environment, and Covestro is a manufacturer of plastics majorly. I can introduce later if you give me the time. We, for example, make [ coolant tank ]. Not sure all you know what [ coolant tank ]. That's this foam we use in a seat, but we also use for insulation of buildings, right? The HVAC system Chris talked about, we make the surrounding protected that the heat or the cool not goes out, right? So we protect also, try to protect with our material our environment. That's one thing. We talk about gadget. By the way, I have my solar system in my home office today. It's running. I save already 3 ton of CO2 on my own. So that I'm role model. We need not to talk about it. We need to do it, right? That is my philosophy. That's our company philosophy. I joined the company, very reliable, and we not talk about it, we do it. We do in plastics. Not easy to move to sustainability with plastics, right? But we do the best. We buy the energy now from windmills. We now -- we get reduced energy. We use also a lot of energy, and we try everywhere we can to reduce it. However, the people need to have our solutions in a house everywhere. So you're right, customers wish to have a CO2 good footprint. And when we try as best -- i.e., this week on Monday, our Board of Management told us we need to invest in R&D, in sustainability, even reducing 1,700 people, and we are just a EUR 15,000, EUR 16,000 -- sorry, people company, so 10 person, 12 person, we want to reduce people to finance the sustainability goals. I think more I cannot add.

So what I hear is that -- from both you gentlemen, is that sustainability is becoming center stage. There is going to be a lot of investments going in solving the problem of sustainability. And it's a complex engineering problem to solve, and it's just not left up to the new age technologies, but core engineering services of broader engineering investments that we come. Do you, Chris, see sustainability discussions actually influencing the way investments are happening in innovation and R&D service?

Absolutely. It's interesting how that discussion has flipped over just the last couple of years. The absolute focus on not only keeping pace with the regulatory change that tends to drive our industry, but now thinking differently about how can we use sustainability as a point of differentiation in our products so that we can actually bring more value to our customers who are looking to meet their own ESG goals. Having the ability to bring a highly efficient HVAC system solution or an access control system, for that matter, to one of our customers and say, "Look, how this will help you achieve your ESG goals, not only your carbon reductions, but environmental footprint and even your governance and some of your people goals," has been a very powerful and well-received message. And I think we're leveraging that as we look at how we want to prioritize investment and assure that we're using sustainability as a source of differentiation going forward.

Thank you, Chris. One more area that is of key interest and which needs to be looked at time and again because of the fact that we're all playing around with these new technologies is what's the state of adoption of new technologies looking like now that you've spent up 2 years experimenting with it. Stephan, you did a very ambitious pioneering project. And I'm sure that was a very brave initiative when you started this about years back, looking at the plant level digital twin. Would be interesting to know where are you in the journey now and how do you now, after having gone through the initial phase, how are you now looking at the impact that this is going to have on the future of your business.

Thank you, Chris -- sorry, Ashish, it's not easy to answer in one word, in one sentence, but let me try to explain for your listeners. Covestro is a DAX company, meaning, it is a top 30 companies of Germany. Now we have to Google footprint. And not say a 2 footprint but a factory footprint, 40 factories all over the world, in all regions. We're producing mainly plastics, high-tech plastics, not baggage. We make it, as I said, walls insulation, wood furniture, all this kind of stuff, but also automotive is our customers. So -- and on that one, we make multiscale factory strategy that are chemical factories where streams get their pipeline or ship in raw material. We make a chemical reaction manage waste material and produce these plastics, and that's our business, right? To just to explain you a little bit background that you understand that one. So meaning, we have huge factories and we have well scale factories. So we are the leader of polythene. You mentioned, Ashish. This is -- we invented 80 years ago or something. We have 80 years of experience and R&D. So that's logic that we need to go digital, meaning, make the digital twin, make from the plant a copy. Let's say, we invest the last megatrend for [ polythene rods ], for example, in China. We copy -- have that plant digital, make that [ accessible ], that digital during the lifetime also building. If they then make another train -- we call it train, these production units, because it's a huge collection of factories, we make that somewhere else in the region to serve our customers. We just copy the data. I make it simple for you. It's not as simple as it is. And copy these data and have efficiency in engineering, in construction, they build fast and cheaper. That's the basic thing. It is to expand, [ that simple ]. Chris, maybe you can add from your perspective, but let me give one sentence more to explain how we do that and what is the challenge. I did that in 4 years now in Covestro. We started this division, yes, and we have a lot of learning goals together with LTTS because you are since then our partner to do that together, to migrate information, to build that digital twins for our units. It is not as simple. We need to -- we are not a company who just want to make digitalization of sustainability. We want to make it work, right? And that differentiates us from the competitors. We want to benefit out of it. We want to have EBIT generated or sell more or produce more, right? So all these have benefits behind. And the learning -- major learning is you need to make the basics. You need to look at data models, infrastructure, change management in the organization, take -- get that Board, management support. You need to have a governance structure. That's the lessons learned. To get something digital, you not just push a button or pull a lever, you need to align the whole organization on that one. So that's a key message, make the basics first before you think on artificial intelligence or the of the data and the quality of the data first right.

So Stephan, I'm going to take just one...

I'm glad this is being recorded because I'm going to take that sound bite into our boardroom and let them hear straight from you how hard a journey this is.

Yes, it's is a hard journey.

And Chris, that's where I was going to lead that -- lead a point from what Stephan said. And it's sort of -- I just came to know a few days back, it sort of is an area you're very passionate about. I think -- and that's very important to get highlighted out here for the benefit of everybody else, that the unique part about what Stephan is doing is, he is creating a converged data model or a data infrastructure where a lot of information about engineering operations, after service, manufacturing, all that information is coming together, and it will be available with linkages and it will be available in a converged form, a harmonized form. I think that's one topic that is very close to you as well that you have to have an organization where all different silos of information have to be converged, right, Chris?

Absolutely. And you hit it. You've obviously been paying close attention to what I've been messaging with the team. It's an ecosystem. And when you've got 36 global design centers, hundreds of plant locations, how do you connect up that ecosystem so that you have access to data and you can build out those virtual devices and digital twins to be able to make the entire organization more efficient, more productive and have those seamless handoffs of information that are actually required to deliver product. It is incredibly complex. And we're at the start of our journey. There are some areas where we've made more progress, and we're using those as pilots for learning, but connecting up the EBOM, the MBOM, the virtual devices, it's something that can be incredibly powerful and transformative honestly.

So, Chris, if I sort of visualize for a minute, and please indulge me for a minute. The enterprise of the future looks like one where all the different silos of information and data across product engineering, manufacturing, operations, CRM, ERP, all of them would be harmonized so that you have connectors. And then the digital infrastructure or digital intervention or anything that we are doing with it will sit on top of this. So this layer is a layer which will become a priority for enterprises as we go forward from an investment perspective?

I think so. And I almost think of it as that digital infrastructure, it may be an extraction layer that allows you the ability to pull data from disparate systems and kind of harmonize it and synthesize it and turn it into useful information for the organization as opposed to a wholesale change out of multiple systems like we may have considered in the past. I mean the advances on the digital side in terms of what we're able to do in our new cloud-based environments has kind of changed the thinking in terms of being able to have that layer over the top that gives you all the access and intelligence that you need.

Stephan, what's your experience? Do you think that's the way to go forward? Or we still have a journey before we reset?

No, you well described that, Ashish, I think -- but the focus inside the company is one thing. I mentioned that one. That needs to be done, systems need to be connected, data matters. We need to -- I did a group 24 years ago, aligned that with a site, huge work to be done. But also, the outside world is another factor you need to consider. Make an example, I'm working with you, LTTS, as an outside company with Covestro data and information, which is top-secret from our perspective, right? And we have a lot of pain during the corona crisis with LTTS, not allowing you to work in home offices, our data, you, as LTTS, had a lot of pain in that one. But it shows how information security is key for Covestro. We have know-how in the company. We don't want to give that to others. So it's not only internal digitalization effort, we want to look at external because we build our factories with EPCs, with LTTS, with others. We need to rely on these and get information created by them, integrate them. And also LTTS to use as a back office is very valuable. That's one of the benefit, by the way, that we can get healthy tiers working on our data in our cloud environment, as I said. That is also an important thing for digitalization, keep not only inside everything connected, also the outside world, right? Today, make another example. I had just a meeting in the morning of data sheets work happening. I want to have the link to the supplier, he fill out the data in the data sheet, attach his [indiscernible] whatever, and it's connected to our system. I have that in one location, right, for the whole asset life cycle of that equipment, right? That is not easy done and self-running. We have so many suppliers. We need to all align that one. That is my work of me and the team to try to get that aligned, very complex and tremendous difficult part, I have to say, yes.

So thank you. So LTTS is an engineering and technology services company, and we're very passionate about our engineering and technology as well. There is this huge notion that disruption is being caused only by new age tech. I think that may not necessarily be true. Chris, do you think engineering in itself cannot be disruptive or it does not have elements of disruption as it is evolving, right?

Look, I think we need to think about it from both perspectives. Engineers will, by their very nature, be innovative and define disruptions kind of internal to our own ecosystem. But what I'm seeing is that over the last few years, there's been just a tremendous number of smaller start-ups that are very well funded that are creating some very interesting technologies. And so one of my focus areas is to assure that we're balancing that, giving the engineers the opportunity to be innovative and create disruptions as they develop products, we've been fortunate to be taking up our R&D spend. And so we had that opportunity to release a number of new products that will be disruptive. So core engineers will continue to have that opportunity. And I've been impressed with the way that the LTTS and Carrier engineers have worked together to identify solutions that go beyond, I think, what we originally imagined. And you give the engineers that opportunity to play in the sandbox a little bit and take away some of the constraints, and they can come up with some very innovative solutions. I'd tell you right now, I'm excited. I saw that Lab-as-a-Service offering. I look forward to how we can partner and continue to push that forward in terms of a capability to have a place where disruptions can kind of come to life.

So the picture that emerges is that there are going to be new factors and new areas, the new factors which will invest -- which will influence investments, there is a sustainability thing that's happening, interventions in core engineering would be required, new tech association would be required. In this whole landscape, we've been associated with you gentlemen for a very long period of time. How do you see us, associating with us, the role we will play with you as you undertake this journey going forward, both from the perspective of the regular work that we do as well as work which could be around core innovation, partnership and the likes? So maybe we would start with Stephan first and then go to Chris. Stephan, what's your view of the prospect that LTTS has in playing to this new reality that's emerging?

Okay. Thank you, Ashish. So just let me start with a comment. I think you have investors here listening. I just want to say I'm not get paid by you, by LTTS. I'm just here because we have a good partnership, and I appreciate that partnership with LTTS. Now just to make that clear, I not get paid. It just on your services to my company, yes? So -- and that works basically, our partnership, because of -- there are simple things which I expect, from Covestro side, is a trust to workship, honestly, yes, and you and your team basically did that. Flexible, yes? We are -- digitalization, I mean, is so complex, so many changes and hurdles on the way. We need to have flexibility. And as I said, information security, you impressed me really. Let me -- that you did that very well over these, let's say, region, right? You are sitting in India with our team serving the whole world of Covestro that needs to be save. We ordered that one, and we were really impressed by your professionality and behavior. And at the end, I mentioned that also digitalization only works with quality. We need to have projects where Indian, let's say, companies have the impression, and I work a lot with Indian companies, and I know what I'm talking about it since decades, the quality is an issue. But with LTTS, you're listening to our -- and quality needs to be defined, what you want finally, right? So we define that, we sit together, and we get that now. And that is very important. There is no [ 100 cost ] in quality. We need to define how our digital trend needs to be, how our documents in which quality, where I want to have that from you. We define that, and we get that. And that is what is key. That was key also for me and Covestro [indiscernible].

Thank you. Thank you for your encouraging words. Chris, the last word. We are also on top of the hour. What's...

I think Stephan said it well, it's a partnership. And that's why we're here. And LTTS is a trusted partner because you deliver value. And that's what's important to me when I'm trying to balance the investments across large business, right? And so I was thinking about the half year review that we just wrapped up in the last month or so. And how integrated LTTS is in the carrier ecosystem, whether it's in our model-based development, you're doing firmware, you're doing software. You've taken over entire platform support for some of our software systems. So you're very well integrated into the ecosystem. And as I think about it going forward, I see that ecosystem growing. And it needs to grow. We need to be strategic about it. We need to pick the areas where you have demonstrated capabilities and strengths that -- where you outperform others. And then we need to give you kind of predictability and insight into how we're thinking about our future product development so that you can be prepared to continue to support us the way that you have. The fact that I got 4 business unit leaders that have no hesitation in terms of partnering with LTTS speaks volumes to the value that you've delivered. And to Stephan's point, a big part of that is quality. And it's just so, so important. So I look forward to the future. The relationship, the partnership is strong, and it only goes up from here.

Thank you, Chris. Thank you, Stephan. Humbling to hear this feedback. We look forward to you for raising the bar so that we are able to raise our bar in terms of the way we fulfill your expectations of a global partner, with the global quality standards that you expect, up -- elevate our innovation quotient, elevate our investments in engineering and technology. Thank you for spending your time. Thank you for being very encouraging, and thank you for the insights. Thank you very much.

Thank you.

Thank you.

Thank you very much, and thank you to everybody for listening to some very interesting insights from Chris and Stephan. Thank you. Have a good evening. Over to Pinku.

Thank you, Ashish. It was quite an interesting chat and is useful to understand how our customers think about sustainability, think about leveraging new technology and to hear about their own digital road maps. Now we're going to switch gears a bit here. No plan can be complete if the numbers don't back it. And here to talk about LTTS' financial strategy is Rajeev Gupta, our CFO. Rajeev, over to you.

Greetings to the investor and analyst community. I hope you've got a good backdrop from the presentations made earlier on our 6 dimensions, 6 big bets, customer centricity, technology and sustainable operating model. It is indeed exciting times for ER&D industry. And as a CFO, I feel this is the perfect time to take or rather optimize on this exciting time for accelerating growth and building resilience. If you look at the revenue performance, it has been consistent over the years, and that has been at the back of attractiveness of ER&D industry and also our ability to invest in solutions and newer technologies. FY '21 was a difficult year because of the pandemic. Despite that, we grew 11% over the last 4 years. FY '22, we've guided for a 15% to 17% growth. Stepping back to FY '21. If you look at, we bounced back quite well from Q1 FY '21 to see a CQGR of 4.7%. As far as the operational performance, it has been a performance in a narrow range. FY '21, again, an aberration, but we have seen improvement on a sequential basis from Q1 FY '21, both in terms of EBIT and in terms of PAT, with growth, with sustainable operating model and economies of scale. We believe we can continue on the journey of improving on performance. In order to continue accelerating the growth and also building resilience, we have outlined a 4-pronged strategy: first on growth, second profitability, third governance and fourth shareholder returns. Let me give a quick view before I get into deeper in each of these aspects. In terms of growth, we will continue to see our revenues broad-based and invest smartly to think about where we can get optimal returns. In terms of profitability, there has been consistency in segmental margins, and we want to continue to play that out while seeing cost efficiencies and also improve upon cash flows. On the governance side, we see M&A to be a lever to invest in strategic capabilities around white spaces. Finance transport transformation. This is indeed something that we think that is required as we scale and be ready to be able to propel that growth. We embarked on the ESG journey at the start of this fiscal year, and we have outlined a 2-year road map, during which we will publicly announce our long-term ESG goals. Shareholder returns, one that we are continually focused on. We have been consistent in terms of our dividend payout and also improving our return on equity. Now let me deep dive into each one of these. Going further within growth, if you look at, we've had a broad-based growth across all the segments since quarter 1 FY '21. And our well diversified revenue mix gives us the ability to manage the macro and the micro risk that can emerge in any one segment. Also, it allows us the opportunity to cross-pollinnovate across different segments, thus applying different engineering solutions and technology across these diversified segments. Our digital revenues have continued to grow year-on-year and stand to be at 54% as of quarter 1 FY '21. That also is a good barometer of how we have shifted towards newer technologies and how we've managed to invest optimally. Talking about profitability. If you look at across all the segments, we have expanded our margins, barring telecom high tech. Telecom Hi-Tech has been a segment where we've consciously made investments, including the recent Orchestra Technology acquisition. We believe in the near term, we should be able to see improvement in margins for telecom and high-tech segment as well. The recent pandemic, one of the lessons that we picked up was building resilience for black swan events. There are 3, 4 things, and Abhi also touched upon these aspects in his presentation. Our sales and delivery organization are structured by verticals horizontals and geographies to enable accountability and also for faster decision-making. Our innovation and democratizing those innovations across the organizations allows us the opportunity to get into nonlinear growth. Talent reskilling makes us relevant, higher offshoring and hiring of pressures to improve pyramid will aid us in margin expansion. Our SGA trend will continue to improve, and that's because of the growth, the sustainable operating model, the economies of scale and large deals referred to by Alind. We are focused on improving our cash flows as well, which is notable from our FY '21 performance well below our threshold of 95 days, led to a record free cash flows of 190% of PAT. Talking about governance. We look at acquisitions as a lever to invest in strategic areas and thus quickly build around the white spaces. If you reflect over the last 4 years, we've made 3 acquisitions, and all of these acquisitions have been specific to address a particular market need. Going forward, our focus areas are going to be on new technologies in automotives, enlarging our ISV footprint and digital health care. Finance transformation. What we will look at is revamping the existing processes through a new lens, looking at processes around order to cash, procure to pay and record to report so that we are ready for a larger scale in the organization. Automation and expediting automation so that we can adopt newer technologies within the finance function and thus partner with the business to deliver accelerated growth, use of analytics and such tools so that we can enable faster speed of decision-making. We have been very focused in terms of our shareholder returns, and that's quite visible looking at the dividend payout trend. Our dividend payout trend has been in the range of 30% to 40%. FY '21, despite being a challenging year, we've had a dividend payout of 35%. If you look at our return on equity, we've delivered superior return on equity over the last 3 years, FY '21 being an aberration, though. And market cap and returns since LTTS, they are just outcomes of how we've been focused in terms of shareholder returns. Market cap has almost been 5x since our IPO. And our return since IPO has been a whopping 351% compared to NIFTY, which was at 94% and NIFTY IT, which was at 233%. So summarizing what differentiates us to be unique in the marketplace and also win business in the market. First, engineering DNA. We are a pure-play engineering services company, one that comes with gold standards at the back of the parentage of L&T. We strive continually to maintain this gold standard by continually investing in newer and disruptive technologies. Second, multi-domain expertise which is where we are able to bring in innovation and also apply these solutions and technology across different segments, which we call as cross-pollinnovation. We are proud to serve 57 of the top 100 ER&D spenders globally. And these are relationships which are strategic for us and have been developed and nurtured over a period of 8 to 10 years. We believe this is a key differentiator and that will continue to help us build long-term sustainable growth. Our large deal track record. We've seen wins over the last 12 months, 12 to 18 months, including the large $100 million win in the oil and gas space in December 2020. We are seeing the increase in deal sizes and a structural shift where we are seeing our clients engaging with us in more strategic programs. Finally, strong balance sheet. A robust balance sheet, debt-free with almost $0.2 billion of cash reserves, which will allow us to continue to invest in our organic growth including the 6 big bets that we've talked about and also in the inorganic growth. So together, looking at strong balance sheet, it can help us expedite growth and be faster in terms of developing the market that we see a big opportunity upon. Finally, we aim to reach $1 billion run rate by quarter 2, quarter 3 of FY '23. And our aspiration is $1.5 billion run rate by FY '25 with an 18% EBIT, assuming things come back to normalcy. With that, it's been a pleasure to talk to all of you. I will now hand it back to Pinku for question and answers. Thank you.

Thank you, Rajeev, for the insights on the financial strategy. So now we have come to the open house of the leadership. In a minute or so, I am going to have the entire management team, the people who presented in the first session and the leaders who presented in the second session, to come and answer your questions. We would like to have -- the instructions for the participants are going to be the same. It's a Zoom -- on your Zoom platform, you'll have to raise your hand to call out, ask a question. And I will try to prioritize the people who have raised their hands in the prior Q&A session. I'll try to prioritize those participants for their questions. And we will again try to restrict the questions to maybe 1 or max 2. It's going to be a 30-minute session. So we'll try to give as many participants a chance to ask questions. On the management team, we will have Amit, our CEO; Alind Saxena, our Chief Sales Officer of America and Asia; Abhishek, our Chief Operating Officer; Rajeev Gupta, our CFO; and Shailendra Shrivastava, our Global Transportation Head; Prabhakar, who heads our Digital Manufacturing; and Nitin Jain, who heads AI and digital products. Right. I think it's now time for me to invite the people who have questions. Apurva Prasad from InCred. Can you ask your question, please? Sorry, from Elara, I'm sorry. Apurva from Elara. Can you ask your question, please?

Am I audible?

Yes, Apurva. Go ahead.

Yes. Great. Great presentation and session. Appreciate that. So we have 2 quick questions. So Amit, do you think the way forward is more concentration from larger clients and large deals. And is this the way forward because that gets you better visibility across some of your large R&D programs? The reason I'm asking this is, I'm referring to, I think, Alind's presentation of, I think, client buckets and that triangulated to a mix client concentration that seems to be higher than where it operates today. So I mean, is this sort of a conscious strategy to move in this way?

So Apurva, two parts here, right, response. Number one is that the 5 segments is something we'll continue to operate in. In fact, if we can help it, if I may, I want to make sure that we are fairly balanced across them, right? So that is definitely a strategy and then that comes down to offerings and clients. From a client standpoint, as Alind had pointed out, there will be 2 parts to it. One is deepening relationships and increasing ticket size within the same client and be able to grow the client definitely. At the same time, we will keenly look at adjacent clients that we can co-op as well. So there's 2 parts. So in fact, Alind talked about it, but our sales organization is hunters and farmers. So we've got clear strategies for both, and that will continue. Irrespective of whether it's an adjacent client or a current client, we believe that in our business, you need to create a lot more deals than RFPs you get invited to. So we will continue to run a large deal engine as we move forward. And that is -- these are the cornerstone as we take it, yes.

Thanks, Amit.

Thank you. Secondly, I think, Amit, this is again in reference to your earlier comment of the constant evaluation of what's core and what's noncore by clients. So any anecdotal instance that you can cite primarily from a sourcing decision point of view of some of the core segments?

See, if you look at product sustenance, at one point of time, about 2 years ago -- 2.5 years ago, clients would say my way to get into -- and some, right, not all. Some clients should say that my way to training my people and coaching them about my products is to do product sustenance. And therefore, this is core to my -- building my own team, I cannot give it out. Fast forward to today, and esteemed clients have come back and said that sustenance of a certain product line is no longer core because I'm able to train people in a different way, I'd rather use comm models, et cetera, and take it from there. And I'm going to give up that part of the business to you to run other white label service, while I focus on development, one. Second, one of our customers, it was in the call earlier today. And I'm -- on answering your question, but I feel extremely proud for our team that has delivered so well. And Stephan has always been very honest and he said, very nicely I'm not being paid by LTTS in saying it. I'm sure Prabhakar was smiling because Prabhakar has delivered to Stephan. But as you can see, the relationships that we have with these clients are fairly tight, right? But as you could hear from his voice, and the pain they have gone through digital. And when Chris said that I'm going to record this and play for my Board, he basically meant that it's been a -- it's a journey. It is not an open and shut thing. So I do believe that what is core, what is noncore changes. It depends on market. It depends on the life cycle of the product. It depends on the life cycle of the technology and where it is. So it is a continuous process. So I cannot give you that -- I mean if I also say today that anything to do with mechanical is noncore for an auto company, I'd be extremely wrong because when we talk about EACV, electric autonomous connected vehicles, in electric vehicles, there is a lot of work to be done in the mechanical chassis area that Shailendra's team is doing. So it's not noncore. So it's different for every segment. Apurva, there is more interest once we are -- we open up our offices, we'd love to walk you through and by segment, we can point out without giving client names on what's core, noncore, we can do that.

Can I request Sudheer from ICC Securities to ask the next question. Sudheer, are you on?

Yes. Firstly, a clarification. So when you say $1.5 billion by FY '25, is this -- should this be looked at as an aspiration or guidance, number one. Number 2 is when I think Dr. Panda was giving the medium-term revenue CAGR guidance of around 21% last time that had budgeted in some amount for acquisitions, M&A. So is your current number also has some amount budgeted for acquisitions? So this is the clarification and I have a follow-up question.

So I'm going to actually request Rajeev to answer that. I wanted to use the right words, but I can tell you 1 thing that the $1.1 billion and the $1.5 billion, both the numbers we spoke about, et cetera. We're fairly comfortable. I wanted to use the word cautiously optimistic about being able to deliver it. Rajeev, over to you on whether it's aspirational or guidance and then does it improve M&A?

Sure, Amit. So to respond to your question, the $1.5 billion by FY '25, that's clearly an aspiration. Of course, we have given an aspiration over a slightly medium-term period, and it includes acquisition as well because we will -- I mean we will talk around the 6 big bets, and we will look at acquiring companies that help us build capability around the white spaces. So that's how we will look at it.

Also so that we can add to that -- see, when we look at M&A, we are not looking at making -- and again, tomorrow, we may do it, and you will say you told us something in September '21. But -- and things may change, right? But having said that, See, if you look at our track record, we have normally acquired companies in that $20 million, $30 million revenue range . So we are not looking at a huge amount of M&A in that. We are looking at building our -- so we will not acquire just for sites. Let me say that. Like Rajeev was saying, our acquisition strategy will be built and driven to fill up white spaces that we think we can't do organically. We will, of course, we are proud of our organic growth, and that will be made for us as we go forward.

Sure, Amit. So there is no specific budget for acquisitions at this point in time.

We do have a continuous process that we keep on evaluating various companies that are available in product engine. So if you'll understand product engineering, you generally don't have very big companies, unless you're looking at car and 10 or somebody like that. Generally, these companies that are available for acquisition are in that the $20 million, $50 million revenue range, right? So we continue to evaluate. We continue to look at what we have. And whenever we look at a company, we look at how much time would it take for us to build as opposed to why. I mean, that's the continuous dialogue that we have in current.

Sir, just 1 question on the industry perspective. So you spoke about the $1.6 trillion opportunity for ER&D actually going up to in. But the IDCs of the world who actually come out with these estimates, they also caveated by saying large part of it is actually government R&D, defense R&D, pharma R&D maybe something like a CapEx -- infrastructure CapEx, which is not strictly addressable for players like us. They call out that of that $1.6 trillion, probably of $390 billion, $400 billion may be addressable for us. So based on your industry expertise, any thoughts on what that number may grow at over the next 3, 4 years?

So listen, what I see it as is there is the whole pie that's ER&D that gets done by companies themselves. And then gets done by companies, outsourced to companies like us, right? Rather than outsourced, I would rather talk about it co-source because, like Chris mentioned, that we work in an integral manner with our clients always, right? So let's call it cost. So there is co-sourced software happens. And therefore, if you look at it, put in, right, and have now give you hard numbers as they came out of NASCOM, I think, a couple of days ago, et cetera. about $16 billion plus is being done. ER&D is being addressed by India today, right? That is by Indian centers, Indian companies like us, right? Then there's another similar amount, $16 billion, $17 billion that has been addressed by global competency centers. Out of India. Now as the ER&D overall grows, I do believe that India as a destination for that, parts of Eastern Europe for that our bond definitely grow faster than any other locations that are there today, strictly by the amount of talent that is available, the kind of processes available and the kind of systems available and the confidence people have got. So I do believe that the trend is upwards. So current numbers that I had was $1.4 trillion going to $1.75 trillion to $1.95 trillion. I do believe that outsourcing also will expand in a similar or bigger manner or co-sourcing.

Thank you, Sudheer, and thanks, Amit. We'll have the next question from Abhishek from Incred Capital.

Pinku, am I audible?

Yes, you are. Please go ahead.

Okay. 2 questions I have. The first is, historically, the perception about the industry was it is cyclical project-oriented. And hence, we have volatility across the quarters. Now if I look at your aspirations in terms of near-term, medium-term growth guidance, it seems that, one, the demand is durable. Your visibility is better. And second, the business seems to be more annuity. Can you just explain us what has changed in terms of -- for this improved visibility in terms of outsourcing, especially on the R&D side? That's first part. The second is, given the supply constraints and the attrition challenges, would our incremental head count be in Tier 2 cities versus the traditional cities that we are aware of? And can that be an incremental margin lever because we are in a work-from-home environment? And if that is so, that coupled with the other variables, which Rajeev sir called out, is this kind of a conservative 18% EBIT number that we are projecting and kind of reinvesting back for growing at 20% plus. Is that kind of a conscious effort?

So Abhishek, we'll break this question up and answer up into 3 parts, right? Let me take the predictable part of ER&D and address. So there are 3 questions in the questions you asked, and we'll answer it as -- So let me take a stab and then I will request my colleague, Alind to talk a little bit about predictability of R&D. Abhishek would take up the Tier 2 cities and what we're doing about Tier 2 cities' growth. And then, of course, request Rajeev to also provide some color on what is baked in to the 18%, okay? So if I look at overall, Abhishek, what has changed, right? And I ask myself this question every day. One thing that has definitely changed is that we've seen a certain degree of maturity in terms of relationships and conversations that we've been having and evolving expectations from clients, see IT led the way and sure this could happen. Always the problem is between IT and us, engineering has been and I have spent time on both sides of the paradigm over the last more than 2 decades, I'll tell you. On the IT side, it used to be predictable, but it was a budget based. So I've got $1 billion or $1 million, I will give out $0.5 million, right? I mean that's broadly where it works. Engineering always used to have fractal budgets and with fractal budgets -- because it used to come down from views and view -- and second view and third view, et cetera, and they used to be put together and given up, right? So budgets were fractal if I may. And we had the responsibility over the last 10, 12 years to bring all that together. And then say now you've got this pie, give us a little bit of it. I think everybody has evolved and so have we. And what we see now is that, number one, there is a little bit of consolidation of budgets and spends that are happening with a little more predictability, if I may, that is allowing us to be able to have a slightly wider view, a. B, and I answered 1 more question earlier, and I had talked about it, and I will repeat myself on that, that clients are no longer only sourcing for sourcing for cost, but they are also sourcing for -- co-sourcing for speed, scale and talent, right? And I do believe that, that also gives us -- we're seeing cautiously optimistic that this trend will continue and help us to be able to provide a lens. Thirdly, We continue to motivate our teams and our clients to sign with us certain degrees of these -- can I call it, fixed and variable part. So let's start with the fixed part that will definitely happen. And on top of it, believe, as you see it. So I do believe that those schemes are all in play as we are doing it. I'm going to have Alind add to it, if there is anything else you think in your mind around what we're seeing on view, and then we'll hand over to Abhi.

Sure, sure. So a couple of things, I'll add. See, look, when we had the pandemic come over, another phenomenon, which happened was that customers actually lost a lot of suppliers as well. They were not able to handle and to make as such. So they're outwards towards picking key strategic supplier has also changed over that period of time. So rather than distributing the work among smaller suppliers overall, they have consolidated their work with some key suppliers, and we have been one of them. As you already heard, Chris and the gentleman from Covestro as well talk about it. So that's one1 clear trend in addition to what Amit said. Second is the products that we are engaging with them. These are now long-term evolving products. Earlier, our customer needed to come out with a product, the life cycle would be short term and then go away. But these are now long-term products, which are there. And that's helping them and wanting them from their side to keep the same team steady. So we are getting into very long-term engagements in supporting and managing these products. So these are 2 key areas where we think this will continue. In fact, I was just discussing with 1 of the Tier 1 suppliers in automotive, and they're asking us to be a 4-year partner for 1 of their scheme of things that they are trying to come out and I can't talk too much about it because it's still confidential. But they are clearly looking at, and they have tollers what we want is for you to be a key developer for the next 4 years for this product line, and you will be the only 1 who will be doing it. So those kind of commitments are evolving across different sectors. Abhi, over to you.

Yes, I think your question was Tier 2 cities presence in those cabnit work from anywhere, can the costs not go down and thereby help in improving operating margins. See, let's understand how this whole thing is shifting. While it's true that work from home is a reality and varying percentages, people are coming or working from home. But it's also true that at least at this point, the supply/demand situation is not how it used to be, if I may. So from an employee perspective, the employee is not expecting that I would be paid lower if I'm working from somewhere else, but that's not what it is. And yes, from an administrative perspective, we are present in Mysore and Baroda, Tier 2 cities, and growing amazingly well. We just started our new campus in Mysore just 3, 4 months back. So from a running cost perspective, these centers will be lower cost. There is no doubt about it. But you have to also understand that whatever savings we do because of this work from anywhere phenomenon. We have to invest heavily, 1 in security. One in security from a cloud perspective, from a remote infrastructure perspective, that is extremely key. Otherwise, customers will start losing confidence in us, right? I think the second part is we have to continue to invest in training of employees everywhere. The third part, which I had mentioned in my presentation, we will continue to invest in labs and technologies. It is extremely crucial for us being relevant in industrial. So our issuance from a margin perspective is not to try to do jumbo operating margin improvements, but go in a gradual way we have already given our aspiration of going to the 18% EBIT levels. But we want to go there gradually without taking our eyes of investment in our people and the technologies.

Rajeev?

Let me add to the question around the EBIT aspiration of 18% by FY '25. So I'll give a bit of color. First, we want to be realistic. And that realism is built by 2, 3 points. One, you rightly said that we will continue to make estimates, right? We talked about the fact that we will make investments in labs and technologies, the 6 big bets that we've called out. The second is we need to factor in normalcy returning. Today, of course, we live in a world where there's a lot of curtail travel. We believe some of this will come back. So we need to factor in that realism. The third aspect is we will see acquisitions. We talked about the inorganic growth. And much like Amit highlighted, I mean, our ability to see a larger ticket size is far better than it was in the past. So we are open to see a ticket size in acquisitions between, say $20 million to about $100 million ticket sizes so long as there are possibilities to clinch those deals. And we also need to understand, right, that there are only so many companies that are within this $20 million to $100 million range that 1 can talk about. The last of all is, I mean, talking about the sustainable operating model and the scale benefits. These are clearly positive, but to again summarize right, in terms of normalcy returning, the acquisitions and the realism, we feel 18% aspiration has an element of ambition, considering these 2, 3 points and investments will remain on the top because we want to see and capitalize on the growth opportunity that is available to us over the course of next 3 to 4 years.

Thank you, Rajeev, Abhi and Amit. We'll move to the next question. Can I request Ravi Menon from Motilal to ask a question? Ravi, are you on?

Yes, I am. Can you hear me?

Yes. Loud and Clear.

Amit, this is to you. It's actually a slight variation on what Sudheer had asked. If you could give us a sense of what's the kind of range of percentage of outsourced spend that you see among your customer base, that would be helpful. And secondly, among your top customers, what's the largest wallet share that you have, just so that we can get a sense of what's the market opportunity even within this?

So percentage, Ravi, of outsourcing or co-sourcing as opposed to total budget, can I put a range to it? I'll actually -- more than doing that, let me answer it in a different way, if I may. So if I start with -- go back to transportation, we see transportation giving out -- or not -- let's not use the word giving out, right? Let's talk about co-sourcing. So we see transportation amenable to giving out -- to co-sourcing, I would say, double digits kind of volume of their total spend that they do to people like us, right? And let's create some ranges here. So I won't give exact numbers, but I'll give ranges. So nobody does more than 50%. Let's understand that, right? So we'll say single digits, teens and double digits. Teens, everybody understands. Double digits is above the teens. So 3 ranges we'll pick, right? But double digit doesn't mean 50. You want to be absolutely clear. We are talking now in the 20s to -- about 20 to about 25, 26, right, about. So I would say that transportation is in double digits as we see it, right? Medical is lower teens, if I may, as we have seen it. Used to be single digits, right, but has improved. And I'm not talking for everybody, not just us, right? So overall as we see it. Plant engineering is -- if you just look at the engineering. I'm not talking about the construction and the equipment and all that. Plant engineering, I would put in lower teens if I may, [ would do that ], right? And again, it's been a maturing field. It used to be single digits, if I may. High tech has been double digits always, right? So that's no-brainer there. And industrial products is actually very varied by the subsegment, if I may, and varies from shall I say single digits, 2 teens, right? It is upper teens, lower teens, you can go about it. The one thing that is definitely we are seeing in outsourcing is this ER&D spend that we showed doesn't include plant engineering. At times, it does not include digital manufacturing, right? So that is another element that we are trying to address, that has opened up, right? Now if I go to my top 5 clients that we have got, and I was -- I knew that some question like that will come and -- because I had promised myself that I will carry data with me. So look, if I look at our -- if I look at my top 5 clients, right, I'm happy to share that in 4 of my top 5 clients, right, and I say this with confidence, of whatever they are outsourcing, I am #1 for them or 4 out of my 5, right, in terms of where I am. For my fifth client, I'm not #1. I'm actually one of top 5. It's a nice way to say top 5, but fifth in terms of what they are spending, right? Outside of that, if I, again, go another stab and take a stab at my top 30 clients, right, because we always -- generally, we look at top 30, next 20. That's the way we look at it. In my top 30 clients, I would say, for a significant part of those, I will be either #1 or #2 in terms of what we will spend, right? And that's why it's important for me to continue to look at how do I deepen my relationships, one, so internal targets and, I think, Abhi talked about how we are leveraging delivery-led growth with some of the people we have got, et cetera. And the second is to look at, am I missing a client that I should go out?

Thank you, Amit.

I hope, Ravi, I have answered your question.

We will squeeze in one more question from Sandeep Shah of Equirus.

Congrats for a very insightful presentation. First question is on your strategic 6 bets. My question is that [ new events are happening ] [indiscernible] shows that the market has started emerging [indiscernible]. So in this [ more of your competitors ], if you phase in these 6 strategic bets, is it both from India as well as global? And also whether the competition [ to captive ] for these 6 strategic bets is higher versus what we used to do earlier? And second, a follow-up question on the same is whether the sales cycles for the [ deals ] and the pipeline in these 6 strategic bets are slightly longer or shorter versus what it used to be earlier as a whole?

Sorry, I kind of got most of your question, but I want a little bit of a repetition. One, what I heard was, Sandeep, you wanted to know whether the 6 big bets, do we have competition in this? And if so, what's the color on that, correct?

Yes, both for India and global and also give a color on [ captive competition ].

What was the second question you had in the middle?

And second, in terms of these 6 strategic bets, the sales cycle in terms of inquiry to closing the deal, is it longer, shorter versus [ what it used to be in the other businesses ] [indiscernible]?

Sure. Sure. So in terms of competition, as we see it, the 6 bets have competition that is varied. I mean, very honestly, I mean, we see ourselves as one of the few companies that actually has got all 5 segments that we operate in, right? Generally, you will have engineering companies that operate in either 1 segment. There are people that operate in 2 segments. There are people that operate in 3 segments. You don't have people operating in all 5. This was a decision that we had made many years ago that we will be a 5-segment company, right? And we want to stay forward with that decision. So therefore, if I look at the 6 bets, our competition in each of these areas is different, and there is competition from India Inc., and there is competition from Europe Inc., because in the U.S., you generally don't have a large ER&D player. You either have them in Europe headquarter or India headquarter. And therefore, we do see competition in some of them. I do believe that my colleague, Shail, what he showed you in EV, right, he showed you the lab and the passion that he spoke, I do believe that our differentiator there is the entire stack, not just software or hardware, but the entire stack that I don't think others have got, right? Similarly, my colleague, Prabhakar talked about how he's bringing together the entire supply chain together from EBOM to MBOM, and I'm so happy, Prabhakar, that when our -- when Chris was talking today, he talked about the same thing, right? It looked like as if you both had connected before the call. Of course, you work with him, so of course, you will know. But that what, Prabhakar, brought out, as you know, that again is a differentiator that not a lot of companies are have got. So there are clear differentiators that I don't think others do, but there is stuff that others do, and there is competition. But it's between European players and Indian players. Sales cycle, Alind, would you like to take that, our sales cycle longer, shorter across the mix?

I think some of that varies by the sector that we are talking about. Again, like I said earlier, a lot of decision-making has now come back, and it's very prompt. So you will see quicker sales cycles, but larger deals still take longer. But overall, if you were to say, I would say that in the last 6 months or so, we have had about 30% reduction in the sales cycle overall. But it varies from customer to customer.

And just a second question I have is, if I look at [ these 2 ] targets which you have [ discussed ], one being $1 billion by 2Q or 3Q of FY '23, which implies 3.3% to -- or close to 4% kind of compounded Q-on-Q versus the second target being $1.5 billion by FY 2025, which is a 20% CAGR as a whole. And you also said it includes inorganic. So is it the organic growth would be more back ended because 3.3% to 4% is slightly lower versus what we have done in the last 4, 5 quarters? I don't know.

So Sandeep, my request to you will be that as I have said when I gave my first guidance out, which was my first guidance for this current fiscal year, and then we changed the guidance, upgraded it after that, and I had maintained with some of you that I had one-on-one dialogues with -- basically, after we announced the results. We, as a leadership team, do not -- we want to commit what we can deliver and then we deliver what we commit, right? That is the mantra inside the company. Believe it or not, this is actually clear mantra inside the company: commit what you can deliver and deliver what you committed, right? And we are trying to get to a no-surprises culture. So -- and greater predictability. So what we've given you today and shared $1 billion run rate, $1.5 billion is what we feel we are cautiously optimistic of our delivery, right? Now how much of this will be -- so does this add up, not add up? I would wait for the next quarter results, leave something for October also, and we will talk to you and then we'll take it forward. I will assure you one thing, Sandeep, that -- and to everybody else that's on this call that we are truly committed to action that we are talking about. We've all learned from Dr. Panda. A lot of you have gone, spent a lot of time with him. I can tell you we've all heard from him. We are his disciples, and we make sure that we deliver whatever we committed. Pinku, is that the last question because I did want to say a few words.

Thank you, Amit. That was the last question. Yes, go ahead, Amit.

So if I may, so first of all, I would like to -- before I go any forward, I'd like to thank each of you to having taken the interest and time to join us today. These last 18 -- 16, 18 months have not been easy. I personally have been behind a camera until July, did not move out, but then flew to Detroit, a lot of misgivings and then to the West Coast and now onwards to New Jersey and beyond. So I think stuff is opening up. I know all of us have gone through a lot of stuff. I truly want to thank you for having believed in us so far, gone through with us. We haven't had a good FY '21, but FY '22 has been good so far. And I assure you that we'll keep up to what we have commented. Second, I'm very proud of the clients that talked about -- today about their partnership and the value that we deliver. We want to continue doing that for our clients. We've already talked about our numbers. We're cautiously optimistic about it. And we've built our strategy around the 6 dimensions, the 6 bets. And now we are focused on execution and committed to action. And that's broadly where we are. we do believe that team LTTS is all for one and one for all. And you'll see this going forward as we go forward. So thank you so much for taking the time, believing in us. And like I said, we'll continue on the dialogue as we move forward. Pinku?

Thank you, Amit, for those very reassuring comments. It was really good to hear that sentiment from you. I want to thank the entire senior management team of LTTS for having taken the time to patiently answer the questions. We had a good set of questions, and I think they were very well answered. Thank you, and we look forward to connecting again with investors with you. Thank you.

Thank you so much.

Thank you.

Thank you.

Well, with that, we are coming to the end of IAD 2021. A lot of effort by various teams across the company has gone into making this event seamlessly -- seamless here in front of you, and we loved every minute of that effort. And we hope you found IAD 2021 informative and insightful. We'd love to hear your feedback on the access link. You would find a link to the feedback. And please let us know what you liked and what you think could have been better. We'll try to improve each time. Before we wind up, I would like to take this opportunity to thank a few people. Firstly, there's 16,000 engineers at LTTS. What you do is what defines LTTS, and it's your passion and commitment that makes us really come up and showcase what we have done to the investors. Secondly, I want to give a big shout-out to Sameer, the Chief Marketing Officer of LTTS and his entire beautiful, great marketing team as well as his -- the broadcasting partners who have helped us today. Lastly, to the investors, really appreciate the support and the constant feedback that you have been giving us over the years. You inspire us to aim higher, and we look forward to connecting with you every quarter and taking you along with us in our journey of excellence. IAD 2021 is a wrap. This was a virtual event. Next time, we really look forward to having it in person. And let's hope that the world turns into a much better place than what we are today. Thank you. Good night. Good day to all, and look forward to connecting with you soon. Bye-bye.