InCred Equities - L&T Technology Services Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	96,472	104,433	116,697	131,834
Operating EBITDA (Rsm)	19,189	19,808	23,468	26,551
Net Profit (Rsm)	13,035	13,689	16,129	18,355
Core EPS (Rs)	122.5	129.1	152.0	173.0
Core EPS Growth	7.4%	5.4%	17.7%	13.8%
FD Core P/E (x)	41.91	39.76	33.76	29.67
DPS (Rs)	50.0	54.0	65.4	74.4
Dividend Yield	0.97%	1.05%	1.27%	1.45%
EV/EBITDA (x)	27.35	26.11	21.70	18.84
P/FCFE (x)	50.49	59.58	41.84	37.34
Net Gearing	(40.5%)	(44.4%)	(50.3%)	(55.0%)
P/BV (x)	10.21	8.89	7.73	6.73
ROE	26.7%	23.9%	24.5%	24.3%
% 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	104,433	116,697	131,834
Gross Profit	47,174	49,160	55,431	62,621
Operating EBITDA	19,189	19,808	23,468	26,551
Depreciation And Amortisation	(2,716)	(3,118)	(3,384)	(3,625)
Operating EBIT	16,473	16,690	20,084	22,926
Financial Income/(Expense)	1,564	2,203	2,184	2,412
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	18,037	18,894	22,268	25,338
Exceptional Items
Pre-tax Profit	18,037	18,894	22,268	25,338
Taxation	(4,975)	(5,190)	(6,124)	(6,968)
Exceptional Income - post-tax
Profit After Tax	13,062	13,704	16,144	18,370
Minority Interests	(27)	(15)	(15)	(15)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	13,035	13,689	16,129	18,355
Recurring Net Profit	13,035	13,689	16,129	18,355
Fully Diluted Recurring Net Profit	13,035	13,689	16,129	18,355

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	19,189	19,808	23,468	26,551
Cash Flow from Invt. & Assoc.
Change In Working Capital	(557)	(2,969)	(1,814)	(2,485)
(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)	(5,190)	(6,124)	(6,968)
Cashflow From Operations	13,349	11,635	15,515	17,083
Capex	(2,528)	(2,500)	(2,500)	(2,500)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	195	2,691	2,672	2,900
Cash Flow From Investing	(2,333)	191	172	400
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,967)	(5,715)	(6,936)	(7,893)
Preferred Dividends
Other Financing Cashflow	(1,612)	(488)	(488)	(488)
Cash Flow From Financing	(6,579)	(6,203)	(7,424)	(8,381)
Total Cash Generated	4,437	5,623	8,264	9,103
Free Cashflow To Equity	10,821	9,135	13,015	14,583
Free Cashflow To Firm	11,016	11,826	15,687	17,484

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	26,841	32,452	40,704	49,795
Total Debtors	32,557	36,552	40,144	44,692
Inventories
Total Other Current Assets	2,905	2,905	2,905	2,905
Total Current Assets	62,303	71,909	83,753	97,392
Fixed Assets	10,009	9,391	8,507	7,382
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	21,964	21,080	19,955
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	14,117	15,143	16,921	18,984
Other Current Liabilities	11,254	11,254	11,254	11,254
Total Current Liabilities	25,371	26,397	28,175	30,238
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	32,433	34,211	36,274
Shareholders Equity	53,271	61,233	70,415	80,866
Minority Interests	207	207	207	207
Total Equity	53,478	61,440	70,622	81,073

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	9.4%	8.3%	11.7%	13.0%
Operating EBITDA Growth	9.0%	3.2%	18.5%	13.1%
Operating EBITDA Margin	19.9%	19.0%	20.1%	20.1%
Net Cash Per Share (Rs)	204.29	256.91	334.69	420.38
BVPS (Rs)	502.76	577.16	663.70	762.20
Gross Interest Cover	32.36	34.20	41.15	46.98
Effective Tax Rate	27.6%	27.5%	27.5%	27.5%
Net Dividend Payout Ratio	40.5%	41.7%	43.0%	43.0%
Accounts Receivables Days	123.54	120.77	119.94	117.44
Inventory Days
Accounts Payables Days	98.05	96.61	95.51	94.67
ROIC (%)	65.9%	41.8%	46.5%	51.5%
ROCE (%)	22.3%	19.3%	20.4%	20.5%
Return On Average Assets	14.3%	13.5%	14.7%	15.0%

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

(91) 02241611554 smit.gosrani@incredresearch.com

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Market Data

Source: Bloomberg