L&T Technology Services' management reaffirms revenue target for FY24; stock jumps 4%
The stock jumped a day after the IT company posted its Q3 FY24 results, and its management reaffirmed the target to grow revenue between 17.5 and 18.5 per cent on a constant currency basis in FY24.
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Shares of L&T Technology Services (LTTS) jumped as much as 4 per cent in the morning deals on Wednesday (January 17), touching the day's high of Rs 5,535.6 apiece on BSE, which was Rs 32.25 away from its 52-week high of Rs 5,567.85 apiece.
The stock jumped a day after the IT company posted its Q3 FY24 results, and its management reaffirmed the target to grow revenue between 17.5 and 18.5 per cent on a constant currency basis in FY24.
As of 9:52 a.m., shares of L&T Technology Services traded 2.99 per cent or Rs 159.75, higher on the BSE at Rs 5509.45 apiece. The company's market capitalisation at around the same time stood at Rs 58,258.38 crore.
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How did L&T Technology Services fare in Q3?
L&T's engineering services arm, L&T Technology Services, reported on Tuesday, post-market hours, a 13.3 per cent rise in December quarter net profit at Rs 336.2 crore. The company had reported a post-tax profit of Rs 296.8 crore in the year-ago period and Rs 315.4 crore in the preceding September quarter.
Its overall revenue grew to Rs 2,421.8 crore for the reporting quarter, as against Rs 2,157 crore in the year-ago period and Rs 2,386.5 crore in the previous quarter.
The operating profit grew 11.9 per cent to Rs 487.7 crore from the year-ago period's Rs 435.6 crore.
L&T Technology Services: Management commentary
The company's chief executive and managing director Amit Chadha said the company was able to expand the operating profit margin to 17.2 per cent for October-December period, as against the 17.1 per cent in the preceding three months.
He also reaffirmed the target to grow the revenue between 17.5-18.5 per cent on a constant currency basis in FY24, and added that all the five business verticals showed growth in the quarter.
The client conversations at the beginning of the year have been "fairly positive", Chadha said, adding that it expects spending to be maintained or to go up in the new year.
Should you buy, sell, or hold L&T Technology Services shares?
Morgan Stanley has maintained an 'underweight' rating on the stock post-Q3 results and has given the target price of Rs 4,600 apiece. The brokerage said that the results were a miss, but management commentary was constructive on demand.
Further, JP Morgan continued with an 'overweight' rating and gave a target of Rs 5,800 apiece. Meanwhile, Citi maintained a 'sell' and cut the target to Rs 4,065 from Rs 4,100 per share.
Additionally, Nomura maintained a 'reduce' rating and cut the target to Rs 3,880 from Rs 3,930 apiece.
L&T Technology Services share price: Past performance
In a year, the stock has gained over 61 per cent against the Nifty 50's rise of over 20 per cent.
(With inputs from agencies.)
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