LTTS

: Guidance - Concall Update

Management confirmed sequential growth in revenues and margins for the upcoming quarters. The company maintains an aspiration of 13% to 15% CAGR for revenue over the next five years, while targeting EBIT margins of 16% to 17%. The CFO expects combined Days Sales Outstanding (DSO) to remain in the 80 to 85 days range and the effective tax rate (ETR) to be between 26.2% and 26.7%. Free cash flows are guided to be 90% plus of net income for the year, despite a stellar 153% in Q1 FY '27. The company is on track to achieve a mid-16% EBIT margin on or before Q4 FY '27, driven by growth in higher-margin segments, productivity from Engineering Intelligence, and operational excellence.