Multibagger stock hits upper circuit after manifold jump in Q1 PAT

Shares of Nettlinx hit upper circuit in Friday's trading session after the company reported a strong performance in the June 2023 quarter. The company reported a manifold jump in the bottomline for the three months ended on June 30, 2023, the company said in an exchange filing.

The company reported an astounding rise of 2,500 per cent in the standalone net profit on year-on-year (YoY) basis to Rs 1.65 crore. The Hyderabad based IT company has clocked a profit-after-tax (PAT) at Rs 0.06 crore in the year ago period, said the company. Its consolidated net profit rose more than 915 per cent to Rs 1.82 crore during the quarter.

The company reported a 133 per cent rise in the standalone revenue from operations to Rs 4.66 crore in Q1FY24, compared to Rs 2 crore in the Q1FY23. Its consolidated revenue from operations surged 31 per cent to Rs 7.06 crore, the company said in the statement.

Shares of Nettlinx surged hit an upper circuit of 5 per cent to Rs 91.85, with a total market capitalization of more than Rs 222 crore. The scrip had settled at Rs 87.48 in the previous session. The stock has rallied more than 180 per cent from its 52-week low at Rs 32.78 in August 2022. The stock has gained about 1,200 per cent from its Covid-19 lows.

EBITDA grew about 365 per cent on a YoY basis Rs 2.69 crore. The contraction in expenses and increased revenue, coupled with operational efficients lead to the stellar performance in the given quarter. The company managed this growth in profit, mainly on rise in revenues in the ISP division

Nettlinx has set a strong footing for the current financial year with a good Q1 earnings. The Indian economy's growth momentum from FY23 is expected to bolster prospects for industry and clients in FY24, said Manohar Loka Reddy, Managing Director and Promoter, Nettlinx .

"We are extremely excited to showcase our exceptional capabilities in the field of ISP, IT/ITES, artificial Intelligence, audio video streaming services and unified communication services to help our clients in business efficiency, enhance their customer experiences, and help them gain a competitive edge in their respective markets, " he added.

Incorporated in 1994, Nettlinx is an Internet, IT/ITES infrastructure player which has its presence to encompass over 93 locations in the states of Telangana and Andhra Pradesh. It provides cable and wireless Internet access, web design, portal development, web hosting, server co-location, network management, and e-commerce solutions. 

Also read: Nifty, Sensex end in red; NTPC, PowerGrid, M&M among top gainers; HDFC Bank, HCL Tech top losers; IOC, Motilal Oswal, Ajanta Pharma, other buzzing stocks on July 28

Watch: Samsung Galaxy Z Flip 5 vs Moto Razr 40 Ultra, Oppo N2 Flip, Vivo X Flip: Check out specs, price of top flip phones in India

Watch: AI images of actor, philanthropist Sonu Sood show him as sadhu, chef, Dragon Ball Z’s Goku and boxer; Watch Roadies Karm Ya Kaand host in different AI-generated avatars

Also read: Indiabulls Housing shares surge 9% on dividend, improved outlook. Key details 

Also read: Hot stocks on July 28, 2023: Escorts Kubota, Intellect Design, RBL Bank, RVNL and more