The shares of the IT solution provider gained up to 5 percent after the company secured the data center IT infrastructure augmentation project for Rs 280 crore.
With a market capitalization of Rs 1,815.94 crore, the shares of Dynacons Systems and Solutions Ltd were trading at Rs 1,428.40 per share, increasing around 4 percent as compared to the previous closing price of Rs 1,374.45 apiece.
Reason for Rise:-
Today, the shares of the company have seen bullish movement after Dynacons Systems and Solutions Ltd secured the data center IT infrastructure augmentation project for Rs 280 crore. The project involves the supply, installation, configuration, implementation, and maintenance of 500 servers and other IT infrastructure components at Canara Bank’s DC and DRC. It is a comprehensive end-to-end service, set to be executed over five years, ensuring ongoing support and implementation.
Financial performance
The company’s revenue stretched 39%, rising from ₹220 crore in Q2FY24 to ₹306 crore in Q2FY25, while net profit pumped by 38%, growing from ₹13 crore to ₹18 crore during the same period, reflecting strong financial performance and continued business growth.
Clientele
The company serves a diverse clientele, including government and PSU firms like LIC and NPCI, BFSI clients such as Bank of India and Axis Finance, global companies like H&M and McAfee, and pharmaceutical companies including Pfizer and Ferring Pharmaceuticals.
Upcoming Projects
The company secured multiple projects, including IT infrastructure setup for SBI, a ₹101 crore SD-WAN project for Bank of Baroda, ₹116 crore private cloud solutions for Union Bank, 2400 iPads for Maharashtra judicial officers, and ₹14.07 crore cybersecurity project for BSNL’s Rajkot Smart City.
Ratio analysis
The company’s critical ratios show that the return on equity increased from 31.93 percent in FY22-23 to 34.14 percent in FY23-24, while the return on capital employed increased from 44.07 percent to 46.83 percent. The net profit margin (NPM) for fiscal year 23-24 is 5.25 percent.
Shareholding pattern
In the company’s recent shareholding pattern, the Promoters of the company own 61.00 percent while Retail shareholders own a 38.99 percent stake in the company and domestic Institutional Investors own a 0 percent stake.
Company Profile:-
Dynacons Systems and Solutions Limited is an information technology (IT) solutions company. The Company is engaged in systems integration that includes the sale of IT products and services. Its segments include System Integration and Technology Workforce Augmentation Services.
Written by:- Abhishek Singh
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