L&T Infotech - Q4FY21 first cut - Overall robust performance - YES Securities

- It reported revenue growth of 4.6% in USD term to $447.4mn (up 4.4% QoQ in CC terms). In INR terms, revenue grew 3.7% QoQ, adversely impacted due to INR appreciation. Revenue growth was led by strong performance in HiTech and Media and BFSI verticals.

- EBIT margin declined by 120 bps QoQ to 19.4% (that was as per expectation).

- Deal win momentum remains strong as it Closed two large deals with net new TCV of $66mn.

- Offshore revenue mix continue to grow as it grew by 20 bps QoQ to 45.9%.

- LTM attrition was almost flat at 12.3% in the quarter. Utilization was down 190 bps QoQ with more hiring in the quarter.

- The board recommended final dividend of Rs 25/ share. (FY21 payout: 36%)

View: The performance of the company continues to remain strong as it remains focused on growth while maintaining stable margin. Strong order book and robust deal pipeline would help it to maintain the performance going ahead. The company is well placed to ride the digitalization and cloud migration wave and remains top performing Midcap IT company. It trades at attractive valuation of PE of 24x on FY23 earnings.

Shares of Larsen & Toubro Infotech Ltd was last trading in BSE at Rs.3847.3 as compared to the previous close of Rs. 3923.25. The total number of shares traded during the day was 8309 in over 1574 trades.

The stock hit an intraday high of Rs. 3940 and intraday low of 3839.05. The net turnover during the day was Rs. 32093904.

Source : Equity Bulls

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