KPIT Technologies nosedives 14% after weak revenue guidance
The stock fell 14.36% to settle at Rs 157.50. The scrip had hit a 52-week high of Rs 196.60 on June 21. At prevailing price, the scrip is down over 20% from its high.
By ET Online | Updated:
NEW DELHI: Shares of IT midcap KPIT Technologies tumbled over 13 per cent in Friday’s trade after the company said it expects a flattish growth in revenue and profits sequentially for the second quarter, as revenues have been hit by ERP implementations beyond anticipation.
The stock fell 14.36 per cent to settle at Rs 157.50. The scrip had hit a 52-week high of Rs 196.60 on June 21. At prevailing price, the scrip is down over 20 per cent from its high.
"The company is going through internal changes in structure as well as external changes in the business environment. The company's traditional revenues from ERP implementations have been affected more than anticipated, whereas there is good traction in newer areas of cloud and digital technologies," KPIT Technologies said in a BSE filing.
The IT firm said it had stated this earlier that revenues would remain flattish in the first two quarters of the financial year.
"The company expects a drop in revenues of around 4 per cent in the first quarter with a consequent drop in profitability. We anticipate the revenues and profits to be flattish in Q2 over Q1 levels," KPIT told BSE.
KPIT Technologies said it was seeing a good traction in the newer areas such as cloud and digital technologies. The company has reported 76 per cent YoY jump in consolidated net profit to Rs 88.50 crore in March quarter, compared with Rs 50.3 crore in the year-ago quarter.
The stock fell 14.36 per cent to settle at Rs 157.50. The scrip had hit a 52-week high of Rs 196.60 on June 21. At prevailing price, the scrip is down over 20 per cent from its high.
"The company is going through internal changes in structure as well as external changes in the business environment. The company's traditional revenues from ERP implementations have been affected more than anticipated, whereas there is good traction in newer areas of cloud and digital technologies," KPIT Technologies said in a BSE filing.
The IT firm said it had stated this earlier that revenues would remain flattish in the first two quarters of the financial year.
"The company expects a drop in revenues of around 4 per cent in the first quarter with a consequent drop in profitability. We anticipate the revenues and profits to be flattish in Q2 over Q1 levels," KPIT told BSE.
KPIT Technologies said it was seeing a good traction in the newer areas such as cloud and digital technologies. The company has reported 76 per cent YoY jump in consolidated net profit to Rs 88.50 crore in March quarter, compared with Rs 50.3 crore in the year-ago quarter.
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