L&T Tech Q3 Review - Results Slightly Below Estimates; Outlook Continues To Be Strong: Axis Securities

L&T Tech Q3 Review - Results Slightly Below Estimates; Outlook Continues To Be Strong: Axis Securities

<div class="paragraphs"><p>A person uses a laptop computer. (Photographer: Daniel Acker/Bloomberg)</p></div>
A person uses a laptop computer. (Photographer: Daniel Acker/Bloomberg)

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Axis Securities Report

L&T Technology Services Ltd. reported a healthy set of results in Q3 FY22. Its revenue stood at Rs 1,688 crore, registering a growth of 5% QoQ, slightly below our expectations.

Operating profit exhibited robust growth of 6.1% QoQ to Rs 213 crore. However, the company’s operating margin contracted by 320 basis points QoQ to 15.2%, primarily because of the extended wage hike along with higher operating and employee expenses.

The management is confident of achieving sustainable operating margin moving forward as it factors in the strong cost optimisation effort undertaken by L&T Tech as well as its strong execution capabilities.

Net income for Q3 FY22 stood at Rs 186 crore, improving by 8.2% QoQ. The management has also retained its revenue guidance to 19%-20%.

Click on the attachment to read the full report:

Axis Securities L&T Tech Q3FY22 Result Update.pdf


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