Shares of L&T Technology Services were in focus on Wednesday, a day after the company cut its revenue growth guidance for FY24 to 17.5%-18.5% on account of global macroeconomic headwinds.

During the session on Wednesday, the company's share price slipped as much as 5.52% to hit an intraday low of ₹4,360.35. The share price of the company opened lower at ₹4,500.05, as against the closing price of the previous session at ₹4,615.45. At the time of reporting, shares of the company were trading 5.19% lower at ₹4,375.85. At present, the share price of the company is trading 9.9% lower than the 52-week high of ₹4,859.75, which the company touched on October 11 this year. Shares of the company are trading 26.7% higher than the 52-week low of ₹3,218, which the company touched on January 20 this year. During the session in early trade on Wednesday, the market capitalisation of the company stood at ₹46,510.41 crore, with 32,610 shares exchanging hands on the BSE as against the two-week average of 5,471 shares.

"While longer-term trends for ER&D remain strong, in the short term we are seeing longer decision cycles and incremental headwinds from the macro-economic stress in various geographies. We revise our USD revenue growth guidance for FY24 to 17.5%-18.5% in constant currency," says Amit Chadha, CEO & MD, L&T Technology Services.

Analysts at Motilal Oswal have given a BUY rating for the stock, with a target price of ₹5,210. According to the brokerage firm, LTTS has a better outlook for the ER&D services industry as compared to the broader IT services companies.

Meanwhile, analysts at Nomura have given a 'Reduce' rating with a target price of ₹3,450 per share.

In the September quarter, the company’s net profit stood at ₹315 crore, up by 5% year-on-year, as against ₹300 crore in the same period last year. The company’s revenue from operations in the September quarter surged 4.7% to ₹238.65 crore, as against ₹228.17 crore in the same period last year.

"We had a strong performance with revenue growing by 3.2% sequentially in constant currency and operating margin sustaining at 17% plus levels even as we absorbed wage hikes for our employees. Deal momentum was strong with the highlight being a $10 million plus deal win leveraging SWC capabilities in North America. This win has been the result of having a superior end-to-end technology stack for wireless and 5G communications which is becoming a key differentiator for us," says Amit Chadha, CEO & MD, L&T Technology Services Limited.

The company aims to train 2,000 employees over the next few quarters in software-defined vehicles, AI (artificial intelligence) and cybersecurity.

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L&T Tech revenue growth guidance

L&T Tech shares tank 5% on FY24 revenue guidance cut