The stock was painted a deep hue of red yesterday, post its very poor Q3FY16 performance. The company reported a shocking 70% (QoQ) plunge in net profit at Rs.80 lakh. For a company of this size and repute to post a net profit which is less than even a crore came as a rude shock. This fall in the bottomline was on account of project losses and tepid overall performance. The company stated that there was a cost overrun on account of onsite security cleared resources and this led to a project loss amounting Rs.8 crore for current Q3 and Rs.26 crore 9MFY16; this, the company says is the main reason for the drop in net profit.

But even on the topline front, the growth was muted – it rose just 5% to Rs.138 crore and this growth was mainly on account of its UK operations. EBITDA fell 95% (QoQ) to a meagre Rs.20 lakh and margins fell down by a whopping 294 bps to a pitiable 0.16%.

The company said that it added 6 new clients during the quarter and its total client count stands at 82. Its 12-month order backlog is at Rs.210 crore, down over 6% sequentially. Its total cash and cash equivalent stood at Rs.110 crore.