L&T Infotech Q1 Review - Growth Focus To Keep Margins Tethered: Motilal Oswal

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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.

Click on the attachment to read the full report:

Motilal Oswal L&T Infotech Q1FY22 Result Update.pdf

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