Brainbees Solutions shares decline 11% as margins contract, net loss widens

Shares of Brainbees Solutions declined 11% on Monday, February 16, reacting to their third quarter earnings. The stock was also the top smallcap loser on Monday.The company’s margins declined, while net loss-widened, impacted by one-off.

Its revenue increased 12% to ₹2,423.6 crore in the third quarter from ₹2,172.3 crore in the previous year.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) came in at ₹97 crore, down 10% from the previous year’s ₹107.9 crore.The company’s margins declined to 4% from 5% in the year-ago period.

Its loss widened to ₹38.4 crore from ₹14.7 crore in the previous year, with an exceptional of ₹16.3 crore.

Brainbees Solutions’ India business revenue increased 9% to ₹1,645.7 crore from ₹1,510.5 crore in the previous year.

Its EBIT declined to ₹163.8 crore from ₹168.8 crore in the third quarter of the previous fiscal. Meanwhile, margin contracted to 10% from 11.2% in the year-ago period.

The company’s international business’ revenue increased 7% to ₹279.5 crore from ₹261.3 crore in the previous year. It reported a loss of ₹29.6 crore from ₹39.6 crore in the previous year.

Meanwhile, Globalbees’ revenue increased 22% to ₹515 crore from ₹422 crore in the previous year. Its EBIT was up 147% at 14.8 crore from 6 crore last year. Its margins expanded to 2.9% from 1.4% in the year-ago period.

Shares of Brainbees Solutions has declined 38% in the past year.

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