Icon times
L&T Technology Services Q2FY22 Conference Call Highlights

L&T Technology Services Q2FY22 Conference Call Highlights

Published on 20 October 2021 Views 62 Comments 0
  • Digital Engineering and Technology: 55% of revenue in Q2 vs 54% in Q1.
  • 25 patents filed in Q2- mostly in collaborative and intuitive space in Digital technology.
  • Q3 has some seasonality because of furloughs.
  • Revenue growth guidance in FY-22: 19%- 20% in USD terms.
  • EBIT margin for the quarter is 18.4% which is 5th consecutive quarter for EBIT margin rise. It rose mainly due to operational efficiencies and scale benefits.
  • Headwinds on the EBIT margin side: Improving economy will lead to more travel expenses, wage hikes due to increased demand, organic and inorganic growth going forward.
  • FY- 25 target for sustainable EBIT margin is 18%.
  • Employee Utilization target is 78% to 80% going forward.
  • FY-25 target for revenue run rate: 1.5 billion USD.
  • Transportation vertical has 19%+ EBIT margins. Going forward company is looking to expand the margins in the Hi Tech and Telecom vertical.
  • ER&D (Engineering Research and Development) Industry: In 2020, market size of the industry was 1.5 trillion USD. It is expected to grow to 2.6 trillion USD. In this area, the legacy systems will grow at 2% CAGR whereas digital component will grow at 19% CAGR (Compounded annual return).
  • In the digital domain in the transportation vertical- there are 3 areas: Connected (60% current investment), Collaborative (35%) and Intuitive (5%). Going forward only 30% investment will be done in the connected field while majority will go to the other areas.

Originally Published On: https://blog.investyadnya.in/lt-technology-services-conference-call-highlights/
Attachments
File Name
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs 7499/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

LATEST UPDATE

premium Premium
free Free
Read More

REPORTS


Corporate Action News

Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
16:10
Chat with InvestYadnya