KPIT Cummins Infosystems bounced back on Friday from an early low, extending the recent volatility on the counter.
The stock of the software firm was up by 3.2% at Rs 194 on the BSE within first few hours of the session. The stock continued to display volatility. It came off from the day's high of Rs 196.65, recovering from the day's low of Rs 184.60. 647,000 shares changed hands on the counter.
The Cummins KPIT Infosystems stock has witnessed a bout of volatility, after it was previously included but later dropped from the list of scrips for trading in the derivatives segment of the bourses.
According to dealers, the stock attracted institutional support. They expect further gains on the counter. Operators were also active in the stock some time back.
Meanwhile, the merger of Cummins Infotech with KPIT Infosystems has been cleared by the Bombay High Court recently. With this merger, Kpit gains an important customer in Cummins Inc, USA and a stronger presence in the market for manufacturing verticals. The company has been given the status of ‘Preferred Vendor' of the Cummins group for its software and information technology outsourcing needs in certain designated areas. The company is also able to offer services to Cummins worldwide joint ventures, vendors and customers. In addition to this, it may also get a large share of embedded software outsourcing by Cummins Inc.
KPIT Cummins Infosystems registered consolidated revenues of Rs 18.81 crore for the quarter ended December 2002. For the nine months ended December 2002, sales stood at Rs 53.90 crore and OPM was 11.4%. For Q3 ended December 2002, it reported PAT of Rs 1.64 crore. For the first nine months, the PAT stood at Rs 3.17 crore. The results are of the merged entity and therefore are not comparable.
Subject to unforeseen circumstances, the company anticipates that it will close the year with consolidated revenues in the range of Rs 68 crore to Rs 72 crore and consolidated profit after tax in the range of Rs 4.80 crore to Rs 5.30 crore. The company also anticipates that in the financial year 2003-04, the revenues will be in the range of Rs 98.6 crore to Rs 108 crore (Rs 1.08 billion) and the PAT in the range of Rs 12 crore to Rs 14 crore.