Mid-caps fail to impress Dalal Street this quarter

Mumbai, Aug 1 | Updated: Aug 2 2005, 05:30am hrs
Mid-caps have failed to make a mark this quarter. Companies like Geometric Software, KPIT Systems and Hexaware Technologies have posted lower-than-expected results for the quarter.

Mid-caps are also revising their revenue and earnings guidance downward for the current fiscal. Hexaware Technologies, one of the top 20 software exporters of the country, revised its guidance for the fiscal to $153 million from $170 million in revenues and between $18 million and $19 million in profit.

"We believe this to be largely a sales execution issue that is being addressed," Rusi Brij, vice-chairman and CEO of the company, said in a statement. Its net profit declined 16% sequentially.

KPIT Cummins Infosystems also posted lower than expected revenues at Rs 70 crore and a net profit of Rs 6.8 crore, a marginal decline over the March 2005 quarter. The company also revised its FY06 guidance "on account of postponement of IT investment by some of its star customers" to between Rs 308 crore - Rs 316.8 crore in revenues and Rs 32 crore- Rs 35 crore in net profit.

Products firm, Geometric Software, admitted, "Clearly, the quarter results are not satisfactory. We remain confident of our direction and strategy and the quarter represents a temporary setback." Net profit declined sequentially by 4 per cent to Rs 7.8 crore, while consolidated revenues grew 6 per cent to Rs 55.7 crore.