{"id":1887,"date":"2021-05-05T11:02:39","date_gmt":"2021-05-05T11:02:39","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=1887"},"modified":"2021-05-05T11:02:39","modified_gmt":"2021-05-05T11:02:39","slug":"confident%e2%80%8c-%e2%80%8cof%e2%80%8c-%e2%80%8cachieving%e2%80%8c-%e2%80%8cfy22%e2%80%8c-%e2%80%8cgrowth%e2%80%8c-%e2%80%8cguidance-%e2%80%8c-%e2%80%8clt%e2%80%8c-%e2%80%8ctechnology%e2%80%8c","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2021\/05\/05\/confident%e2%80%8c-%e2%80%8cof%e2%80%8c-%e2%80%8cachieving%e2%80%8c-%e2%80%8cfy22%e2%80%8c-%e2%80%8cgrowth%e2%80%8c-%e2%80%8cguidance-%e2%80%8c-%e2%80%8clt%e2%80%8c-%e2%80%8ctechnology%e2%80%8c\/","title":{"rendered":"Confident\u200c \u200cof\u200c \u200cachieving\u200c \u200cFY22\u200c \u200cgrowth\u200c \u200cguidance-\u200c \u200cL&#038;T\u200c \u200cTechnology\u200c"},"content":{"rendered":"<p><b>Update\u00a0on the Indian Equity Market:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">On Wednesday, NIFTY closed at 14,618 (+0.8%). Top gainers in NIFTY50 were Sun Pharma (+5.9%), UPL (+4.8%), and IndusInd Bank (+2.5%). The top losers were Adani Ports (-3.6%), Bajaj FInance (-1.8%), and SBI Life (-1.3%). The top sectoral gainers were PHARMA (+4.1%), BANK (+1.6%), and PVT BANK (+1.5%) and the only sectoral loser was REALTY (-1.0%).<br \/>\n<\/span><span style=\"text-decoration: underline;\"><strong>Excerpts of an interview with Mr Amit Chadha, MD &amp; CEO, L&amp;T Technology (LTTS)\u00a0with CNBC -TV18 dated 4th May 2021<\/strong><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">US &amp; Europe back on track in terms of decision making cycles and budgets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They have been a little worried about the near-term execution challenges in India. Taking that into account and assuming that things will come back sometime in May, they have guided 13-15 percent growth in revenue in FY22. However, they aspire to do more.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company will be able to maintain an EBIT margin of 17 percent. They are back at 16.6 percent EBIT in 4QFY21. As they move forward, the entire focus will be to ensure they continue to grow profitably.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No projects have been cancelled due to the 2nd wave of COVID.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is still some headroom to achieve 80% utilization levels.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attrition at 12 percent is the lowest in the industry. But Mr Chadha is expecting attrition to pick up in 1QFY22 due to seasonality.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company will be hiring 1,200 freshers in FY22 and has given increments to junior and mid-level employees effective April 1. However, senior employees will be given wage hikes from July 1.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commercial aerospace segment is still weak and will take time to recover. Growth trajectory of transportation is robust; plant engineering grew 10% QoQ.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They have been picky on the hi-tech deals given their focus on margin.\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Asset Multiplier comments:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As businesses increasingly move their operations to the cloud, the demand for enabling software and services will continue to increase.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ongoing pandemic has pushed many enterprises to implement work-from-home policies for the first time, and this has created a demand for collaborative applications and softwares, which is likely to drive growth for software companies.<\/span><\/li>\n<\/ul>\n<p><b>Consensus Estimate: (Source: market screener and investing.com websites)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The closing price of LTTS was \u20b9 2,569\/- as of 05-May-2021.\u00a0 It traded at 30x\/ 26x the consensus earnings estimate of \u20b9 85.5\/ 99.9 for FY22E\/23E respectively.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The consensus price target is \u20b9 2,486\/- which trades at 25x the earnings estimate for FY23E of \u20b9 99.9\/-<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Disclaimer: &#8220;The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update\u00a0on the Indian Equity Market: On Wednesday, NIFTY closed at 14,618 (+0.8%). Top gainers in NIFTY50 were Sun Pharma (+5.9%), UPL (+4.8%), and IndusInd Bank (+2.5%). The top losers were Adani Ports (-3.6%), Bajaj FInance (-1.8%), and SBI Life (-1.3%). The top sectoral gainers were PHARMA (+4.1%), BANK (+1.6%), and PVT BANK (+1.5%) and the [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[87,575],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1887"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1887"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1887\/revisions"}],"predecessor-version":[{"id":1888,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1887\/revisions\/1888"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}