The shares of a Microcap Telecommunication Infrastructure provider hit the upper circuit after it reported positive Q3 performance. The company reported a jump of 199% in its net profits for the quarter.
Share Price Movement
The shares of Kore Digital Ltd, with a market capitalization of Rs 675.75 Crores, hit a 5% upper circuit with a share price of Rs 562 per share. The shares generated a 1-year return of 61% and a 3-year return of 739%.
Q3FY25 Results
Kore Digital Ltd reported a 199% jump in Net Profits from Rs 4.2 Crores in Q3FY24 to Rs 12.45 Crores in Q3FY25. Their Revenues grew 121% from Rs 54 Crores to Rs 119 Crores during the same period. Their EBITDA rose 244% from Rs 5.6 Crores to Rs 19.4 Crores over the same period. Diluted EPS rose 147% from Rs 12.8 to Rs 31.5 Year-on-Year.
However, on a standalone basis, Net profits declined by 26% from Rs 4.2 Crores in Q3FY24 to Rs 3.1 Crores in Q3FY25. Revenues fell 44% from Rs 54 Crores to Rs 30 Crores during the same period.
Management Commentary
Mr. Ravindra Doshi, MD of Kore Digital Limited said “The Company reported strong Q3 and 9M FY25 performance, with total income doubling to ₹211 Cr. Their recent acquisitions of Franken Telecom, Wolter Infratech, and KDL Realinfra are aimed at clarifying business verticals and enhancing operational efficiency. While these acquisitions won’t add new revenue, they will improve the top line and PAT. Kore Digital will focus on marketing and new business development going forward.”
Indian Telecommunication Industry
The telecommunication infrastructure sector in India consists of companies that provide the necessary hardware and software to develop, maintain, and operate telecom infrastructure, including towers, transmission lines, and other equipment essential for voice and data transmission.
India is currently the world’s second-largest telecommunications market, with a subscriber base of 1,203.69 million in May 2024, which has grown robustly over the past decade. The Indian mobile economy is expanding rapidly and is expected to significantly contribute to the country’s GDP, as highlighted in a report by the GSM Association (GSMA) in partnership with Boston Consulting Group (BCG).
About Kore Digital Ltd
Founded in 2009, Kore Digital Limited specializes in telecom infrastructure development and services, offering solutions to corporate clients and telecom operators in Maharashtra. The company is building telecom infrastructure on the Mumbai Nagpur Samruddhi Mahamarg and maintains a 700 KM optical fiber network across Mumbai and nearby districts. Its clients include major players like Vodafone Idea, Bharti Airtel, Reliance Jio, and Tata Teleservices.
Written By Adhvaitha Nayani
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