In the wake of disappointing Q3 earnings that fell short of market expectations on all major fronts, shares of LTIMindtree witnessed a sharp decline of 14 percent in early trade on January 18. The company’s weak management commentary has instilled a cautious outlook among brokerages, foreseeing potential challenges for the IT major in Q4.
As of 9:45 am, LTIMindtree shares were trading at Rs 5,569.20 on the NSE. The trading volume for the stock also saw a significant uptick, with 9 lakh shares changing hands so far, surpassing the one-month daily traded average of 4 lakh shares.
The Q3 financial results revealed a marginal 0.6 percent sequential increase in net profit to Rs 1,169 crore, while revenue showed a 1.2 percent on-quarter rise to Rs 9,016 crore. However, the operating margin contracted to 15.4 percent in Q3, down from 16 percent in the last quarter, attributed to high furloughs and reduced discretionary spends.
