L&T Infotech Q2 Review - Consistently Consistent: ICICI Securities
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ICICI Securities Report
In a seasonally not so strong quarter, Larsen and Toubro Infotech Ltd. impressed with robust (~8.9% QoQ, constant currency) and broad-based growth – across verticals, geographies and service lines.
What differentiates L&T Infotech from most other IT companies is the strong growth despite a tall base in FY21 [September 2019 to Sep 2021 revenue (U.S. dollar) compound annual growth rate (YoY) equals to 18% versus 14% of Mindtree Ltd., 12% of Infosys Ltd., 7% of Tata Consultancy Services Ltd. and 6% of HCL Technologies Ltd.].
Share of offshore effort increased 90 basis points QoQ to 83.6% driving margin resilience in a post wage hike quarter.
Management expects the offshore effort share to stay elevated on the back of the ‘Great Resignation’ theme playing out globally – across economies and industries.
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