The share of software based solution provider gained up to 10 percent after the company’s net profit increased by 200 percent QoQ and 113 percent YoY, respectively in the fourth quarter.
With a market capitalization of Rs 946.74 crore, the shares of Kellton Tech Solutions Ltd. were trading at Rs 97.50 per share, increasing around 6.15 percent as compared to the previous closing price of Rs 91.85 apiece.
Looking into the company’s performance, Kellton Tech Solutions Ltd revenue increased by 2 percent on a quarter-on-quarter basis from Rs. 245 crore in Q3FY24 to Rs. 248 crore in Q4FY24. Further, revenue increased by 1 percent year on year, from Rs. 243 crore in Q4FY23 to Rs. 248 crore in Q4FY24.
Kellton Tech Solutions Ltd’s net profit increased by 200 percent on a quarter-on-quarter basis, from Rs. 8 crore in Q3FY24 to Rs. 24 crore in Q4FY24. Further, net profit increased by 113 percent year on year from a loss of Rs. 176 crore in Q4FY23 to a profit of Rs. 24 crore in Q4FY24.
The company’s profitability measures show an decline in return on equity (RoE) from 14.71 percent in FY 21-22 to (33.99) percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 18.42 percent to 18.67 percent. In contrast, the net profit margin (NPM) was (13.82) percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 51.94 percent while Retail shareholders own a 47.24 percent stake in the company and foreign Institutional Investors own a 0.79 percent stake.
Kellton Tech Solutions Limited specializes in digital transformation, enterprise resource planning, and other information technology services. Its offerings include Agile Software Development, Digital Commerce and Marketing, Digital Integration, Outsourced Product Development, Platform Modernization, Professional offerings, and more.
Written by:- Abhishek Singh
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