Geometric dips on weak Q3 earnings
Operating margins however improved to 17.8% in this quarter from 16.1% last quarter mainly due to higher contribution and other incomes.
Geometric has dipped 5% to Rs 109 after reporting a lower-than-expected 7% quarter-on-quarter (qoq) growth in consolidated net profit at Rs 19.10 crore for the third quarter ended December 31, 2012 against an analysts expectations of Rs 24 crore.
IT consulting and software firm had profit of Rs 17.89 crore in previous quarter and Rs 21.26 crore in a year ago quarter.
“Total revenues from operations declined by 4% at Rs 251 crore on q-o-q basis,” Geometric said in a statement.
EBITDA or operating margins however improved to 17.8% in this quarter from 16.1% last quarter mainly due to higher contribution and other incomes, it added.
“The decline in revenues was mainly due to cutbacks at one major customer, which will also have an adverse impact this quarter as some cutbacks took effect late last year,” said Manu Parpia, managing director & CEO, Geometric Limited.
The stock opened at Rs 113 and hit a low of Rs 107 on NSE. A combined around 524,000 shares have changed hands on the counter in early noon deals on both the exchanges.