LTIMindtree share price declines over 5% as Europe business reports 2% year-on-year degrowth in Q2

LTIMindtree Limited witnessed its share price tumble over five percent yesterday, a day after announcing its quarterly financial performance. The IT major reported a seven percent annual increase in net profit for the July-September period to Rs 1,251.6 crore.

While revenue from operations increased six percent year-on-year to Rs 9,433 crore during the second quarter of the ongoing financial year, the company's business in Europe saw a marginal decline. Sales from the European region fell two percent compared to the same quarter last year. However, the business did see a two percent growth over the previous quarter.

In contrast, the company benefitted enormously from strong demand in the United States, where its business grew seven percent and three percent annually and quarterly, respectively. Positive contributions also came from increased foreign exchange gains and lower finance expenses for the IT firm.

When compared to benchmark index Nifty 50, LTIMindtree stocks have underperformed over the past month. While the Nifty 50 is down three percent in this period, shares of the tech company have tanked over five percent. On a year-to-date basis too, the scrip has erased four percent of value against Nifty's fourteen percent gains.

Formed in 1996 as a software subsidiary of Larsen & Toubro, LTIMindtree has evolved into a digital technology consulting firm with growing operations across major global markets. The company will aim to accelerate growth and shore up profitability through its focus on new-age skills and differentiated services.