During Tuesday’s trading session, the shares of a company engaged in providing IT sales and services surged nearly 9 percent to Rs. 68 on BSE, after the company announced receiving an order worth Rs. 38 crores from a Mexico-based company.
Stock Performance
With a market cap of Rs. 152 crores, at 03:03 p.m., the shares of Vedavaag Systems Limited were trading in the green at Rs. 66.3, up by nearly 6 percent, compared to its previous closing price of Rs. 62.49.
The stock delivered negative returns of nearly 1.6 percent in one year, while around 9.3 percent of positive returns in the last one month.
What’s the news
According to the latest regulatory filings with the BSE, Vedavaag Systems Limited secured an order valued at around Rs. 38 crores (or around $44,77,000) from Tecnología en Redes y Telecomunicaciones Edelweiss SA DE CV, a company based in Mexico.
The order involves providing professional services for the implementation of SD-WAN devices, covering end-to-end setup, installation, configuration, and network customization.
It also includes managerial services for Hub devices, high-performance network management designed for environments requiring speeds of up to 500Mbps/5Gbps/25Gbps, along with remote services for three years.
Additionally, managed services for remote support for users in the context of Secure Service Edge (SSE) are also included, along with professional training services for SD-WAN network setup.
The project will span three years, with an 8-week lead time for the commencement of managed services from the date of order. It also involves sourcing the necessary hardware, software, and manpower for SD-WAN managed services. The NOC (Network Operating Centre) will be based out of India.
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Financials
Vedavaag Systems experienced a decline in its revenue from operations, showing a year-on-year decrease of around 19.6 percent from Rs. 31.13 crores in Q2 FY24 to Rs. 25.04 crores in Q2 FY25.
Similarly, its net profit decreased during the same period from Rs. 3.13 crores to Rs. 2.74 crores, indicating a decline of nearly 12.5 percent YoY.
EBITDA for Q2 FY25 declined to Rs. 4.3 crores, reflecting a fall of nearly 33.8 percent YoY compared to Rs. 6.5 crores in Q2 FY25, while the EBITDA margin decreased from 21 percent to 17.27 percent, over the same period.
Key Financial Ratios
In terms of key financial metrics, Vedavaag Systems has a Return on Equity (RoE) of 6.05 percent and a return on capital employed (RoCE) of 7.58 percent. Additionally, the company’s debt-to-equity ratio stands at 0.03.
About the company
Vedavaag Systems Limited is principally engaged in the business of IT sales and services like governance & citizen services, banking, finance and insurance services.
Written by Shivani Singh
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