Shares of this microcap company clocked 2 percent upper circuit in Thursday’s trading session after announcing quarterly results and the issuance of bonus shares. The shares have delivered more than 35 percent returns to its investors in one year. 

IT stock hits upper circuit after it reports 245% increase in net profits; Declares 2:1 bonus share.

With a market capitalisation of Rs. 227 crores, the shares of DRC Systems India Ltd started Thursday’s trading session on a higher note at Rs. 51.40 compared to its previous close of Rs. 50.40. During the trading session, the shares hit an upper circuit at Rs. 51.40 apiece.

Such a bullish movement in the share price was observed after the company announced quarterly results and the issuance of bonus shares.

Looking at the recent quarterly results, the revenue zoomed by 37 percent from Rs. 9.89 crores during the September quarter to Rs. 13.56 crores in the December quarter. In addition, the net profits magnified by 245 percent from Rs. 1.48 crores to Rs. 5.10 crores during the same timeframe.

Comparing these metrics on a YoY basis, the revenue increased by 57 percent from Rs. 8.64 crores during Q3FY23 to Rs. 13.56 crores in Q3FY24. On the other hand, the net profits improved by 30 percent from Rs. 3.93 crores to Rs. 5.10 crores during the same period.

Along with the announcement of quarterly results, the company also declared the issuance of bonus shares. The bonus shares are issued in the ratio 2:1 i.e., 2 new Bonus Equity Shares of Rs. 1 each for every 1 existing Equity Share of Rs. 1 each fully paid up held as on the record date.

Furthermore, February 27, 2024, has been fixed as the record date to determine the list of shareholders eligible for allotment of Bonus Equity Shares.

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 10.31 percent during FY 21-22 to 32.59 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 5.62 percent to 30.19 percent during the same timeframe. Moreover, the net profit margin increased from 3.59 percent during FY21-22 to 26.10 percent during FY22-23.

Headquartered in Gujarat, DRC Systems India in 2012. They offer a complete range of IT solutions, including mobile app development, website development, AI and automation, enterprise solutions, and cloud-based services. The company also provides software development outsourcing services to customers in India and other countries.

Unlocking Success: DRC Systems India Ltd’s Remarkable Performance

Explore the incredible journey of DRC Systems India Ltd as its shares soar by 35% after announcing quarterly results and bonus share issuance. Discover the market insights, financial growth, and strategic decisions that led to this success.

Introduction

The microcap company, DRC Systems India Ltd, has taken the market by storm with a remarkable 35% increase in share value. This surge follows the announcement of impressive quarterly results and the issuance of bonus shares. In this article, we delve into the details of DRC Systems India Ltd’s recent achievements, financial performance, and the factors contributing to its success.

Shares Surge: A Bullish Movement

The trading session on Thursday witnessed a significant uptick in DRC Systems India Ltd’s share value, reaching a 2 percent upper circuit. This surge can be attributed to the unveiling of robust quarterly results and the announcement of bonus shares.

A Strong Start

DRC Systems India Ltd commenced Thursday’s trading session on a positive note, opening at Rs. 51.40, compared to the previous close of Rs. 50.40. The bullish movement continued as the shares hit an upper circuit at Rs. 51.40 apiece during the session.

Financial Growth Unveiled

Examining the recent quarterly results reveals a substantial 37% increase in revenue, from Rs. 9.89 crores in the September quarter to Rs. 13.56 crores in the December quarter. Net profits also witnessed an impressive surge of 245%, rising from Rs. 1.48 crores to Rs. 5.10 crores in the same period.

Year-on-Year Triumph

On a YoY basis, the company demonstrated robust financial growth, with revenue escalating by 57% from Rs. 8.64 crores in Q3FY23 to Rs. 13.56 crores in Q3FY24. Net profits also witnessed a commendable 30% increase, surging from Rs. 3.93 crores to Rs. 5.10 crores during the same period.

Bonus Shares: A Generous Offer

In addition to the positive financial results, DRC Systems India Ltd declared the issuance of bonus shares. Shareholders were delighted with the announcement, as the bonus shares are issued in the ratio of 2:1 – offering 2 new Bonus Equity Shares of Rs. 1 each for every 1 existing Equity Share of Rs. 1 each fully paid up held as of the record date.

Record Date and Eligibility

February 27, 2024, is set as the record date to determine the list of shareholders eligible for allotment of Bonus Equity Shares. This strategic move adds value to existing shareholders and attracts potential investors.

Enhanced Profitability Metrics

DRC Systems India Ltd’s consistent operating revenue and profits on a YoY basis have led to significant improvements in profitability metrics. The return on equity (RoE) surged from 10.31% during FY 21-22 to an impressive 32.59% in FY 22-23. Simultaneously, the return on capital employed (RoCE) saw a substantial increase, zooming from 5.62% to 30.19% during the same timeframe. Moreover, the net profit margin exhibited a remarkable rise from 3.59% in FY21-22 to 26.10% in FY22-23.

About DRC Systems India Ltd

Established in 2012 and headquartered in Gujarat, DRC Systems India Ltd specializes in providing a complete range of IT solutions. These include mobile app development, website development, AI and automation, enterprise solutions, and cloud-based services. The company has also positioned itself as a reliable provider of software development outsourcing services to clients in India and across the globe.

Insights and Expertise: DRC Systems India Ltd’s Journey to Success

DRC Systems India Ltd’s journey to success is marked by strategic decisions, financial acumen, and a commitment to delivering exceptional IT solutions. The company’s focus on innovation and client satisfaction has undoubtedly contributed to its remarkable growth in the competitive market.

Client-Centric Approach

One of the key factors driving DRC Systems India Ltd’s success is its commitment to a client-centric approach. The company prioritizes understanding clients’ needs and tailoring solutions that exceed expectations.

Innovation and Technology Integration

DRC Systems India Ltd stands out for its emphasis on innovation and the integration of cutting-edge technologies. This commitment allows the company to stay ahead of industry trends, providing clients with solutions that are not only current but also future-proof.

Global Outreach through Outsourcing

The provision of software development outsourcing services has been a pivotal strategy for DRC Systems India Ltd. By extending its services globally, the company has not only diversified its client base but has also contributed significantly to its revenue streams.

Conclusion

In conclusion, DRC Systems India Ltd’s recent achievements in share value, financial growth, and strategic decisions underline its position as a formidable player in the market. The company’s commitment to delivering exceptional IT solutions, combined with prudent financial management, has undoubtedly contributed to its success.

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FAQs (Frequently Asked Questions)

Q: How much did DRC Systems India Ltd’s shares increase during Thursday’s trading session?

A: DRC Systems India Ltd’s shares surged by 2 percent in Thursday’s trading session.

Q: What led to the bullish movement in the share price?

A: The bullish movement was observed after the company announced impressive quarterly results and the issuance of bonus shares.

Q: What is the market capitalization of DRC Systems India Ltd?

A: DRC Systems India Ltd has a market capitalization of Rs. 227 crores.

Q: When is the record date for the issuance of bonus shares?

A: February 27, 2024, has been fixed as the record date to determine the list of shareholders eligible for allotment of Bonus Equity Shares.

Q: What is the ratio of the issuance of bonus shares?

A: The bonus shares are issued in the ratio of 2:1, providing 2 new Bonus Equity Shares of Rs. 1 each for every 1 existing Equity Share of Rs. 1 each.

Q: How did DRC Systems India Ltd’s financial metrics improve on a YoY basis?

A: The company witnessed a significant increase in profitability metrics, with RoE increasing from 10.31% to 32.59%, RoCE zooming from 5.62% to 30.19%, and net profit margin rising from 3.59% to 26.10%.

Conclusion: Explore the journey of DRC Systems India Ltd, a company that has not only showcased impressive financial growth but has also solidified its position as a leading provider of IT solutions. From strategic decisions to client-centric approaches, DRC Systems India Ltd stands as a beacon of success in the competitive market.