Megasoft hits 52-week high on signing lease agreement for Phase 3 (Block 3) in Hyderabad

Megasoft was locked locked in an upper circuit of 5% at Rs 83.60 on signing a lease agreement for the third and final block (Block 3) for its share and part rental payments, expected to be received from Q1 2022 (adjusting for the rent-free period).

Megasoft is in the process of negotiation and finalization of accounts with its JDA partner Darshita Infrastructure (Salarpuria Sattva group) to conclude on its final share and payments to be settled, details of which will be published in the financial year end accounts (2021-22).

The company on 7 August 2016 had announced that it is in the process of setting up a large IT facility in its property at Nanakramguda, Hyderabad (registered in the company's favour in May 2015 by Telangana State Industrial Infrastructure Corporation (TSIIC) through a conditional sale deed) with a developer (shareholders' approval through a postal ballot was obtained as on 22 March 2076).

On 9 November 2018, the firm had announced that it has received approval for this JDA from the government of Telangana/ TSIIC and will receive & retain approxirnately 5 lakh square feet as its net share (to accrue in three phases).

Megasoft had also announced that for the first phase (Block 1), it had entered into a lease rental agreement. As per its uploaded press release (on 14 February 2019), the company stated that the rentals receipts for Block 1 have started.

On 6 February 2020, the firm announced that second phase (Block 2) is nearing completion and that it entered into a lease rental agreement for the same. The lease rental revenues has been accruing from Q1 2021 and reported in its published quarterly results. Subsequently, the company had published details of further progress on the property in the Directors Report and other relevant section (s) in the Annual Report 2020-21, uploaded it to the stock exchanges and sent to all shareholders and approved by shareholders vide online/ video AGM conducted on 28 June 2021.

Megasoft's consolidated net profit tanked 63% to Rs 0.27 crore on a 17.6% decline in net sales to Rs 12.68 crore in Q2 FY22 over Q2 FY21.

Megasoft is engaged in the business of providing information technology services to customers. The firm operates through telecom segment.

The scrip hit 52-week high at Rs 83.60 during intraday trade.

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