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LatentView Analytics shares slumped over 10 per cent on Wednesday despite the company announcing its highest-ever full year revenue in FY23 on Tuesday.
Shares of the Chennai-based data and analytics company opened at ₹350 apiece on NSE against Monday’s closing price of ₹373.25. The stock slumped 12 per cent to an intraday low of ₹328.65 per share.
The share price plunged after the company reported a 4 per cent year-on-year drop in its fourth quarter net profit at ₹34.2 crore, against ₹35.6 crore during the corresponding quarter of FY22. On a sequential basis, the company’s net profit fell by 54 per cent from ₹52.5 crore during the December 2022 quarter.
During an interaction with businessline, Rajan Sethuraman, CEO of LatentView Analytics, said Q4 is seasonally a weak quarter for the company since its first quarter for most of its clients who chalk out initiatives during this period to be pursued in subsequent quarters.
Also read:India and APAC will contribute 10% of revenue: LatentView CEO
Typically, companies in the US and Europe follow the calendar year and these two geographies account for 98 per cent of the company’s total revenues.
However, Sethuraman added there has been delays in converting some large opportunities and few follow-on opportunities have not materialised because clients were taking longer to decide due to uncertainties. “All this has impacted the Q4 revenue for us,” he said.
LatentView’s revenue from operations in Q4 was up by 25 per cent to ₹156.1 crore (₹125.3 crore). However, its total expenses during the quarter also jumped 34 per cent at ₹113.8 crore (₹85 crore). Sethuraman said while the revenue was growth was hit by the sluggishness in deal conversion, expenditure increased due to investments in marketing and front-end development including hiring for sales and business development.
The company posted a consolidated revenue from operations of ₹539 crore in FY23, which is its highest ever. In FY22, the company’s revenue from operations stood at ₹408 crore.
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