 "A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (pic: Reuters)")
KPIT Technologies has dipped 14% to Rs 159 on the BSE in early morning trade after the company said that it expects decline in revenues of around 4% in June quarter (Q1) with a consequent drop in profitability.
The company also anticipates revenues and profits to be flattish in September quarter (Q2) over June (Q1) levels.
"At the beginning of the financial year, the Company had stated revenues to be flattish in the first 2 quarters of the year. The Company is going through internal changes in structure as well as external changes in the business environment. The Company's traditional revenues from ERP implementations are affected more than anticipated earlier, whereas there is good traction in the newer areas of cloud and digital technologies,” KPIT Technologies said in a BSE filing.
As a result of the above points, the Company expects a drop in revenues of around 4% in quarter 1 with a consequent drop in profitability. We anticipate the revenues and profits to be flattish in Q2 over Q1 levels, it added.
The company is yet to file its financial results for the first quarter of the current financial year.
At 09:32 AM, the stock was down 11% at Rs 163 on the BSE, as compared to 0.62% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 1.55 million shares changed hands on the BSE and NSE so far.
The company also anticipates revenues and profits to be flattish in September quarter (Q2) over June (Q1) levels.
"At the beginning of the financial year, the Company had stated revenues to be flattish in the first 2 quarters of the year. The Company is going through internal changes in structure as well as external changes in the business environment. The Company's traditional revenues from ERP implementations are affected more than anticipated earlier, whereas there is good traction in the newer areas of cloud and digital technologies,” KPIT Technologies said in a BSE filing.
As a result of the above points, the Company expects a drop in revenues of around 4% in quarter 1 with a consequent drop in profitability. We anticipate the revenues and profits to be flattish in Q2 over Q1 levels, it added.
The company is yet to file its financial results for the first quarter of the current financial year.
At 09:32 AM, the stock was down 11% at Rs 163 on the BSE, as compared to 0.62% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 1.55 million shares changed hands on the BSE and NSE so far.
