Intellect Design Arena share price closed 19.95% lower today after the digital technologies firm reported a net loss of Rs 17 crore for the second quarter ended September 30, 2019 compared to net profit of Rs 31 crore for the corresponding quarter last year as licence revenue from a large deal got deferred. Intellect Design Arena share price closed 19.95% or 37 points lower at Rs 149.65 compared to previous close of Rs 186.95 on NSE.
On BSE, the small cap stock ended 19.64% or 36 points lower at Rs 150.35 compared to previous close of Rs 187.10. The stock has lost 22.87% kin last two sessions. It opened with a loss of 9.06% at Rs 170.15 today.
Intellect Design stock has lost 33% since the beginning of this year and fallen 38% during the last one year. Revenue fell by nearly 15 per cent to Rs 327 crore in Q2 compared to Rs 383 crore revene in corresponding quarter of previous fiscal.
Basic earnings per share fell to Rs 1.29 in negative in Q2 compared to Rs 2.47 in the corresponding quarter of previous fiscal. The firm inked three cloud deals during the quarter.
Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, "Our second deal win for IDC in the UK and Go-live of the first deal have opened up the Europe Market for IDC. With the revival of Lending Wins, iGCB Business will deliver on its promise as the Business to mature in FY20." However , provision for taxation fell to Rs 0.68 crore in Q2 compared to Rs 5.76 crore in the corresponding period of previuos fiscal.
Venkateswarlu Saranu, Chief Financial Officer at Intellect Design Arena Limited said, "While top line growth in this quarter has not been according to our expectations, our efficiency drive has let to cost reduction by Rs 10 crore over year ago which will also ease the pressure on our cash flows. We hope to sustain these initiatives going forward".
The company is engaged in the business of software development, and providing software product licence and related services. Its geographical segments include India, Middle East & Africa; Asia Pacific; Europe, and Americas.
By Aseem Thapliyal