Persistent Systems fell 12.61% to Rs 629.45 at 13:52 IST on BSE after the company warned that its Q1 June 2015 earnings are likely to be muted.
The announcement was made after market hours yesterday, 23 June 2015.
Meanwhile, the BSE Sensex was up 106.23 points, or 0.38%, to 27,910.60.
On BSE, so far 1.55 lakh shares were traded in the counter, compared with an average volume of 14,877 shares in the past one quarter.
The stock hit a high of Rs 700 and a low of Rs 627 so far during the day. The stock hit a record high of Rs 960.83 on 2 January 2015. The stock hit a 52-week low of Rs 529 on 2 July 2014.
The stock had underperformed the market over the past one month till 23 June 2015, sliding 9.17% compared with 0.55% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 0.94% as against Sensex's 1.38% fall.
The mid-cap company has an equity capital of Rs 80 crore. Face value per share is Rs 10.
Persistent Systems warned that some of the pre-cloud/pre-internet software product companies, who are its customers are re-organizing their businesses and changing their priorities. Consequently, weakness in the company's current product engineering business coupled with the quarterly variability associated with its IP business, could result in a marginally lower dollar revenue in Q1 June 2015 as compared to the previous quarter.
The company said that its strategy for the Enterprise Digital Transformation (EDT) is playing out well as it is seeing good traction in the market. This strategy is helping the company to establish a foothold in enterprises who are exploring ways to become software driven businesses. In line with this strategy, the company has signed a large multi-year deal with a reputed media company in India.
The company added that it continues to invest in building accelerators and tools for enterprises to help them with their digital transformation journey. Its S&M investment continues as it focuses on capturing higher share of the enterprise market. The company has applied for a significantly higher number of H1B visas in this quarter as compared to the corresponding quarter of the last year to cater to the increasing demand for onshore work from the enterprise customers. These factors would exert a pressure on our margins for this quarter, it said.
The company said it sees good traction from new customers in product engineering business. Going forward as its legacy customers firm up their product strategies, the company expects new opportunities to grow its business with them.
The company said it has recently acquired a product called Convirture which enables unified management for multiple virtualizations and cloud environments. The company is looking to acquire a few more products to grow its IP revenues, it added.
On consolidated basis, Persistent Systems' net profit rose 2.13% to Rs 76.05 crore on 0.56% growth in net sales to Rs 497.45 crore in Q4 March 2015 over Q3 December 2014.
Persistent Systems is a global company specializing in software product and technology services.
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