LatentView Analytics reports 6 pc decline in Q1 profit
New Delhi, Aug 1
AI-driven analytics, data engineering and consulting company LatentView Analytics on Saturday reported nearly 6 per cent year-on-year decline in its consolidated net profit for the first quarter of FY27.
The company posted a consolidated net profit of Rs 48 crore in the April-June quarter, compared with Rs 51 crore in the corresponding period last year.
Revenue from operations grew 21.6 per cent YoY to Rs 287 crore during the quarter from Rs 236 crore a year ago.
The Chennai-headquartered company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 56 crore for the quarter, up 12 per cent from Rs 50 crore in the year-ago period.
However, EBITDA margin contracted by 170 basis points to 19.5 per cent from 21.2 per cent in the corresponding quarter of the previous fiscal, reflecting pressure on operating profitability despite healthy revenue growth.
According to the company's stock exchange filing, total income increased to Rs 308 crore during the quarter from Rs 259 crore a year earlier, while total expenses rose to Rs 242.9 crore from Rs 197.5 crore in the same period last fiscal.
Moreover, profit before tax (PBT) stood at Rs 65.3 crore lower than Rs 66.8 crore reported in the corresponding quarter of FY26.
Shares of LatentView Analytics ended 0.6 per cent higher at Rs 315.70 apiece on the BSE on Friday. However, the stock has remained under pressure over the longer term, declining more than 22 per cent over the past six months, compared with a 5 per cent decline in the Sensex.
On a one-year basis, the stock has fallen 23 per cent, significantly underperforming the benchmark Sensex, which has slipped 3.8 per cent during the same period.
— IANS
Reader Comments
EBITDA margin contracting by 170 bps is concerning, but 19.5% still isn't bad for this environment. The real issue is the stock price - down 22% in 6 months while Sensex only fell 5%. Market wants more than just revenue growth, they want efficiency.
Another Chennai IT company struggling to convert growth into profits. At Rs 315, with this kind of fall, maybe it's a buying opportunity for long-term investors? But I'd wait for margin improvement first. Patience is key in this market. 🙏
AI-driven analytics is the buzzword, but even they can't escape the cost pressures. Total expenses up from Rs 197 crore to Rs 242 crore - that's a 23% jump! Revenue growth of 21.6% is being outpaced by costs. Need to watch how they manage this going forward.
Classic mid-cap IT trend - clients are spending but asking for discounts, so margins get squeezed. The management needs to explain how they'll protect profitability. Meanwhile, I'd rather invest in larger IT names with better pricing power right now. Just my two paise.
The stock falling 23% in a year while Sensex dropped only 3.8% says everything about investor sentiment. Revenue growth is good, but until they fix the cost structure, shareholders will keep losing. For a Chennai company, I expect better. 😕
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