Shares of India’s first publicly listed premium LangTech Consulting company, which provides a range of services including IT, technology implementation, localization solutions, and consulting services, surged 18 percent on Friday morning after the company reported a 45 percent YoY increase in revenue and strong net profit growth in its latest quarterly results.
Share Price Movement
During Friday’s trading session, Fidel Softech Ltd’s share price reached an intra-day high of Rs.191.85 per share, up 18.2 percent from the previous close of Rs.162.30 apiece. The shares have retreated since then before closing at Rs.183.95 each.
Rationale for Rise
The strong bullish movement in Fidel Softech Ltd’s stock price resulted from substantial revenue and net profit growth in the latest quarter. In its recent filing for the quarter ending September 2024, the company reported a 45 percent increase in revenue, reaching Rs.13.82 crore compared to Rs.9.55 crore in Q2 FY24. Sequentially, revenue rose by 11 percent from Rs.12.46 crore in Q1 FY25.
During the same period, Fidel Softech posted a 44 percent increase in net profit, achieving Rs.2.37 crore in Q2 FY25 from Rs.1.65 crore in Q2 FY24 and 12 percent up from Rs.2.11 crore in Q1 FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 22.7 percent, while return on equity (ROE) is at 17.0 percent. The company has a strong current ratio of 6.92 and a nil debt-to-equity ratio.
Reputed Clientele
Fidel has developed a strong client base spanning multiple industries, with major clients including SAP, Amazon, Flipkart, and Nykaa. This diverse range highlights the company’s expertise in managing projects of different scales and complexities.
Japanese Expansion
Fidel Softech has a strong presence in Japan, with a Tokyo office and partnerships, including one with IM Corporation Ltd. Specializing in tech solutions, localization, and bilingual staffing, about 33 percent of its revenue comes from Japan. Fidel aims to expand its offerings and deepen its impact in this market.
Company Profile
Fidel Softech Ltd., a leading LangTech consulting firm in India, is the nation’s first publicly listed company in this field. Founded in 2003 and based in Pune, Fidel Softech offers a broad range of services, from IT solutions to localization and consulting, all designed to help businesses connect effectively with varied regional markets.
Written by – Siddesh S Raskar
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