KPIT Technologies’ shares plummeted by 8.97%, dropping ₹146.55 to trade at ₹1,488.00 on the NSE as of 10:02 AM. The sharp decline comes after the company’s Q2 results fell short of market expectations, coupled with the announcement of a ₹2,880 crore fundraising plan through a Qualified Institutions Placement (QIP).
Key reasons for the drop:
- Weaker-than-expected Q2 results:
- While KPIT Technologies reported an 8% QoQ revenue growth, reaching ₹1,471 crore, and a 4% rise in EBITDA to ₹301 crore, the net profit remained unchanged at ₹204 crore quarter-on-quarter, which disappointed investors. The company maintained its FY25 revenue growth guidance at 18-22% and EBITDA margin guidance at 20.5%, but the results did not meet market expectations.
- QIP announcement:
- KPIT Technologies’ board approved raising up to ₹2,880 crore through a QIP or other permissible methods. While this fundraising aims to strengthen the company’s capital base, it has raised concerns about potential earnings dilution, leading to a negative reaction from investors.
Stock price details:
- Open: ₹1,600.00
- High: ₹1,600.00
- Low: ₹1,483.65
- Previous Close: ₹1,634.55
Investors have reacted to the QIP and weaker-than-expected performance, contributing to the nearly 9% drop in the stock price.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.
