Connect with us

Business

L&T Tech investors take a shock as fourth quarter falls short of expectations

Avatar

Published

on


MUMBAI : Ahead of its March quarter results, shares of L&T Technology Services Ltd (LTTS) were posting year-over-year returns of 117%. The mid-tier IT company’s March quarter results didn’t set the streets on fire, however.

On a sequential basis, its constant currency revenue rose 3.8%, missing analysts’ estimates by 130 to 150 basis points (bps). A basis point is equal to one hundredth of a percentage point. It also underperformed Cyient Ltd constant currency revenue growth by 4.7% in the March quarter. The operating margin improved 140 basis points quarter on quarter to 16.6%, driven by an increase in the offshore mix and better utilization. It largely matched expectations.

Reacting to its earnings, the stock fell 8% on the NSE on Tuesday.

The moderate revenue growth forecast for FY22, despite strong trading wins and a weak base for FY21, has put investors off strongly. The company forecasts dollar revenue growth of 13-15% this fiscal year. Many analysts envisioned income growth to be in the teens high for FY22.

Mixed bag

View full picture

Mixed bag

Management attributed the modest advice to their increased caution due to the recent surge in covid cases in India. During the quarter, he won six contracts with a total value of over $ 10 million, including two over $ 25 million. In a post-earnings conference call, the company’s management said that going forward, its pipeline remains strong, but contract closures are uncertain.

National brokerage firm HDFC Securities Ltd said these revenue forecasts imply a modest quarterly growth rate of 2.1-2.8%, despite the ramp-up of Phase 2 of its oil and gas deal by more than $ 100 million. The modest income forecast comes against the backdrop of wealthy valuations, adding to the discomfort for investors.

According to analysts at ICICI Securities Ltd, the company still lags most of its peers in terms of resilience and now recovery. Still, it trades at high valuations. LTTS is currently trading at 37 times estimated FY22 earnings per share, with a significant premium over TCS (29 times), Infosys (26 times) and Cyient (16 times) despite its growth / margin trajectory. either lower or similar, “he said in a May 4 report.

Analysts said given the high valuations, the positives are more than taken into account and stock performance could remain under pressure.

To subscribe to Mint newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]