IT stock jumps over 8% after reporting 184% YoY increase in net profit

The shares of a micro cap IT stock engaged in providing IT Sales & Services like Governance & Citizen Services, Banking, Finance and Insurance Services surged around 8.4 percent on Monday’s trade after reporting strong Q3 numbers with Net Profit jumping 184 percent and revenue surging 86 percent YoY. 

Share Price Movement

The shares of Vedavaag Systems Ltd, with a market capitalization of Rs 129.53 Crores, reached an intraday high of Rs 57.02 per share gaining 8.44 percent. As of noon the shares were trading around Rs 56 per share which was 6.5 percent higher than the previous closing price of Rs 52.58 apiece. The shares generated an impressive return of 123.3% in the past five years. 

Q3FY25 Results

The company’s Revenue from operations surged 86 percent YoY from Rs 15.84 Crores in Q3FY24 to Rs 29.49 Crores in Q3FY25. On a quarterly basis revenue grew 18 percent from Rs 25.04 Crores in Q2FY25. 

Net profits of the company jumped 184 percent YoY from Rs 1.11 Crores in Q3FY24 to Rs 3.15 Crores in Q3FY25. On a quarterly basis, profits grew by 15 percent from Rs 2.74 Crores in Q2FY25. Earnings per share increased YoY from Rs 0.48  to Rs 1.38 in Q3FY25. 

On the operating level, EBITDA surged 253 percent YoY from Rs 2.38 Crores in Q3FY24 to Rs 8.4 Crores in Q3FY25. On a quarterly basis, EBITDA increased 94 percent from Rs 4.33 Crores in Q2FY25. 

Also read: 20% Upper Circuit: Pharma stock jumps after reporting 400% YoY net profit growth

Recent Updates

As per a press release dated February 4, 2025, Vedavaag Systems Ltd has secured an International order worth Rs 38 Crores from a Mexican-based company called Tecnología en Redes y Telecomunicaciones Edelweiss. The time period by which the order is to be executed is 3 years. The purpose of the order is Sourcing of Hardware, software and manpower for managed services for SD WAN.

Indian IT Industry

The IT & BPM sector has emerged as a key driver of India’s economic growth, playing a major role in the country’s GDP and public welfare. As of FY24, the IT industry contributed 7% to India’s GDP. According to a report by Infomerics Ratings, India’s IT industry is expected to reach $ 350 billion by 2026 and contribute 10% to the nation’s GDP.

About Vedavaag Systems

Vedavaag Systems Ltd is engaged in providing Information Technology sales and services like governance and citizen services, banking, finance and insurance services. The company is a pioneer in providing e-ticketing solutions to the Transport sector and internet based and client server architecture based solutions for Local body governance such as Municipal Corporations, Nagar Palikas, Block Development offices and Panchayats.

Written By Adhvaitha Nayani

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