NIIT Tech slumps 17.7% in two days

NIIT Technologies slumped 7.14% to Rs 380 at 11:50 IST on BSE, as the company's target of 16% EBIDTA margin for FY 2015 is lower compared with its earlier guidance of 17% due to lower revenue in Q1 June 2014.

Meanwhile, the S&P BSE Sensex was up 44.04 points or 0.17% at 25,272.69.

On BSE, so far 3.23 lakh shares were traded in the counter as against average daily volume of 27,661 shares in the past one quarter.

The stock hit a high of Rs 408.20 and a low of Rs 375 so far during the day. The stock had hit a 52-week low of Rs 234.25 on 6 August 2013. The stock had hit a record high of Rs 486 on 11 July 2014.

The stock had outperformed the market over the past one month till 15 July 2014, sliding 4.02% compared with the Sensex being flat in the same period. The scrip had underperformed the market in past one quarter, advancing 2.97% as against Sensex's 12.20% rise.

The small-cap firm has equity capital of Rs 60.75 crore. Face value per share is Rs 10.

Shares of NIIT Technologies have slumped 17.77% in two trading sessions from Rs 462.15 on 14 July 2014, after the company during market hours on Tuesday, 15 July 2014 reported poor Q1 June 2014 earnings. The stock had tanked 11.45% to settle at Rs 409.20 on Tuesday, 15 July 2014.

NIIT Technologies' consolidated net profit fell 30% to Rs 43.20 crore on 1.8% decline in revenue to Rs 577.60 crore in Q1 June 2014 over Q4 March 2014.

The company expects to see margins improvement from the next quarter. It targets EBIDTA margins to be 16% for the FY 2015. This is 1% lower compared to the earlier guidance of 17% due to lower revenue in Q1 June 2014.

The company added 4 new clients, two in BFSI and two in the Travel and Transportation segment during the quarter. The company said that $295 million worth of business is executable over the next 12 months from the order book.

NIIT Technologies provides IT solutions in application development and maintenance, managed services, IP Assets/platform solutions and business process outsourcing in verticals such as financial services, travel and transportation, manufacturing, distribution, healthcare and government sectors.

Powered by Capital Market - Live News