MSTC shares plunge 16% after Q3 results, dividend announcement

MSTC shares plunged 16 per cent in Friday's trade as the e-commerce platform reported mere 6.22 per cent year-on-year (YoY) rise in consolidated net profit at Rs 49.97 crore in the December quarter compared with Rs 47.03 crore in the same quarter last year. On a sequential basis, profit fell from Rs 55.33 crore in the September quater.

Sales for the quarter also grew in single sigits. Revenue from operations came in at Rs 184.98 crore compared with Rs 168.88 crore, up 9.53 per cent.

For the day, the scrip fell 16.14 per cent to hit a low of Rs 925 on BSE. Despite this, the stock is up 43 per cent in 2024 so far.

The MSTC board announced a second interim dividend of Rs 5 per share for the financial year 2023-24 on a face value of Rs 10 per share. The interim dividend, MSTC said, would be paid within 30 days from the date of its declaration.  MSTC is engaged in offering e-commerce related services across diversified industry segments. They included offering e-auction/e-sale, e-procurement services and development of customised software/solutions.

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