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Shares of IT firm Mindtree tanked nearly 9 per cent today after the company posted 3.7 per cent drop in consolidated net profit for the June quarter.
The stock slumped 8.37 per cent to settle at Rs 562.45 on the BSE. During the day, it plunged 8.7 per cent to Rs 560.35.
On the NSE, it dropped 8.57 per cent to close at Rs 561.55.
The company’s market valuation fell Rs 861.36 crore to Rs 9,439.64 crore.
On the volume front, 4.60 lakh shares of the company were traded on the BSE and over 50 lakh shares changed hands on the NSE during the day.
Yesterday, Mindtree had posted a 3.7 per cent drop in consolidated net profit to Rs 123.5 crore in the June quarter that witnessed “strong winds” in the form of slower project ramp-ups and loss from its Bluefin business.
Citing challenges in the global environment arising out of the UK’s exit from the European Union, Mindtree expects strong revenue growth from the third quarter beating industry average.
The Bengaluru-based firm’s net profit stood at Rs 128.3 crore in the April-June 2015 quarter. Its revenue grew 35.8 per cent to Rs 1,327.6 crore in the quarter under review from Rs 977.5 crore in the year-ago period.
“Overall, Q1 was a soft quarter compared to our previous quarters. There were delay in project ramp-ups. There was strong competition in both traditional and digital businesses which led to a price compression...,” Mindtree CEO and MD Rostow Ravanan had said in a conference call.
In dollar terms, Mindtree’s net profit fell 8.7 per cent to $18.5 million in the April-June 2016 quarter, while revenue was up 29 per cent at $199 million from the year-ago period. About 40 per cent of its revenues came from digital services.
HUL shares plummet
Shares of FMCG major HUL fell for a second straight session today after the company reported lower-than-expected net sales growth of 3.56 per cent for April-June quarter.
The stock fell 3.36 per cent to Rs 889.50 on the BSE.
On the NSE, shares of the company lost 3.57 per cent to Rs 889.
At the closing trade, the stock was down 2.75 per cent at Rs 895.15 on the BSE. On the NSE, the stock lost 2.97 per cent to Rs 894.60.
It had lost 2 per cent in the previous session.
“Net revenue up 3.6 per cent y-o-y marginally below our expectation, underlying volume growth of 4 per cent y-o-y was below our estimate,” Emkay Research has said in a report.
HUL had yesterday reported a 9.79 per cent increase in standalone net profit at Rs 1,173.90 crore for the first quarter, driven by growth across all segments and improvement in margins.
It also announced an investment of about Rs 1,000 crore to set up a new manufacturing unit at Doom Dooma in Assam.
Hindustan Unilever’s net sales were up 3.56 per cent at Rs 7,987.74 crore during the quarter under review against Rs 7,712.71 crore a year before.
“Domestic consumer business growth was at 4 per cent, with 4 per cent underlying volume growth and operating margin expansion by 70 bps. The growth was broad-based across segments,” HUL had said in a statement.
Jaiprakash Power, JSW Energy
Shares of Jaiprakash Power Ventures ended with over 5 per cent gains today after JSW Energy said it will acquire the former’s 500-MW thermal plant at Bina in Madhya Pradesh at an enterprise value of Rs 2,700 crore.
After rallying 13.67 per cent to Rs 6.90 in intra-day trade, shares of the company finally ended at Rs 6.40, up 5.44 per cent on the BSE.
On the NSE, shares of the company rose 4 per cent to settle at Rs 6.35.
JSW Energy ended 1.43 per cent higher at Rs 81.30 on the BSE.
“The company has agreed to acquire the 500 MW (2X250 MW) thermal power plant located at Bina, district Sagar in Madhya Pradesh from Jaiprakash Power Ventures,” JSW Energy had said in a BSE filing yesterday.
In a separate filing, Jaiprakash Power Ventures had said that its board has accepted the recommendations of the committee of directors as well as the audit committee to hive off and transfer of 500 MW Bina thermal power plant as a going concern basis to its subsidiary Bina Power Supply (BPSL) through the scheme of arrangement approved by the board subject to all requisite regulatory and other approvals.
It further said, the board approved the securities purchase agreement with JSW Energy “regarding the sale of entire securities...of BPSL...to JSW subject to satisfaction of conditions precedent including the scheme of arrangement becoming effective and all such regulatory and other approvals as may be required''.
The consideration to be received from JSW is linked to a base enterprise value as on September 1, 2015 of Rs 2,700 crore for sale of 100 per securities of BPSL subject to mutually agreed adjustments, it said.
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