3 May 2021
4QFY21 Results Update | Sector: Technology
L&T Technology
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Mar
2021 2022E
Sales
EBIT Margin (%)
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div Yield (%)
44.5
8.4
27.3
0.8
33.1
7.3
20.5
0.9
26.8
6.2
16.2
1.1
21.2
16.2
35.0
23.7
18.5
30.0
25.0
19.7
30.0
54.5
14.5
6.6
62.8
(19.0)
330.8
63.5
16.7
8.9
84.4
34.4
385.1
CMP: INR2,797
TP:INR 3,130 (+12%)
Upward revisions likely on the guidance front
LTTS IN
106
293.8 / 4
3062 / 1066
5/50/82
532
Buy
Improving demand outlook and long growth trajectory are key drivers
LTTS reported 3.8% QoQ CC growth in 4QFY21, missing our estimate by
150bp. While segments like Plant Engineering (+9.9% QoQ, large deal ramp
up) and Transportation (+6.6% QoQ) did well, Telecom and Hi-Tech and
Medical Devices were flat QoQ. EBIT margin improved 140bp QoQ,
benefiting from better utilization and offshore mix.
The company continues to do well on the deal front, adding six large deals
(over USD10m), with two deals with a TCV of over USD25m. The
management expressed its confidence on the deal pipeline, which has a
good mix of smaller and larger deals, helped by a return to normal decision
making cycle in the US and Europe.
LTTS provided an initial FY22 USD revenue growth guidance of 13-15%. The
management attributing the modest guidance to their increased caution due
to the recent COVID-19 cases in India. While we are disappointed by the
guidance (our initial estimate was of mid-to-high teens), we see meaningful
scope for an upward revision as we progress through the fiscal.
With strong demand commentary across industries and key regions, and
capability to deliver services during the lockdown, LTTS should not see
meaningful disruption in the business. We bake in 17.5% revenue growth for
FY22E, partially on account of a favorable base.
We expect margin to remain rangebound from current levels in FY22 as the
wage hike and investments should offset a gradual improvement in
operating metrics. Given the low base of FY21, we factor in a 310bp EBIT
margin improvement over FY21-23E.
We see LTTS as a key beneficiary of growing tech adoption in ER&D, which
should grow by ~2x that of IT Services over FY18-23E. Moreover, with Digital
at 50% of revenue, it should also benefit from 18% growth in Digital ER&D
spends over this period. We have built in 17%/29% revenue/EBIT CAGR over
FY21-23E. We value the stock at 30x FY23E EPS.
Maintain BUY.
Revenue miss but margin in line; FY22 initial guidance below our estimate
In USD terms, revenue grew 1% YoY (v/s our estimate of 2.7%), operating
profit grew 9.3% (v/s our expectation of 10.6%), and PAT fell 5% (v/s our
expectation of being flat) in 4QFY21. The same declined 6.2%/15%/19% YoY
in FY21.
Revenue rose 3.9% QoQ (v/s our estimate of 5.6%) to USD197.5m in
4QFY21. In constant currency, the same was up 3.8% QoQ, but flat YoY.
During 4QFY21, LTTS won six deals with a TCV of over USD10m, which
includes two deals of over USD25m.
Revenue from Digital and leading-edge technologies stood at 52% in
4QFY21.
The management guided at USD revenue growth of 13-15% in FY22.
EBIT margin improved 140bp QoQ to 16.6% (in line) in 4QFY21 despite an
80bp increase in SGA expenses.
2023E
75.2
17.6
11.0
104.3
23.5
452.2
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-21 Dec-20 Mar-20
74.2
74.3
74.6
6.4
6.4
4.9
9.1
8.9
8.4
10.3
10.5
12.1
FII Includes depository receipts
Mukul Garg– Research analyst
(Mukul.Garg@MotilalOswal.com)
Research analyst: Anmol Garg
(Anmol.Garg @MotilalOswal.com) /Heenal
Gada
(Heenal.Gada@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
L&T Technology
Increase in margin was aided by a 140bp improvement in utilization, which
stood at 78.9%, and an 80bp improvement in offshore mix.
PAT stood at INR1.9b, up 4.5% QoQ, but down 5% YoY.
Transportation/Plant Engineering spearheaded the sequential growth,
growing 6.5%/9.9% (due to scaling up of large O&M deals in 4QFY21). Growth in
Telecom and Hi-tech and Medical Devices remained flat during 4QFY21.
Total employee strength stood at 16,452, a net addition of 383 employees.
Attrition rose 150bp sequentially.
FCF rose 157% YoY to INR12.5b in FY21. The FCF/PAT ratio stood at 189%.
Dividend payout in FY21 stood at 35%.
Key highlights from the management commentary
LTTS won six deals in 4QFY21, of which two are over USD25m and the balance
range between USD10m and USD15m. Going forward, the pipeline remains
strong. However, closures are uncertain.
Within Transportation, there is an increased traction in Auto, Trucks, and Off-
Highway. Electric Technologies and Autonomous Driving are key growth areas.
Spends are also coming from traditional segments, and the company is pursuing
multiple large deals.
Quoting Zinnov, the management said the ER&D industry is set to touch USD1.8-
2t in the next three years, which is a key positive for the industry. It guided at
revenue growth of 13-15% in FY22 and said the impact on the delivery side is a
key monitorable.
Impact of wage hikes is expected in 1QFY22. However, the management will try
to offset it by improving operational metrics. It is confident of sustaining margin
and stated that one can expect improvement in certain segmental margins.
Valuation and view – industry-leading growth to defend rich multiples
While LTTS has delivered largely flat growth over FY19-21 (1% revenue CAGR)
due to COVID-19 and ramp down at key clients (partly due to external issues),
we expect a strong growth rebound (17% CAGR over FY21-23E).
After a sharp 200bp dip in margin in FY21, due to the COVID-led impact, LTTS
should be more than able to recover margin over the next two years on
favorable operating leverage, leading to 29% earnings CAGR over FY21-23E.
Our TP of INR3,130 per share implies 30x FY23E EPS, a premium to our target
multiple for LTI on better industry and company growth. We anticipate
improved industry spends compared to the previous five years.
Maintain BUY.
3 May 2021
2
 Motilal Oswal Financial Services
L&T Technology
Quarterly performance
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA
EBITDA margin (%)
EBIT
EBIT margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
1Q
194
1.4
13,475
17.0
32.9
12.7
2,727
20.2
2,299
17.1
474
26.4
2,038
6.4
3.2
19.3
FY20
2Q
3Q
198
199
2.0
0.8
14,021 14,230
10.7
8.1
32.3
32.8
12.1
12.7
2,832
2,863
20.2
20.1
2,388
2,391
17.0
16.8
378
354
25.5
25.0
2,059
2,041
1.0
-0.9
7.7
10.0
19.5
19.3
4Q
195
-2.0
14,466
7.7
33.5
15.0
2,683
18.5
2,198
15.2
521
24.1
2,048
0.3
6.9
19.4
1Q
171
-12.5
12,947
-3.9
26.8
10.9
2,059
15.9
1,567
12.1
30
26.0
1,173
-42.7
-42.4
11.1
FY21
2Q
3Q
178
190
4.1
6.8
13,138 14,007
-6.3
-1.6
30.1
30.8
12.4
11.1
2,328
2,756
17.7
19.7
1,801
2,132
13.7
15.2
457
374
26.4
25.4
1,655
1,861
41.1
12.4
-19.6
-8.8
15.7
17.6
FY20
4Q
198
3.9
14,405
-0.4
32.3
11.9
2,931
20.3
2,391
16.6
221
25.2
1,945
4.5
-5.0
18.4
786
8.7
56,192
10.7
32.9
13.1
11,105
19.8
9,276
16.5
1,727
25.3
8,186
6.9
63.8
FY21
737
-6.3
54,497
-3.0
30.1
11.6
10,074
18.5
7,891
14.5
1,082
25.7
6,634
-19.0
62.8
4QFY21E
201
5.6
14,630
1.1
31.8
11.2
3,016
20.6
2,431
16.6
293
25.0
2,041
9.7
-0.4
19.3
(INR m)
Variance
(%/bp)
-1.6
-167bp
-1.5
-155bp
46bp
73bp
-2.8
-27bp
-1.6
-2bp
-24.5
23bp
-4.7
-4.7
Key performance indicators
Y/E March
Revenue (QoQ CC %)
Margins (%)
Gross Margin
EBIT Margin
Net Margin
Operating metrics
Headcount
Attrition (%)
Utilization (incl. trainees)
Key Verticals (YoY %)
Transportation
Industrial Products
Telecom and Hi-Tech
Key Geographies (YoY %)
North America
Europe
1Q
4.6
32.9
17.1
15.1
15,913
15.8
79.6
29.7
10.3
-10.8
24.2
-3.2
FY20
2Q
2.5
32.3
17.0
14.7
16,789
13.4
77.8
22.0
5.1
-13.9
19.3
-6.6
3Q
0.6
32.8
16.8
14.3
16,787
13.9
79.2
21.2
2.0
-26.5
13.6
-6.6
4Q
-1.1
33.5
15.2
14.2
16,883
13.8
78.1
10.8
2.7
-27.1
6.1
6.6
1Q
-12.7
26.8
12.1
9.1
16,641
11.4
70.9
-20.4
-12.7
-11.4
-11.4
-9.5
FY21
2Q
2.9
30.1
13.7
12.6
15,902
10.8
75.4
-19.0
-9.5
-6.5
-12.4
0.0
FY20
3Q
6.6
30.8
15.2
13.3
16,069
10.7
77.5
-19.0
-4.1
18.1
-4.6
8.9
4Q
3.8
32.3
16.6
13.5
16,452
12.2
78.9
-11.7
-1.5
19.5
1.6
1.1
32.9
16.5
14.6
16,883
13.8
78.7
20.5
4.9
-19.7
15.4
-2.4
30.1
14.5
12.2
16,452
12.2
75.7
-17.5
-7.0
3.9
-6.7
0.0
FY21
21 January 2021
3
 Motilal Oswal Financial Services
L&T Technology
Key highlights from the management commentary
Demand and industry outlook
LTTS won 6 deals in the quarter of which 2 are USD25m+ and the balance range
between USD10-15m. Going forward, the pipeline remain strong; however,
closures are uncertain.
Within Transportation, there is an increased traction in auto, trucks and off-
highway. Electric technologies and Autonomous driving are the key growth
areas. Spend is also coming from traditional segments and the company is
pursuing multiple large deals.
Aerospace is doing well and commercial is slowly picking up. Further, Medical
and Communications are witnessing slower decision making on the deal front.
However, management stated that it expects growth traction to jump in Medical
from 2QFY22. This is largely on the back of expected deal closures in the coming
quarters.
In case of Plant Engineering, early ramp up of large Oil & Gas deal was seen in
4Q. Capex in the oil segment is slowly opening up and management expects a
muted 1QFY22.
Within geographies, management gave a strong demand outlook in North
America and strengthening of a few pockets in Europe. However, spends in India
have not picked up yet.
Quoting Zinnov, the management said the ER&D industry is set to touch USD1.8-
2t in the next three years, which is a key positive for the industry.
Deal pipeline is strong and they are seeing more $25-50mn deals than what they
saw earlier.
Management guided for revenue growth of 13-15% in FY22. The current
guidance is factoring in some risk of COVID impact in India and possible increase
in US and Europe.
Margin performance
Company reported margin improvement for the 3
rd
consecutive quarter with
levels back to pre-COVID times.
A 70bps benefit was on account of lower amortization during the quarter.
Further, other income was lower due to absence of export incentive.
Utilizations improved 140bps QoQ which further aided margins in the quarter.
Impact of wage hikes is expected in 1QFY22 however company will try to offset
it by improving operational metrics. Management is confident of sustaining
margins and also stated that one can expect improvement in certain segmental
margins.
Other highlights
LTTS will continue recruiting and will add 1k+ freshers in FY22. Management is
satisfied with the pace of hiring and alluded that attrition would remain below
industry levels despite its seasonality.
Hiring and Upskilling will be critical going forward and hence LTTS has set up a
global academy to upskill its lateral talent.
3 May 2021
4
 Motilal Oswal Financial Services
L&T Technology
Exhibit 1: While India declined, other geographies posted robust growth
Geographies
North America
Europe
India
RoW
Contribution to revenue (%)
61.5
16.7
13.1
8.7
QoQ growth (%)
4.4
7.8
(2.1)
2.7
YoY growth (%)
1.6
1.1
3.4
(5.4)
Source: Company, MOFSL
Exhibit 2: LTTS reports broad based growth across verticals
Verticals
Transportation
Industrial Products
Telecom and Hi-Tech
Plant Engineering
Medical Devices
Contribution to revenue (%) QoQ growth (%) YoY growth (%)
31.2
6.6
(11.7)
18.9
1.7
(1.5)
22.1
0.3
19.5
15.5
9.5
(2.1)
12.3
0.6
20.7
Source: MOFSL, Company
Valuation and view – industry-leading growth to defend rich
multiples
While the company has delivered largely flat growth over FY19-21 (1% revenue
CAGR) due to COVID-19 and ramp down at key clients (partly due to external
issues), we expect a strong growth rebound (17% CAGR over FY21-23E).
After a sharp 200bp dip in margin in FY21, due to the COVID-led impact, LTTS
should be more than able to recover margin over the next two years on
favorable operating leverage, leading to 29% earnings CAGR over FY21-23E.
Our TP of INR3,130 per share implies 30x FY23E EPS, a premium to our target
multiple for LTI on better industry and company growth. We anticipate
improved industry spends compared to the previous five years.
Maintain Buy.
Exhibit 3: Revisions to our estimates
FY21
74.0
737
(6.3)
14.5
6,634
62.8
Revised
FY22E
73.5
865
17.4
16.7
8,917
84.4
FY23E
74.5
1,009
16.7
17.6
11,012
104.3
FY21
74.0
740
(5.9)
14.5
6,730
63.7
Earlier
FY22E
73.5
902
22.0
16.9
9,377
88.8
FY23E
74.5
1,052
16.6
17.5
11,466
108.6
FY21
0.0%
-0.4%
-40bps
0bps
-1.4%
-1.4%
Change
FY22E
0.0%
-4.2%
-460bps
-10bps
-4.9%
-4.9%
FY23E
0.0%
-4.1%
10bps
0bps
-4.0%
-4.0%
USD:INR
Revenue (USD m)
Growth (%)
EBIT margin (%)
PAT (INR m)
EPS
Source: MOFSL
3 May 2021
5
 Motilal Oswal Financial Services
L&T Technology
Story in charts
Exhibit 4: LTTS reports strong sequential growth due to…
Revenue Growth (QoQ %)
4.0 4.9 4.8 3.0
4.1
6.8
3.9
Exhibit 5: …robust growth in Transportations and…
Transportation (Growth QoQ %)
1.4 2.0 0.8
(2.0)
(12.5)
4.3
8.6
3.8
6.9
7.5
2.3 3.1
(2.2)
4.1 3.1 6.6
(22.8)
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 6: …in Plant Engineering
Plant Engineering (Growth QoQ %)
14.1
10.4
6.3 5.2 5.5 8.0 7.0
8.6 9.0 9.5
Exhibit 7: Margin expansion was a function of…
EBIT margins (%)
16.5 16.4 17.1 17.0 16.8
15.2
14.8 15.9
12.1
15.2
16.6
13.7
(8.8)
(24.5)
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 8: …a sequential increase in utilization and…
Utilizations (incl. trainees)
80.3 81.3 80.2 79.6
79.2
78.1
78.6
77.8
70.9
78.9
Exhibit 9: …higher offshoring during 4QFY21
Onsite
Offshore
75.4
77.5
51
53
53
55
56
56
56
53
52
55
57
58
49
47
47
45
44
44
44
47
48
45
43
42
Source: Company, MOFSL
Source: Company, MOFSL
3 May 2021
6
 Motilal Oswal Financial Services
L&T Technology
Operating metrics
Exhibit 10: Operating metrics
1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21
Revenue by Verticals (%)
Transportation
Industrial Products
Telecom and Hi-Tech
Plant Engineering
Medical Devices
Revenue by Geographies (%)
North America
Europe
India
RoW
Client Metrics
Top five Clients
Top 10 Clients
Top 20 Clients
Clients (USD m)
Over USD30m
Over USD20m
Over USD10m
Over USD5m
Over USD1m
Employee Metrics
Billable
Sales and Support
Total Employees
Attrition (%)
Utilization (incl. trainees)
30.9
20.4
28.7
13.5
6.5
56.3
18.5
12.4
12.8
28.3
40.5
55.6
2
3
12
33
89
12,147
934
13,081
15.4
78.6
32.0
20.6
26.7
14.2
6.5
57.7
17.2
12.5
12.6
28.2
39.9
55.1
3
3
14
34
94
12,604
981
13,585
15.0
80.3
31.7
20.2
27.0
14.4
6.7
57.8
16.2
14.4
11.6
27.4
38.9
54.4
3
5
16
39
98
13,711
1,066
14,777
14.9
81.3
32.9
19.3
26.2
14.7
7.0
58.9
16.0
13.9
11.2
26.4
37.7
53.5
3
5
16
41
106
14,034
1,106
15,140
14.8
80.2
34.9
19.6
22.3
15.3
8.0
60.9
15.6
12.8
10.7
24.7
36.7
52.5
3
5
17
44
110
14,755
1,158
15,913
15.8
79.6
35.0
19.4
20.6
16.2
8.8
61.7
14.4
13.1
10.8
22.9
35.7
51.3
3
7
17
42
106
15,614
1,175
16,789
13.4
77.8
35.8
19.2
18.5
17.2
9.4
61.2
14.1
13.2
11.5
21.1
33.9
49.8
3
7
20
43
107
15,604
1,183
16,787
13.9
79.2
35.7
19.4
18.7
16.0
10.3
61.2
16.7
12.8
9.3
19.2
31.8
48.5
2
8
21
43
113
15,667
1,216
16,883
13.8
78.1
31.5
19.4
22.4
13.8
12.8
61.2
16.0
13.0
9.8
17.8
29.7
46.8
1
4
22
43
113
15,481
1,160
16,641
11.4
70.9
31.5
19.5
21.4
14.4
13.2
60.0
16.0
13.6
10.4
17.0
28.3
44.9
1
5
20
44
116
30.4
19.3
22.9
14.7
12.7
61.2
16.1
13.9
8.8
16.3
27.3
44.0
1
4
18
41
118
31.2
18.9
22.1
15.5
12.3
61.5
16.7
13.1
8.7
16.1
26.9
43.8
-
3
20
39
122
14,778 14,975 15,335
1,124
1,094
1,117
15,902 16,069 16,452
10.8
10.7
12.2
75.4
77.5
78.9
Source: Company, MOFSL
3 May 2021
7
 Motilal Oswal Financial Services
L&T Technology
Financials and valuations
Consolidated Income Statement
Y/E March
Total Income from Operations
Change (%)
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Other Income
PBT
Total Tax
Tax Rate (%)
Reported PAT
Change (%)
Margin (%)
Minority Interest
PAT to shareholders
FY18
37,471
15.4
24,600
7,060
31,660
84.5
5,811
15.5
888
4,923
1,910
6,833
1,712
25.1
5,121
20.5
13.7
-6
5,115
FY19
50,783
35.5
31,440
10,185
41,625
82.0
9,158
18.0
1,053
8,105
2,210
10,315
2,630
25.5
7,685
50.1
15.1
-28
7,657
FY20
56,192
10.7
32,747
12,340
45,087
80.2
11,105
19.8
1,829
9,276
1,727
11,003
2,779
25.3
8,224
7.0
14.6
-38
8,186
FY21
54,497
-3.0
33,550
10,873
44,423
81.5
10,074
18.5
2,183
7,891
1,082
8,973
2,307
25.7
6,666
-18.9
12.2
-32
6,634
FY22E
63,547
16.6
37,569
12,806
50,376
79.3
13,171
20.7
2,542
10,629
1,271
11,900
2,975
25.0
8,925
33.9
14.0
-8
8,917
FY23E
75,178
18.3
43,865
15,111
58,976
78.4
16,202
21.6
3,007
13,195
1,504
14,698
3,675
25.0
11,024
23.5
14.7
-12
11,012
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Borrowings
Other long-term liabilities
Capital Employed
Net Fixed Assets
Goodwill
Capital WIP
Other Assets
Curr. Assets, Loans and Adv.
Account Receivables
Cash and Bank Balance
Current Investments
Other Current Assets
Curr. Liability and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY18
205
19,159
19,364
3
702
47
20,116
2,173
4,921
1
1,349
18,607
9,623
1,541
2,208
5,235
6,935
1,807
3,922
1,206
11,672
20,116
FY19
208
24,583
24,791
31
702
194
25,718
2,435
5,365
0
2,123
23,715
10,643
2,048
5,752
5,272
7,920
1,879
4,700
1,341
15,795
25,718
FY20
209
27,477
27,686
69
303
4,890
32,948
6,275
5,460
87
2,109
29,102
13,807
2,179
6,370
6,746
10,085
1,975
6,456
1,654
19,017
32,948
FY21
210
34,521
34,731
101
0
4,915
39,747
6,997
5,827
119
2,760
35,026
12,346
1,751
15,725
5,204
10,982
2,352
7,046
1,584
24,044
39,747
FY22E
210
40,228
40,438
109
0
5,731
46,278
5,337
5,827
119
3,248
42,813
13,928
4,872
18,225
5,788
11,066
2,436
7,046
1,584
31,747
46,278
(INR m)
FY23E
210
47,275
47,485
121
0
6,780
54,387
3,372
5,827
119
3,542
53,000
16,477
9,258
20,725
6,539
11,474
2,844
7,046
1,584
41,526
54,387
3 May 2021
8
 Motilal Oswal Financial Services
L&T Technology
Financials and valuations
Ratios
Y/E March
Basic EPS (INR)
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
FY18
48.1
56.6
188.9
15.6
32.4
58.1
49.4
14.8
7.6
49.0
0.6
29.6
21.5
FY19
72.6
82.6
238.4
21.0
28.9
38.5
33.8
11.7
5.5
30.8
0.8
34.7
27.2
FY20
77.5
94.9
264.9
21.0
27.1
36.1
29.5
10.5
5.0
25.5
0.8
31.1
24.0
FY21
62.8
83.5
330.8
22.0
35.0
44.5
33.5
8.4
5.1
27.3
0.8
21.2
16.2
FY22E
84.4
108.5
385.1
25.3
30.0
33.1
25.8
7.3
4.3
20.5
0.9
23.7
18.5
FY23E
104.3
132.8
452.2
31.3
30.0
26.8
21.1
6.2
3.5
16.2
1.1
25.0
19.7
Consolidated Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest and Finance Charges
Direct Taxes Paid
(Inc.)/Dec. in WC
Others
CF from Operations
(Inc.)/Dec. in FA
Free Cash Flow
(Pur.)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc./(Dec.) in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc./Dec. in Cash
Forex Adjustment
Opening Balance
Closing Balance
FY18
6,778
888
24
-1,721
-1,701
-132
4,136
-851
3,285
-1,231
78
-2,004
2
-317
-25
-983
-1,323
809
60
672
1,541
FY19
10,314
1,042
19
-2,808
-739
234
8,062
-885
7,177
-4,389
181
-5,093
3
2
-19
-2,440
-2,454
515
-8
1,541
2,048
FY20
11,002
1,829
365
-2,119
-4,287
-409
6,381
-1,511
4,870
-1,039
328
-2,222
1
-1,028
-365
-2,636
-4,028
131
0
2,048
2,179
FY21
8,973
2,183
455
-2,523
4,245
-60
13,273
-756
12,517
-9,653
355
-10,054
1
-995
-455
-2,198
-3,647
-428
0
2,179
1,751
FY22E
11,900
2,542
0
-2,975
-1,754
0
9,713
-882
8,831
-2,500
0
-3,382
0
0
0
-3,210
-3,210
3,121
0
1,751
4,872
FY23E
14,698
3,007
0
-3,675
-2,137
0
11,893
-1,043
10,850
-2,500
0
-3,543
0
0
0
-3,964
-3,964
4,386
0
4,872
9,258
3 May 2021
9
 Motilal Oswal Financial Services
L&T Technology
NOTES
3 May 2021
10
 Motilal Oswal Financial Services
L&T Technology
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products.
MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading
Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity
& Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository
Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory &
Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should
be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"
and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and
investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for
distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document
relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule
15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order
to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
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SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives have financial interest in the subject company, as they have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
3 May 2021
11
 Motilal Oswal Financial Services
L&T Technology
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
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The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
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The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
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MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category
of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may
arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person accessing this information due to any
errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
3 May 2021
12