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L&T Technology Services

NSEI:LTTS
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LTTS
NSEI
₹155B
Market Cap
  1. Home
  2. IN
  3. Commercial Services
Company description

L&T Technology Services Limited provides engineering, research, and development (ER&D) services worldwide. The last earnings update was 63 days ago. More info.


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LTTS Share Price and Events
7 Day Returns
-1.7%
NSEI:LTTS
-1.9%
IN Professional Services
0.4%
IN Market
1 Year Returns
25.5%
NSEI:LTTS
1.1%
IN Professional Services
2%
IN Market
LTTS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
L&T Technology Services (LTTS) -1.7% 5.1% -9.9% 25.5% - -
IN Professional Services -1.9% 10.2% -1.9% 1.1% 201.2% -7.1%
IN Market 0.4% 9.1% 1.8% 2% 43.6% 80.4%
1 Year Return vs Industry and Market
  • LTTS outperformed the Professional Services industry which returned 1.1% over the past year.
  • LTTS outperformed the Market in India which returned 2% over the past year.
Price Volatility
LTTS
Industry
5yr Volatility vs Market

LTTS Value

 Is L&T Technology Services undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of L&T Technology Services to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for L&T Technology Services.

NSEI:LTTS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:LTTS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.86 (1 + (1- 35%) (0.34%))
0.907
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.907 * 8.6%)
15.35%

Discounted Cash Flow Calculation for NSEI:LTTS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for L&T Technology Services is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:LTTS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 15.35%)
2019 4,174.00 Analyst x7 3,618.50
2020 5,479.22 Analyst x9 4,117.86
2021 6,494.00 Analyst x9 4,230.98
2022 7,412.15 Est @ 14.14% 4,186.48
2023 8,313.61 Est @ 12.16% 4,070.71
2024 9,209.68 Est @ 10.78% 3,909.32
2025 10,113.13 Est @ 9.81% 3,721.50
2026 11,036.65 Est @ 9.13% 3,520.84
2027 11,992.13 Est @ 8.66% 3,316.51
2028 12,990.48 Est @ 8.33% 3,114.49
Present value of next 10 years cash flows ₹37,807.17
NSEI:LTTS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹12,990.48 × (1 + 7.55%) ÷ (15.35% – 7.55%)
₹179,080.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹179,080.41 ÷ (1 + 15.35%)10
₹42,934.77
NSEI:LTTS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹37,807.17 + ₹42,934.77
₹80,741.94
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹80,741.94 / 104.01
₹776.27
NSEI:LTTS Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹776.27
Current discount Discount to share price of ₹1,487.75
= -1 x (₹1,487.75 - ₹776.27) / ₹776.27
-91.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of L&T Technology Services is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for L&T Technology Services's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are L&T Technology Services's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:LTTS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹71.17
NSEI:LTTS Share Price ** NSEI (2019-03-20) in INR ₹1487.75
India Professional Services Industry PE Ratio Median Figure of 16 Publicly-Listed Professional Services Companies 15.21x
India Market PE Ratio Median Figure of 2,730 Publicly-Listed Companies 16.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of L&T Technology Services.

NSEI:LTTS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:LTTS Share Price ÷ EPS (both in INR)

= 1487.75 ÷ 71.17

20.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • L&T Technology Services is overvalued based on earnings compared to the IN Professional Services industry average.
  • L&T Technology Services is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does L&T Technology Services's expected growth come at a high price?
Raw Data
NSEI:LTTS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
10.7%per year
Asia Professional Services Industry PEG Ratio Median Figure of 5 Publicly-Listed Professional Services Companies 1.64x
India Market PEG Ratio Median Figure of 596 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

NSEI:LTTS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.9x ÷ 10.7%

1.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • L&T Technology Services is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on L&T Technology Services's assets?
Raw Data
NSEI:LTTS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹213.68
NSEI:LTTS Share Price * NSEI (2019-03-20) in INR ₹1487.75
India Professional Services Industry PB Ratio Median Figure of 23 Publicly-Listed Professional Services Companies 1.26x
India Market PB Ratio Median Figure of 3,617 Publicly-Listed Companies 1.12x
NSEI:LTTS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:LTTS Share Price ÷ Book Value per Share (both in INR)

= 1487.75 ÷ 213.68

6.96x

* Primary Listing of L&T Technology Services.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • L&T Technology Services is overvalued based on assets compared to the IN Professional Services industry average.
X
Value checks
We assess L&T Technology Services's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. L&T Technology Services has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LTTS Future Performance

 How is L&T Technology Services expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is L&T Technology Services expected to grow at an attractive rate?
  • L&T Technology Services's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • L&T Technology Services's earnings growth is positive but not above the India market average.
  • L&T Technology Services's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:LTTS Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:LTTS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 10.7%
NSEI:LTTS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 15.8%
India Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 20.9%
Asia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 16.5%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:LTTS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:LTTS Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 68,834 7,918 9,217 11
2020-03-31 59,843 6,617 8,017 12
2019-03-31 50,824 5,187 7,481 12
NSEI:LTTS Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 48,546 7,329
2018-09-30 45,068 6,736
2018-06-30 40,767 6,053
2018-03-31 38,117 4,136 5,060
2017-12-31 35,046 4,315
2017-09-30 33,459 4,139
2017-06-30 32,680 4,031
2017-03-31 32,483 3,879 4,132
2016-12-31 32,377 3,452
2016-09-30 32,075 3,673
2016-06-30 31,268 3,512
2016-03-31 30,662 5,275 3,288

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • L&T Technology Services's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
  • L&T Technology Services's revenue is expected to grow by 15.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:LTTS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from L&T Technology Services Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:LTTS Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 87.35 98.00 74.30 10.00
2020-03-31 76.01 88.00 69.50 10.00
2019-03-31 71.02 72.74 69.60 9.00
NSEI:LTTS Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 71.17
2018-09-30 65.70
2018-06-30 59.22
2018-03-31 49.59
2017-12-31 43.55
2017-09-30 41.80
2017-06-30 40.69
2017-03-31 42.05
2016-12-31 44.05
2016-09-30 49.12
2016-06-30 48.92
2016-03-31 43.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • L&T Technology Services is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess L&T Technology Services's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
L&T Technology Services has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LTTS Past Performance

  How has L&T Technology Services performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare L&T Technology Services's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • L&T Technology Services has delivered over 20% year on year earnings growth in the past 5 years.
  • L&T Technology Services's 1-year earnings growth exceeds its 5-year average (69.8% vs 31%)
  • L&T Technology Services's earnings growth has exceeded the IN Professional Services industry average in the past year (69.8% vs 15%).
Earnings and Revenue History
L&T Technology Services's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from L&T Technology Services Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:LTTS Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 48,545.59 7,329.00 201.00
2018-09-30 45,067.59 6,736.00 201.00
2018-06-30 40,767.00 6,053.00
2018-03-31 38,116.59 5,060.00 201.00
2017-12-31 35,046.00 4,315.00 127.00
2017-09-30 33,459.00 4,139.00 127.00
2017-06-30 32,680.00 4,031.00 127.00
2017-03-31 32,483.00 4,132.00 383.00
2016-12-31 32,377.06 3,451.78 5,253.25
2016-09-30 32,075.06 3,672.78 5,253.25
2016-06-30 31,267.75 3,512.06 1,353.57
2016-03-31 30,662.00 3,288.00 87.00
2015-03-31 25,606.54 2,450.84 4,620.83
2014-03-31 1,261.70 4.44 255.12
2013-03-31 -0.04 0.04

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • L&T Technology Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • L&T Technology Services used its assets more efficiently than the IN Professional Services industry average last year based on Return on Assets.
  • L&T Technology Services's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess L&T Technology Services's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
L&T Technology Services has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LTTS Health

 How is L&T Technology Services's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up L&T Technology Services's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • L&T Technology Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • L&T Technology Services's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of L&T Technology Services's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 40.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from L&T Technology Services Company Filings, last reported 2 months ago.

NSEI:LTTS Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 22,227.00 524.00 4,841.00
2018-09-30 19,952.00 595.00 4,954.00
2018-06-30 20,530.00 253.00 5,753.00
2018-03-31 19,367.00 702.00 3,748.00
2017-12-31 16,933.00 1,293.00 4,023.00
2017-09-30 16,933.00 1,293.00 4,023.00
2017-06-30 14,852.00 1,019.00 2,620.00
2017-03-31 14,852.00 1,019.00 2,618.00
2016-12-31 12,178.00 1,580.00 2,674.00
2016-09-30 12,178.00 1,580.00 2,674.00
2016-06-30 11,268.06 2,005.49 1,898.60
2016-03-31 10,656.00 1,955.00 1,389.00
2015-03-31 10,567.43 1,553.71 1,124.41
2014-03-31 4,849.04 486.87 294.97
2013-03-31 0.47 0.00 0.50
  • L&T Technology Services's level of debt (2.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (10% vs 2.4% today).
  • Debt is well covered by operating cash flow (789.3%, greater than 20% of total debt).
  • L&T Technology Services earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess L&T Technology Services's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. L&T Technology Services has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LTTS Dividends

 What is L&T Technology Services's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.31%
Current annual income from L&T Technology Services dividends. Estimated to be 1.86% next year.
If you bought ₹2,000 of L&T Technology Services shares you are expected to receive ₹26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • L&T Technology Services's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • L&T Technology Services's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:LTTS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
India Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:LTTS Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 31.46 8.00
2020-03-31 26.88 8.00
2019-03-31 24.73 8.00
NSEI:LTTS Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-10-25 19.500 1.230
2018-05-22 24.000 1.660
2018-01-23 8.000 0.630
2017-11-07 8.000 0.801
2017-07-21 8.000 1.029
2017-01-23 6.000 0.783
2016-11-10 6.000 0.741
2016-09-23 30.270 3.634

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • L&T Technology Services has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • L&T Technology Services has only been paying a dividend for 2 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of L&T Technology Services's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess L&T Technology Services's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can L&T Technology Services afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. L&T Technology Services has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LTTS Management

 What is the CEO of L&T Technology Services's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keshab Panda
COMPENSATION ₹65,240,000
AGE 60
TENURE AS CEO 3.2 years
CEO Bio

Dr. Keshab Panda has been the Chief Executive Officer and Managing Director at L&T Technology Services Ltd since January 21, 2016. Dr. Panda serves as the Chief Executive of L&T Integrated Engineering Services of Larsen & Toubro Limited. Dr. Panda served as the Chief Executive of L&T Technology Services Ltd. since January 10, 2015. Dr. Panda served as Head of Healthcare Vertical Unit and Head of Healthcare Vertical Unit at Satyam Computer Services Ltd. since June 2009 and served as its Head of E&U Vertical & Europe Operations since February 2009. He has been a Whole Time Director at L&T Technology Services LIMITED since June 14, 2012. He has over 27 years of global industry experience in conceptualizing, creating, operationalizing and turning around complex IT and engineering services businesses. He served as Senior Vice President and Director of Regional Business Unit, Europe of Satyam Computer Services Ltd. since April 2004. Dr. Panda served as the Chief Executive Officer of Satyam Technologies, Inc., a wholly owned subsidiary of Satyam and additionally manages multiple strategic relationships with Satyam Computer Services Ltd. His past assignments include President - Americas, Mahindra Satyam & Head of Europe Operations, Satyam Computer Services Limited. Dr. Panda was also responsible for setting up multiple joint ventures and has provided leadership in his capacity as Chief Executive Officer for one of the joint ventures. He started his career as Research Scientist in Indian Space Research Organization and thereafter as Scientist for India's Light Combat Aircraft Development with Defense Research & Development Organization. After working in National R&D laboratories for a decade, he embarked on his career in Engineering and IT Services Industry. Dr. Panda has participated in many global forums as Keynote Speaker and was invited multiple times to CNBC Power Lunch.key customers as well. He is a veteran of the Indian Space Research Organization (ISRO) Satellite Centre, he played an important role with the design of Indias indigenous communications satellite, INSAT II Satellite and the Defense Research Development Organization (DRDO) in various capacities. Dr. Panda serves as a Director of Satyam Technologies Inc. Dr. Panda served as a Director of Satyam Computer Services Ltd. since April 2004. Dr. Panda served as a Non-Executive Director at Larsen & Toubro Infotech Limited until April 30, 2014. Dr. Panda holds B.Tech in aeronautical engineering from Anna University, Chennai, ME in aerospace engineering from Indian Institute of Science, Bengaluru and PhD from Indian Institute of Technology, Mumbai. He also holds an Advanced Management Degree from the Aresty Institute of Executive Education, The Wharton School, University of Pennsylvania.

CEO Compensation
  • Keshab's compensation has been consistent with company performance over the past year.
  • Keshab's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the L&T Technology Services management team in years:

3.2
Average Tenure
55.5
Average Age
  • The tenure for the L&T Technology Services management team is about average.
Management Team

Anilkumar Naik

TITLE
Founder Chairman
COMPENSATION
₹8M
AGE
76

Keshab Panda

TITLE
CEO, MD & Whole Time Director
COMPENSATION
₹65M
AGE
60
TENURE
3.2 yrs

Parameswaran Ramakrishnan

TITLE
Chief Financial Officer
AGE
50
TENURE
3.2 yrs

Bhupendra Bhate

TITLE
COO & Whole-Time Director
COMPENSATION
₹7M
AGE
57
TENURE
1.3 yrs

Kapil Bhalla

TITLE
Compliance Officer & Company Secretary
AGE
54

Amit Pal Chadha

TITLE
President of Sales & Business Development and Whole Time Director
COMPENSATION
₹41M
AGE
46
TENURE
4.2 yrs

Pinku Pappan

TITLE
Head of Investor Relations

Samir Bagga

TITLE
Chief Marketing Officer

Paneesh Rao

TITLE
Chief Human Resources Officer
Board of Directors Tenure

Average tenure and age of the L&T Technology Services board of directors in years:

3.7
Average Tenure
58
Average Age
  • The tenure for the L&T Technology Services board of directors is about average.
Board of Directors

Keshab Panda

TITLE
CEO, MD & Whole Time Director
COMPENSATION
₹65M
AGE
60
TENURE
6.8 yrs

Sekharipuram Subrahmanyan

TITLE
Vice Chairman
AGE
58
TENURE
1.8 yrs

Anilkumar Naik

TITLE
Founder Chairman
COMPENSATION
₹8M
AGE
76
TENURE
4.4 yrs

Bhupendra Bhate

TITLE
COO & Whole-Time Director
COMPENSATION
₹7M
AGE
57
TENURE
1.3 yrs

Amit Pal Chadha

TITLE
President of Sales & Business Development and Whole Time Director
COMPENSATION
₹41M
AGE
46
TENURE
4.1 yrs

Sam Desai

TITLE
Independent Director
COMPENSATION
₹6M
AGE
72
TENURE
4.9 yrs

Renuka Ramnath

TITLE
Independent Director
COMPENSATION
₹2M
AGE
57
TENURE
3.9 yrs

Arjun Gupta

TITLE
Independent Director
COMPENSATION
₹3M
AGE
54
TENURE
3.4 yrs

Narayanan Kumar

TITLE
Independent Director
COMPENSATION
₹1M
AGE
68
TENURE
2.7 yrs

Sudip Banerjee

TITLE
Independent Director
COMPENSATION
₹2M
AGE
58
TENURE
3.2 yrs
Who owns this company?
Recent Insider Trading
  • L&T Technology Services insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
12. Mar 19 Sell R. Krishnamoorthy Individual 25. Oct 18 08. Mar 19 -1,000 ₹1,537.57 ₹-1,537,570
08. Mar 19 Sell Hrishikesh Rao Individual 25. Oct 18 07. Mar 19 -1,000 ₹1,515.19 ₹-1,515,190
01. Mar 19 Sell Kamalapuram Prabhakaran Individual 25. Oct 18 27. Feb 19 -1,000 ₹1,500.00 ₹-1,500,000
12. Feb 19 Sell K. Giri Individual 25. Oct 18 11. Feb 19 -2,500 ₹1,603.55 ₹-3,857,095
08. Feb 19 Sell Seema Ghanekar Individual 17. Jan 19 30. Jan 19 -10,500 ₹1,707.00 ₹-17,814,700
05. Feb 19 Sell M. Dongre Individual 07. Nov 17 14. Aug 18 -1,000 ₹1,537.19 ₹-1,537,190
04. Feb 19 Sell Larsen & Toubro Limited Company 31. Jan 19 31. Jan 19 -6,988 ₹1,622.84 ₹-11,304,272
31. Jan 19 Sell Larsen & Toubro Limited Company 30. Jan 19 30. Jan 19 -1,545,281 ₹1,610.95 ₹-2,489,241,094
28. Jan 19 Sell Rajarao Tadimety Individual 25. Oct 18 25. Jan 19 -700 ₹1,690.00 ₹-1,183,000
09. Jan 19 Sell Shailendra Shrivastava Individual 25. Oct 18 20. Dec 18 -2,000 ₹1,650.00 ₹-3,300,000
07. Jan 19 Sell Vajendra Desai Individual 07. Nov 17 01. Jan 19 -980 ₹1,730.00 ₹-1,684,400
07. Jan 19 Sell M. Vishwanath Individual 07. Nov 17 31. Dec 18 -5,000 ₹1,734.00 ₹-8,670,000
02. Jan 19 Sell Subrat Tripathy Individual 25. Oct 18 28. Dec 18 -8,000 ₹1,701.00 ₹-13,608,000
28. Dec 18 Sell Samir Bagga Individual 25. Oct 18 24. Dec 18 -4,500 ₹1,682.00 ₹-7,569,000
31. Dec 18 Sell G. Manivannan Individual 25. Oct 18 28. Dec 18 -40 ₹2,112.50 ₹-84,500
31. Dec 18 Sell G. Manivannan Individual 25. Oct 18 28. Dec 18 -950 ₹1,700.00 ₹-1,608,500
28. Dec 18 Sell Bhupendra Bhate Individual 25. Oct 18 26. Dec 18 -1,293 ₹1,689.00 ₹-2,183,877
26. Dec 18 Sell Srinivasan Swaminathan Individual 25. Oct 18 24. Dec 18 -800 ₹1,692.75 ₹-1,352,614
26. Dec 18 Sell Kamlesh Khangani Individual 25. Oct 18 24. Dec 18 -1,500 ₹1,690.00 ₹-2,482,000
21. Dec 18 Sell G. Manivannan Individual 25. Oct 18 20. Dec 18 -2,500 ₹1,650.00 ₹-4,088,750
21. Dec 18 Sell Srinivasan Swaminathan Individual 25. Oct 18 20. Dec 18 -500 ₹1,657.00 ₹-827,000
21. Dec 18 Sell Shailendra Shrivastava Individual 25. Oct 18 03. Dec 18 -2,000 ₹1,700.00 ₹-3,120,980
17. Dec 18 Sell Srinivasan Swaminathan Individual 25. Oct 18 14. Dec 18 -1,000 ₹1,649.00 ₹-1,649,000
12. Nov 18 Sell Anand Chordia Individual 25. Oct 18 07. Nov 18 -3,786 ₹1,688.00 ₹-6,361,017
06. Nov 18 Sell Rajendra Lingwal Individual 07. Nov 17 02. Nov 18 -1,524 ₹1,752.26 ₹-2,658,859
08. Oct 18 Sell Hrishikesh Rao Individual 22. May 18 05. Oct 18 -2,200 ₹1,615.25 ₹-3,553,550
01. Oct 18 Sell Prafulla Bhoyar Individual 07. Nov 17 25. Sep 18 -1,000 ₹1,762.45 ₹-1,762,450
01. Oct 18 Sell Seema Ghanekar Individual 07. Nov 17 27. Sep 18 -252 ₹1,722.35 ₹-434,032
01. Oct 18 Sell Seema Ghanekar Individual 07. Nov 17 26. Sep 18 -2,700 ₹1,725.66 ₹-4,659,280
07. Aug 18 Sell Keshab Panda Individual 23. Jan 18 06. Aug 18 -27,300 ₹1,436.57 ₹-39,077,236
06. Aug 18 Sell Keshab Panda Individual 23. Jan 18 03. Aug 18 -2,000 ₹1,425.00 ₹-2,850,000
06. Aug 18 Sell Larsen & Toubro Limited Company 02. Aug 18 03. Aug 18 -5,638,472 ₹1,403.44 ₹-7,902,791,361
30. Jul 18 Sell Amit Pal Chadha Individual 23. Jan 18 27. Jul 18 -3,600 ₹1,540.14 ₹-5,544,504
27. Jul 18 Sell Amit Pal Chadha Individual 23. Jan 18 26. Jul 18 -12,418 ₹1,478.00 ₹-18,291,119
26. Apr 18 Sell Larsen & Toubro Limited Company 25. Apr 18 25. Apr 18 -845,989 ₹1,263.95 ₹-1,066,680,559
16. Apr 18 Sell Larsen & Toubro Limited Company 12. Apr 18 13. Apr 18 -98,500 ₹1,215.73 ₹-119,638,386
13. Apr 18 Sell Larsen & Toubro Limited Company 12. Apr 18 12. Apr 18 -59,322 ₹1,229.46 ₹-72,933,779
25. Apr 18 Sell Larsen & Toubro Limited Company 24. Apr 18 24. Apr 18 -30,000 ₹1,231.42 ₹-36,942,601
24. Apr 18 Sell Larsen & Toubro Limited Company 23. Apr 18 23. Apr 18 -128,000 ₹1,250.59 ₹-160,075,426
21. Apr 18 Sell Larsen & Toubro Limited Company 20. Apr 18 20. Apr 18 -171,000 ₹1,195.63 ₹-204,452,287
12. Apr 18 Sell Larsen & Toubro Limited Company 11. Apr 18 11. Apr 18 -11,903 ₹1,203.14 ₹-14,320,956
11. Apr 18 Sell Larsen & Toubro Limited Company 10. Apr 18 10. Apr 18 -20,000 ₹1,218.19 ₹-24,363,863
10. Apr 18 Sell Larsen & Toubro Limited Company 09. Apr 18 09. Apr 18 -148,502 ₹1,231.09 ₹-182,819,269
09. Apr 18 Sell Larsen & Toubro Limited Company 06. Apr 18 06. Apr 18 -2,000 ₹1,225.33 ₹-2,450,660
06. Apr 18 Sell Larsen & Toubro Limited Company 05. Apr 18 05. Apr 18 -14,115 ₹1,225.31 ₹-17,295,245
05. Apr 18 Sell Larsen & Toubro Limited Company 04. Apr 18 04. Apr 18 -6,957 ₹1,226.34 ₹-8,531,645
04. Apr 18 Sell Larsen & Toubro Limited Company 03. Apr 18 03. Apr 18 -13,000 ₹1,239.57 ₹-16,114,397
03. Apr 18 Sell Rajarao Tadimety Individual 23. Jan 18 23. Mar 18 -1,000 ₹1,287.25 ₹-1,240,681
03. Apr 18 Sell Larsen & Toubro Limited Company 02. Apr 18 02. Apr 18 -31,540 ₹1,246.14 ₹-39,303,218
28. Mar 18 Sell Larsen & Toubro Limited Company 27. Mar 18 27. Mar 18 -62,928 ₹1,244.50 ₹-78,314,205
27. Mar 18 Sell Larsen & Toubro Limited Company 26. Mar 18 26. Mar 18 -103,452 ₹1,220.78 ₹-126,292,232
29. Mar 18 Sell Larsen & Toubro Limited Company 28. Mar 18 28. Mar 18 -169,000 ₹1,235.54 ₹-208,806,315
X
Management checks
We assess L&T Technology Services's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. L&T Technology Services has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LTTS News

Simply Wall St News

Here's What L&T Technology Services Limited's (NSE:LTTS) ROCE Can Tell Us

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should We Be Delighted With L&T Technology Services Limited's (NSE:LTTS) ROE Of 33%?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of L&T Technology Services Limited (NSE:LTTS). … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.33 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Can L&T Technology Services Limited (NSE:LTTS) Save Your Portfolio?

This is the best time to buy stocks like L&T Technology Services Limited at a discount. … View our latest analysis for L&T Technology Services? … L&T Technology Services Limited provides engineering, research, and development (ER&D) services worldwide

Simply Wall St -

Do Institutions Own L&T Technology Services Limited (NSE:LTTS) Shares?

If you want to know who really controls L&T Technology Services Limited (NSE:LTTS), then you'll have to look at the makeup of its share registry. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … It has a market capitalization of ₹169b, which means it would generally expect to see some institutions on the share registry.

Simply Wall St -

Should You Be Tempted To Sell L&T Technology Services Limited (NSE:LTTS) Because Of Its P/E Ratio?

We'll show how you can use L&T Technology Services Limited's (NSE:LTTS) P/E ratio to inform your assessment of the investment opportunity. … L&T Technology Services has a price to earnings ratio of 24.72, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

L&T Technology Services Limited (NSE:LTTS) Insiders Have Been Selling

So before you buy or sell L&T Technology Services Limited (NSE:LTTS), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … All up, insiders sold more shares in L&T Technology Services than they bought, over the last year

Simply Wall St -

Does L&T Technology Services Limited's (NSE:LTTS) Stock Price Account For Its Growth?

L&T Technology Services Limited (NSE:LTTS) is considered a high-growth stock, but its last closing price of ₹1534.2 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … View our latest analysis for L&T Technology Services? … Investors in L&T Technology Services have been patiently waiting for the uptick in earnings.

Simply Wall St -

Should We Be Delighted With L&T Technology Services Limited's (NSE:LTTS) ROE Of 34%?

By way of learning-by-doing, we'll look at ROE to gain a better understanding L&T Technology Services Limited (NSE:LTTS). … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.34 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should Investors Know About L&T Technology Services Limited's (NSE:LTTS) Return On Capital?

and want to begin learning the link between L&T Technology Services Limited (NSE:LTTS)’s return fundamentals and stock market performance. … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in L&T Technology Services, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

How L&T Technology Services Limited (NSE:LTTS) Could Add Value To Your Portfolio

Today I've chosen to put the spotlight on L&T Technology Services Limited (NSE:LTTS) due to its excellent fundamentals in more than one area. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

LTTS Company Info

Description

L&T Technology Services Limited provides engineering, research, and development (ER&D) services worldwide. Its Transportation segment offers engineering services and solutions to transportation industry that includes OEM and Tier 1 suppliers in automotive, trucks and off-highway vehicles, aerospace, and rail industries. This segment delivers services from concept to detailed design through manufacturing, testing, after-market, and sourcing support. The company’s Process Engineering segment provides engineering services in E/EPCM, engineering reapplication and global rollouts, plant sustenance and management, and regulatory compliance engineering, as well as to chemical, consumer packaged goods, and energy and utility sector clients. Its Industrial Products segment offers engineering services for industrial products to original equipment manufacturer (OEM) customers in building automation, home and office products, energy, process control, and machinery sectors. This segment offers product development counsel, software expertise, electronics, connectivity, mechanical engineering, industrial networking protocols, user interface/user experience, test frameworks, and enterprise control solutions. The company’s Medical Devices segment delivers solutions in diagnostics, patient mobility services, musculoskeletal services, life sciences, surgical services, cardiovascular, home healthcare, and general medical to medical device OEMs. Its Telecom segment provides digital engineering services related to telecom, such as the cloud, Internet of things (IoT), artificial intelligence, data analytics, and others. The company was formerly known as L&T Technology and Engineering Services Company Limited and changed its name to L&T Technology Services Limited in July 2012. L&T Technology Services Limited was incorporated in 2012 and is headquartered in Vadodara, India. The company is a subsidiary of Larsen & Toubro Limited.

Details
Name: L&T Technology Services Limited
LTTS
Exchange: NSEI
Founded: 2012
₹154,745,824,268
104,013,325
Website: http://www.lnttechservices.com
Address: L&T Technology Services Limited
West Block-II,
5th Floor,
Vadodara,
Gujarat, 390019,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI LTTS Equity Shares National Stock Exchange of India IN INR 23. Sep 2016
BSE 540115 Equity Shares Mumbai Stock Exchange IN INR 23. Sep 2016
Number of employees
Current staff
Staff numbers
14,777
L&T Technology Services employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 12:59
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/01/17
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.