L&T Technology Services (LTTS) reported a 1.4% quarter-on-quarter increase in net profit and a 3.7% revenue growth for Q2 on Wednesday. Despite these positive results, shares fell by over 3.5% on the National Stock Exchange (NSE) to ₹4,444.4 following the announcement.
The company also announced an interim dividend of ₹17 (USD1 = INR83.230) per equity share, with October 27 set as the record date. However, investor sentiment was affected as LTTS revised its revenue growth forecast for FY23-24 down from a previous estimate of a 20% increase to a range of 17.5%-18.5%. This revision came despite the firm's strong financial performance and an EBIT margin at 17.1%.
Brokerages had mixed reactions to LTTS's earnings report. Both Morgan Stanley (NYSE:MS) and JP Morgan (NYSE:JPM) issued 'Underweight' ratings for the company following the announcement, while Macquarie maintained a neutral stance.
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