Firm de-risking business model but pressure on revenue likely in the near term
The company reported a 27 per cent fall in turnover, driven by the mobility segment that fell 31 per cent over the year-ago quarter
Revenue growth, margins have been trending up over the past couple of quarters
Brokerages revise earnings estimates, valuation multiples upwards
To retain market share, the company will continue to focus on quality customers, reduce churn, and focus on content to improve customer stickiness
While analysts expect volume growth in 2019-20 (FY20) to be flat, they expect it to be at 4 per cent each in the next two years
Volume decline was offset by price hikes and lower commodity costs
After muted performance over the last few quarters, LTI put up a better show in Q2FY20
Further, revenue and cost recognition have not adhered to accounting norms and have been done to improve short-term profitability
The company was able to reverse weak revenue trends from its top five clients over the past few quarters
New emission norms to further add to demand challenges
Near-term challenges on CVs, oil and gas will keep stock under pressure
Robust deal pipeline, margin gain hopes have helped it to bridge the valuation gap with TCS
With a research-driven process and an eye for opportunities, Banthia, senior fund manager-fixed income, ICICI Prudential AMC, beat the market and peers over the last year
Firm added to its growth pipeline by acquiring Isagro last week
Analysts expect the 44% valuation discount to stay
Street expects upward revision in growth guidance if trend persists
Lower debt, divestments, and reduction of promoter pledge are other triggers
Repeat observations for an approved facility are an indication of consistent regulatory challenges for the company, says an analyst with a foreign brokerage
Firm banking on acquisitions, and rationalisation of prices