KPIT Tech shares plunge over 14% as earnings disappoint
KPIT Tech's revenue drops sequentially and this had a negative impact on its major strategic business unit margins
Mumbai: Shares in KPIT Technologies Ltd plunged as much as 14.4%, their lowest since 18 December 2013, after the company’s December-quarter earnings fell short of market expectations, dealers said.
KPIT’s net profit for the December quarter grew 20.5% to ₹ 60.78 crore from ₹ 52.26 crore a year ago, the company said late on Wednesday.
Revenue declined sequentially and this had a negative impact on the IT services company’s major strategic business unit margins, analysts said.
“Dollar revenues were impacted by lower billing days during the quarter as well as extended furloughs at some of the company’s larger customers, leading to unanticipated revenue loss," Angel Broking said in a note.
Shares in KPIT Technologies were down 13.5% as of 2:03pm on Thursday.
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