L&T Infotech traded higher ahead of its fourth quarter earnings due on July 15.
A CNBC-TV18 poll expects a strong quarter with a revenue growth of around 3.50 percent while the margins are likely to decline, quite significantly, to 16.7 percent.
The margins of L&T Infotech are impacted due to the second consecutive wage hike it gave as well as the absence of the selling, general and administrative (SG&A) provision reversal, which boosted the company’s margins in the previous quarter. Courtesy the decline in margin, profits are also expected to be down at 8.5 percent.
The company's stock has gone up 81 percent in the last one year and is one of the most expensive midcap IT stocks trading at 32.50 times FY22 PE.
Watch the accompanying video of CNBC-TV18’s Reema Tendulkar for more details.
(Edited by : Kanishka Sarkar)