Shares of AGC Networks extended their rally on Tuesday and were locked in the upper circuit band of 20 per cent for the third consecutive day at Rs 130, on the National Stock Exchange (NSE) after the company reported more than double consolidated net profit of Rs 13.6 crore in April-June quarter (Q1FY20). It had posted a profit of Rs 5.78 crore in the year-ago quarter and a net loss of Rs 98 crore in March 2019 quarter.
The stock of the IT consulting and software company has risen 80 per cent from a level of Rs 72 apiece since August 14, and was trading at its 52-week high. In comparison, the Nifty50 has fallen one per cent during the same period. Around 178,631 equity shares have changed hands and there were pending buy orders for 46,367 shares on the NSE.
AGC Networks' consolidated revenue from operations during the quarter stood at Rs 1,228 crore, as against a revenue of Rs 188 crore logged in the corresponding quarter of the previous fiscal. Q1FY19 figures, however, do not include results of Black Box Corporation and its subsidiaries and COPC Holdings Inc. and its subsidiaries that were acquired in January 2019.
AGC’s wholly-owned subsidiary, on January 7, 2019, completed the acquisition of Black Box Corporation, a leading digital solutions provider in the US. The combination with Black Box has substantially increased AGC’s presence and offerings in 30+ countries and specifically in North America and Europe.
"Increased operational efficiencies and cost optimisation measures taken in Black Box and its continued integration with AGC has started yielding results," the management said in a statement.
Meanwhile, on the BSE, the stock was ruling 19 per cent higher to trade at Rs 130. It has rallied 71 per cent in the past three trading days, from level of Rs 76. Around 29,000 equity shares changed hands on Tuesday as against an average sub 1,000 shares traded in the past two weeks.