L&T Technology Services - Q2FY21 Result - Angel Broking

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."

Shares of L&T Technology Services Ltd was last trading in BSE at Rs.1750.55 as compared to the previous close of Rs. 1728.8. The total number of shares traded during the day was 13622 in over 1871 trades.

The stock hit an intraday high of Rs. 1779.8 and intraday low of 1693.95. The net turnover during the day was Rs. 23602849.

Source : Equity Bulls

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