L&T Tech shares tank 8% in early trade post Q3 numbers
The company reported a 33.7 per cent year-on-year (YoY) growth in consolidated net profit for October-December at Rs 248.8 crore. On a quarter-on-quarter (QoQ) basis, profit was up 8.2 per cent.
- Jan 19, 2022,
- Updated Jan 19, 2022 10:01 AM IST
Shares of L&T Technology Services Limited (LTTS) tanked 8 per cent to hit an intraday low of Rs 4992.95 on BSE after the company posted its earnings for the quarter ended December 2021. The company reported a 33.7 per cent year-on-year (YoY) growth in consolidated net profit for October-December at Rs 248.8 crore. On a quarter-on-quarter (QoQ) basis, profit was up 8.2 per cent. The company's revenue grew 20.5 per cent YoY and 5 per cent QoQ to Rs 1,687.5 crore during the quarter under review, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 33.3 per cent YoY and 5.2 per cent QoQ to Rs 367.5 crore. The stock opened 6 per cent lower at Rs 5,099 against the previous close of Rs 5,421.45. Market cap of the firm fell to Rs 52,864 crore on BSE. EBITDA margin expanded to 21.8 per cent during the quarter under review from 21.7 per cent in the previous quarter and 19.7 per cent in the year-ago quarter. "We sustained our performance trajectory with sequential growth of 4.2 per cent in constant currency led by strong demand across segments. The deal conversations and pipeline in our six big bets -- Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability - continues to see healthy improvement as our customers make steady progress on their long-term transformative journeys," L&T Tech CEO and MD Amit Chadha said. He added that in line with the company's long-term growth prospects and strategy, it hired and onboarded a record 1,900 plus trainees, leveraging its Global Engineering Academy that is focused on continuous training and upskilling. The company's employee strength stood at 20,118 at the end of December quarter. Brokerage house Dolat Capital said that the company reported revenue growth of 4.2% QoQ in CC terms. The slight miss was on account of higher-than-expected seasonality in Q3 (higher leaves than usual during holiday season). "We remain confident that LTTS can deliver multi-year high-teens growth over next few years with a stable Profitability and deserves to command premium. We remain positive on the name but given the strong run-up, would prefer better entry points and thus assign Accumulate Rating with DCF based target price of Rs 5,320," it added. The company's board also declared an interim dividend of Rs 10 per equity share.
Shares of L&T Technology Services Limited (LTTS) tanked 8 per cent to hit an intraday low of Rs 4992.95 on BSE after the company posted its earnings for the quarter ended December 2021. The company reported a 33.7 per cent year-on-year (YoY) growth in consolidated net profit for October-December at Rs 248.8 crore. On a quarter-on-quarter (QoQ) basis, profit was up 8.2 per cent. The company's revenue grew 20.5 per cent YoY and 5 per cent QoQ to Rs 1,687.5 crore during the quarter under review, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 33.3 per cent YoY and 5.2 per cent QoQ to Rs 367.5 crore. The stock opened 6 per cent lower at Rs 5,099 against the previous close of Rs 5,421.45. Market cap of the firm fell to Rs 52,864 crore on BSE. EBITDA margin expanded to 21.8 per cent during the quarter under review from 21.7 per cent in the previous quarter and 19.7 per cent in the year-ago quarter. "We sustained our performance trajectory with sequential growth of 4.2 per cent in constant currency led by strong demand across segments. The deal conversations and pipeline in our six big bets -- Electric Autonomous & Connected Vehicle (EACV), 5G, Med-tech, AI & Digital Products, Digital Manufacturing and Sustainability - continues to see healthy improvement as our customers make steady progress on their long-term transformative journeys," L&T Tech CEO and MD Amit Chadha said. He added that in line with the company's long-term growth prospects and strategy, it hired and onboarded a record 1,900 plus trainees, leveraging its Global Engineering Academy that is focused on continuous training and upskilling. The company's employee strength stood at 20,118 at the end of December quarter. Brokerage house Dolat Capital said that the company reported revenue growth of 4.2% QoQ in CC terms. The slight miss was on account of higher-than-expected seasonality in Q3 (higher leaves than usual during holiday season). "We remain confident that LTTS can deliver multi-year high-teens growth over next few years with a stable Profitability and deserves to command premium. We remain positive on the name but given the strong run-up, would prefer better entry points and thus assign Accumulate Rating with DCF based target price of Rs 5,320," it added. The company's board also declared an interim dividend of Rs 10 per equity share.