LTIMindtree's share price tumbles 5%; check out the reason behind the fall

Citibank is one of the biggest clients of Indian IT major LTIMindtree. At 2:30 PM, shares of the firm were trading 2.89% lower at ₹4,338.05 apiece on the National Stock Exchange.

As part of the overhaul, Citi will replenish the ranks by hiring more staff and aims to have 50,000 employees in technology, up from 48,000 in 2024, the presentation showed.

Citi’s finance chief Mark Mason in January said it is investing more to address its data issues. The lender cut its closely watched profitability target for 2026 as it tackles rising regulatory expenses.

LTIMindtree stock had touched its 52-week low of ₹4,239 apiece on Monday, March 17.

Over a month, the scrip has tumbled over 20.5%. Year-to-date, the shares have declined over 23%.

Since March 18, 2024, LTIMindtree stocks have fallen nearly 16%.

Its market capitalisation stands at ₹1.73 lakh crore.

The stock has underperformed its sectoral index, Nifty IT, which was also trading 0.22% lower on Monday.

LTIMindtree's break below its 200-week exponential moving average (EMA) and the decisive breach of the May 2022 trendline on the weekly chart highlight the weakness.

LTIMindtree posted single-digit growth at 7.1% YoY in the revenue for the quarter at ₹96,60.9 crore as compared to ₹90,16.6 crore in Q3FY24 and a marginal 2.4% QoQ jump from ₹94,32.9 crore. The revenue in constant currency terms grew by 5.6% YoY to $1,138 million as compared to $1,083 million in the previous year's similar quarter.

This was largely due to a 10.1% YoY jump in the banking and financial services vertical at ₹35,308 crore and similar growth in the telecommunications segment at ₹22,808 crore.

On the operational front, the earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at ₹18,661 crore, 2.2% higher than the previous year’s similar quarter at ₹18,629 crore and a 4% sequential drop from ₹19,487 crore.