Zylog Systems tanks on weak Q2 earnings

Q2 consolidated net profit down 56% at Rs 21.5 crore on year-on-year basis due to higher expenditure

Zylog Systems has hit the 5% lower circuit filter for the day at Rs 72.25, after reporting a 56% year-on-year (y-o-y) drop in its consolidated net profit at Rs 21.5 crore for the second quarter ended September 2012 due to higher total expenditure. Total income from operations, however, grew 22% at Rs 613 crore on y-o-y basis.

The company engaged in the business of export of software and IT related services have seen its total expenditure grew by 26% during the quarter to Rs 543 crore from Rs 430 crore in year ago quarter. The company has earned additional expenditure of Rs 11.28 crore against other income of Rs 14.53 crore.

 

As on 30th September, 2012 trade receivables amounting of Rs 177 crore being outstanding for more than six months, Zylog Systems said in a filing.

The stock has been on a downward spiral, declining 75% in past one month from Rs 285 on the BSE on buzz of margin pressures. A combined 35,201 shares have changed hands on the counter so far and there are pending sell orders for 3.72 million shares on the BSE and NSE at 1108 hours.