L&T Tech Q2 Review - Well Positioned To Benefit From Strong Growth In Digital Engineering: Prabhudas Lilladher
BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
L&T Technology Services Ltd. reported strong revenue growth of up 5.7% QoQ U.S. dollar, above our and consensus estimates (our estimate: 5%, consensus: 3%).
Growth was led by industrial products (up 8.6% QoQ U.S. dollar), transportation (up 6.2% QoQ U.S. dollar) and strong recovery in medical devices segment (up 9.6% QoQ) after soft performance in last two quarters.
L&T Tech's consistent improvement in Ebit margin for five consecutive quarters led to highest ever margin of 18.4% up 116 basis points QoQ despite high supply side cost pressures, driven by productivity gains and revenue growth leverage.
We believe that margins may not sustain at these levels and will come back to ~17.3% in H2 FY22 given headwinds from rising attrition, probable wage hike and come-back of travel and facility costs.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.