Small-cap Indian IT stock hit a 20% upper circuit at ₹ 31.40 after announcing its Q3FY25 results. The company reported a turnaround and has declared a Net profit compared to a Net loss in the previous four quarters.
Share Price Movement
With a market capitalization of ₹ 533.42 Cr, the share of 3i Infotech opened at ₹ 28.89 up 10 % from yesterday’s close of ₹ 26.20, and gradually went up to hit the upper circuit of 20% at 31.44. The past month’s return for the stock is 12% and the 1-year return stands at – 48%.
Q3FY25 Results
The company reported a 14.50% YoY decline in revenue from ₹212 Cr in Q2FY24 to ₹ 181 Cr in Q3FY25. However, their Net profit saw a significant change to a Profit of ₹ 40 Cr from a loss of ₹ 29.44 Cr for the same period.
On a QoQ basis, the company reported a marginal increase of 2.1% in revenue from ₹ 177 Cr in the previous quarter, and their Net profits saw a change from a loss of ₹4.31 Cr to a profit.
Revenue and Gross profit distribution for different segments
The largest part of revenue for the company comes from AAA ( Anywhere, Anytime, Any Device ) which accounts for 67.89% of total revenue then comes IS ( Infrastructure Services ) which accounts for 20.63 %, and then BPS ( Business Process Services ) at 11.41%.
The largest part of gross profit for the company comes from AAA which accounts for 35.91 % of total gross profit then comes IS which accounts for 9.43 %, and then BPS at 8,69 %.
Updates from the Company
The Board has approved the dilution of the Company’s stake, not exceeding 49%, in NuRe MediaTech Limited, a wholly-owned subsidiary of the Company, which is the holding company of NuRe Bharat Network Limited. The total consideration for the transaction is Rs. 17.50 crores.
The company has announced two different Voluntary Liquidations of its subsidiaries 3i Infotech Saudi Arabia LLC and Nure Infotech Solutions Pte. Ltd.
On 31st January 2024, 3i Infotech informed the exchanges that a forensic audit was initiated by the company to investigate legacy matters under the previous management. An update on the audit was posted by the company yesterday, on 29th January 2025. In the findings of the forensic audit, auditors found that there are no implications or adverse financial impacts on the current and future financial and operational position of the Company. The Board is now evaluating possible legal actions against the former management and others involved.
About the Company
3i Infotech Limited is a Global Information Technology Company committed to Empowering Business Transformation. The business activities of the Company are broadly divided into two categories, viz. IT Solutions and Transaction Services. The IT Solutions business comprises of Cloud Computing, application automation analytics (AAA), Platform Solutions (BPaaS, KPaaS, GRC), Infrastructure Management Services, Application Software Development, Digital Transformation Consulting, and NextGen Business services.
Written By Abhishek Das
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