Buy L&T Infotech: Equity99

Sumit Bilgaiyan

L&T Infotech has posted better-than-expected performance across all fronts during Q4FY2018. Revenue growth was driven by broad base which led to constant currency revenue growth of 4.5 percent QoQ and 18.7 percent YoY while USD revenue increased by 5.3 percent QoQ and 21.6 percent YoY.

Excluding one-time commercial settlement of Rs 61.7 crore, LTI reports EBIT margin to 15.9 percent QoQ, an improvement of 100bps. Net profit during the quarter increased 19.5 percent QoQ to Rs 338 crore.

Strong growth traction in BFSI continued as constant currency revenue grew by 9 percent QoQ due to inorganic revenue which is followed by hi-tech and M&E and manufacturing growth.

Management remains optimistic of remaining in the industry’s top quadrant in terms of revenue growth in FY19 similar to FY18 led by recent deal wins, higher large accounts mining and higher digital revenue mix and growth. We are recommending a buy at current price.

Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.