Research

L&T Infotech - Q2FY22 Result highlights - YES Securities

Posted On : 2021-10-19 11:08:05( TIMEZONE : IST )

Reported revenue of Rs 37,670 mn(up 8.8% in INR terms; up 8.3% in USD terms). The growth was broad-based; led by strong performance in the manufacturing vertical which grew 12.4% QoQ. In terms of geographies, the growth was led by North America (up 8.9% QoQ), accounting for 67.5% of revenue.
EBIT margin increased by 80 bps QoQ to 17.2%, above expectation, led by positive operating leverage as SG&A declined from 12.3% of revenue in Q1FY22 to 11.5% in Q2FY22.
Offshore revenue mix increased by 190 bps QoQ to 59.2% as per industry trend. Total number of active clients grew by 25 QoQ to 463
Utilisation (excluding trainees) was down 40 bps QoQ to 83.7% on higher hiring in the quarter
LTM attrition increased by 440 bps QoQ to 19.6% in line with industry trend. Total number of employees increased by 4,084 QoQ to 42,382.
Declared interim dividend of Rs 15/ share, with Oct 26 as the record date.

View: Overall, the performance in the quarter was well ahead of expectation. Demand environment continues to remain robust for the company. We expect it to be among the growth leader in the Tier 2 IT companies and should be able to maintain net margin of 14-15%. Trades at PE of 33.2x on FY24E EPS. It continues to remain one of our top picks in Tier-2 IT space.

Shares of Larsen & Toubro Infotech Limited was last trading in BSE at Rs. 5907.00 as compared to the previous close of Rs. 6098.10. The total number of shares traded during the day was 33124 in over 6974 trades.

The stock hit an intraday high of Rs. 6225.30 and intraday low of 5862.90. The net turnover during the day was Rs. 198415480.00.