Improving deal pipeline and growth factored into L&T Technology stock

Q3 performance was better than estimates led by growth across verticals

Large deals in a quarter, strong deal pipeline and broadbased growth across key verticals for L&T Technology Services highlight that the worst affected IT segment of engineering, research and development (ER&D) is on a firm recovery path. The pure play ER&D player reported a constant currency growth of 6.6 per cent on a sequential basis which was better than the street’s expectation of 4-5 per cent growth. The company has also revised its guidance for FY21. 

Organic growth in the quarter was led by the plant engineering and industrial product segments which were up 5.5-9.2 per cent q-o-q. The highest