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Shares of L&T Technology Services were down 8.5 per cent at Rs 4,689 a piece on BSE in Friday’s intraday trade. This comes after the company reported its quarter four earnings for financial year 2023-24 (FY24) and outlook for FY25 on Thursday.
The brokerages were unimpressed by the company's growth guidance and cut in margins for FY25. Those at, Kotak Institutional Equities noted that revenue growth outlook of 8-
10 per cent for FY2025E was a tad lower than their estimate though a sharp cut to
EBIT margin guidance was a surprise.
“We incorporate a weak spending environment and weak margin outlook resulting in a 9 per cent EPS cut for FY2025- 26E. Stock is expensive at 35X FY2026E EPS. We cut Fair Value by 6 per cent to Rs4,400, valuing the stock at unchanged 29X June 2026E EPS,” the brokerage said.
Analysts at Kotak retained their “SELL” rating for LTTS with a fair value of Rs 4,440.
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LTTS reported a flattish fourth quarter with revenues rising 4.8 per cent at Rs 2,537 crore quarter on quarter (QoQ) while revenues gained 7 per cent year on year (YoY)
Earnings before interest and tax (Ebit) came in at Rs 428 crore for the quarter with Ebit margin at 16.9 per cent.
The company reported a net income of Rs 340 crore for the quarter, registering a growth of 1.4 per cent QoQ and 0.2 per cent YoY with a net margin of 13.4 per cent.
On a full year basis, LTTS registered a net income of Rs 1,303 crore for the year, with growth of 7.6 per cent.
Whereas the Ebit came in at Rs 1,647 crore for FY24 with an Ebit margin of 17.1 per cent.
“For FY25, our guidance is for 8-10 per cent revenue growth in constant currency (USD revenues based on 4QFY24 rates),” the management said in a statement.
At 10:00 AM, shares of LTTS were trading 7.93 per cent lower at Rs 4,770 a piece. A combined 16,952 shares of the company changed hands on the BSE. The stock has plunged 12 per cent in the last one month. While it has rallied 14 per cent in the last six months.
