Software services provider Geometric has disappointed the
street by reporting sharp fall in margins and profits sequentially in the
second quarter of FY13. Profit after tax fell by 13.4 percent quarter-on-quarters
to Rs 17.88 crore in the quarter.
Dollar revenues declined 0.3 percent to USD 47.67 million
from USD 47.8 million while rupee revenues rose by 0.3 percent to Rs 261.5
crore from Rs 260.8 crore during the same period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) dropped to Rs 42.1 crore from Rs 45.2 crore and EBITDA margin fell by
130 basis points QoQ to 16.1 percent in the September quarter.
Geometric has lost an order worth USD 3.6 million during the
quarter, which was to be executed over a period of one year. This happened due
to quality problems in execution and therefore unsatisfactory performance on
our part. Consequently we not only lost the follow-on order but we had to give
a rebate of USD 650K, which affected both our revenues in the current quarter,
as also our profitability," the company said in its press release.
The company saw softness in demand from largest customer in
North America. "We expect this softness to continue for the next two
quarters and will adversely impact our revenues by at least USD 1 million per
quarter," the company added.
Geometric has maintained its guidance saying re-iterated
revenue growth to be between 16-18 percent in USD terms but EPS growth will be
higher than 10 percent, barring significant volatility in the rupee.
At 15:05 hours IST, the share plunged 11.64 percent to Rs
99.85 amid high volumes on the Bombay Stock Exchange, which has fallen 15
percent intraday.
But the stock still gained more than 100 percent in last one
year due to pick up in earnings and increasing of stake by Rakesh Jhunjhunwala.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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