L&T Technology Services Ltd: Value Pick Stock December 2020, Update
Update:
Q1 Result FY 2023
L&T Technology Services Ltd (LTTS) – a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services has announced its results for the 1st quarter ended June 30, 2022.
Revenue from Operations
On a consolidated basis, the company’s revenue from operations stood at INR 1873.7 Cr for the quarter ended 30 June 2022 as compared to INR 1756.1 Cr for the quarter ended 31 March 2022, registering a growth of 6.69% Q-O-Q basis. However, the revenue from operations stood at INR 1518.4 Cr a year ago, showing a growth of 23.39% Y-O-Y basis.
USD Revenue
USD Revenue of the company is at $239.5 million; growth of 20% Y-O-Y in constant currency
Total expenses of the company are as follows –
INR 1541.1 Cr as on 30 June 2022, (up 7.08% Q-O-Q & 21.64% Y-O-Y)
INR 1439.2 Cr as on 31 March 2022,
INR 1266.9 Cr as on 30 June 2021
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Net Profit
LTTS registered a net profit of INR 274.2 Cr for the period ended 30 June 2022 as against INR 262 Cr for the period ended 31 March 2022, showing a growth of 4.66 percent Q-O-Q basis, while PAT stood at INR 216.2 Cr one year ago, a growth of 26.83 percent Y-O-Y basis.
The Earnings Per Share (EPS) of the company are as follow –
INR 25.98 as on 30 June 2022,
INR 24.83 as on 31 March 2022, and
INR 20.57 as of June 30, 2022
Deal Won during the Quarter
During the first quarter of FY 2022-23, LTTS won a USD 50 million plus deal, four USD 15 million deals, and two deals with TCV of USD 10 million.
Work Force
At the end of quarter one FY23, LTTS’ employee strength stood at 21,433.
CEO and MD Speak –
We started the new fiscal on a strong note with revenue growing sequentially by 4.7 percent in constant currency. Growth was led by (1) Plant Engineering and Industrial Products, (2) benefitting from spends towards digital manufacturing, (3) energy transition and smart & connected products. Our big bets focus has helped us to align ourselves with these strategic and multi-year customer programs.
Deal wins were very strong during the quarter and spread across segments. Our Aerospace and Rail segment is seeing a revival of large deal bookings with a USD 50 million deal in Q1 on the back of a stellar long-term deal that we won in the prior quarter. We recently opened an engineering design center in Toulouse, France to cater to new age digital requirements of Aerospace.
We see a broad-based pipeline of opportunities which gives us the confidence of the growth momentum sustaining going forward.
Daily Chart
The stock ended at INR 3092.75 up by 1.38% today and is trading 48% below when compared to its 52-week high of INR 5955 on the NSE.
LTTS is a value pick stock of Finblab and is maintaining a positive view of the company.
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17 Dec 2020
L&T Technology Services Limited, also known as “LTTS” is a global leader in Engineering and Research & Development (ER&D) services.
L&T Technology Services: History
L&T Technology Services was founded in the year 2009 as L&T Integrated Engineering Services.
Today, L&T Technology Services Limited is an engineering services company based in Vadodara (Gujarat). The Company operates as a subsidiary of the conglomerate larsen & toubro (L&T).
L&T Technology Services: Business & Services
The Company offers design and development solutions throughout the product development chain and provides services and solutions in the areas of (1) mechanical and manufacturing engineering, (2) embedded systems, (3) engineering analytics, and (4) plant engineering.
With more than 50 Innovation and R&D design centers worldwide, LTTS specializes in disruptive technology spaces such as Artificial Intelligence, Autonomous Transport, Collaborative Robots, Digital Factory, and 5G.
Services offered by L&T Technology
The Company Bags Multi-Year Order
At the beginning of the month, LTTS has won a multi-year order with a potential value of more than $100 million.
The company in a press release said that it has been selected by a global Oil & Gas major to be the primary engineering partner to support 2 of its integrated refining and chemicals manufacturing facilities in the United States.
Under the multi-year contract, the company will provide multi-discipline plant engineering activities including (1) site sustenance, (2) discipline engineering, and (3) control automation support for both facilities.
L&T Technology: Client Base
L&T Technology’s client base includes close to 70 “Fortune 500 companies” and 51 of the world’s top Engineering R&D companies, across industrial products, telecom & hi-tech, medical devices, transportation, and the process industries.
L&T Technology Services: Strength
LTTS has over 15000 employees spread across 28 global sales offices and 17 global design centers as of March 31, 2019.
L&T Technology: MD & CEO
- Dr. Keshab Panda is the Managing Director and Chief Executive Officer of the company.
- Dr. keshab panda has more than 30 years of experience in research, conceptualizing, creating, operationalizing, and turning around complex technology and engineering services businesses.
- He joined the L&T Group as Chief Executive of L&T IES in the year 2009. After L&T IES was rechristened as L&T Technology Services in the year 2013, he was appointed as the MD & CEO of LTTS in the year 2016.
- Dr. Panda led LTTS through a high profile IPO in the country and successfully listed the company on the BSE and the NSE.
Listed On:
l&t technology services ltd share is presently listed at Bombay Stock Exchange (BSE); CODE 540115 and National Stock Exchange (NSE) as LTTS
Stock Info: L&T Technology Services
Share Holding Pattern
Financials
Capital Reserves and Surplus: INR 66 Cr (2016), INR 1511 Cr (2017), INR 1945 Cr (2018), INR 2381 Cr (2019), INR 2564 Cr (2020)
Sales Turnover: INR 2894 Cr (2016), INR 3112 Cr (2017), INR 3507 Cr (2018), INR 4712 Cr (2019), INR 5181 Cr (2020)
Net Profit: INR 434 Cr (2016), INR 449 Cr (2017), INR 489 Cr (2018), INR 700 Cr (2019), INR 790 Cr (2020)
EPS: 45.86, 44.52, 47.97, 67.72, 75.82
Dividend: INR 8/share (2017), INR 19.50/share (2018), INR 20.50/share (2019), INR 20.50/share (2020)
Conclusion
L&T Technology Services Limited is a listed subsidiary of India’s premier infrastructure developer Larsen & Toubro (L&T) and is a leading global pure-play Engineering Research & Development services company.
Promoters of the company are having more than 74 percent stake with 0 percent pledge shares.
Along with this, some of the top institutions like RELIANCE CAPITAL TRUSTEE CO LTD-A/C NIPPON INDIA ETF NIFTY MIDCAP 150, HDFC TRUSTEE COMPANY LIMITED-HDFC EQUITY FUND, and ITPL – INVESCO INDIA TAX PLAN is having more than 1 percent stake in the company.
LTTS Standalone September 2020 Net Sales stood at INR 1207.9 Cr (INR 1185.5 Cr a quarter ago), up 1.86% Q-O-Q; while Net Profit stood at INR 178.9 Cr in September 2020 (INR 113.8 Cr a quarter ago) up 57.20% Q-O-Q.
On the technical front, l&t technology services ltd share price is trading well above its 50 EMA (1791) and 200 EMA (1481) on the daily chart.
Keeping the above-listed factors in mind, L&T Technology Services Limited looks good at INR 1962. Finblab recommends investing in the stock in a staggered manner for the medium to the long haul.
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