Seasonal gains, deal pipeline point to strong FY23 for L&T Infotech

Near-term gains for India's sixth largest IT services company factored into valuations

The September quarter results of Larsen & Toubro Infotech (LTI), India's sixth-largest information technology services company, were better than street estimates, barring the slip in margin performance. Macro challenges were expected to impact the sector, but the same were not reflected in LTI’s show and it reported growth across verticals and geographies.

Sequential revenue growth at 4.6 per cent was led by the larger verticals of banking and financial services and insurance, which were up 4.5-5 per cent each. The two verticals together accounted for about 48 per cent of overall revenues. Energy and utilities was the best performer in