L&T Technology Services has slumped almost 8% to the day low point at Rs.1325. It has recouped from there but remains in the red at Rs.1379 levels, down over 4%.

The market is disappointed with the company’s performance for Q1FY21. Its consolidated net profit fell 43% (QoQ) at Rs.117 crore on a 11% decline in revenue at Rs.1447 crore.

Its revenue in constant currency was at $194 million, down 13% sequentially.

EBIT margins showed a sharp 310 bps decline to 12.1%. The fall in mainly on account of a drop in utilisation due to furloughs and temporary reduction in spending by the customers.

In another news, the company said that it will acquire 100% stake in an all-cash deal of Rs.187 crore to be paid in two tranches – Rs.83 crore and Rs.105 crore. The deal is expected to close by December 2020.