Dreamfolks Services shares tumble 29% post Q1 earnings; check details

Shares of Dreamfolks Services Ltd have tumbled 29% today after the firm reported its Q1 earnings. The earnings were announced during the last hour of trade yesterday. The stock, which traded at Rs 786.75 before the earnings were announced, closed at Rs 665.60, down 15.39% on BSE. The stock has lost 29% or Rs 226.7 from pre-earnings level (Rs 786.75) to Rs 560.05 (Thursday’s intraday low) on BSE. During today’ session, Dreamfolks Services stock fell 15.85% intraday from the previous close of Rs 665.60.  Market cap of the firm fell to Rs 3011.87 crore  on BSE. It opened sharply lower at Rs 578 . Total 7.10 lakh shares of Dreamfolks Services  changed hands amounting to a turnover of Rs 40.79 crore on BSE.

In terms of technicals, the relative strength index (RSI) of Dreamfolks Services stands at 36.3, signaling it's neither trading in the oversold nor in the overbought territory.

The crash in the stock comes after a set of weak Q1 earnings on Wednesday. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) slipped to Rs 17.6 crore in Q1 against Rs 19.3 crore in the June 2022 quarter due to higher operational cost, including cost of services and employee cost. EBITDA margins too fell to 6.62% in the last quarter against 12.02% in the June 2022 quarter.

However, revenue rose 66% to Rs 267.4 crore in Q1 against Rs 160.5 crore in the corresponding period of the preceding fiscal. Q1 consolidated net profit came at Rs 13 crore in Q1 against a net profit of Rs 13.4 crore in the corresponding quarter last year. The board of DreamFolks approved a dividend of Rs 0.5 per share for the quarter ending June 30, 2023. The dividend will be payable on or before September  8, 2023 to the shareholders on the record date as of August 22, 2023.

The stock listed on September 6, 2022.  It made a strong market debut at a premium of 55% at Rs 505 on BSE.

Dreamfolks Services is a dominant player and India's largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology-driven platform.

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