L&T Infotech - Q2FY21 Results - Angel Broking

Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd

"L&T Infotech reported a 3.6% qoq growth in revenues to USD 404.5mn which was mostly in line with our expectations of USD 402.5mn. In rupee terms consolidated revenue increased by 1.7% qoq to ₹2,998 crore while gross profits increased by 91% qoq to ₹1,045 crore. Gross margins expanded by ~230bps qoq to 34.8% due to sharp increase in utilization by 240bps to 82.0%. Consolidated operating profit for the quarter was up by 15.8% qoq while margins were up by ~280bps qoq to 22.9%. Net profit for the quarter was up by 9.7% qoq to ₹456.8 crore. During the quarter growth was driven by Europe which grew by 16.1% QoQ while North America was the slowest growing geography at 0.6% QoQ. BFS, manufacturing and Others segments witnessed strong growth while Hi-Tech Media & entertainment, Insurance and CPG Retail & Pharma verticals witnessed sequential degrowth during the quarter. Overall the numbers were ahead of our expectations on the margins front though the company witnessed lower revenue growth rate as compared to Tire I IT companies like Infosys, HCT Tech and TCS. What was surprising was the weakness in verticals like Hi-Tech Media & entertainment, Insurance and CPG Retail & Pharma verticals which were areas of strong growth for the Tire I companies."

Shares of Larsen & Toubro Infotech Ltd was last trading in BSE at Rs.3105 as compared to the previous close of Rs. 2964.65. The total number of shares traded during the day was 38547 in over 6422 trades.

The stock hit an intraday high of Rs. 3139 and intraday low of 2984.35. The net turnover during the day was Rs. 119486715.

Source : Equity Bulls

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