IT stock surged by 5% to hit the upper circuit following the announcement of a significant order worth ₹5049 Cr from the BharatNet Project.
IT stock :The cutting-edge IT solution provider’s shares surged by 5 percent, hitting the upper circuit, following the announcement of a prestigious work order from the BharatNet Project worth Rs 5,049 crore.
Tera Software Ltd, with a market capitalization of Rs 243.92 crore, saw its shares trading at Rs 194.95 per share, marking a 4.98 percent increase from the previous closing price of Rs 185.70.
The rise in share value can be attributed to the recent achievement of Tera Software Limited consortium, led by partner M/S ITI Limited, securing an Advance Work Order (AWO) from the BharatNet Project for Middle Mile Network – Phase-3 in Himachal Pradesh (Package No.8), West Bengal, and Andaman & Nicobar (Package No.9), with a total order value of Rs. 5,049 Crores for various services.
In terms of financial performance, the company’s revenue grew by 20 percent from Rs 21.17 crore in Q2FY24 to Rs 25.34 crore in Q2FY25. Additionally, the company’s net profit saw a significant increase of 600 percent, from a loss of Rs 0.18 crore to a profit of Rs 1.26 crore during the same period.
Projects Undertaken
Our company specializes in digital projects focusing on e-governance, system integration, and IT/non-IT infrastructure for Optical Fibre Cable and broadband services. Some of our notable initiatives include Kaveri, BESCOM, Aadhaar, Mahavikas, SECC, AP Fibergrid, Davanagere Smart City, Gujarat Ration Card, AP Schools, APePDS, and Electricity Bill systems.
Ratio Analysis
Analyzing our company’s critical ratios, we observed a decrease in the return on equity from 3.21 percent in FY22-23 to 3.06 percent in FY23-24, and a decrease in the return on capital employed from 13.13 percent to 8.69 percent. The net profit margin (NPM) for the fiscal year 23-24 stands at 4.07 percent.
Shareholding Pattern
In our recent shareholding pattern, the Promoters of the company own 47.53 percent, while Retail shareholders hold a 52.45 percent stake in the company. Domestic Institutional Investors currently do not have a stake in our company.
Company Snapshot
Tera Software Limited, based in India, is a leading provider of smart city solutions. Our company specializes in information technology (IT) and integrated related services. Our segments include Integrated Solutions, Technical Division, Projects Division, and other services provided to customers globally.
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