Mumbai: The stock price of Rolta India Ltd declined 14.6% to Rs87.50 as its third-quarter numbers missed analysts’ expectations and the firm lowered its net profit and revenue guidance for the next fiscal year.
Its third quarter revenue declined 8% and net profit was flat at Rs61 crore after removing the impact of a reversal in foreign exchange losses to the tune of Rs72.14 crore.
Rolta said its numbers had been affected due to a slowdown in its engineering and enterprise solutions business, postponed orders, and price adjustment of 4-5% with clients. Chairman and managing director K.K. Singh said that even though he expected the next two quarters to be challenging, he was satisfied with the way things were progressing at present.
“We are doing 28-30% topline (revenue) growth for the whole year, which we will hold on, and we are doing almost 15% bottom line (profit) growth for the whole year, which we will hold on, and I think this is something which is quite alright in terms of the recent market conditions,” Singh said.
Rolta also said it had appointed investment bankers to buy back its foreign currency convertible bonds (FCCB).
Bank of America and Merrill Lynch & Co. pared the company’s earnings per share estimates by 23-45% over fiscal years 2009-11 and price objective to Rs70 from Rs79 post-results, and said that the FCCB redemption will be a challenge for the firm.