Moneycontrol Bureau
Shares of KPIT Technologies tanked 20 percent intraday, hitting lower circuit at Rs 124.05 per share on poor March quarter results. Its disappointing Q4FY15 earnings were dragged by revenue de-growth and a sharp drop in margins. Revenue de-growth was led by the US, manufacturing, energy & utilities, IES and SAP SBU, says ICICIdirect.com.
Also, what led to the drag is management’s mis-matched outlook. In March, the management had indicated that dollar revenue in January-March quarter to be flat quarter-on-quarter due to cross currency but it reported a 3.5 percent decline in the period. KPIT Technologies' Q4FY15 result was bleak, with revenues declining 3.2 percent Q-o-Q to USD 122 million
Antique has downgraded the stock to sell with a target price of Rs 113 per share. It has also slashed FY16-17 revenue and earnings estimates by 8-12 percent and 49-38 percent respectively. The brokerage also thinks that there may be a P/E de-rating as investors had been eyeing a sustained performance and robust FY16.
“Problems in some large accounts, issues in the energy and utilities vertical and delays in certain projects led to the disappointing earnings and consequent bleak outlook for FY16. The management's guidance of marginal topline and bottomline growth in FY16e starkly contradicts its outlook,” it says.
At 09:46 hrs the stock was at Rs 124.05, down Rs 31.00, or 19.99 percent on the BSE.
Posted by Nasrin Sultana
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