The share price of this company engaged in offering a wide array of technology services, hit a 5 percent upper price band after reporting a remarkable 1,952 percent increase in net profits half yearly and strong revenue growth in its recent quarterly results.
Share Price Movement
The share price of S A Tech Software India Ltd hit a 5 percent upper circuit to Rs.158.45 per share on Monday, a significant rise from its previous close of Rs.150.95 per share. Over the past 6 months, the share has delivered returns of over 34 percent.
What Happened
Such a bullish movement in the stock price was an outcome of an increase in revenue and net profits of the company in the recent quarter. According to its recent filing, in the half year ended September 2024, S A Tech Software reported a 61 percent increase in revenue to Rs.50.98 crore compared to Rs.31.54 crore in H1 FY24.
Furthermore, on a half-yearly basis, the company saw an increase of 27 percent from Rs.40.33 crore in H2 FY24.
In the same period, the company reported a significant increase in net profit of 28 percent to Rs.4.51 crore in H1 FY25, up from Rs.3.51 crore H1 FY24 and an exceptional 1,952 percent from Rs.0.21 crore in H2 FY24.
In terms of return ratios, return on capital employed (ROCE) is currently at 34.4 percent, while return on equity (ROE) is at 38.0 percent. The company has a strong current ratio of 1.59 and a debt-to-equity ratio of 1.49.
Strategic Collaborations
S A Tech Software India Ltd. has recently strengthened its position in the market by securing exclusive collaboration agreements with tech giants Microsoft and Google.
As a Microsoft Gold Partner for Application Development and Cloud Productivity and a Google Cloud Partner for Google Cloud Product and Google Workspace, the company gains a competitive edge, with annual renewals based on performance evaluation, enhancing its ability to win projects and expand its offerings.
Segment Revenue
S A Tech Software India Ltd. has reported robust revenue across its segments, with domestic revenue amounting to Rs.26.40 crore and export revenue totaling Rs.24.59 crore. This balanced revenue distribution underscores the company’s strong presence in both the domestic and international markets, reflecting its capability to serve a wide range of clients globally.
About the Company
S A Tech Software India Limited, established in 2012 as a subsidiary of SA Technologies Inc., USA, is an IT consulting company based in India.
The company offers a wide array of technology services, including application development, mobile app development, cloud infrastructure, software quality assurance, machine learning, generative AI, IoT solutions, and data science analytics.
Written by – Siddesh S Raskar
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