L&T Tech Q3 Results Review - Muted Growth, Guidance Cut; Cautious Outlook: Dolat Capital

Reported flat revenue growth QoQ in CC terms, impacted due to seasonality, higher furloughs impact in plant engineering vertical.
<div class="paragraphs"><p>L&amp;T Technology Services Ltd.'s signboard sits on a stone plaque outside the company's office. (Source: Company website)</p></div>
L&T Technology Services Ltd.'s signboard sits on a stone plaque outside the company's office. (Source: Company website)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Dolat Capital Report

L&T Technology Services Ltd. reported flat revenue growth QoQ in constant currency terms (our estimate: 1.5%), impacted due to seasonality and higher furloughs impact in plant engineering vertical (down 4.6% QoQ).

Operating profit margin stood at 18.7% (our estimate: 18.5%) up 50 basis points QoQ, led by improved productivity, offshore mix and forex gains partially offset by increase in selling, general and administrative.

However, L&T Tech expects 180-200 bps operating profit margin impact in FY24 on Smart World and Communication integration and expects to get back to 18% by H1 FY26.

Won five deal wins of $10 million plus total contract value (three in Industrial products) and significant empanelment from Airbus for engineering capabilities. Hopeful to get back to growth track in Q4 (guided 3% QoQ growth).


  1. Caution on client spending in hi-tech,

  2. Guidance cut by 50 bps and

  3. SWC acquisition (dilutive margin) indicates potential weakness in growth story and thus do not offer good risk-reward.

Click on the attachment to read the full report:

Dolat Capital L&T Technology Services Q3FY23 Result Update.pdf


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Get Regular Updates