L&T Tech Q4 ReviewQuestionable Multiples: ICICI Securities

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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.

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ICICI Securities LTTS Q4FY21 Results Update.pdf


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