Geometric slips on weak Q4 results

The stock slipped 11% to Rs 127 after reporting 80% QoQ decline in consolidated net profit at Rs 3.29 crore in March quarter.

Shares of Geometric slumped 11% to Rs 127 on the NSE in early morning trade after reporting 80% quarter on quarter drop in its consolidated net profit at Rs 3.29 crore for the fourth quarter ended March 31, 2015 (Q4) due to lower operational revenues. The IT consulting & software company had registered a profit of Rs 16.36 crore in December 2014 quarter.

The company recorded operating revenues of Rs 268 crore, as against revenues of Rs 289 crore in the previous quarter, and Rs 273 crore in the corresponding quarter last year, Geometric said in a statement.

In dollar terms, the operating revenues during the quarter under review declined by 7.9% at $ 42.92 million on sequential basis.

The company attributed the fall in dollar revenues mainly to sharp decline in Euro & reversal of revenues on account of issues arising from ERP switch over as well as other factors including delays in projects starting. In addition, the Aerospace unit also saw a dip in QoQ revenues since the unit had a significant one time software license revenue in Q3’15.

The stock opened at Rs 135 and touched a low of Rs 123 on the NSE. A combined 518,764 shares changed hands on the counter on the NSE and BSE till 0934 hours.