L&T Infotech Q1 Review - Growth Focus To Keep Margins Tethered: Motilal Oswal
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Motilal Oswal Report
Larsen and Toubro Infotech Ltd.’s Q1 FY22 U.S. dollar revenue growth stood at 4.8% QoQ constant currency, above our estimate of 3.4% QoQ CC.
Growth was largely led by deal ramp-ups in hi-tech (Injazat) and banking financial services and insurance (Islamic Bank), which grew 13.2 and 8.2%, respectively.
The Q1 Ebit margin contracted 300 basis points QoQ to 16.4% (in line with estimates).
The margin decline was primarily led by a 340 basis point impact of wage hikes and promotions to manage attrition.
Despite the absence of large new deal wins in Q1, L&T Infotech highlighted a strong demand environment, led by a robust deal pipeline.
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