Dalal Street Investment Journal

8K Miles Profit Jumps Over Two-Fold

8K Miles Software Services, a leading secure cloud solutions provider, yesterday announced the company’s unaudited financial results for the quarter ending September 30, 2015 as approved by the Board of Directors.

The company reported a consolidated net profit after minority interest at Rs 8.74 crore, up 111%, against Rs 4.15 crore in the corresponding quarter a year ago. The net profit of the company increased 21% on quarter on quarter basis (QoQ).

During the period under review, the company's Total Income grew by 21% QoQ to Rs 61.09 crore in Q2FY16 as against Rs 50.64 in Q1FY16 and 126% on YoY basis.

During the quarter, the company acquired NexAge Technologies USA Inc., - a leading Regulatory Compliance and Technology Solutions Company for the Life Sciences Industry in USA to strengthen the Life Sciences competency of the 8K Miles Solutions portfolio. NexAge provides access to the Enterprise clients and Pharma technology solutions, while adding over 60 experts in Regulatory Compliance, Validation and Life Sciences.

“We see strong growth in its solutions for healthcare and life sciences industries and expect to attain leadership position over the next 24 months,” said Suresh Venkatachari, Chairman and Managing Director, 8K Miles Software Services Ltd.

At the Board of Directors’ Meeting yesterday, the Board has allotted 150,000 Equity Shares to one of the Promoters, Mr. R S Ramani on conversion of warrants. With this allotment, the stake of the promoter and promoter group has increased the Promoters holding from 61.96% to 62.48%.

Over the last one year, 8K Miles has snapped up three firms in the health and pharma space alone. Earlier this year, it had acquired the US-based Cintel Systems, the Canada-based Mindprint, another US-based firm SERJ Solutions to strengthen its portfolio in the fast-growing life sciences sector.

The stock is currently trading at Rs 1844, up by Rs 63.00 or 3.45% on the BSE. As of Thursday, the company’s stock price jumped by three and half times in the past one year alone.