Shares of this IT company jumped around 7 percent in Wednesday’s trading session after receiving a project worth Rs. 137 crores from Bharat Heavy Electricals. The shares have delivered more than 85 percent returns to its investors in one year.
With a market capitalisation of Rs. 866 crores, the shares of Dynacons Systems & Solutions Ltd started Wednesday’s trading session on a flatter note at Rs. 641.50 compared to its previous close of Rs. 641.65. The shares hit a high of Rs. 689, gaining around 7 percent and currently trading at Rs. 683 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had won one of the significant projects from Bharat Heavy Electricals Ltd for a High-Performance Digital Workplace Solution as a Service including desktops, workstations, LED projectors and UPS for their nationwide offices or factories all over India. The overall project value is Rs 137 crores for 5 years as a contract period.
As per their latest policy, BHEL is planning to refresh its IT assets with the latest technology workplace solution as a Service. This workplace solution will help them to streamline their device management, enhance operational efficiency, and ensure the latest technology is seamlessly integrated into their workflow, equipped with cutting-edge hardware, guaranteeing a seamless and productive experience.
This project provides a comprehensive suite of devices, including High-End Desktops, Workstations, LED Projectors and UPS paired with an array of services such as device management, security, maintenance, and tech support.
Coming onto the financial statement, the revenue decreased by 25 percent from Rs. 296 crores in the June quarter to Rs. 220 crores during the September quarter. In addition, the net profits declined by 7 percent from Rs. 14 crores to Rs. 13 crores during the same timeframe.
Furthermore, the company has an order book position of around more than Rs.940 crores and it caters to a wide variety of clients ranging from Government to PSU companies such as LIC, NPCI, etc and also provides services for banking companies like Bank of India, Axis Finance, etc. Further, the company has also extended its services to global companies such as H&M, McAfee, etc.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 28.63 percent during FY 21-22 to 39.18 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 28.25 percent to 37.08 percent during the same timeframe. Furthermore, the net profit margin increased from 2.15 percent during FY21-22 to 4.16 percent during FY22-23.
Headquartered in Mumbai, Dynacons Systems & Solutions was incorporated in 1995. The company provides IT infrastructure and operates in a single segment of system integration and services.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
