L&T Technology Services tanks nearly 10% after Q4 net profit remains flat

L&T Technology Services shares dropped nearly 10% on Friday, April 26, a day after the IT services firm reported lacklustre financial results for the March quarter.

The technology and digital solutions arm of construction giant L&T Ltd reported its results for the quarter and financial year ended March 31, 2024, on Thursday.

Shares of L&T Technology Services dropped as much as 9.98% to an intraday low of ₹4,690 apiece on the NSE in morning trade on Friday after a gap down opening.

The company’s net profit for the March quarter stood at ₹340.9 crore, representing a growth of 1.4% quarter-on-quarter (QoQ) and a marginal 0.2% year-on-year (YoY).

L&T Technology’s revenue increased 7% YoY to ₹2,537.5 crore in Q4FY24 compared to ₹2,370.6 crore in the year-ago period.

The Earnings Before Interest and Taxes (EBIT) for the quarter amounted to ₹428.2 crore, with an EBIT margin of 16.9%.

L&T Technology Services also proposed a final dividend of 1650%, or ₹33 per share of the face value of 2 each, for the 2024 fiscal year, subject to approval from shareholders at the upcoming annual general meeting (AGM). The final dividend, if approved, will be disbursed within 30 days following the conclusion of the AGM, as announced in a statement.

The company also said it was restructuring its organisational framework to enhance efficiency and innovation, effective April 1, 2024. This involves consolidating its current five segments into three main segments — Mobility, Sustainability, and Hi-Tech.

Shares of L&T Technology Services closed 7.08% lower at ₹4,816 apiece on the NSE.