5 May 2017
4QFY17 Results Update | Sector: Technology
L&T Infotech
Buy
BSE SENSEX
29,859
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
Financials & Valuations (INR b)
2017
2018E
Y/E Mar
Net Sales
65.0
70.8
EBITDA
12.3
13.0
PAT
9.7
10.4
EPS (INR)
55.5
59.7
Gr. (%)
5.9
7.6
BV / Sh (INR)
159.5
204.8
ROE (%)
40.4
32.8
ROCE (%)
42.7
33.5
P /E (x)
13.2
12.3
P / BV (x)
4.6
3.6
S&P CNX
9,285
LTI IN
Broad-based momentum helps shun seasonality
171
4QFY17 revenue beat on broad-based momentum:
LTI’s 4QFY17 revenue
120.9 / 1.9
grew 2.4% QoQ in constant currency (CC) terms, against our expectation of
729 / 595
1.3%. Revenue growth was broad-based across verticals and geographies.
-/-/-
For FY17, CC growth of 10% was at the higher end of the industry. The year
128
was marked by stabilization of the Energy vertical and 8.4% growth in BFS
15.7
CMP: INR733
TP: INR850(+16%)
2019E
78.7
14.2
11.4
65.0
8.8
254.2
28.3
30.2
11.3
2.9
Estimate change
TP change
Rating change
despite this being a pressure-point for the industry.
Healthy momentum drives sanguine FY18 outlook:
Heading into FY18, this
momentum is expected to continue, led by: [1] Visibility from ramp-up in
deals, [2] Broad-based traction with no segment expected to decline, [3]
continued momentum in Digital, which is 28% of revenue.
Margin beat in part from one-time expenses:
Despite seasonality, higher
SGA (+60bp to 16.8%) and INR appreciation, LTI’s EBITDA margin expanded
by 90bp QoQ to 19% against our expectation of 20bp expansion to 18.3%.
Margin expansion was partly led by some accrual accounting at the year-end
around employee leaves encashment. However, with confidence of revenue
growth and multiple traditional levers in hand, there appears limited risk to
our assumption of a cumulative 80bp decline in margins over FY18-19.
4QFY17 PAT at INR2.5b (+2.7% QoQ) was higher than our estimate, led by
operational beat and higher other income.
Valuation view:
LTI is trading at 12.3/11.3x FY18/19E earnings. Our target
price of INR850 (+16%) discounts FY19E earnings by 13x - in the range of as
PSYS and MTCL which have demonstrated potential in newer services, but at
a premium to peers such as MPHL, KPIT and NITEC. This, we believe is
justified given strong positioning, superior cash generation, return ratios and
track record. Maintain Buy.
FY17
FY16
FY17
2Q
3Q
4Q
240
245
254
887
970
3.7
2.3
3.7
9.5
9.3
16,020 16,667 16,772 58,471 65,009
9.1
12.1
7.7
17.5
11.2
35.4
34.3
35.8
33.5
35.2
16.4
16.2
16.8
15.8
16.3
3,044 3,020 3,190 10,359 12,303
19.0
18.1
19.0
17.7
18.9
16.1
15.3
16.5
14.7
16.2
365
597
503 2,802 1,837
21.0
21.2
22.3
19.7
21.4
2,326 2,481 2,547 9,171 9,711
-1.4
6.7
2.7
21.3
10.5
11.4
21.5
5.9
13.3
14.2
14.6
52.4
55.5
21,074 20,605 21,023 20,072 21,023
78.7
78.1
78.3
73.8 7807.5
18.5
18.1
51.2
52.3
51.3
49.7
48.3
(INR Million)
Est. Var. (% /
4QFY17
bp)
249
1.9
1.7
195
16,605
1.0
4.2
348
34.3
153
16.0
79
3,035
5.1
18.3
74
15.3
119
261
92.5
21.0
2,219
14.8
-10.5
1,320
-16.1
2,751
12.7
22,246
(5.5)
76.0
230
52.7
(139)
Quarterly Performance
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util incl. trainees (%)
Attrition (%)
Offshore rev. (%)
1Q
209
0.0
13,332
14.5
34.0
18.5
2,068
15.5
12.2
512
18.2
1,746
-21.2
7.5
10.0
20,331
73.8
20.1
51.9
FY16
2Q
3Q
4Q
224
225
230
7.3
0.5
2.1
14,682 14,870 15,579
18.7
12.4
17.8
34.5
36.4
33.5
17.9
16.8
15.4
2,431 2,914 2,820
16.6
19.6
18.1
13.6
16.7
15.3
532
285
526
24.4
18.8
21.6
1,917 2,245 2,286
9.8
17.1
1.8
7.2
12.5
3.2
11.0
12.8
13.1
22,689 22,477 20,072
72.8
74.0
75.9
19.7
18.5
18.4
51.7
51.3
52.4
1Q
231
0.6
15,550
16.6
35.3
15.7
3,050
19.6
16.9
372
21.2
2,359
3.2
35.1
13.5
19,292
77.4
19.5
51.9
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Sagar Lele
(Sagar.Lele@MotilalOswal.com); +91 22 6129 1531
Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 6129 1530

L&T Infotech
4QFY17: Revenue growth above expectations
LTI’s 4QFY17 revenue grew 3.7% QoQ to USD254m, above our estimate of 1.7%
QoQ growth to USD249m.
In constant currency terms, growth stood at 2.4% QoQ, implying a negative
cross-currency impact of 130bp. Our estimate for CC growth stood at 1.3% QoQ
(currency headwinds of 40bp).
Exhibit 1: Broad-based growth leads to beat in 4Q performance
Revenue (USDm)
7.3
4.0
0.5
194
202
1.3
205
1.9
(0.0)
209
209
224
2.1
0.5
225
230
0.6
231
240
245
254
Growth (QoQ, %)
3.7
2.3
3.7
Source: Company, MOSL
GPM expanded 150bp QoQ to 35.8%, 150bp beat. SGA expanded 60bp QoQ to
16.8%, 80bp above our estimate of 16%, limiting beat on EBITDA.
EBITDA margin (excluding forex gains) expanded 90bp QoQ to 19%, above our
estimate of 18.3%.
18.5
EBITDA margin (%)
16.8
15.4
15.7
SG&A (% of sales)
16.4
16.2
16.8
Exhibit 2: EBITDA margin beat despite higher SGA
17.9
15.5
16.6
19.6
18.1
19.6
19.0
18.1
19.0
Source: Company, MOSL
Exhibit 3: Steep increase in utilization over the last two years
Utilization including trainees
77.1
75.9
78.0
77.4
78.7
78.1
Utilization excluding trainees
80.6
80.5
79.3
78.3
75.2
73.8
75.5
76.5
72.8
74.0
Source: Company, MOSL
5 May 2017
2

L&T Infotech
PAT grew 2.7% QoQ to INR2.55b, well above our estimate of INR2.2b, as higher
other income compounded operating beat. Other Income at INR503m was
higher than our estimate of INR261m.
Diluted EPS for the quarter was INR14.6, and full year EPS was INR55.5.
Growth was fairly broad-based by regions – North America grew 3.9% QoQ and
Europe grew 2.9% QoQ. RoW surged 18% QoQ on a small base.
Contri. to
Rev. (%)
68.6
18.1
2.1
7.5
3.6
Growth
QoQ (%)
3.9
2.9
2.5
-2.7
18.3
Growth
YoY (%)
11.2
12.8
-1.5
6.8
4.8
Source: Company, MOSL
Segment-wise performance
Exhibit 4: Strong YoY growth seen in North America and Europe
Industry Classification
North America
Europe
Asia Pacific
India
RoW
In terms of service lines, growth was led by Enterprise Solutions (5.4% QoQ) and
Testing (4.9% QoQ). Growth was also above company average in ADM, at 3.8%
QoQ.
YoY, strong growth was seen in AIM, Enterprise Integration, Mobility (47.0%
YoY) and Testing (9.8% YoY).
Contri. to
Rev. (%)
38.4
22.6
11.4
9.1
14.5
3.9
Growth
QoQ (%)
3.8
5.4
3.6
4.9
0.4
1.9
Growth
YoY (%)
5.8
6.3
4.9
9.8
47.0
4.4
Exhibit 5: Digital continues to exhibit strong growth
New Classification
Application Development Maintenance
Enterprise Solutions
Infrastructure Management Services
Testing
AIM, Enterprise Integration, Mobility
Platform Based Solutions
Source: Company, MOSL
Growth during the quarter was fairly broad-based in terms of verticals, led by
7% QoQ growth in BFS, 3.1% in Insurance 5.9% in HME and 5.1% in CPG / Retail /
Pharma. Growth in CPG / Retail was contrary to commentary by peers of secular
softness
Contri. to
Rev. (%)
27.0
20.7
11.6
8.1
10.9
21.7
Growth
QoQ (%)
7.0
3.1
0.0
5.1
5.9
0.5
Growth
YoY (%)
20.0
8.1
5.3
20.8
6.0
4.6
Exhibit 6: Robust growth in BFS
New Classification
BFS
Insurance
Energy & Process
CPG, Retail & Pharma
High-Tech, Media & Entertainment
Auto, Aero & Others
Source: MOSL, Company
5 May 2017
3

L&T Infotech
Momentum in top account continued, growing 6.4% QoQ on the back of 9% in
2Q and 10% in 3Q. Full year FY17 growth in top account however, was 6.7%.
Exhibit 7: Strength seen across most top client buckets
Client Metrics
Top Client
Top 2-5 Clients (%)
Top 6-10 Clients (%)
Top 11-20 Clients (%)
Non Top 20 Clients (%)
Contri. to
Rev. (%)
15.5
23.0
14.6
14.9
32.0
Growth
QoQ (%)
6.4
2.8
9.7
-4.6
4.7
Growth
YoY (%)
28.1
8.1
10.0
-0.1
8.9
Source: MOSL, Company
Takeaways from management commentary
Deals drive healthy outlook:
FY17 was an exceptional year in terms of deal wins
with the company announcing the large CBDT deal in1Q and three large deals
with a TCV of USD100m in 3Q.Ramp up in the latter over 1HFY17 will ensure
continued sequential growth across quarters this fiscal.
Expect traction to be broad-based:
LTI does not expect any vertical or segment
to suffer, with outlook robust across the board. While segments such as Energy
and Enterprise Solutions will not lead company growth given the specific
challenges, they will continue to grow, along with other business segments.
Retail is very small for LTI and CPG is a bigger presence, which is why they
vertical is demonstrating stronger momentum than peers, who are hurting from
their exposure to large Retailers.
Digital prowess:
Digital grew 35% YoY in FY17 and now contributes 28% to
revenues at LTI. Amid a plethora of technologies that have come to the fore, LTI
plays the role of a Digital architect helping clients weave through the maze in
the market. That said, advanced analytics and cloud based infrastructure
transformation are two sub-segments that materially drive the Digital business.
BFSI positivity intact:
LTI continues to see robust demand in BFSI in areas such
as Capital Markets, Risk & Compliance, Digital banking. Growth is being driven
by a combination of both client budgets and LTI’s own mining exercises.
Margin band should sustain:
Despite the recent strengthening of the Rupee, LTI
expects the net margin band to sustain FY17 levels. The wage hike cycle will be a
normal one – effective July 1
st
, and in the range of 2% at onsite and 6-7% at
offshore.
Change in estimates
Beat on 4Q revenue combined with commentary of continued broad-based
traction into FY18, led by deals visibility drives 2-3.4% upgrade in our USD
revenue estimates over FY18-FY19.
The uptick in revenues also drives marginally higher comfort in profitability,
despite the prevailing INR. Our EBITDA margin estimates for FY18 / FY19 are up
by 40bp / 60bp. Consequently, our EPS estimates are up 3-4.8% for this period.
5 May 2017
4

L&T Infotech
Exhibit 8: Change in estimates
FY17E
67.0
970
9.3
18.9
55.5
Revised
FY18E
66.3
1068
10.1
18.4
59.7
FY19E
67.3
1171
9.6
18.1
65.0
FY17E
67.5
965
8.8
18.8
54.0
Earlier
FY18E
70.0
1,046
8.3
18.0
58.0
FY19E
70.0
1,132
8.3
17.5
62.0
FY17E
-0.7%
0.5%
50bp
10bp
2.8%
Change
FY18E
-5.4%
2.1%
180bp
40bp
2.9%
FY19E
-3.9%
3.4%
130bp
60bp
4.8%
INR/USD
USD Revenue - m
USD revenue gr. (%)
EBITDA Margin (%)
EPS - INR
Source: MOSL, Company
Valuation and view
Mining of Top-20 accounts has been robust…:
Growth and scale for LTI has
been primarily driven by the Top-20 accounts in the last few years. Successful
account mining, and focused penetration in anchor/target customers has aided
strong growth. Account managers, consultants and delivery for top accounts
have ensured all-round servicing despite the size of LTI leading to the Top-20
contributing 76% of the incremental growth achieved in the last three years. The
formula for success is now being replicated in the Top-50 accounts through
initiatives like ADEA (Analytics and Digital in Every Account) and thrust on
MOSAIC.
Portfolio weights not entirely favorable:
LTI’s revenues are heavily skewed
towards BFS, Insurance and E&U. These verticals together constitute ~60% of
total revenue. While E&U has been facing the brunt of lower technology spend
on account of plummeting oil prices, the outlook for BFS and Insurance has been
getting sour lately, led by macroeconomic uncertainties – upcoming elections in
the US, impact of Brexit, and low interest rate regime. Although the
concentrated BFS and Insurance portfolios of LTI, and its presence in the
relatively shielded areas of risk, compliance, digital and cost optimization auger
well in this scenario, macro risks yet envelope this and pose prospective risks
and fluctuations in performance. For now, all these areas are doing well! BFS
and Insurance grew by 8.5% and 12.4% respectively in FY16.
…with pricing and investments compounding impact on earnings:
To facilitate
the successful mining of the Top 50 accounts, LTI has hired resources in several
dimensions. This is likely to continue, as the right ammunition gets built up to
ensure successful execution of this strategy. Although some levers exist in the
form of G&A optimization, pyramid rationalization, and higher operational
efficiencies, we expect margins to face the headwinds of pricing in traditional
services and renewal deals, especially given the high dependency of LTI on some
key customers. Revenue growth will be an offset. Together, we expect these
factors to negatively impact EBITDA margins by 80bp in FY18 and FY19.
Conservative estimates…:
Despite conservative estimates around growth in BFS,
we expect 9.9% revenue CAGR over the next two years, which places LTI a shade
above the industry. Margin pressures around LTI too are common with the ones
seen impacting the sector overall.
…Attractive valuations:
We believe reasonable conservatism is factored into
estimates, as despite it, LTI is trading at 12.3/11.3x FY18/19E earnings. Our
target price of INR850 (+16%) discounts FY19E earnings by 13x - in the range of
as PSYS and MTCL which have demonstrated potential in newer services, but at
a premium to peers such as MPHL, KPIT and NITEC. This, we believe is justified
5
5 May 2017

L&T Infotech
given strong positioning, superior cash generation, return ratios and track
record. Maintain Buy.
Key triggers
Strong growth in BFS/Energy
Acceleration in top client growth
Profitability improvement
Key risk factors
Pricing pressure in traditional services/renewals
Losing out in vendor consolidation in some of the large accounts
Macro pressure impacting growth in key verticals
5 May 2017
6

L&T Infotech
Story in charts
Exhibit 9: High exposure to BFSI and E&U (~60% of portfolio)
Banking and financial
services
Insurance
Energy and Process
11
8
12
21
CPG, Retail and Pharma
High-Tech, Media &
Entertainment
Auto Aero & Others
164
-20%
131
-14%
113
114
Exhibit 10: E&U declined in FY15 and FY16…
Revenue in Energy & Utilities (USDm)
26%
1%
Growth (YoY, %)
22
27
Source: MOSL, Company
Source: MOSL, Company
Exhibit 11: …excluding which growth would be better than
industry
Revenue growth (YoY, %)
Revenue growth - Ex. E&U (YoY, %)
18.5%
16.6%
8.5%
9.5%
16.5%
14.1%
10.5%
9.3%
Exhibit 12: BFS spending in recent quarters is an overhang...
Revenue - BFS (USDm)
16.9 16.4
12.1
6.0
51
56
56
56
8.5 7.2 9.1
55
60
61
2.3
57
Growth (YoY, %)
20.0
5.4 4.7 4.5
58
63
64
69
Source: MOSL, Company
Source: MOSL, Company
Exhibit 13: Risks embedded in our revenue growth
estimates
Revenue (USDm)
18.5
Growth (YoY, %)
Exhibit 14: And in margin assumptions
22.4
EBITDA (INRm)
21.1
20.3
17.7
8.8
EBITDA margin (%)
18.9
20.8
9.3
11.0
18.0
7.5
8.5
9.5
17.4
630
747
810
887
970
1,076
1,171
Source: MOSL, Company
Source: MOSL, Company
5 May 2017
7

L&T Infotech
Operating metrics
Exhibit 15: Operating metrics
3QFY15
Revenue by verticals (%)
Banking and financial services
Insurance
Energy and Process
CPG, Retail and Pharma
High-Tech, Media & Entertainment
Auto Aero & Others
Hi-Tech and Consumer Electronics
Automotive and Aerospace
Media and Entertainment
Others
Revenue by service offerings (%)
ADM
ERP
IMS
Testing
Digital solutions
Platform based solutions
Revenue by geography (%)
North America
Europe
Asia Pacific
India
ROW
Client metrics
Top client (% of revenues)
Top 5 client
Top 10 client
Top 20 client
Non Top 20 clients
Number of active clients
New clients added in the period
Million $ clients
5 Million $ clients
10 Million $ clients
20 Million $ clients
50 Million $ clients
100 Million $ clients
Employee metrics
Development
Sales and support
Total employees
Efforts mix
Onsite
Offshore
Utilization measures
Including trainees
Excluding trainees
Attrition LTM (%)
27.5
20.1
15.2
10.2
-
-
6.6
5.6
5.3
9.4
43.6
24.3
8.5
10.0
10.0
3.6
70.5
17.1
2.5
2.9
7.0
13.9
37.1
51.7
67.6
32.4
218
17
4QFY15
26.8
20.3
15.4
8.8
-
-
6.4
6.7
5.4
10.1
43.2
24.3
9.3
10.2
9.8
3.1
69.4
16.6
2.7
4.7
6.6
14.1
37.0
50.6
66.3
33.7
232
17
1QFY16
26.6
21.0
13.7
8.8
12.0
17.8
-
-
-
-
43.4
23.9
8.0
10.3
10.6
3.8
71.0
17.3
2.5
3.2
6.0
15.0
37.7
52.3
68.0
32.0
235
19
84
33
20
9
3
16,198
-
19,235
-
-
-
-
18.3
17,202
-
19,479
-
-
-
-
19.5
18,881
1,450
20,331
24.9
75.1
73.8
75.2
20.1
2QFY16
26.7
20.3
13.0
8.6
11.5
19.9
-
-
-
-
42.2
24.9
8.2
9.8
11.1
3.8
69.5
17.3
3.1
4.7
5.3
15.3
17.8
52.9
68.2
31.8
251
20
85
32
19
8
3
18,486
1,518
22,689
24.1
75.9
72.8
75.5
19.7
3QFY16
27.3
20.1
12.1
8.1
10.7
21.7
-
-
-
-
40.8
23.7
10.0
9.7
11.7
4.1
67.8
16.9
2.7
7.0
5.5
15.7
37.8
54.5
68.3
31.7
249
12
86
32
17
8
3
21,073
1,404
22,477
23.6
76.4
74.0
76.5
18.5
4QFY16
24.9
21.2
12.2
7.3
11.4
23.0
-
-
-
-
40.2
23.5
12.0
9.2
10.9
4.2
68.2
17.8
1.6
7.8
4.6
13.5
37.1
52.4
69.0
31.0
258
22
85
35
17
10
3
18,705
1,367
20,072
23.9
76.1
75.9
77.1
18.4
1QFY17
25.3
22.1
11.9
8.0
11.5
21.3
-
-
-
-
40.0
23.8
10.6
9.9
11.7
4.0
69.4
18.0
2.6
5.7
4.3
13.3
36.7
51.3
67.7
32.3
259
12
89
35
19
10
3
17,959
1,333
19,292
24.7
75.3
77.4
78.0
19.5
2QFY17
26.1
21.4
11.5
7.8
11.3
21.9
-
-
-
-
40.0
22.6
10.4
9.5
13.5
4.0
68.9
18.4
2.8
5.9
4.0
14.0
37.1
51.8
67.6
32.4
259
16
91
34
20
10
4
19,751
1,323
21,074
24.2
75.8
78.7
80.6
18.5
3QFY17
26.2
20.8
12.0
8.0
10.7
22.4
-
-
-
-
38.4
22.3
11.4
9.0
15.0
4.0
68.4
18.3
2.1
8.0
3.2
15.1
38.3
52.1
68.3
31.7
264
14
95
35
22
10
4
19,234
1,371
20,605
24.3
75.7
78.1
80.5
18.1
4QFY17
27.0
20.7
11.6
8.1
10.9
21.7
38.4
22.6
11.4
9.1
14.5
3.9
68.6
18.1
2.1
7.5
3.6
15.5
38.5
53.1
68.0
32.0
261
15
96
35
23
11
4
19,627
1,396
21,023
24.0
76.0
78.3
79.3
16.9
Source: MOSL, Company
5 May 2017
8

L&T Infotech
Financials and Valuations
Income Statement
Y/E March
Sales
Change (%)
Cost of Services
SG&A Expenses
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
Forex
PBT
Tax
Rate (%)
Minority Interest
Extraordinary
Adjusted PAT
Change (%)
Reported PAT
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loan
Capital Employed
Less : Depreciation
Net Block
CWIP
Other LT Assets
Curr. Assets
Current Investments
Debtors
Cash & Bank Balance
Loans & Advances
Other Current Assets
Current Liab. & Prov
Current Liabilities
Other liabilites
Provisions
Net Current Assets
Deferred Tax
Application of Funds
E: MOSL Estimates
FY12
31,820
33.1
19,769
5,440
6,612
20.8
1,049
342
293
-197
5,316
1,409
26.5
0
138
4,045
23
3,907
FY13
38,514
21.0
23,696
6,175
8,643
22.4
1,232
208
306
-85
7,424
1,870
25.2
-1
-395
5,159
28
5,554
FY14
49,205
27.8
29,198
9,649
10,358
21.1
1,300
305
52
-885
7,920
2,072
26.2
-1
-440
5,408
5
5,847
FY15
49,780
1.2
31,304
8,358
10,118
20.3
1,579
216
100
815
9,237
1,683
18.2
-2
-2
7,550
40
7,552
FY16
58,471
17.5
38,873
9,238
10,359
17.7
1,740
158
164
2,796
11,422
2,250
19.7
-1
0
9,171
21
9,171
FY17
65,009
11.2
42,123
10,583
12,303
18.9
1,780
0
193
1,644
12,360
2,649
21.4
0
0
9,711
6
9,711
FY18E
70,779
8.9
46,067
11,678
13,033
18.4
2,163
0
318
2,205
13,394
2,947
22.0
0
0
10,447
8
10,447
(INR Million)
FY19E
78,743
11.3
51,871
12,646
14,226
18.1
2,325
0
488
2,373
14,763
3,395
23.0
0
0
11,367
9
11,367
(INR Million)
FY19E
175
44,310
44,485
5
545
45,035
14,273
8,937
195
4,999
45,557
429
20,279
16,256
8,592
13,449
6,904
1,251
5,295
32,107
-1,204
45,035
FY12
161
10,892
11,054
-
2,688
13,742
6,322
1,076
1,387
12,474
571
7,741
1,321
2,841
7,419
3,727
2,022
1,670
5,054
-97
13,742
FY13
161
13,227
13,388
1
2,336
15,726
6,991
1,424
1,932
13,251
487
8,744
1,194
2,826
7,723
4,586
1,257
1,880
5,528
-148
15,726
FY14
161
15,942
16,103
2
1,100
17,205
6,488
567
2,535
17,415
1,688
10,504
1,589
3,634
9,388
6,151
729
2,508
8,027
-412
17,205
FY15
161
20,102
20,263
4
2,175
22,443
6,545
6,834
252
2,440
21,045
1,036
12,446
2,009
5,555
7,900
4,443
538
2,919
13,144
-228
22,443
FY16
170
20,057
20,227
5
545
20,777
7,835
6,375
195
4,249
23,748
429
15,448
2,034
5,837
12,587
6,041
1,251
5,295
11,161
-1,204
20,777
FY17
175
27,731
27,906
5
545
28,456
9,785
7,425
195
4,499
30,498
429
16,742
6,605
6,722
12,958
6,412
1,251
5,295
17,541
-1,204
28,456
FY18E
175
35,671
35,846
5
545
36,396
11,948
8,262
195
4,749
37,532
429
18,228
11,408
7,467
13,139
6,593
1,251
5,295
24,394
-1,204
36,396
5 May 2017
9

L&T Infotech
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Fixed Asset Turnover (x)
FY12
24.0
30.2
65.6
15.1
63.0
FY13
30.6
37.9
79.4
18.0
53.4
FY14
32.1
39.8
95.6
32.7
67.5
FY15
44.8
54.2
120.2
28.5
62.9
FY16
52.4
62.3
115.6
31.2
59.6
FY17
55.5
65.7
159.5
9.7
17.5
(INR Million)
FY18E
59.7
72.1
204.8
11.9
20.0
FY19E
65.0
78.2
254.2
13.0
20.0
15.9
13.2
11.8
2.4
5.9
4.0
13.6
11.4
11.9
2.1
6.2
4.4
12.8
10.9
9.6
1.8
4.5
1.4
11.9
9.9
8.7
1.6
3.5
1.7
11.0
9.1
7.6
1.4
2.8
1.8
36.1
40.8
38.6
42.2
50.3
43.6
36.7
55.0
49.9
41.5
43.1
42.0
45.3
39.9
33.0
40.4
42.7
35.9
32.8
33.5
31.7
28.3
30.2
29.9
89
5.0
83
5.5
78
7.6
91
7.3
96
9.2
94
8.8
94
8.6
94
8.8
Cash Flow Statement
Y/E March
CF from Operations
Cash for Working Capital
Net Operating CF
Net Purchase of FA
Free Cash Flow
Net Purchase of Invest.
Net Cash from Invest.
Proc. from equity issues
Proceeds from LTB/STB
Dividend Payments
Cash Flow from Fin.
Exchange difference
Net Cash Flow
Opening Cash Bal.
Add: Net Cash
Closing Cash Bal.
E: MOSL Estimates
FY12
5,833
-1,402
4,431
-1,594
2,838
623
-971
0
427
-2,960
-2,533
-1,069
-141
1,462
-141
1,321
FY13
8,992
-819
8,173
-2,479
5,694
238
-2,242
1
-475
-3,488
-3,962
-2,097
-127
1,321
-127
1,194
FY14
9,827
-1,408
8,420
2,850
11,269
-1,047
1,803
0
-1,331
-6,356
-7,686
-2,141
395
1,194
395
1,589
FY15
10,112
-922
9,190
-1,845
7,345
816
-1,029
0
957
-5,931
-4,974
-2,767
420
1,589
420
2,009
FY16
12,226
-936
11,290
-1,141
10,149
700
-441
69
-1,721
-6,516
-8,167
-2,657
24
2,009
24
2,034
FY17
12,303
-2,058
10,245
-2,830
7,416
1,837
-993
5
0
-2,037
-2,032
-2,649
4,572
2,034
4,572
6,605
(INR Million)
FY18E
13,033
-2,301
10,733
-3,000
7,733
2,524
-476
0
0
-2,507
-2,507
-2,947
4,802
6,605
4,802
11,408
FY19E
14,226
-3,115
11,110
-3,000
8,110
2,862
-138
0
0
-2,728
-2,728
-3,395
4,848
11,408
4,848
16,256
5 May 2017
10

L&T Infotech
NOTES
5 May 2017
11

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L&T Infotech
Disclosure of Interest Statement
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12