Q2 revenue rises 29%, but consolidated profit falls 29%
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On the reaction day the stock moved 0.9 pts less than Nifty Microcap 250 and 1.3 pts less than its Computers Hardware & Equipments peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Consolidated Q2 revenue rose 28.8% to Rs144.22 crore, but profit after tax fell 29.4% to Rs13.13 crore and EPS was Rs8.21. Half-year revenue rose 16.3% to Rs235.50 crore, while profit fell 24.6% to Rs31.03 crore. Operating cash flow was positive at Rs24.92 crore. The group also bought Rs31.20 crore of IP from its Italy unit. The auditor gave an unmodified review.
Strong sales growth may support sentiment, but weaker margins and profit plus the IP cash outflow could weigh on the stock.