Rolta India surges over 10% on strong Q2 results

The stock surged 14% to Rs 62.50 after the company reported 91% jump in profit at Rs 54.30 crore in Q2FY17.

Rolta India has surged 14% to Rs 62.50 on the BSE, after the company reported a strong 91% year on year jump in its consolidated net profit at Rs 54.30 crore for the second quarter ended September 2016 (Q2FY17).

The company, a leading provider of innovative IP-led IT solutions for many vertical segments, including Defence/HLS, had profit of Rs 28.38 crore in the same quarter last year.

Net total income from operations decline by 25.6% at Rs 737 crore in Q2FY17 against Rs 990 crore in the corresponding quarter of previous fiscal.

EBITDA (earnings before interest, tax, depreciation and amortization) margin improved marginally to 31.6% in Q2FY17 from 31.3% in Q2FY16.

"We embarked on a journey to successfully transform from a predominantly GIS and engineering services company to a differentiated IP-led software products and solutions organisation focused on digital technologies. Almost a decade ago, we could foresee a decline in traditional IT services due to emerging disruptive technologies which triggered this decision," Chairman and Managing Director KK Singh

 “I am pleased to read The Government of India’s, draft National Software Policy which aims to give the right thrust and motivation to Indian IT companies to move towards software products. I expect Rolta to reap the benefits from its transformation as an early mover,” Singh said.

At 10:19 am; the stock was up 12% at Rs 61.30 on the BSE as compared to 0.57% decline in the S&P BSE Sensex and 1.2% fall in the S&P BSE Information Technology index. The trading volumes on the counter jump more than four-fold with a combined 3.11 million shares changed hands on the NSE and BSE so far.