Shares of a company providing technology solutions & services with local language delivery & support surged 5 percent on NSE to Rs. 144.4 on Wednesday, after the company announced signing an MoU with a Japan-based company to develop and support the SMART meter project.
With a market capitalisation of Rs. 185.6 crores, the shares of Fidel Softech Limited opened in the green at Rs. 137.95, up nearly 0.4 percent, as against its previous closing price of Rs. 137.95.
What’s the News:
According to the latest regulatory filings with the NSE, Fidel Softech Limited entered into a Memorandum of Understanding (MOU) worth nearly 75 million JPY (Japanese Yen) with IM Corporation Ltd, a company based in Japan.
Under this agreement, Fidel Softech will develop and support the SMART meter project to be developed in 2026, along with enterprise solution implementation and additional support.
The MoU between Fidel Softech Limited and IM Corporation Limited was executed on 25th September 2024, with a completion deadline of 31st March, 2026.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 36 percent from Rs. 9.2 crores in Q1 FY24 to Rs. 12.5 crores in Q1 FY25.
Further, the net profit of Fidel Softech increased during the same period from Rs. 1.6 crores to Rs. 2.11 crores, indicating a growth of nearly 32 percent YoY.
In FY24, Fidel Softech added a new Infor Syteline (Cloud ERP) end-to-end implementation competency. The company expects a growth of 30-40 percent in FY25, projecting net profit in the range of Rs. 8-10 crores.
The company is experiencing traction in security and managed services, with new engagements emerging in Japan, Malaysia, and other regions. The company continues to see growth and demand in Japan and Asia geography.
Its sales strategy remains focused on government and PSUs, as there is a growing market trend for multilingual solutions in these departments.
Additionally, the company is training engineers in Japanese language and AI, along with enterprise solutions, to address skill shortages and demographic challenges in Japan.
About the Company:
Incorporated in 2004, Fidel Softech Limited is involved in offering a wide range of portfolio services in IT services including software development, cloud infrastructure services, localization including translation, interpretation, software localization & multilingual data creation and consulting & staffing services including training.
Written by Shivani Singh
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