L&T InfoTech Q1FY22RU - First cut by YES SECURITIES

Mr. Piyush Pandey, Lead Analyst - Institutional Equities, YES SECURITIES

L&T Infotech Q1FY22 Result ( Current Rating- Buy)-First cut: Reported revenue of $470.2 mn with revenue growth at 5.1% QoQ in USD terms was slightly better than expected, led by the ramp up of Injazat deal. Growth was broadbased across verticals with softness in manufacturing as it declined by 6.7% QoQ. India business saw 20% QoQ decline in Revenue ( impact of 2nd covid wave)

EBIT margin declined by 300 bps QoQ to 16.4% as it advanced its wage hike cycle by 1 quarter to Q1FY22 and absence of 1 time benefit of 80 bps in last quarter. This decline in EBIT margin was as per expectation.EBIT declined by 10.2% QoQ in the quarter

Excluding trainees, utilisation increased by 190 bps QoQ.

Offshore revenue mix improved by 140 bps QoQ to 57.3% as per the trend.

Added 23 clients in the quarter compared to 14 in Q4FY21.

DSO increased by 4 days QoQ to 98 days.

Announced special dividend of Rs 10/ share on 5 years of listing

Shares of Larsen & Toubro Infotech Ltd was last trading in BSE at Rs.4288 as compared to the previous close of Rs. 4417.3. The total number of shares traded during the day was 43364 in over 6967 trades.

The stock hit an intraday high of Rs. 4396.1 and intraday low of 4253.35. The net turnover during the day was Rs. 186614295.

Source : Equity Bulls

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