Nucleus Software plunges 15% after poor June 2021 quarter

New Delhi: Shares of Nucleus Software Exports tanked 15 per cent in early trade on Friday after the company's June 2021 quarter earnings disappointed investors.

The IT company posted about 83 per cent decline in consolidated profit after tax to Rs 6 crore in the first quarter ended on June 30, 2021 due to the impact of Covid-19 pandemic. It had registered a profit after tax (PAT) of Rs 36.33 crore in the same period a year ago.

The scrip declined 15 per cent to Rs 582.50 on Friday, before trading at Rs 609.85 at 10 am. BSE Sensex was trading at 55,115.62, 271.64 points, or 0.50 per cent, higher at the same time. The counter settled at Rs 684.70 on Thursday.

Nucleus Software's consolidated revenue from operations declined by 15.5 per cent to Rs 108 crore during the reported quarter from Rs 128.35 crore it recorded in the corresponding quarter of 2020-21.

"The second wave of Covid left almost every one of us scarred and at Nucleus we consider Nucleites (our employees) as not just a part of our team but our families. It was an extremely tough period for all of us," Nucleus Software managing director Vishnu R Dusad said in a statement.

Shares of Nucleus Software Exports have declined about 12 per cent in the last one month. It has gained about 33 per cent in the last one year, underperforming BSE Sensex, which gained about 50 per cent during the period.

The employee benefits expense of the company increased by 21.5 per cent to Rs 92.2 crore on a year-on-year basis from Rs 75.88 crore. Increased employee compensation during the second wave of Covid-19 impacted its margin.