IT stock jumps after company received work order from National Skill Development Corporation

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IT stock jumps after company received work order from National Skill Development Corporation
Credit: © Reuters

The shares of the information technology (IT) services provider jumped 2 percent after the company secured a work order from the National Skill Development Corporation for Rs 2.26 crore.

With a market capitalization of Rs 266.26 crore, the shares of DRC Systems India (NS: DRCS ) Ltd were trading at Rs 19.86 per share, decreasing around 2.02 percent as compared to the previous closing price of Rs 20.27 apiece.

According to the company filing, DRC Systems India Ltd has secured a work order from the National Skill Development Corporation ) for the development, enhancement, and maintenance of Learning Management Support (LMS) for the Skill India Digital platform worth Rs 2.26 crore.

Moreover, the work order will enhance and maintain the LMS of the Skill India Digital platform for the Ministry of Skill Development and Entrepreneurship. This advanced platform aims to unify all skilling initiatives and facilitate nationwide skill development.

An LMS is an online and mobile-based Learning Management System that allows for skilling at any time and from any location. It effectively maintains and delivers many types of material, such as videos, courses, seminars, and papers.

Looking into DRC Systems India Ltd’s performance, revenue increased by 151 percent from Rs 6.77 crore in Q3 FY23 to Rs 17 crore in Q3 FY24. During the same period, net profit increased by 232 percent, from Rs 1.19 crore to Rs 3.96 crore.

The company’s profitability measures show a decline in return on equity (RoE) from 13.24 percent in FY 22-23 to 6.55 percent in FY 23-24, while, during the same period return on capital employed (RoCE) decreased from 18.85 percent to 8.27 percent. In contrast, the net profit margin (NPM) was 6.52 percent in fiscal year 22-23.

DRC Systems India Limited is an India-based information technology (IT) services, consulting, and business solutions provider. The Company’s primary operations are IT and IT-enabled services, which include Web and mobile application development, maintenance, testing, and associated ancillary services.

Written by:- Abhishek Singh

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