InvestorQ : Would be positive on the stock of LTTS after the latest quarterly results?
ishika Banerjee made post

Would be positive on the stock of LTTS after the latest quarterly results?

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3 months ago
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Larsen & Toubro Technology Services or LTTS reported Q2 profits that were lower by 19% yoy at Rs166cr in the Sep-20 quarter. This was due to a fall in total revenues on yoy basis with the total revenues for the quarter falling by 6.3% at Rs.1314 crore.

Operating profits for the Sep-20 quarter were also sharply down by 25% at Rs.239 crore. Bottom line was also not spared. The net profits for the Sep-20 quarter were down 19% at Rs.206 crore. The outcome of this was visible in a fall in operating margins and net margins.

But there was some good news on the sequential story. LTTS reported growth in sales and in profits, but this could be fairly misleading as costs were much higher during the June quarter due to a large fixed cost component. This inflated the growth on sequential basis, so take it with a pinch of sale.

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