L&T Infotech: Second half expected to be stronger on deals, client gains

After muted numbers in the past few quarters, the Street expected little from L&T Infotech (LTI) in its second-quarter results. However, the company, which declared its results last week, managed to meet estimates.

More importantly, the second quarter of this financial year is expected be a better one for company, especially on account of a ramp-up in existing deals, large deals won in recent quarters, and lower client-specific issues.

Flattish revenue trends over the past few quarters at its top clients were seen as a major concern by the company and the Street. Its top-five clients, for instance, contributed 38 per cent to LTI’s revenues in Q2FY18; this fell to 31.3 per cent in Q1FY20, down 670 basis points.