L&T InfoTech Ltd acquired PowerUpCloud Technologies in 2019

● Objective- To add artificial intelligence and data analytics to enhance its consulting verticals.

● Prospects- Strengthen its cloud services capabilities since they showed flat growth in
consulting domain in past few quarters and to attract more clients.

● Valuation- The company has factored a rev growth of 5.4/15.0% and EBIT% at 15.7/17.0% in
FY21/22E.
The company’s FY21 estimates factors -5.5% QoQ in 1Q followed by +1.3/3.4/3.5% QoQ over
2Q/3Q/4Q with Strong RoIC (~40%) and FCF yield (~4.5%)

● Impact- In the next quarter, the results were in line with market expectations, that perked up the
stock in trade with LTI gaining 7%.
Enabled LTI to provide better services to its existing and new clients

● Challenges- Still, overall growth could not be as desired as the Operating expenses were high. Due
to which EBITDA margin down to 18.1% from 20.5% in corresponding quarter
Uptick in attrition in 2nd quarter
IT- L&T InfoTech presentation
Submitted by-

Manvi Varshney- 143025

Nehal parashar- 143026