In today’s trade, shares of renowned IT firm, MphasiS lost 14% during early trade on the Bombay Stock Exchange. The slump has strong influence from the company’s post indicating 28% decline in consolidated net profit for the quarter ended July 31 to Rs 194 crore.

In a statement, MphasiS claimed that the revenue was increased by 2.9% at $290 million in Q3 July 2011 over Q2 April 2011 whereas its operating and net margins for the quarter ended 31 July 2011 were observed to be 16% and
15.1% respectively. Simultaneously, cash and cash equivalents were acknowledged to gain a hike of Rs. 165 crore ,during Q3 July 2011 , and touched a figure of Rs. 2029 crore ($459 million).

On the other hand, the National Stock Exchange has also witnessed similar incidents, with stocks rolling down to the minimum of Rs 371.30, down 6.32% from its previous closing price after opening at Rs 395. Experts have marked decline in the stock as a knee-jerk reaction to its poor figures, for the quarter ended on July 31 as well as overall weakness in the broader market.

While commenting on the market fluctuations, the Chief Executive Officer of MphasiS, Ganesh Ayyar said that Uncertainty in the external market requires a company that is adaptive.