Intellect Design Arena was locked in 20% lower circuit at Rs 149.70 after the company reported a net loss of Rs 16.14 crore in Q2 September 2019 over a net profit of Rs 32.24 crore in Q2 September 2018.
Net sales during the quarter fell 14.1% to Rs 326.58 crore as compared to the corresponding quarter in last fiscal.
Exceptional items include a profit of Rs 5.54 crore from disposal of shares of SFL Properties, a wholly owned subsidiary by the company for an aggregate consideration of Rs 2.05 crore.
During Q2 FY20, the company said that a double digit million dollar deal in intellect global transaction banking (iGTB) product with a Top 20 global bank was deferred. It further added that three cloud deal wins have no significant impact on current quarter revenues.
Intellect Design Arena's license revenue stood at Rs 53 crore while the revenue of the AMC arm was at Rs 63 crore in Q2 September 2019.
Gross margin fell to Rs 148.44 crore in Q2 FY20, representing 45.32% of revenues, from Rs 190.36 crore in Q2 FY19 when it represented 49.69% of revenues. The company reported a negative EBITDA of Rs 4.93 crore in Q2 September 2019 as compared to an EBITDA of Rs 40.97 crore in Q2 September 2018.
Though the company's employee expenses went up by 3.1% to Rs 218.14 crore during Q2 FY20, the total expenditure of the firm fell by 3.3% to Rs 332.55 crore as compares to corresponding quarter in the last fiscal.
Venkateswarlu Saranu, chief financial officer, Intellect Design Arena said,"While top line growth in this quarter has not been to our expectations, our efficiency drive has let to cost reduction by Rs 10 crore over year ago which will also ease the pressure on our cash flows. We hope to sustain these initiatives going forward."
The stock has traded in the range of Rs 149.70 and Rs 171 so far during the day. On the BSE, 4.83 lakh shares were traded in the counter so far compared with average daily volumes of 29,709 shares in the past two weeks.
Intellect Design Arena is the world's first full spectrum banking and insurance technology products company, across global consumer banking, central banking, global transaction banking (iGTB), risk, treasury and markets, and insurance.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)