Moschip Tech spurts after turnaround Q3 numbers

Moschip Technologies hit an upper circuit limit of Rs 5% to Rs 89.35 after the company reported consolidated net profit of Rs 2.11 crore in Q3 December 2021 as against net loss of Rs 1.43 crore in Q3 December 2020.

On a consolidated basis, net sales rose 39.74% to Rs 38.29 crore in Q3 December 2021 over Q3 December 2020. The company reported pre-tax profit (PBT) of Rs 2.12 crore in Q3 December 2021 as against pre-tax loss of Rs 1.44 crore in Q3 December 2020. EBIDTA increased 141% YoY to Rs 6.38 crore as against Rs 2.64 crore in Q3 December 2020.

During the quarter, the company's revenue from semiconductor business surged 43.13% to Rs 33.45 crore. Its revenue from embedded business rose 20.15% to Rs 4.83 crore.

The company said its income from operations, EBIDTA and profit after tax for 9 months period is significantly higher than what it achieved in full year FY 2021.

The Government of India announced a semiconductor policy to promote both design and manufacturing of semiconductor chips in India. The total budget for the scheme is estimated around Rs 76,000 crore and it is distributed for setting up CMOS and display fabs; compound semiconductor fabs and ATMP (packaging and testing) units; design linked incentives for fabless semiconductor companies that develop products and IP; and infrastructure and support systems.

According to Semiconductor Industry Association (SIA) "The global chip market is projected to grow substantially in 2021, 2022 and beyond as semiconductors become essential component to every aspect of electronic devices that are part of our daily life."

MosChip Technologies said that it has signed up for additional office space to accommodate potential increase in head count expected in coming quarters.

Hyderabad-based MosChip Technologies is a semiconductor and system design services company. It provides turn-key digital and mixed-signal ASICs, design services, SerDes IP, and embedded system design solutions.

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