On Friday, shares of L&T Technology Services Ltd fell as much as 8.1 percent to Rs 1,325 on BSE as a reaction to the company's decline in profit for the June-ended quarter. Investors booked profit on the stock after the company reported a 42.5 percent dip in net profit for the first quarter of 2020-21 to Rs 117.3 crore as against Rs 203.9 crore in the same period last year.
For the March quarter, L&T Tech had reported a profit of Rs 204.8 crore.
On 16 July, the company announced its financial results for the June ended quarter. It said that for the April-June period, the consolidated revenue was Rs 1,294.7 crore against Rs 1,347.5 crore in the year-ago period, a fall of 3.9 percent.
The company said that its operating margin in the quarter was impacted primarily due to a drop in utilisation because of the furloughs and temporary reduction in spending by the customers. L&T Tech expects an improvement in revenues and margins based on the ramp-up of deals but is expected to report 9-10 percent dip in FY21E revenues.
"During the quarter, L&T Tech won 9 multi-million dollar deals across all major industry segments which include one deal with TCV of $30 million plus and two deals with TCV of $15 million plus," the company said in a filing to the exchanges.
The company also said that it will acquire 100 percent stake in Texas-based Orchestra Technology, which provides engineering services and solutions for telecom network management. L&T Technology Services will acquire the stake in all-cash deal of $25 million, or about Rs 187 crore, in two tranches of $11 million (Rs 82.6 crore) and $14 million (Rs 105 crore) according to its filing.