The shares of this smallcap company jumped around 2 percent in Monday’s trading session after securing the Strategic Data Centre Project of Hyper-Converged Infrastructure (HCI) Solution from the Bank of Maharashtra.
Price Movement:
With a market capitalization of Rs. 1,946 crores, the shares of Dynacons Systems & Solutions Ltd started Monday’s trading session on a higher note at Rs. 1,553.65 compared to its previous close of Rs. 1,526.60.
During the trading session, the shares hit a high of Rs. 1.591, gaining around 2 percent and are currently trading at Rs. 1,534 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced it had been awarded a significant contract worth Rs. 142.55 crores by the Bank of Maharashtra.
The Contract entails the design, deployment and management of a cutting-edge Hyper-Converged Infrastructure (HCI) system for the Private Cloud of the bank.
The project involves the augmentation and setup of a state-of-the-art HCI solution, incorporating Private Cloud servers for business-critical applications, storage, and essential hardware, including TOR Switches, Management Switches, SAN Switches, VMware Cloud, and more.
The overall contract spans a period of five years, during which Dynacons will ensure the seamless execution and ongoing maintenance of this critical infrastructure.
Moreover, the new private cloud, supported by an advanced HCI system and a comprehensive data centre solution, will empower the bank to enhance operational efficiency, bolster data security, and deliver an elevated digital banking experience.
Financials:
Looking at the company’s financial performance, the revenue surged by around 14 percent from Rs. 282 crores during the March quarter to Rs. 321 crores in the June quarter. In addition, the net profits jumped by around 29 percent from Rs. 14 crores to Rs. 18 crores during the same period.
Recent Development:
Previously, the company received a significant project valued at Rs. 119 crores from the Central Bank of India. This project entails the supply, implementation, and maintenance of private cloud infrastructure, backup solutions, and supporting applications for the bank’s Data Center (DC) and Disaster Recovery Center (DRC).
Customer Base:
The company 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, it has also extended its services to global companies such as H&M, McAfee, etc.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 34.14 percent and a return on capital employed (RoCE) of 46.83 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 5.25 percent.
Company Profile:
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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