We attended LTI's Analyst Day in which management presentations and commentary reconfirmed the confidence in revenue growth sustainability, led by cloud, data and digital services. It expects the usual seasonality - a stronger H2 vs. H1 - to continue in FY22 too. Management indicated that the large deal pipeline remains robust at USD2.07bn (USD1.9bn a year ago), with new logos contributing 44% to the deal pipeline. Management is confident of top-quartile revenue performance, and expects at least USD2bn revenue, with 14-15% NPM in FY22 on strong demand and good progress on client mining. LTI has put in place a clear sales strategy to drive growth, under which it will consolidate and grow the 50 key Accounts, harvest high-potential growth accounts (53 F500 accounts identified), and incubate new growth engines (digital solutions and next-gen alliances).
OutlookWe reiterate the company would post top-quartile revenue growth, which reaffirms our conviction. Maintain ‘BUY’ with a TP of INR7,505 (40x Q4FY23E)
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