Shares of this IT company jumped around 8 percent in Monday’s trading session after receiving a project worth Rs. 90.02 crores from BSNL. The shares have delivered more than 50 percent returns to its investors in one year.
With a market capitalisation of Rs. 986 crores, the shares of Dynacons Systems and Solutions Ltd started Monday’s trading session on a higher note of Rs. 725.95 compared to its previous close of Rs. 719.60. During the trading session, the shares hit a high of Rs. 815, gaining around 8 percent and are currently trading at Rs. 751 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had been awarded a significant contract by Bharat Sanchar Nigam Limited (BSNL) worth Rs 90.02 crores to deliver an Integrated Telecom Network and IT solution for a prominent customer of BSNL.
The comprehensive solution will also include a Command Centre and Network Operations Center (NOC) to enhance BSNL’s capabilities in serving its customers.
Under the terms of the contract, Dynacons will leverage its expertise in cutting-edge technology to design, implement, and manage a state-of-the-art network infrastructure. The solution aims to optimize network performance, improve reliability, and enhance overall customer experience.
Furthermore, the proposed Secure Edge solution is to be implemented for the customer’s network transformation from the present architecture to a modern, centralized, self-healing architecture that provides connectivity, security, and complete visibility into the customer’s network.
Moreover, the project includes the setup, implementation and management of the MPLS Command Centre (MCC) and Network Operation Centre (NOC) at customer premises along with the provisioning of support for 99.5 percent uptime along with the technical resource/manpower to run the NOC and Help Desk as a managed service for 5 Years.
Coming onto the financial statement, the revenue increased by 4 percent from Rs. 220 crores in the September quarter to Rs. 227 crores during the December quarter. In addition, the net profits were at Rs. 13 crores during both quarters.
The company has an order book position of around more than Rs.940 crores and it caters to a wide variety of clients ranging from Government to PSU companies such as LIC, NPCI, etc and also provides services for banking companies like Bank of India, Axis Finance, etc. Further, the company has also extended its services to global companies such as H&M, McAfee, etc.
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 28.63 percent during FY 21-22 to 39.18 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 28.25 percent to 37.08 percent during the same timeframe. Furthermore, the net profit margin increased from 2.15 percent during FY21-22 to 4.16 percent during FY22-23.
Headquartered in Mumbai, Dynacons Systems and Solutions was incorporated in 1995. The company provides IT infrastructure and operates in a single segment of system integration and services.
Written By Vaibhav Patil
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