Geometric slumped 14.24% to Rs 84.65 at 12:34 IST on BSE after the company experienced unexpected softness in the Industrial vertical in Q1 June 2013 and expects this weakness to continue to the end of this calendar year.
Meanwhile, the S&P BSE Sensex was down 106.82 points, or 0.55%, to 19,486.46.
On BSE, 3.63 lakh shares were traded in the counter as against an average daily volume of 45,358 shares in the past one quarter.
The stock hit a low of Rs 82.05 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 100.30 so far during the day. The stock had hit a 52-week high of Rs 125.50 on 8 October 2012.
The stock had underperformed the market over the past one month till 29 July 2013, sliding 3.38% compared with the Sensex's 1.02% rise. The scrip, however, outperformed the market in past one quarter, rising 2.71% as against Sensex's 1.06% rise.
The small-cap company has an equity capital of Rs 12.63 crore. Face value per share is Rs 2.
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On a consolidated basis, Geometric's net profit 38.8% to Rs 15.41 crore on 5.3% increase in revenues to Rs 260.27 crore in Q1 June 2013 over Q4 March 2013. The operating profit rose 55.7% to Rs 37.28 crore in Q1 June 2013 over Q4 March 2013. The result was announced after market hours on Monday, 29 July 2013.
Mr. Manu Parpia, Managing Director & CEO, Geometric said, Our new organization structure consisting of six verticals, each with P&L responsibility, came into effect this quarter. I believe this will have a strong positive impact on the performance of our organization as we go forward. While most of our verticals performed in line with our outlook, the Industrial vertical which comprises of businesses like mining, agricultural, and construction equipment experienced unexpected softness. We anticipate this weakness to continue to the end of this calendar year.
In anticipation of this slowdown, the company deferred the salary increments of employees by a quarter, and therefore the impact of salary increases will be seen in Q2 September 2013, the company said in a statement.
The company said that attrition rate reduced to 11% in Q1 June 2013 due to strong employee engagement focus.
Geometric is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global Engineering services and Digital Technology solutions for Product Lifecycle Management (PLM) enables companies to formulate, implement, and execute global engineering and manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle.
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