ICICI Securities: L&T Tech Q2 Review - Multiple Headwinds Ahead 
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ICICI Securities: L&T Tech Q2 Review - Multiple Headwinds Ahead 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

First half FY21 result of L&T Technology Services Ltd. once again exposed the relative vulnerability of engineering and research and development (versus Information Technology) to demand, supply and margin shocks.

Further to a sharp fall in revenue/profitability in Q1 FY21, modest recovery during September 2020 (that too led by unreliable markets like Rest of World, India) was underwhelming.

While the company hinted at 40% increase in the pipeline (versus December 2019), quick conversion into deals/revenue may be a tough ask.

Post Covid-19, reprioritisation of capital, focus on increasing utilisation of existing assets and elongation of product development cycles underpin this assessment.

Click on the attachment to read the full report:

ICICI Securities L&T Technology Services Q2FY21 Result Update.pdf

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