L&T Tech Q4 Review - Questionable Multiples: ICICI Securities
A binary code design decorates the wall of the Fraunhofer IIS pavilion at the CeBIT 2017 tech fair in Hannover, Germany (Photographer Krisztian Bocsi/Bloomberg)

L&T Tech Q4 Review - Questionable Multiples: ICICI Securities

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.

ICICI Securities Report

L&T Technology Services Ltd. continued to lag behind most of its IT/engineering research and development peers – earlier on resilience, now on recovery.

Reported revenue growth (3.8% quarter-on-quarter, versus 4.7% of Cyient Ltd., constant currency) was behind our estimates.

Adjusted for lower amortisation, Ebit margin expanded just 70 basis points QoQ (versus ~150 basis points of Cyient) missing our estimates.

Revenue growth guidance (13-15%, U.S. dollar), despite very weak base (down 6.8% year-on-year in FY21, constant currency), was a disappointment, implying a meagre 3% compound annual growth rate (CC) over FY2022.

Click on the attachment to read the full report:

ICICI Securities LTTS Q4FY21 Results Update.pdf

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