Dreamfolks Services Q1 results: shares down by 29%

Dreamfolks Services stock, which traded at Rs 786.75 before the profits were revealed, closed at Rs 665.60, down 15.39% on BSE.

Shares of Dreamfolks Services Ltd fell 29% today after the company declared its Q1 earnings. The profits were announced during the last hour of trade yesterday. The share, which traded at Rs 786.75 before the profits were reported, closed at Rs 665.60, down 15.39% on BSE. 

The shares have lost 29% or Rs 226.7 from the pre-earnings level (Rs 786.75) to Rs 560.05 (Thursday’s intraday low) on BSE. During today’s session, Dreamfolks Services’ share declined 15.85% intraday from the last close of Rs 665.60. 

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The market cap of the company dropped to Rs 3011.87 crore on BSE. It opened sharply lower at Rs 578. A 7.10 lakh stock of Dreamfolks Services changed hands, amounting to a turnover of Rs 40.79 crore on BSE.

Regarding technicals, the relative strength index (RSI) of Dreamfolks Services was at 36.3, signalling it’s neither trading in the oversold nor the overbought zone.

The crash in the shares arrives after a set of weak Q1 profits on Wednesday. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) fell to Rs 17.6 crore in Q1 against Rs 19.3 crore in the June 2022 quarter due to higher operational costs, including cost of services and employee expenses. EBITDA margins declined to 6.62% in the last quarter against 12.02% in June 2022.

Source – BT