VA Tech shares slumped 4.9 percent, the most since Dec. 20, 2011, after the company reported a second quarter profit of 174.2 million rupees ($2.8 million) yesterday. That fell short of the 207 million-rupee median of seven analysts’ estimates compiled by Bloomberg.
Total costs rose 37 percent to 4.37 billion rupees compared with a year earlier, the Chennai-based company said in a statement to the stock exchanges. Revenue from its Indian operations remained flat, at 1.56 billion rupees compared with 1.52 billion rupees a year earlier.
“Despite strong order book, standalone revenues were flat year-on-year (18 percent below our estimates), showing signs of an execution slowdown in India,” Nitin Bhasin and Tanuj Mukhija, analysts at Ambit Capital Pvt., wrote in a note to clients today. They maintained a buy rating on the shares.
Net sales rose 34 percent to 4.65 billion rupees, it said.
VA Tech’s shares closed at 535 rupees apiece at the end of the day’s trade.
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