Anand Rathi recommended hold rating on Larsen and Toubro Technology Services with a target price of Rs 1579 in its research report dated June 08, 2020.
Anand Rathi 's research report on Larsen and Toubro Technology Services
L&T Technology Services Limited (LTTS) has reported a growth of 7.7% in its revenues at Rs.14,466 million in Q4-FY20 as against Rs.13,431 million in Q4-FY19. In US dollar terms the revenue growth was 2.1% YoY and decline of 2% QoQ at $195.4 million. The subdued performance during the quarter was mainly due to furloughs and some productivity loss due to twin impact of COVID-19 and significant Oil price declined leading to delays. On profitability front, the company’s EBITDA margin stood at 18.5% at Rs.2,683 million in Q3-FY20 as against 18.5% at Rs.2,481 million in same quarter previous year. The consolidated profit after tax (PAT) margin (before XO items) for the company stood 14.3% at Rs.2,063 million as against 14.3% at Rs.1,924 million in same quarter previous year.
We have incorporated latest quarterly numbers for LTTS and have revised our estimates for the company in terms of both revenues and earnings. We continue to remain positive on the company for medium to long term, we maintain our rating to HOLD with a revised target priceRs.1,579 per share.
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