Luxoft’s automotive R&D unit accelerates in Q3 FY19: +56%
Luxoft’s Automotive and Transportation unit had a stellar performance in Q3 FY19, with revenue growth of +56%. The unit, which provides mostly engineering and R&D services to the automotive sector, is back to hyper-growth after two “soft” quarters (with a growth of around 25%).
The performance includes a very limited M&A impact, with the latest acquisition relevant to the unit being German firm Objective, a firm with 100 employees at the time of the acquisition in August 2018.
Luxoft’s automotive continues to be lumpy, impacted by large deals ramping up. The unit has a share of wallet strategy and wins, on a regular basis, large deals from European automotive OEMs. We are guessing the scale of Luxoft (with USD 904m in revenues in calendar 2018) helps here. Also, the unit has been heavily focusing on its portfolio, largely around in-vehicle infotainment and digital cockpit.
In anticipation of its pending acquisition by DXC Technology, Luxoft will not provide further details on the performance of its automotive unit. In theory, the sales muscle of the much larger DXC should help the unit reach out to automotive clients in the US and accelerate its growth.