L&T Technology Services Share Price Plunges 8.3% in Intraday Trade

Posted by dimisor on December 26th, 2022

L&T Technology Services Share Price Plunges 8.3% in Intraday Trade

The L&T Technology Services share price plunged as much as 8.13% in intraday trade on Wednesday, September 21, after the company announced that it has acquired a Water management project from Gujarat. The company is a subsidiary of Larsen & Toubro and is listed on the National Stock Exchange and the Bombay Stock Exchange. The company provides engineering services to industries. Its major clients include the Indian Air Force, the Indian Navy, the Indian Army and the Railways. The company is located in Vadodara, Gujarat.electroviz.com

Acquisitions

L&T Technology Services Limited is a subsidiary of the engineering and construction conglomerate Larsen & Toubro Limited. The company offers a gamut of services, from mechanical engineering to embedded systems to research and development. With a footprint across 25 countries, it is one of the most prominent names in the global pure play ER&D services business.

The company recently announced a new partnership with Microsoft to deliver digital engineering solutions. The company is also set to acquire a 100 per cent stake in Orchestra Technology, a firm specialized in telecom network management and other engineering services. The company's newest acquisition, Graphene Semiconductor Services, will be located in Bengaluru, and will provide services in the areas of electronics, software, and RFICs.

LTTS's foray into the AiKno solution garnered the company Frost & Sullivan's 2019 Indian Cognitive Automation Technology Innovation Leadership Award. The company's other accolades include winning the BML Munjal Awards for Business Excellence through Learning & Development, Silver for the most technologically advanced business process, and Gold for the best employer of the year.

L&T Technology Services recently released its first Sustainability Report for the period of 2020 to 2021. The report covers various ESG initiatives and has a roadmap to achieve carbon neutrality by the year 2030.

The most important information in the L&T technology services' first Sustainability Report is that the company has a clear vision for its business. The company is also on the lookout for companies that can help it expand into new geographies and sectors, while expanding its reach in existing markets. It is on the prowl for technology firms in North America and Europe.
Revenue growth guidance

L&T Technology Services Limited posted a 24 percent year-on-year growth in its revenue and net profit in the first quarter of the fiscal year. The company also raised its revenue growth forecast for the year to 15.5-16.5% in constant currency terms, according to a report from CNBC-TV18. It also guided to a run rate of billion in constant currency over the next five years.

The Mumbai-based engineering services arm of Larsen & Toubro grew its revenue in all verticals, including transportation. The company won several deals worth over 0 million, which should drive strong earnings growth. The company has also been awarded a major multi-year contract from Airbus.

The company posted a net profit of Rs 274.2 crore in the period, up from a loss of Rs 59.3 crore in the previous fiscal year. The company announced an interim dividend of Rs15 per share. LTTS's order book rose 12 percent. The company has won several deals in the transportation, industrial products, product engineering, and digital technologies segments.

During the quarter, the company's gross margin stood at 18.3 percent, down from 23.8 percent in the previous quarter. However, L&T Tech's operating margin dropped 20 bps on a year-on-year basis. On a sequential basis, the margin fell 10 bps.

The company expects to continue its growth momentum in the transportation and high-tech verticals. The company expects to win more than 0 million in contracts during the year. Its recent deal with Jaunt Air Mobility was valued at USD 100 million. This is the third consecutive -0 million transportation deal for LTTS.

L&T Technology Services plans to hire about 3,000 freshers this fiscal year. It has a large pipeline of new projects. Its latest contract with BMW will see it providing high-end engineering services to the automaker's hybrid cars.
CSR excellence in integrated water management project

L&T Technology Services Limited, or LTTS for short, is a global leader in engineering and R&D. It is the smartest campus in the world, and has an extensive track record of innovation. Its latest endeavors include a multi-million dollar contract with a leading semiconductor firm. L&T Technology Services has also partnered with Microsoft's Azure cloud platform to create a new generation of digital engineering solutions.

The company also has an impressive CSR program. One such initiative is its Watershed Development Program, which aims to improve the quality and quantity of groundwater available in the state. It also aims to empower farmers, and build a sustainable community. This is the first of its kind in India. In the past two years, the program has provided safe drinking water to over 2000 people. The company has also built the country's first Village Watershed Committee, which is responsible for promoting conservation efficiency.

L&T Technology Services has been the recipient of a number of awards. In the last year alone, the company received several high-flying awards and accolades. Amongst them, the company received the coveted title of best employer in India. This accolade came in the form of a gold medal at the prestigious Best Employer of the Year (BEOY) competition. L&T also received the top honours at the BML Munjal Award for business excellence through learning and development.

It has been recognized for its many achievements, such as the invention of the world's first autonomous welding robot, as well as its plethora of innovations in the world of R&D. From its impressive technological feats to its social responsibilities, L&T Technology Services is well positioned to lead the next wave of technology transformation in the world of engineering.
FIIs owned 7.14 per cent, DIIs 5.2 per cent

L&T Technology Services Limited is an India-based pure-play engineering, design, and research and development services company. With a presence in seventeen global design centers, the company has over 15,100 employees and offers design solutions throughout the product development chain. The firm's key products include industrial products, medical devices, and process industries. The firm has 976 patents and a thriving R&D department that keeps the company's innovation engine humming.

The company's revenue and profits for the second quarter of its fiscal year were both strong. The firm's EBITDA grew by 5.2 per cent to Rs 421.8 crore in the period. As a result, the company declared an interim dividend of Rs 10 per share.

The company also won a million deal, as well as a million deal, in the same period. It had an EBITDA margin of 21.1%, which was the best of its kind. It managed to file 663 patents and co-author with customers.

L&T Technology Services also threw a big party in September by announcing a special one-time dividend of Rs 15 per share. This, along with a 6.5 percent increase in rupee revenue, made for an impressive quarterly performance. The stock price fell by three percent in early trade on October 19. Despite the positive news, the stock is still on our sell list.

The company's smallest and most enticing achievements are the patents it holds. The firm has more than 976 patents and is actively filing and licensing more than 650 of them. In fact, it owns the most patents of any Indian-based company. This makes it the envy of its competitors.
Shares shed as much as 8.13% in intraday trade on Wednesday

L&T Technology Services Limited is a leading pure-play engineering services company. The company employs 21,474 people and has 976 patents. In September, the firm reported a 3 percent increase in its net profit for the quarter. It also announced a dividend of Rs 15 per share. The company has an expected growth path of 19-20% for the fiscal year.

As per the company's report, it signed two large deal wins in the past week, which should help in steady revival of demand in the ER&D services market. The second deal was a five-year contract with a US oil and gas major, which was valued at 0 million. The third deal was won with a client from the electric autonomous vehicle segment. The firm expects healthy wins in the fourth quarter.

In the last six months, L&T Technology Services shares have fallen 38 percent. Compared to the Nifty IT Index, the stock has underperformed by 16 percent. A sell rating was given by the brokerage house NSE -1.07 percent on Tuesday, while a 12-month consensus price target was set at Rs 3,200 per share.

L&T Technology Services is a leading high-tech vertical with a strong pipeline of deals. In the past six quarters, the firm has averaged four percent sequential revenue growth, but lower working days and higher leaves weighed on growth. The company has maintained a 19-20 percent revenue growth forecast for the current fiscal year, which will result in a 1.1 percent QoQ growth in revenues.

Analysts suggest that the company will benefit from a strong pipeline of deals in the coming months, with healthy wins expected in the fourth quarter. The firm's margins are holding up as deal momentum weakens, but it is expected to improve in the future.