SQS India BFSI hits record high; surges over 40% post Q2 results

The stock hit a record high of Rs 1,070 and rallied 41% in past one month from Rs 754 against 2% decline in Sensex.

SQS India BFSI (formerly known as Thinksoft Global Services) has rallied 9% to Rs 1,070, also its record high on the BSE, in an otherwise subdued market.

In the past one month, post Q2 results, shares of information technology consulting and software firm have outperformed the market, by gaining 41% from Rs 754 as compared to 2% decline in the S&P BSE Sensex.

The company had reported 17% quarter-on-quarter growth in consolidated net profit at 10 crore for the quarter ended September 30, 2015 (Q2).

Operational revenue grew 14% at Rs 67 crore on sequential basis, mainly due to additional revenues in cards and payments business and from Europe Region.

“By improving the top line we also achieved a higher utilization and a higher share of business which lead to an increase of EBITDA by 44%. In parallel we made good progress in strengthening our strategic focus region US. The pipeline there was topped up with some MSAs of large client logos and looks promising for future growth,” said Dr. Martin Müller, Managing Director & CEO, SQS India BFSI.

EBITDA (earnings before interest, tax, depreciation and amortization) margin improved by 430 basis points at 21.6% for Q2FY16 compared to 17.3% in Q1 FY16, driven by better consultant utilization, higher onsite ratio and efficient overhead cost management.

At 11:07 AM, the stock was up 7% at Rs 1,049 on the BSE as compared to 0.02% decline in the Sensex. A combined 67,807 shares changed hands on the counter on the BSE and NSE so far.