L&T Technology Shares Gain Over 5% As Q4 Revenue, Profit Beat Estimates

Shares of L&T Technology Services Ltd. advanced the most in three weeks after the company's revenue and net profit beat analyst estimates in the fourth quarter ended March 31, 2023.

It posted a consolidated net profit of Rs 309.6 crore, up by 2% sequentially as compared to Rs 303.6 crore in the same period of the previous fiscal. The consensus of the analysts estimates pooled by Bloomberg stood at Rs 303.6 crore.

The company's March quarter revenue was up 2.3% at Rs 2,096.2 crore compared with Rs 2,048.6 crore in the previous quarter of the same year. It beat the consensus analyst estimates, which stood at Rs 2,082.68 crore.

During the quarter, the company won an order of $40 million (approximately Rs 327.1 crore) and three $10 million plus (approximately Rs 81.72 crore) TCV deals.

The company also guided for 20% revenue growth in FY24 in USD constant currency terms. "For FY24, our guidance is for a USD constant currency revenue growth of 20% plus (10% plus organic growth). We are excited about the ever-expanding potential of newer technologies and our role as partners to the top ER&D companies globally for their next-generation products," said Amit Chadha, CEO and Managing Director, L&T Technology Services Limited.

L&T Technology Services Q4 FY23 (Consolidated, QoQ)

• Revenue up 2.3% at Rs 2,096.2 crore vs. Rs 2,048.6 crore (Bloomberg estimate: Rs 2,082.68 crore).

• Ebitda up 1.8% at Rs 449.2 crore vs. Rs 441.2 crore (Bloomberg estimate: Rs 444.86 crore).

• Ebitda margin at 21.43% vs. 21.5% (Bloomberg estimate: 21.4%)

• Net profit is up 2% at Rs 309.6 crore vs. Rs 303.6 crore (Bloomberg estimate: Rs 306.08 crore).

• The board recommended a final dividend of Rs 30 per share for fiscal 2023.

Shares of L&T Technology Services Ltd. advanced 4.77% to Rs 3,611.25 apiece as of 09:48 a.m. in trade on Thursday, compared to a 0.12% advance in the benchmark NSE Nifty 50 Index.

The stock gained as much as 5.75% intraday, the most in over three weeks since April 5, 2023. Total traded volume stood at 8.6 times its 30-day average. The relative strength index was 59.

Out of the 30 analysts tracking the company, 11 maintain a 'buy' rating, seven recommend a 'hold,' and 12 suggest to 'sell' the stock, as per the Bloomberg data.

The average calculated from the 12-month price target given by analysts implies a potential downside of 6.5%.