InCred Equities - L&T Technology Services Ltd

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	106,702	119,433	135,815	150,794
Operating EBITDA (Rsm)	18,924	21,093	24,922	28,349
Net Profit (Rsm)	12,667	13,963	16,609	18,878
Core EPS (Rs)	119.5	131.6	156.6	178.0
Core EPS Growth	(2.4%)	10.2%	19.0%	13.7%
FD Core P/E (x)	35.29	32.03	26.93	23.69
DPS (Rs)	55.0	60.0	70.5	80.1
Dividend Yield	1.30%	1.42%	1.67%	1.90%
EV/EBITDA (x)	22.53	20.02	16.66	14.32
P/FCFE (x)	32.64	48.22	35.66	28.41
Net Gearing	(34.2%)	(36.9%)	(41.4%)	(47.0%)
P/BV (x)	7.36	6.54	5.77	5.09
ROE	22.2%	21.6%	22.8%	22.8%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	106,702	119,433	135,815	150,794
Gross Profit	49,816	54,206	62,068	69,214
Operating EBITDA	18,924	21,093	24,922	28,349
Depreciation And Amortisation	(3,053)	(3,380)	(3,843)	(4,267)
Operating EBIT	15,871	17,713	21,079	24,082
Financial Income/(Expense)	1,536	1,533	1,853	1,979
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	17,407	19,246	22,932	26,061
Exceptional Items
Pre-tax Profit	17,407	19,246	22,932	26,061
Taxation	(4,771)	(5,267)	(6,306)	(7,167)
Exceptional Income - post-tax
Profit After Tax	12,636	13,979	16,625	18,894
Minority Interests	31	(16)	(16)	(16)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	12,667	13,963	16,609	18,878
Recurring Net Profit	12,667	13,963	16,609	18,878
Fully Diluted Recurring Net Profit	12,667	13,963	16,609	18,878

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	18,924	21,093	24,922	28,349
Cash Flow from Invt. & Assoc.
Change In Working Capital	(223)	(4,032)	(3,558)	(2,921)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	1,038	(16)	(16)	(16)
Net Interest (Paid)/Received
Tax Paid	(4,928)	(5,267)	(6,306)	(7,167)
Cashflow From Operations	14,811	11,777	15,042	18,246
Capex	(1,116)	(2,500)	(2,500)	(2,500)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(3,978)	2,193	2,513	2,639
Cash Flow From Investing	(5,094)	(307)	13	139
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(5,292)	(6,354)	(7,474)	(8,495)
Preferred Dividends
Other Financing Cashflow	(1,890)	(660)	(660)	(660)
Cash Flow From Financing	(7,182)	(7,014)	(8,134)	(9,155)
Total Cash Generated	2,535	4,456	6,921	9,229
Free Cashflow To Equity	13,695	9,277	12,542	15,746
Free Cashflow To Firm	9,717	11,470	15,055	18,385

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	25,261	29,709	36,630	45,859
Total Debtors	35,117	41,085	46,041	51,119
Inventories
Total Other Current Assets	4,263	4,263	4,263	4,263
Total Current Assets	64,641	75,057	86,934	101,241
Fixed Assets	9,062	8,182	6,839	5,072
Total Investments	6,008	6,008	6,008	6,008
Intangible Assets	13,667	13,667	13,667	13,667
Total Other Non-Current Assets	3,057	3,057	3,057	3,057
Total Non-current Assets	31,794	30,914	29,571	27,804
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	16,223	18,159	19,557	21,714
Other Current Liabilities	13,677	13,677	13,677	13,677
Total Current Liabilities	29,900	31,836	33,234	35,391
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	5,560	5,560	5,560	5,560
Total Non-current Liabilities	5,560	5,560	5,560	5,560
Total Provisions
Total Liabilities	35,460	37,396	38,794	40,951
Shareholders Equity	60,800	68,401	77,536	87,919
Minority Interests	175	175	175	175
Total Equity	60,975	68,576	77,711	88,094

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	10.6%	11.9%	13.7%	11.0%
Operating EBITDA Growth	(1.4%)	11.5%	18.2%	13.8%
Operating EBITDA Margin	17.7%	17.7%	18.4%	18.8%
Net Cash Per Share (Rs)	196.44	238.37	303.61	390.61
BVPS (Rs)	573.15	644.80	730.92	828.80
Gross Interest Cover	28.14	26.84	31.94	36.49
Effective Tax Rate	27.4%	27.4%	27.5%	27.5%
Net Dividend Payout Ratio	46.0%	45.5%	45.0%	45.0%
Accounts Receivables Days	115.75	116.44	117.07	117.59
Inventory Days
Accounts Payables Days	97.34	96.20	93.33	92.33
ROIC (%)	39.8%	36.5%	39.8%	43.0%
ROCE (%)	18.6%	18.6%	19.7%	20.0%
Return On Average Assets	12.7%	12.7%	13.7%	14.2%

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

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Market Data

Source: Bloomberg