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Shares of this small-cap IT stock jumped around 7 percent in Thursday’s trading session after the company reported financial results for Q3FY23-24, i.e., for the quarter ended December 2023. 

With a market capitalization of Rs 2,296.61 crores, the stocks of Expleo Solutions Limited started their trading session on Thursday at Rs 1,413.15 and closed the session at Rs 1,479.80, gaining nearly 7 percent compared to the previous closing levels of Rs 1,382.85 apiece. 

Such bullish stock price movements were observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the quarter ended December 2023. 

During the recent financial quarters, the company reported a jump in both the prime indicators of business, viz, operating revenues as well as after-tax profits with the former taking a shift from Rs 234 crores during Q2FY24 to Rs 250 crores during Q3FY24, and the after-tax profits, during the same period, rose nearly 62 percent, from Rs 21 crores to Rs 34 crores. 

Moreover, the company, yearly, reported opposing movements in both metrics mentioned above with the operating revenues, on one end, rising from Rs 240 crores during Q3FY23 to Rs 250 crores during Q3FY24, and the latter, on the other end, shifting down from Rs 55 crores to Rs 34 crores. 

Historically, the company has maintained healthy return ratios with the return on equity (RoE) reported at 25.50 percent and the return on capital employed (RoCE) reported at 33.48 percent. 

As per the latest shareholding pattern data for the December 2023 quarter, the company’s Promoters hold a 71.05 percent stake followed by the Public (retail) Investors holding a 25.67 percent stake in the company. 

Founded in 1998, Expleo Solutions Limited is a company based in India that is engaged in the business of providing software testing services. The company delivers software verification and validation services to the ‘Banking’ as well as the ‘Financial Services’ industry.

Written by Amit Madnani 

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