L&T Tech Q4 Review - Demand Is Intact: Prabhudas Lilladher

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Prabhudas Lilladher Report

L&T Technology Services Ltd. reported revenue at $197.5 million, 3.9% QoQ, in-line our estimates.

Growth was led by continued healthy demand momentum in plant engineering (up 9.7% QoQ U.S. dollar) and strong recovery in transportation (up 6.7% QoQ U.S. dollar.

Consistent improvement in Ebit margins led to pre-Covid-19 level of margins of 16.6% up 140 basis points QoQ in Q4 FY21, up 60 basis points higher than our estimates.

Management expects margin to sustain at pre-Covid-19 levels led by margin levers (utilization, offshore mix, pyramid, attrition) and scope to improve margins in telecom and hi-tech segment.

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