Strong deal pipeline to sustain L&T Infotech's growth trajectory

Margins could face some pressure in the near term

L&T Infotech posted a strong September quarter performance led by better-than-expected revenue growth and record margins. 

India’s sixth largest software services firm registered a revenue growth of 2.3 per cent in constant currency terms, beating the Street’s expectation of 1-1.5 per cent. This was led by the banking, financial services and insurance vertical, which grew 9.5 per cent on a sequential basis and accounted for 90 per cent of the incremental revenue uptick in the quarter.  

Earnings before interest and taxes (Ebit) margin was at all-time highs. The company posted a 250 basis points (bps) sequential uptick in Ebit margins to 19.9