L&T Technology Services Stock Takes a Hit After Q4 Earnings Report
Shares of L&T Technology Services (LTTS) witnessed a significant decline on Friday, dropping 8.5% to Rs 4,689 per share on the BSE. This downturn followed the company's release of its Q4 earnings for FY24 and its outlook for FY25 on Thursday.
Analysts expressed disappointment with the company's growth guidance and projected margin reduction for FY25. Kotak Institutional Equities, for instance, noted that the revenue growth outlook of 8-10% for FY25 was lower than their expectations. They also highlighted a significant cut in earnings per share (EPS) estimates due to the weak spending environment and margin outlook. Consequently, they lowered their fair value for the stock to Rs 4,400.
Kotak retained their "SELL" rating for LTTS, citing the revised fair value.
LTTS's Q4 results were relatively flat, with revenue increasing by 4.8% QoQ to Rs 2,537 crore and 7% YoY. The company's net income for the quarter stood at Rs 340 crore, representing a 1.4% QoQ and 0.2% YoY growth.
For the full year FY24, LTTS reported a net income of Rs 1,303 crore, reflecting a 7.6% growth. The company's Ebit margin for the year was 17.1%.
Looking ahead, LTTS management projects revenue growth of 8-10% in constant currency for FY25.
At the time of writing, LTTS shares were trading 7.93% lower at Rs 4,770 per share. The stock has experienced a 12% decline in the past month but has gained 14% over the last six months.