NIIT Tech is top loser
By
Research Desk
about 9 years ago
NIIT Tech is the top loser on the BSE since the market opened the day for trading. The stock is currently down almost 6% at Rs.353 levels and the mood on the counter remains highly pessimistic.
The reason for this fall is a dispute between NIIT Tech’ unit and a client in APAC region. This could turn ugly, resulting in claims and counter claims. The company has stated that it has provided $10 million towards unbilled revenue in current quarter.
Fund houses following this news, are re-rating the stock as this is expected to hurt the company’s earnings in Q4FY15. Post this development, they expect the company to post lower than expected revenue growth and could probably report the lowest margins in the sector.