InCred Equities - L&T Technology Services Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	96,472	105,852	123,871	138,649
Operating EBITDA (Rsm)	19,189	19,838	23,907	27,175
Net Profit (Rsm)	13,035	13,688	16,290	18,670
Core EPS (Rs)	122.5	129.1	153.5	176.0
Core EPS Growth	7.4%	5.4%	18.9%	14.6%
FD Core P/E (x)	37.85	35.91	30.19	26.34
DPS (Rs)	50.0	54.0	66.0	75.7
Dividend Yield	1.08%	1.16%	1.42%	1.63%
EV/EBITDA (x)	24.60	23.43	19.14	16.48
P/FCFE (x)	45.60	55.39	40.13	32.39
Net Gearing	(40.5%)	(44.0%)	(48.7%)	(54.2%)
P/BV (x)	9.22	8.03	6.98	6.06
ROE	26.7%	23.9%	24.7%	24.6%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	96,472	105,852	123,871	138,649
Gross Profit	47,174	48,834	57,972	65,303
Operating EBITDA	19,189	19,838	23,907	27,175
Depreciation And Amortisation	(2,716)	(3,160)	(3,592)	(3,951)
Operating EBIT	16,473	16,678	20,315	23,224
Financial Income/(Expense)	1,564	2,214	2,175	2,548
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	18,037	18,892	22,490	25,772
Exceptional Items
Pre-tax Profit	18,037	18,892	22,490	25,772
Taxation	(4,975)	(5,189)	(6,185)	(7,087)
Exceptional Income - post-tax
Profit After Tax	13,062	13,703	16,305	18,685
Minority Interests	(27)	(15)	(15)	(15)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	13,035	13,688	16,290	18,670
Recurring Net Profit	13,035	13,688	16,290	18,670
Fully Diluted Recurring Net Profit	13,035	13,688	16,290	18,670

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	19,189	19,838	23,907	27,175
Cash Flow from Invt. & Assoc.
Change In Working Capital	(557)	(3,260)	(2,951)	(2,386)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(27)	(15)	(15)	(15)
Other Operating Cashflow
Net Interest (Paid)/Received
Tax Paid	(5,256)	(5,189)	(6,185)	(7,087)
Cashflow From Operations	13,349	11,374	14,757	17,687
Capex	(2,528)	(2,500)	(2,500)	(2,500)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	195	2,702	2,663	3,036
Cash Flow From Investing	(2,333)	202	163	536
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,967)	(5,715)	(7,005)	(8,028)
Preferred Dividends
Other Financing Cashflow	(1,612)	(488)	(488)	(488)
Cash Flow From Financing	(6,579)	(6,203)	(7,493)	(8,516)
Total Cash Generated	4,437	5,373	7,427	9,707
Free Cashflow To Equity	10,821	8,874	12,257	15,187
Free Cashflow To Firm	11,016	11,575	14,920	18,223

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	26,841	32,202	39,617	49,312
Total Debtors	32,557	37,048	42,612	47,002
Inventories
Total Other Current Assets	2,905	2,905	2,905	2,905
Total Current Assets	62,303	72,155	85,133	99,219
Fixed Assets	10,009	9,349	8,257	6,806
Total Investments	3,691	3,691	3,691	3,691
Intangible Assets	6,248	6,248	6,248	6,248
Total Other Non-Current Assets	2,634	2,634	2,634	2,634
Total Non-current Assets	22,582	21,922	20,830	19,379
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	14,117	15,349	17,961	19,965
Other Current Liabilities	11,254	11,254	11,254	11,254
Total Current Liabilities	25,371	26,603	29,215	31,219
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	6,036	6,036	6,036	6,036
Total Non-current Liabilities	6,036	6,036	6,036	6,036
Total Provisions
Total Liabilities	31,407	32,639	35,251	37,255
Shareholders Equity	53,271	61,232	70,505	81,135
Minority Interests	207	207	207	207
Total Equity	53,478	61,439	70,712	81,342

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	9.4%	9.7%	17.0%	11.9%
Operating EBITDA Growth	9.0%	3.4%	20.5%	13.7%
Operating EBITDA Margin	19.9%	18.7%	19.3%	19.6%
Net Cash Per Share (Rs)	204.29	254.55	324.44	415.82
BVPS (Rs)	502.76	577.14	664.55	764.74
Gross Interest Cover	32.36	34.18	41.63	47.59
Effective Tax Rate	27.6%	27.5%	27.5%	27.5%
Net Dividend Payout Ratio	40.5%	41.8%	43.0%	43.0%
Accounts Receivables Days	123.54	120.01	117.36	117.96
Inventory Days
Accounts Payables Days	98.05	94.31	92.25	94.37
ROIC (%)	65.9%	41.7%	46.6%	50.3%
ROCE (%)	22.3%	19.3%	20.7%	20.7%
Return On Average Assets	14.3%	13.5%	14.7%	15.0%

(91) 22 4161 1543 abhishek.shindadkr@incredresearch.com

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Market Data

Source: Bloomberg