The shares of the cutting-edge IT solution provider hit 5 percent upper circuit after the company secured a prestigious work order from BharatNet Project for Rs 5,049 crore.
With a market capitalization of Rs 243.92 crore, the shares of Tera Software Ltd were trading at Rs 194.95 per share, increasing around 4.98 percent as compared to the previous closing price of Rs 185.70 apiece.
Reason for rise
The shares of the company have seen bullish movement after Tera Software Limited consortium, led by their partner M/S ITI Limited, received an Advance Work Order (AWO) from BharatNet Project for Middle Mile Network – Phase-3 within the states of Himachal Pradesh (Package No.8), West Bengal, and Andaman & Nicobar (Package No.9), with a total order value of Rs. 5,049 Crores for Design, Supply, Construction, Installation, Upgradation, Operation, and Maintenance of BharatNet’s Middle Mile Network.
Financial Performance
Analyzing a company’s financial performance, revenue grew by 20 percent from Rs 21.17 crore in Q2FY24 to Rs 25.34 crore in Q2FY25, during the same time frame, the company’s net profit increased significantly by 600 percent from a loss of Rs 0.18 crore to a profit of Rs 1.26 crore.
Projects Undertaken
The company undertakes digital projects in e-governance, system integration, and IT/non-IT infrastructure for Optical Fibre Cable and broadband services. Notable initiatives include Kaveri, BESCOM, Aadhaar, Mahavikas, SECC, AP Fibergrid, Davanagere Smart City, Gujarat Ration Card, AP Schools, APePDS, and Electricity Bill systems.
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Ratio analysis
The company’s critical ratios show that the return on equity decreased from 3.21 percent in FY22-23 to 3.06 percent in FY23-24, while the return on capital employed decreased from 13.13 percent to 8.69 percent. The net profit margin (NPM) for fiscal year 23-24 is 4.07 percent.
Shareholding pattern
In the company’s recent shareholding pattern, the Promoters of the company own 47.53 percent while Retail shareholders own a 52.45 percent stake in the company and domestic Institutional Investors own a 0 percent stake.
Company Snapshot
Tera Software Limited is an India-based company, which is a provider of smart city solutions. The Company is engaged in information technology (IT) and integrated related services. The Company’s segments include Integrated Solutions, Technical Division, Projects Division and other Services to customers globally operating.
Written by Abhishek Singh
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