L&T Tech to see revenue, margin pressures in FY21 as clients defer spends

Recovery in segments such as transportation could be pushed to FY22

L&T Technology Services, which operates in the engineering, research and development (ER&D) segment of the information technology sector is expected to witness revenue and margin pressures in FY21. Given the discretionary nature of spends in the ER&D segment, the impact of Covid-19 has been felt more in this segment.
 

Some of the demand worries have been reflected in the June quarter results and the muted outlook for the current financial year.

The company reported a 12.5 per cent fall in revenues on a sequential basis in the quarter, higher than mid-cap IT peers. About two thirds of the revenue