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Below are Quote on L&T Infotech Ltd By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

L&T Infotech reported a 5.8% qoq growth in revenues to USD 427.8mn which was well ahead of our expectations. In rupee terms consolidated revenue increased by 5.1% qoq to ₹3152.8 crore while gross profits increased by 5.5% qoq to ₹1,102.1 crore. Gross margins expanded by ~20bps qoq to 35.0% due to sharp increase in utilization by 210bps qoq to 84.1%. Consolidated operating profit for the quarter was up by 6.7% qoq while margins were up by ~35bps qoq to 23.2%. Net profit for the quarter was up by 13.7% qoq to ₹519.3 crore. During the quarter growth was driven by India which grew by 30.4% QoQ while RoW witnessed a degrowth of 4.2% QoQ. BFS, manufacturing and other verticals witnessed strong growth while Insurance, Energy & Utilities verticals reported sluggish growth. Overall the numbers were ahead of our expectations on all fronts. Post the Q3FY21 numbers we maintain our positive stance on L&T Infotech and expect strong earnings growth of 24.2% CAGR between FY20-23E, though valuations at 24.5xFY23 earnings are expensive.

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