homemarket Newsstocks NewsEarnings impact: L&T Infotech shares rise 6% on strong numbers in Q2

Earnings impact: L&T Infotech shares rise 6% on strong numbers in Q2

Shares of L&T Infotech (LTI) rose nearly 6 percent on Wednesday after the company reported a strong set of numbers in the September quarter.

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By Pranati Deva  Oct 21, 2020 12:09:11 PM IST (Updated)

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Earnings impact: L&T Infotech shares rise 6% on strong numbers in Q2
Shares of L&T Infotech (LTI) rose nearly 6 percent on Wednesday after the company reported a strong set of numbers in the September quarter. The firm reported a 26.7 percent increase in consolidated net profit to Rs 456.8 crore for the quarter ended September 2020. This is against a net profit of Rs 360.4 crore in the same period a year ago.

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Its revenue grew 16.6 percent to Rs 2,998.4 crore in the reported quarter from Rs 2,570.7 crore in the year-ago period. The stock surged as much as 5.8 percent to Rs 3,139 per share on BSE post the earnings.
"We are happy to announce a large deal with net new TCV (total contract value) in excess of $40 million in analytics," LTI Chief Executive Officer and Managing Director Sanjay Jalona said. The company's large deal pipeline remains strong and it sees increased traction in digital, cloud and analytics space, he added.
LTI said its digital revenues accounted for 42.9 percent of its overall revenues. The company's revenue in US dollar terms grew 11.2 percent year-on-year to $404.5 million.
However, despite good numbers, brokerage house CLSA maintained an 'underperform' rating on the stock but raised its target to Rs 1,750 per share from Rs 1,660 earlier.
It also raised FY21/22 EPS estimates by 4 percent each and added that rich valuation limits CLSA from turning constructive.

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