L&T Technology Q1 Review - Remain Positive On Improving Demand Outlook: Motilal Oswal
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Motilal Oswal Report
L&T Technology Services Ltd. reported a 4.3% QoQ constant currency growth in Q1 FY22, above our estimate of 2.8%.
Industrial products/transportation (up 7.8%/up 4.3% QoQ) spearheaded this growth.
Ebit margin improved by 70 basis point QoQ, despite a wage hike during Q1 FY22, aided by efficiency improvement, better utilisation, and ongoing rightsizing of the workforce.
The company continues to do well on the deal front, adding six large deals (over $10 million), with two having a total contract value of over $25 million.
The management remains extremely positive on the deal pipeline, which has seen a rise over the last two quarters, as client spends recover across both U.S. and Europe.
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