Polaris Financial Technology dips on weak Q3 earnings

Q3 consolidated net profit down 26% at Rs 40.67 crore on quarter-on-quarter basis due to lower revenue growth.

Polaris Financial Technology is trading lower by 3% at Rs 125 after reporting 26% quarter-on-quarter (qoq) fall in its consolidated net profit at Rs 40.67 crore due to lower revenue growth.

“Net income from software services, products and business process management declined by 4.3% at Rs 561 crore on qoq basis,” the company engaged in IT software and products business said in a statement.

“The slow down in Europe has impacted three deal closures and revenue recognition this quarter, while service business has been steady barring a $800,000 negative impact due to Hurricane Sandy,” Govind Singhal, President & COO, Polaris Financial Technology said.

 

Meanwhile, the board of directors has authorised its management team to explore options, including appropriate restructuring that would provide an impetus to the company for the next stage of its growth, in order to maximize shareholder value, says a company press release.

The stock opened at Rs 127 and hit a low of Rs 121 on NSE. A combined 1.72 million shares have changed hands on the counter so far on both the exchanges.