Arihant Capital 's research report on Larsen and Toubro Technology Services
L&T Technology Services’ (LTTS) Q4FY20 earnings were mixed beating our revenue estimates but EBITDA and PAT came below our estimates. Consolidated revenue for Q4FY20 stood at Rs 14,466mn registering +7.7% YoY/+1.7% QoQ, EBITDA increased 7.7% YoY/declined 6.3% QoQ to Rs 2,683mn and PAT increased 7.2% YoY/0.2% QoQ to Rs 2,063mn. Constant currency Revenue (USD) stood at $194 million, up by 1.6% YoY/down 2.5% QoQ, due to COVID-19 outbreak as the company faced supply side constraints and demand side challenges resulting in loss of productivity and work from home for employees. EBIT stood at Rs 2,812mn growing 10.0% annually and declining 0.8% sequentially. The company’s board has recommended a final dividend of Rs 13.50 per share.
Outlook
The management also stated that business related to oil sector will find this a difficult year while medical technologies and telecom segments should do well. We value the stock at an exit P/E of 13.5x, to arrive at a target price of Rs 1,227 per share. We downgrade our rating to Accumulate from Buy earlier.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Read More
