L&T Tech Q1 Review - Mixed Results; Maintains FY24 Organic Revenue Growth Guidance Of 10% Plus: Yes Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.L&T Technology Services Ltd. reported mixed financial performance for the quarter. Both, the sequential revenue growth and Ebit margin were slightly below expectation. L&T Technology reported revenue growth of 9.8% QoQ in U.S. dollar terms, led by acquisition of Smart World & Communication, which got completed with effect from April 01, 2023. Organic growth was 0.6% QoQ in constant currency terms. There was sequential decline in Ebit margin (down 155 bps QoQ) to 17.2%. impacted due to low margin SWC business. Employee attrition continues to decline as last twelve months attrition decreased by 330 bps QoQ to 18.9%. The long term demand environment remains intact led by growing outsourcing of engineering research and development services. However, the clients across sectors remain cautious regarding the evolving macroeconomic situation leading to slow decision making and thus impacting near term revenue performance. Improving employee pyramid and falling employee attrition will support operating margin. We estimate revenue compound annual growth rate of 18.2% (including impact of SWC acquisition) over FY23‐25E with average Ebit margin of 17.7%. We maintain our 'Neutral' rating on the stock with revised target price of Rs 4,295/share at 29 times on FY25E earnings per share. The stock trades at price-to-earnings ratio of 32.5 times/27.5 times on FY24E/FY25E EPS..Click on the attachment to read the full report:.L&T Technology Q1 Results Review - Muted; Guidance Retained Backed By Strong Deal Wins: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

L&T Tech Q1 Review - Mixed Results; Maintains FY24 Organic Revenue Growth Guidance Of 10% Plus: Yes Securities

Improving employee pyramid and falling employee attrition will support operating margin.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

L&T Tech Q1 Review - Mixed Results; Maintains FY24 Organic Revenue Growth Guidance Of 10% Plus: Yes Securities

Improving employee pyramid and falling employee attrition will support operating margin.

Choose a plan

Follow Us

DOWNLOAD THE APP