L&T Tech Shares Fall Most In Over Two Years After Q4 Margin Narrows
Revenue of the L&T Group firm rose 4.77% over the previous three months to Rs 2,537.5 crore in the quarter ended March 31, 2024. But Ebit margin contracted 31 bps to 16.87%.
Shares of L&T Technology Services Ltd. recorded their steepest fall since October 2021 on Friday after its fourth-quarter margins contracted, despite a rise in revenue.
Revenue of the L&T Group firm rose 4.77% over the previous three months to Rs 2,537.5 crore in the quarter ended March 31, 2024. But Ebit margin contracted 31 bps to 16.87%.
The management stated in its post-earnings conference call that clients' caution due to geopolitical tensions has delayed decision-making.
The company also anticipated a lower EBIT margin of around 16% in FY25 due to planned investments in the coming quarters to develop deeper expertise in its segments.
Shares of the company fell as much as 9.51% to Rs 4,690 apiece, the lowest level since Dec. 5, 2023, before paring losses to trade 8.19% lower at 10:02 a.m. This is comparable to a flat Nifty 50.
The stock has gained 3.87% year-to-date and 24.95% in the last 12 months. Total traded volume so far today was 6.56 times its 30-day average. The relative strength index stood at 25.10, suggesting a potential oversold state for the stock.
Of the 29 analysts tracking the company, four maintain a 'buy' rating, eight recommend a 'hold,' and 17 suggest a 'sell', according to Bloomberg data. The average 12-month analyst's price target implies a downside of 0.2%.