MphasiS dives 28% on weak profit numbers

Shares of IT and BPO company MphasiS plummeted 28.4%, or 178.1 points, to Rs 448 on the Bombay Stock Exchange (BSE) on Friday, hit by a sharp dip in net profit for the November-January quarter. The shares ended the day at Rs 448.4.

Shares of IT and BPO company MphasiS plummeted 28.4%, or 178.1 points, to Rs 448 on the Bombay Stock Exchange (BSE) on Friday, hit by a sharp dip in net profit for the November-January quarter. The shares ended the day at Rs 448.4.

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The Hewlett-Packard company posted a 15.5% decline in profit at R226.7 crore in quarter ended January against Rs 268.3 in the year-ago period.

The shares plunged 28.8% to to Rs 445 on the National Stock Exchange. On the volume front, over 1.7 crore shares of MphasiS were traded on the bourses.

The company, however, expects its operating margins to stabilise at 20-21% in next two quarters, chief financial officer Ganesh Murthy said. “Subject to exchange rate fluctuations, in a couple of quarters we should be able to stabilise.”