Shares of L&T Technology Services Ltd (LTTS) surged 10% on Thursday following the company’s third-quarter results that exceeded expectations. The IT firm recorded its highest-ever Q3 deal wins, signaling strong momentum heading into 2025. The stock reached a high of ₹5,336.45, although it is still down 2% over the past year.
LTTS posted dollar revenues of $312 million, with 3.1% sequential growth in constant currency terms, surpassing Nomura India’s estimate of 2.3%. The EBIT margin stood at 15.9%, beating expectations despite a 20 basis point impact from M&A costs.
The company also incorporated its recent acquisition of Intelliswift into its model and slightly adjusted its FY25-27 earnings per share (EPS) forecast. However, Nomura has maintained its target price at ₹4,900 for the stock, with key risks linked to revenue growth and margin improvement.
On the other hand, Nuvama described LTTS’s results as a mixed bag, noting higher-than-expected PAT and an adjusted EBIT margin that surpassed estimates. The brokerage raised its target price to ₹5,150 from ₹5,050 due to the strong deal momentum but reduced EPS estimates for FY25/26.
Antique Stock Broking noted that LTTS’s EBIT margin could drop due to the consolidation of Intelliswift, but the company maintained its FY25 revenue growth guidance of near 10% in constant currency, which includes an inorganic contribution.
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