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Intellect Design Arena plunges 19% on net loss of Rs 17 crore in Q2

The stock was trading at its lowest level since December 2017.

SI Reporter  |  Mumbai 

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Shares of plunged 18 per cent to Rs 153 on the BSE on Tuesday after the company reported a consolidated net loss of Rs 17 crore in September quarter (Q2FY20), due to lower revenue. The stock was trading at its lowest level since December 2017.

The company, a specialist in applying true digital technologies and a global leader in financial technology across banking and insurance, had posted a net profit of Rs 31 crore in the year-ago quarter. Earlier, in December 2016 quarter, it had posted net loss of Rs 16 crore.

Operational income during the quarter declined 14 per cent to Rs 328 crore against Rs 383 crore in the previous year quarter. The company’s license fees income more-than-halved to Rs 53 crore from Rs 116 crore during the quarter.

The management said deferral of a large multi-million dollar deal and external factors have depressed revenues in this quarter. Q2FY20 recorded nine digital-led wins including four large digital transformation deal wins, it added.

At 10:33 am, the stock was quoting 18 per cent lower at Rs 153 on the BSE. In comparison, the S&P BSE Sensex was up 0.06 per cent at 40,326 points. The trading volumes on the counter jumped 10-fold with a combined 2.32 million shares changing hands on the NSE and BSE so far.

First Published: Tue, November 05 2019. 10:37 IST