LatentView shares soar over 9% after reporting 123% rise in Q3 net profit

LatentView shares surged over 9% to Rs 560 on the BSE at 9:15 am on Wednesday after reporting strong Q3 results.

For the quarter, the company recorded a 123% year-on-year increase in net profit to Rs 49.9 crore. The company’s bottom line more than doubled sequentially. Revenues increased 37.7% year on year to Rs 107.8 crore, supported by enterprises’ continuous digitalization of operations.

Also Read| Gold, silver and other metal prices on Wednesday, February 9, 2022

Operating earnings increased 19% year on year to Rs 32.2 crore in the December quarter, reflecting the company’s strong topline growth. Operating profit increased by 22% on a sequential basis.

LatentView’s operating margins decreased in the quarter, as did those of other technology services companies, falling to 29.9% from 34.6% in the year-ago quarter. The margins increased by 200 basis points sequentially.

Also Read| IRCTC shares surge over 2% after reporting 166% rise in Q3 net profit

LatentView sees a significant possibility for development in the banking and financial services (BFSI) and retail sectors.

“The overall technology industry itself is expected to grow at a healthy CAGR of 18-20%. Within the technology native sectors, we are underpenetrated in the BFSI and retail sectors but they present fantastic opportunities,” Rajan Sethuraman, Chief Executive Officer, LatentView Analytics, said during the Q3 earnings press conference.

Also Read| Sensex surges over 400 points while Nifty above 17,380 in early trade

“In fact, BFSI is the largest spender from a sector perspective on data analytics. Given the big spurt that we are seeing in the fintech space, many traditional banks and insurance companies have been accelerating their digital transformation initiatives. So, we see a lot of prospects and we have been doubling down on building out our BFSI and retail practice,” he added.

Also Read|  US Stock Market: DJIA, S&P500, Nasdaq and Russell ended in green on Tuesday

Sethuraman went on to say that the company has been investing in front-end sales and business development capacity, as well as back-end tool accelerators and solutions. Currently, technology accounts for 58% of the company’s growth.