Shares of Tata Technologies Ltd. declined to their lowest level in over a month on Monday after its fourth-quarter profit declined sequentially, missing analysts' estimates.
Net profit of the Tata group company fell 7.62% quarter-on-quarter to Rs 157 crore in the quarter ended March, according to an exchange filing. That compares with the Rs 177 crore consensus estimate of analysts polled by Bloomberg.
Tata Tech Q4 Results Key Highlights (Consolidated, QoQ)
Revenue up 0.89% at Rs 1,301 crore (Bloomberg estimate: Rs 1,287 crore).
Ebit up 0.76% at Rs 211 crore (Bloomberg estimate: Rs 213.4 crore).
Margin down 2 bps at 16.21% (Bloomberg estimate: 16.5%).
Net profit down 7.62% at Rs 157 crore (Bloomberg estimate: Rs 177 crore).
Board recommended final dividend of Rs 8.4 per share and special dividend of Rs 1.65 per share.
Shares of the company fell as much as 4.98% intraday, the lowest level since March 28. They pared some loss to trade 4.03% lower at 9:37 a.m., compared to a 0.30% advance in the NSE Nifty 50.
The stock has declined 20.62% in five months, and 11.74% year-to-date. Total traded volume so far in the day stood at 2.4 times its 30-day average. The relative strength index was at 41.40.
Of the seven analysts tracking the company, two maintain a 'buy' rating and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' price target implies a downside of 3.3%.
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