​Shares of Accelya Kale Solutions fell from their peak. Know why

Shares of Accelya Kale Solutions Ltd., a midsized software developer for airlines, fell from record highs after its quarterly earnings slipped on the back of higher staff costs and taxes.

Accelya Kale said its first quarter Net Profit fell 24 percent to 14.1 crore rupees compared with 18.5 crore rupees in the same quarter a year ago. Sales during April-June were flat at 75.35 crore rupees from 73 crore rupees in the year ago period. Accelya said its employee costs rose to 32.3 crore rupees from 28.7 crore rupees over the two periods and the taxes it paid in the first quarter were 12 crores versus 9 crore rupees in the same period a year ago.

Accelya Kale fell 9.5 percent, or 111 rupees, to 1058 rupees on the National Stock Exchange, where 38,500 shares were traded by 11:45 am compared with the 5-day average of 15,260 shares.

Accelya Kale's market capitalisation has jumped 43 percent in the past one year to 1,587 crore rupees as investors bet on middle rung software companies instead of large caps.

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