This smallcap IT stock jumps 20% after co swings into profits in Q3 results

3i Infotech share price gained 19.98 per cent at Rs 31.46 a piece on the BSE in Thursday’s intraday trade after the company posted a turnaround in the bottom-line for the third quarter of financial year 2024-25 (Q3FY25). 

 

3i Infotech, an information technology (IT) company reported a wider net profit of Rs 40.6 crore for Q3 FY25, compared to a Rs 29.4 crore loss in the same period last year. During the three months ending December 2024, the company’s revenue declined 15 per cent Y-o-Y to Rs 180 crore, from Rs 212 crore in the corresponding quarter of the previous fiscal.  

 

The company posted an Earnings before interest, tax, depreciation and amortisation (Ebitda) gain of Rs 7.6 crore, reversing a loss of Rs 8.8 crore Y-o-Y, with an Ebitda margin of 4.19 per cent. 

 

3i Infotech also informed about voluntary liquidation of two of its subsidiaries, namely 3i Infotech Saudi Arabia LLC, and Singapore based-Nure Infotech Solutions. 

 

Moreover the company also intimated that,  it has executed an agreement with an investor group whereby its another wholly owned subsidiary NuRe MediaTech will issue fresh equity shares and compulsorily convertible preference shares (CCPS) to investor group, in such a manner having effect of reducing the company’s shareholding in NuRe MediaTech to 51 per cent post-conversion of CCPS. 

 

In July, 2024, the company had disclosed the Board’s in-principle approval for the dilution of 49 per cent of the company’s stake in NuRe MediaTech, a holding company of NuRe Bharat Network, which is an special purpose vehicle (SPV) for the execution of the RailTel project. 

 

The total consideration for the transaction is Rs 17.50 crores. Upon completion, Nure MediaTech and NuRe Bharat Network will cease to be wholly owned subsidiary and wholly owned step-down subsidiary, respectively, and become subsidiaries of the company, the company said in an exchange filing. 

 

On the equities front, 3i Infotech share price has underperformed the market in the last six months, losing 15 per cent, while falling 48 per cent in the last one year. In comparison, the BSE Sensex has slipped 6 per cent in the last six months, while rising 7.6 per cent in the last one year. 

 

3i Infotech has a total market capitalisation of Rs 532.40 crore. At 11:26 AM, the stock price of the company was up 19.76 per cent at Rs 31.40 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.33 per cent to 76,784.71 level.