Latest News | LTIMindtree Shares Plummet Nearly 11 Pc; Mcap Falls by Rs 19,844.7 Cr

New Delhi, Jan 18 (PTI) Shares of LTIMindtree plummeted nearly 11 per cent on Thursday, wiping out Rs 19,844.7 crore from its market valuation, as the company's December quarter earnings came weaker-than-expected.

The stock tanked 10.76 per cent to settle at Rs 5,602.30 apiece on the BSE. During the day, it slumped 13.40 per cent to Rs 5,436.

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On the NSE, it fell by 10.73 per cent to Rs 5,602 per share.

The company's market valuation eroded by Rs 19,844.7 crore to Rs 1,65,919.60 crore.

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Avdhut Bagkar, Technical and Derivatives Analyst at StoxBox, said, "LTI Mindtree shares fell after its Q3 FY24 earnings came weaker-than-expected."

"LTI Mindtree delivered a soft Q3, impacted by higher-than-usual furlough and weakness in discretionary projects, which is likely to extend into Q4," according to a report by HDFC Securities.

LTIMindtree on Wednesday reported a 16.85 per cent growth in consolidated results for the quarter ended December 31, 2023, at Rs 1,169.3 crore.

It had reported a net profit after tax of Rs 1,000.7 crore in the December 2022 quarter.

Revenue from operations came in at Rs 9,016.6 crore in the December quarter against Rs 8,620 crore in the quarter ended on December 31, 2022.

"We continue to expect LTIM to provide a sustainable outperformance as compared to larger peers over the medium term; however, risks pertaining to a large BFS client and delayed recovery can act as deterrents," the report by HDFC Securities said.

Motilal Oswal Research termed the company's results as disappointing.

"LTIM reported weak revenue growth in 3Q FY24, despite having a meaningful pass-through component in the manufacturing vertical. The growth was affected by higher-than-expected furloughs and a continued slowdown in discretionary spending. However, deal wins were strong," the report added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)