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Published on 20/10/2020 11:48:19 AM | Source: Angel Broking Ltd

Quote on L&T By Mr. Jyoti Roy, Angel Broking Ltd

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Below is the Quote on L&T By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

“L&T Technology Services reported a 4.6% qoq growth in revenues to USD 178mn which was slightly below our expectations of USD 178.9mn. In rupee terms revenues increased by 1.5% qoq to ₹1313.8 crore while gross profits increased by 14.0% qoq to ₹395.2 crore. Gross margins expanded by ~329bps qoq to 30.1% due to sharp increase in utilization to 75.4% from 70.9% in Q1. EBIDTA for the quarter was up by 13.1% qoq to ₹ 232.8 crore while margins expanded by ~182bps qoq to 17.7%. Net profit for the quarter was up by 41.1% qoq to ₹165.5 crore. Management has upgraded their revenue growth guidance for FY2021 and now expects revenue to contract by 7-8% for the full year as compared to earlier expectations of a 9-10% degrowth. Growth was led by plant engineering and medical devices verticals which grew by 8.1% and 7.4% qoq respectively while the Telecom & Hi tech vertical reported marginal degrowth of 0.6% qoq due to client specific issues. Transportation & Industrial products verticals reported growth of 4.1% and 4.6% qoq. Overall the company posted a decent set of numbers for the quarter and highlighted that demand outlook is reasonably strong led by automotive, medical devices, Telecom & Hi tech while aerospace and oil & gas verticals remain weak.”

 

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