Small-cap Indian IT stock is in focus after it jumped up to 12% after announcing its Q3FY25 results, with robust growth in their YoY revenue, net profit, and new order win.
Share Price Movement
With a market capitalization of ₹1,421 Cr, the stock of Allied Digital Services opened at 250 up 8% from yesterday’s close, and after opening, it made an intraday high of 260 up 12%.
Q3FY25 Results
The company reported a 29% YoY increase in revenue from ₹171 Cr in Q3FY24 to ₹220 Cr in Q3FY25. On a QoQ basis, the company reported an increase of 9% in revenue from 203 Cr in the previous quarter.
Their Net profit saw an upside with a 51% YoY increase from ₹11.69 Cr to ₹17.71 Cr for the same period. On a QoQ basis, the company reported an increase of 52% in revenue from 11.60 Cr in the previous quarter.
EBITDA Margin remained the same YoY at 12% for Q3FY25, but a 100 basis point increase was there in PAT Margin from 7% to 8% for the same period.
Segment Analysis
The largest share of revenue for the company comes from the services vertical which accounts for 75% of total revenue then comes the solutions vertical which accounts for 24% and unallocated revenue accounts for the other 1%.
The largest share of the Operating profit for the company comes from the services vertical which account for 85% of Operating profit then comes the solutions vertical which accounts for the other 16%.
Key Business Development
During the quarter, the company has booked orders for ₹200+ Cr towards new wins as well as renewals for multi‐year contracts.
- Has been selected by a leading American multinational investment bank, to provide End User and Investor Service Desk support.
- Will transform IT services for a major USA-based eye care provider by managing their IT Infrastructure
- Has won a prestigious cyber security project for one of the world’s largest vaccine manufacturer
- Will provide IMS Services, including Service Desk and End User Services, for the corporate offices and plant operations of a joint venture automotive brand
- Has secured a contract for a large-scale cloud deployment project aimed at simplifying and expediting the map and layout approval process.
- Has been selected by India’s second-largest public sector bank, headquartered in Vadodara, Gujarat, to implement Data Centre and Data Recovery solutions.
- Has won a project for network upgradation for a customer engaged in the exploration, mining, and processing of iron ore.
About the Company
Allied Digital Services Limited, India is a publicly-traded global leader in IT Consulting and Services, holding an impeccable record of service excellence, since 1984. Headquartered in Mumbai, India, they are a Global Managed Service Provider and Systems Integrator, offering the entire spectrum of infrastructure solutions and services to clients across 70 countries.
Written By Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
