The share price of CE Info Systems Ltd, which operates under the brand name MapmyIndia, dropped 11.36 percent to hit a low of Rs 1,271.65 on the BSE after the firm reported lower-than-expected earnings for the December quarter.
CE Info Systems reported a consolidated profit of Rs 18.52 crore, down 14 percent from a year-ago period. Revenue fell 11 percent to Rs 43.37 crore. EBITDA margins declined 700 basis points to Rs 35.9 percent year on year.
The firm said its board will meet on February 4 to consider and approve majority stake investment in an loT and logistics SaaS tech company. The firm will also consider an interim dividend for fiscal year 2022.
At 1 pm, the scrip was trading at Rs 1,326, down 8 percent from previous close, on the BSE.
The firm said sales of automotive OEMs were hit due to a shortage of semiconductors, which impacted the firm. The firm said that as the supply chains recover, quarterly revenues are likely to normalise and cover-up.
"We are seeing that happen in this quarter. Also, more new vehicle models pre-installed with MapmyIndia Maps and technologies are going live this quarter, further helping growth in the time to come,” the firm said in a note to its investors.
Some B2B and B2B2C contracts are milestone-based, wherein revenue gets recognised at specified time frames, the firm said. This makes some quarterly revenue numbers lumpy in a positive or negative manner.
Tech shares have taken a beating in the last few days as worries mount over rich valuations and the Federal Reserve’s plans to increase interest rates.
Interest rate hikes in the US have an impact on the local debt and equity markets as well as emerging economies such as India, which has seen record foreign portfolio investments (FPI) over the last year. Foreign fund outflows will put pressure on domestic equities.