Sharekhan's research report on Larsen and Toubro Infotech

Q1 revenue growth was strong, while EBIT margins missed estimates; deal pipeline stayed healthy, new logos were added, and LTI saw broad-based demand across verticals. Cash generation remained weak. Management confident of delivering top-quartile revenue growth in FY2022E, led by strong large account management, the addition of new logos, traction for cloud & data business, and strong demand. Strong hiring, timely wage revisions, investments in sales and capabilities, and strategies around cloud & data would aid sustainable growth in coming years. We expect revenue to clock 17% CAGR over FY2021-24.