LTI stock slips 3 per cent despite reporting decent Q1 numbers

LTI stock slips 3 per cent despite reporting decent Q1 numbers

Anthony Fernandes
/ Categories: Mindshare, DSIJ News

The shares of IT services provider, Larsen & Toubro Infotech (LTI) were down by 3 per cent intraday on Friday after the company announced its results for the quarter ended June 30, 2021  

LTI’s revenue for the quarter stood at Rs 3,462.5 crore, up by 17.4 per cent YoY and 5.9 per cent QoQ. Its sequential constant currency revenue growth of 4.8 per cent was ahead of the Street's estimates. Revenue growth was led by the improved performance of hi-technology, banking, financial services & insurance verticals. However, manufacturing remained a drag.  

In terms of geography, growth was led by the rest of the world, North America and Europe. India saw a decline on a sequential basis, likely due to the impact of the second wave of COVID-19.  

On the flip side, the company's operating performance was impacted by wage hikes. EBITDA grew by 9.4 per cent YoY to Rs 647.8 crore; however, EBITDA margins contracted by 140 bps to 18.7 per cent. The bottom line of the company increased by 19.3 per cent to Rs 496.8 crore in the quarter ended June 30, 2021.  

LTI added one client in over $50 million brackets and three new clients in over US$ 10 million brackets during June quarter. Its total active clients increased to 438 from 427 in 4QFY21.  

In a filing to BSE, the company also announced that its board has declared a special dividend of Rs 10 per equity share to commemorate the completion of five years of listing on the stock exchanges in India.  

Reacting to the earnings, the shares of the company fell around 3 per cent during Friday's early morning trade and were spotted trading at Rs 4,281.25, down by 3.08 per cent or Rs 139.35 per share in the afternoon session. The 52-week high was recorded at Rs 4,600 while its 52-week low stood at Rs 2,198.80 on BSE.   

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