8K Miles Software Services gains on good Q1 results

The stock rallied 10% to Rs 1,950 after the company reported 57% jump in net profit at Rs 19 crore for Q1FY17 on sequential basis.

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8K Miles Software Services has moved higher by 10% to Rs 1,950 on the National Stock Exchange (NSE) after the company reported 57% jump in consolidated net profit at Rs 19.33 crore for the quarter ended June 2016 (Q1FY17) on a sequential basis.

The company, a secured cloud solutions and managed services provider, had registered a profit of Rs 12.35 crore in March 2016 quarter (Q4FY16).  On year-on-year basis, the net profit has more than doubled from Rs 7.22 crore in June 2015 (Q1FY16).

Operational revenues grew 21% to Rs 104 crore during the quarter from Rs 86 crore in a previous quarter.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margins improved to 35.4% in Q1FY17 from 30.5% in Q4FY16 and 31.4% in Q1FY16.

At 11:05 AM, the stock was up 9% at Rs 1,940 on the NSE, as compared to 0.37% decline in the Nifty 50 index. A combined 138,740 shares changed hands on the counter on the NSE and BSE.