Shares of this microcap company clocked 2 percent upper circuit in Thursday’s trading session after announcing quarterly results and the issuance of bonus shares. The shares have delivered more than 35 percent returns to its investors in one year.
With a market capitalisation of Rs. 227 crores, the shares of DRC Systems India Ltd started Thursday’s trading session on a higher note at Rs. 51.40 compared to its previous close of Rs. 50.40. During the trading session, the shares hit an upper circuit at Rs. 51.40 apiece.
Such a bullish movement in the share price was observed after the company announced quarterly results and the issuance of bonus shares. Looking at the recent quarterly results, the revenue zoomed by 37 percent from Rs. 9.89 crores during the September quarter to Rs. 13.56 crores in the December quarter. In addition, the net profits magnified by 245 percent from Rs. 1.48 crores to Rs. 5.10 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue increased by 57 percent from Rs. 8.64 crores during Q3FY23 to Rs. 13.56 crores in Q3FY24. On the other hand, the net profits improved by 30 percent from Rs. 3.93 crores to Rs. 5.10 crores during the same period.
Along with the announcement of quarterly results, the company also declared the issuance of bonus shares. The bonus shares are issued in the ratio 2:1 i.e., 2 new Bonus Equity Shares of Rs. 1 each for every 1 existing Equity Share of Rs. 1 each fully paid up held as on the record date.
Furthermore, February 27, 2024, has been fixed as the record date to determine the list of shareholders eligible for allotment of Bonus Equity Shares.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 10.31 percent during FY 21-22 to 32.59 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 5.62 percent to 30.19 percent during the same timeframe. Moreover, the net profit margin increased from 3.59 percent during FY21-22 to 26.10 percent during FY22-23.
Headquartered in Gujarat, DRC Systems India in 2012. They offer a complete range of IT solutions, including mobile app development, website development, AI and automation, enterprise solutions, and cloud-based services. The company also provides software development outsourcing services to customers in India and other countries.
Written By Vaibhav Patil
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