LTTS wins multi-year engineering services deal from BP

L&T Technology Services Limited (LTTS) on Tuesday said that it has secured a multi-year engineering services deal with global energy company BP.  

In an exchange filing, the IT firm said, the relationship is expected to leverage over two decades of L&T Tech's experience in engineering, manufacturing services, digital and enterprise data management and will address some of the most significant challenges for bp globally. 

The engagement between LTTS and BP is expected to encompass a spectrum of critical areas, including Engineering for Projects, turnarounds, maintenance improvements, technical writing and services dedicated to advancing sustainability initiatives, it said, adding that “together, both the companies intend to focus on improving operational excellence”. 

“This long-term relationship allows us to provide services for their global assets, emphasizing top-tier operational efficiency through digital enablement. Our proven track record in high-quality engineering services and digital transformation solutions underscores our position as a trusted partner for BP,” Amit Chadha, CEO & Managing Director of L&T Tech Services, said in a statement. 

In an earlier note, analysts at Axis Securities said that they believe L&T Tech is well-placed for encouraging growth in the long haul backed by multiple long-term contracts. However, rising concerns over prospects of large economies as well as prevailing supply-side constraints pose uncertainties over company's short-term growth rates, the brokerage firm added. 

In October, LTTS announced its second quarter earnings for the financial year 2023-24. It posted Q2 profit at ₹315.40 crore, up 5.2 per cent in comparison to ₹299.90 crore during the second quarter of FY23. The company posted revenue from operations at ₹2,386.50 crore, up 4.6 per cent as against ₹2,281.70 crore during the same period last year. L&T Technology Services recorded USD revenue at $288.1 million, up 2 per cent on-year. The EBIT margin stood at 17.1 per cent.