BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Continuing its strong execution, Larsen and Toubro Infotech Ltd. impressed with robust (~9.2% QoQ, constant currency) and broad-based growth in Q3 FY22 across verticals and service lines.
Robust performance in manufacturing included 2% growth on account of pass-through revenues in India engagements. Ebit margin stood at 17.9% for the quarter aided by growth and operational efficiencies.
Share of offshore effort increased 40 basis points QoQ to 84% and management expects these levels to stay elevated on the back of the ‘Great Resignation’ theme. Confident commentary and stable margin outlook despite impending cost pressures is encouraging.
What differentiates L&T Infotech from most other IT companies is its strong growth despite a tall base of FY21. We believe despite industry leading growth in FY22E, revenue growth in FY23E, too, will remain robust even if demand moderates during FY23.
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