Shares of midcap IT companies like Coforge, Signity Technologies, Persistent Systems and Zensar Technologies jumped up to 12 per cent on the exchanges today. The rise in midcap IT stocks was recorded due to the excellent third quarter results of companies in this sector.
Among major listed IT companies, Wipro gained 2.8 per cent while LTIMindtree gained 2.4 per cent. Nifty IT index was the second index to register the highest gain among other important sector indices. Apart from the third quarter results of midcap companies, the announcement of huge private sector investment on Artificial Intelligence infrastructure in the US also boosted the morale of the sector.
Signity Technologies shares rose 11.8 per cent to Rs 1,665 on BSE. Due to this, in the third quarter, the company’s EBITDA margin improved by 335 basis points on an annual basis and by 136 basis points on a quarterly basis. The company’s profit after tax increased by 32.3 percent on annual basis and 20.1 percent on quarterly basis to reach Rs 63.6 crore. Gross revenue stood at Rs 516.40 crore, an increase of 10.3 per cent on an annual basis and 3.5 per cent on a quarterly basis. The company said it received new orders worth $82.9 million in the third quarter, up from $67.1 million in the second quarter and $78.3 million in the same period last year. Coforge holds a majority stake in Signity Technologies.
Meanwhile, Coforge shares jumped 11.33 per cent to Rs 9,156. The company recorded a 40 per cent year-on-year and 8.4 per cent growth in quarter-on-quarter revenue in constant currency terms in the third quarter. Adjusted profit increased by 10.3 percent year-on-year to Rs 268 crore.
Commenting on Persistent Systems, Motilal Oswal Financial Services said revenue growth in the quarter was strong and broad. BFSI, healthcare and hi-tech recorded growth of 4.9 per cent, 4.3 per cent and 3.7 per cent respectively.
Shares of Zensar Technologies surged 11.6 percent to Rs 838 and the company’s average trading volume increased 5 times. The reason for the surge in shares was that the company’s results in the third quarter were as expected.