Thank you very much for the information. Was good enough information for me to exit, actually i bought it with a thought to keep it for long time looking at past numbers, now it is less than a year. But if AGM itself is a managed show, certainly not a good indicator.
1 Like
Is there a conf call transcript for AGM like this link? They did explain/answer in Quarterly calls. https://www.ltts.com/sites/default/files/investors/exchange-announcements/LTTS-EarningsCallTranscript-Q1FY20.pdf
Impressive numbers posted by LTTS.
Highlights for Q2FY20 include:
⢠USD Revenue at $198 million; growth of 12% YoY in constant currency
⢠Revenue at ⚠14,021 million; growth of 11% YoY
⢠EBIT margin at 17%; up 110bps YoY
⢠Net profit at ⚠2,058 million; growth of 8% YoY
⢠Interim Dividend of âš7.5 per share (Record date October 31, 2019)
During the quarter, LTTS won 8 multi-million dollar deals across all major industry segments,
including new digital engineering programs for automotive, medical devices and plant
engineering customers. On a YoY basis, LTTS has increased its USD20mn+ clients by 4 and
its USD10mn+ clients by 3
1 Like
Revenue guidance has been revised down to 10% for FY20. They started year with 14-16% growth guidance and now we are at 10% after H1. Even though the commentary was confident in conf call, i feel we may have 8-10% growth in FY20 to be conservative.
Semi conductor segment can continue to be soft due to ongoing trade wars and delay in decision making by their customers. Good thing is 3 of the 5 verticals were growing in 20+ range which helped to offset de-growth in Telecom and hi-tech.
With slowing growth, the stock is looking expensive at current levels.
Disc: Invested.
Regards,
Suhag
1 Like
Result was in line the reason for fall is management commentary. According to them there is slow down in next quarter and growth will be in line with 10% where as earlier they have estimated growth by 20%.
1 Like
Market reacted on Mngmnt commentary(Highlighted in red in attached concall highlights), rather better to say particular fund house offloaded yesterday with early morning 2 block deals. This is very natural and happens in Stock market. I would say Mngmnt honesty is praiseworthy. In IT I know how project fundings go in halt due to global trends and sudden client decision delays. Nothing to worry in my opinion.
People must refrain from one-liner personal negative opinions in this thread. Something to put in front of forum members please come up with valid value adding data points and debate.
5 Likes
L&T Technology Services AiKnoTM awarded Frost & Sullivanâs 2019 Indian Cognitive Automation Technology Innovation Leadership award.
Last year, AiKnoTM won NASSCOMâs AI Game Changer Award for its prowess in metadata extraction.
AiKnoâs credentials include some of the worldâs first-of-its-kind applications built on its framework - an interactive cognitive repository of geo-spatial data that was built from legacy documents for an oil and gas major.
Engineering Services Firm L&T Technology Services inaugurates Aerospace & Defense Engineering Design Center in US -
1 Like
L&T Technology Services (LTTS) said on Monday it has won a multi-million dollar project from one of the worldâs top plastics, chemicals and refining manufacturers to deliver the entire spectrum of engineering, procurement and construction management (EPCM) services for the expansion of an existing site in Europe.
3 Likes
Rating upgrade https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/LAndT_Technology_Services_Limited_January_21_2020_RR.html
By going through the last two credit rating report of CRISIL, one can see that the number of clients are reduced from 117 to 69. Is this a cause of concern? Are there any management commentary where reason for such reduction is given?
Risk Associated with L&T Tech Business for short to mid term
- growth in the next few quarters could slow down, as the decision-making process at the clientsâ end could increase, lesser deal wins. (common for lot of other companies)
- working capital cycle could get stretched, pulled by increase in receivables as clients extend their payment obligations. (common for lot of other companies)
â High impacted due to covid 19 in following segments transportation (37 per cent of sales) and plant engineering (17 per cent)
-ER&D spends cut down is usually one of the first step from client side that they try to reduce as focus on survival first
-75% sales from Europe and US
-50% of employee nature of work is onsite
By above I does not mean that one should not invest in co but need to consider above factors to determine what kind of multiple/valuations to pay
Disclosure: Not invested but tracking
2 Likes
Can you please share the links to these rating reports?
This is Q3FY20 investor presentation where they have reduced 52 to 51 but 117 companies remains the same. If client base has reduced by almost 50% then there should be huge drop in revenues. So, I dont know which one to trust reputed company or rating agencies
3 Likes
We have secured approval from customers to work from home in about 98% of our
onsite business and 95% of our offshore business. And we are working to get the
remaining approvals done as soon as possible. Our customers have been willing to go
the extra mile to ensure work is not impacted by providing us permissions to access
equipment, labs, and in some cases their servers as well
1 Like
Negatives:
Trade receivables increased drastically. Mainly payments are not honored by clients.
In some cases company could not even billed the customer May be they are waiting for happy days.
Positives:
Medical Vertical Revenue and Margin both are superb.
Pain:
Going forward Oil and Gas,Transportation vertical will be impacted considerably one due to
covid other due to Crude.
Help Me: I could not understand tax expense while calculating comprehensive income. Thanks in advance.
Discliamer: Not Invested Tracking closely