During Monday’s trading session, the shares of a company in the business of data centre, enterprise, telecom, and IT software solutions, hit a 2 percent upper circuit on BSE, after the company secured a purchase order worth nearly Rs. 45 crores from an undisclosed client in the Telecom sector.
Price Movements
With a market capitalisation of Rs. 136.7 crores, the shares of Olatech Solutions Limited hit a 2 percent upper circuit and opened at Rs. 307.2 on BSE, as against its previous closing price of Rs. 301.2.
The stock has delivered multibagger returns of over 111 percent in one year, and has gained around 22.4 percent in the last one month.
What’s the News
According to the latest regulatory filings with the BSE, Olatech Solutions Limited has received a purchase order from an undisclosed client in the Telecommunications sector for a Turnkey Project.
The scope of the project includes the supply, installation, testing, and commissioning of IT infrastructure, along with Annual Maintenance Contract (AMC) and Operations & Maintenance (O&M) services for a duration of 10 years.
The total contract value stands at Rs. 449.9 million, with ~50 percent of the revenue expected to be billed in FY25-26, and the remaining amount will be billed over the 10-year period. The execution timeline for the supply, installation, testing, and commissioning phase is six months, followed by AMC and O&M for the subsequent 10 years.
Financial Performance
Olatech Solutions reported a significant growth in its revenue from operations, showing a rise of nearly 74 percent HoH from Rs. 6.56 crores in H1 FY24 to Rs. 11.43 crores in H1 FY25.
Similarly, its net profit increased during the same period from Rs. 1.27 crores to Rs. 3.3 crores, indicating an impressive growth of around 158 percent HoH.
EBITDA for H1 FY25 reached Rs. 4.4 crores, representing an increase of around 147 percent HoH from Rs. 1.8 crores in H1 FY24, with an EBITDA Margin rising to 38.73 percent, up from 27.33 percent, during the same period.
Key Financial Ratios
In terms of key financial metrics, Olatech Solutions has a Return on Equity (RoE) of 51.4 percent and a return on capital employed (RoCE) of 68.2 percent. Additionally, the stock has a P/E ratio of 27.2, compared to the industry’s P/E ratio of 30.8, and its debt-to-equity ratio stands at 0.1.
About the company
Olatech Solutions Limited specialises in IT solutions, particularly in data centre, telecom, and software development, focusing on OSS (Operations Support System) and BSS (Business Support System) segments. Established in 2014, the company is recognised by the MSME and the Government of India’s Startup India initiative.
Written by Shivani Singh
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