The shares of this microcap company jumped around 2 percent in Wednesday’s trading session after receiving an order for Managed IT Services from Gujarat State Fertilizers & Chemicals Limited.
Price Movement:
With a market capitalization of Rs. 283 crores, the shares of Dev Information Technology Ltd started Wednesday’s trading session on a higher note at Rs. 126 compared to its previous close of Rs. 127.94. During the trading session, the shares hit a high of Rs. 127.94, gaining around 2 percent and are currently trading at Rs. 125 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received an order from Gujarat State Fertilizers & Chemicals Limited worth Rs. 97 lakhs for Managed IT Services.
Specifically, the company will implement a systematic and strong approach to manage and maintain GSFC’s email solution, ensuring seamless, fail-safe operation of critical communication infrastructure.
Furthermore, the company will be responsible for the management and maintenance of Active Directory and Read-Only Domain Controller servers at GSFC, reinforcing the reliability and security of the organization’s IT environment.
Financials:
Looking at the company’s financial performance, the revenue decreased by 18 percent from Rs. 43.44 crores during the March quarter to Rs. 35.46 crores in the June quarter. On the other hand, the net profits declined by around 13 percent from Rs. 4.28 crores to Rs. 3.71 crores during the same period.
Order Book:
The company’s current order book stands at approximately Rs. 30 crores, with a mix of government contracts and private sector clients.
Future Outlook:
The company is concentrating on enhancing its intellectual property and creating distinctive solutions for SMEs and mid-sized businesses.
Additionally, Dev Information Technology aims to expand its cloud services and digital transformation offerings, especially in the rapidly growing Indian SME sector, which is experiencing over 100 percent annual growth.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 16.74 percent and a return on capital employed (RoCE) of 21.57 percent for the period spanning FY22-23. Additionally, the net profit margin stood at 5.79 percent during the same timeframe.
Company Profile:
Incorporated in 1997, Dev Information Technology Ltd (DEV IT) is a global IT services provider that specializes in delivering a comprehensive range of solutions, including digital transformation services, managed IT services, cloud solutions, and custom software development.
Written By Vaibhav Patil
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