L&T Tech took a Rs 350 cr haircut for the AI tag. Now it must prove the moat isn’t rented
The post L&T Tech took a Rs 350 cr haircut for the AI tag. Now it must prove the moat isn’t rented appeared first on The Ken .
L&T Technology Services (LTTS) is heavily investing in artificial intelligence (AI) technology as it seeks to shift away from low-margin segments like smart city projects. In 2023, LTTS took over its parent's Smart World and Communication's (SWC) business with the aim of expanding its offerings across telecom, cybersecurity, and smart city projects.
However, it later sold SWC for a loss of Rs 350 crore. Despite the setback, LTTS remains committed to the AI transition, which it believes offers better returns. The company has already achieved positive results, with Ebitda margin growing year-on-year and quarterly revenue crossing Rs 3,000 crore. One notable AI-led deal involved assisting a leading American refinery in managing its extensive data vault, which previously required engineers to manually sift through complex information to address issues.
LTTS believes its AI-based platform, Ainfonix, can streamline this process, providing quick and accurate solutions. As a result, the company is reimagining its business strategy to focus on engineering intelligence and AI-powered services.
Written by urgent.news from The Ken's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
