IT Stock Posts 151% PAT Growth In Q4, Scrip Rallies Over 2500% In 3 Years

Magellanic Cloud is a small-cap IT company that recorded a market cap of Rs 2,677.11 Cr during Friday's closing session. The stock opened at Rs 219.00 apiece and witnessed heavy buying interest logging a traded volume of 1,83,398 shares which triggered the stock to close at a fresh 52-week-high level of Rs 229.20 clocking an upside gain of 5%.

The stock was in high demand after the corporation released stellar Q4 and FY23 earnings. Consolidated revenue from operations of the company grew from Rs 282.77 crore in FY 22 to Rs 387.50 crore in FY 23 logging a growth of 37.23%. From Rs 2.78 crores in Q4 FY22 to Rs 24.30 crores in Q4 FY23, the PBT climbed by 774.10%. PAT rose by 1039.24% from Rs 1.58 Crores in Q4 FY22 to Rs 18.00 Crores in Q4 FY23, and by 151.61%, from Rs 29.45 Crores in FY22 to Rs 74.10 Crores in FY23.

Commenting on the results Joseph Sudheer Reddy Thumma, CEO of Magellanic Cloud said: "We are excited to share that our performance has greatly improved in the last four quarters leading up to the end of the 2022-23 fiscal year. Our revenue from operations has increased due to the addition of revenue from our newly added E-security/Surveillance segment, which now contributes approximately 25% of our total revenue."

"In the past year, we have made significant acquisitions, including iVIS International Private Limited, Provigil Surveillance Limited, and Scandron Private Limited. These acquisitions have allowed us to become leaders in the video-based E-Surveillance and Drone segments, with innovative advanced technology that utilise cutting-edge drone and AI/ML technology," Joseph Sudheer Reddy Thumma further added.

"Through a competitive bidding process, we have secured business from large public and private sector banks, to provide AI & IoT enabled E-Surveillance solutions to their branches and ATMs nationwide. In the coming years, we expect significant growth in the drone segment, especially with the implementation of government initiatives like the National Logistics Policy (NLP) and Kisan Drone Shakti. We have already started receiving a significant number of enquiries for drone solutions," he further added.

"We have also expanded our relationship with Google in the ITeS space and have secured the business of the largest retail chain in the US. Our expertise in e-surveillance systems, combined with our advanced delivery and surveillance drones, will allow us to expand into sectors such as defence, agriculture, pharma, e-commerce, real estate, and retail. We have already completed Stage 2 testing in the low range drone segment and are ready to begin trials with heavy duty army drones," said Joseph Sudheer Reddy Thumma.

"Lastly, we are proud to announce our partnership with CriticaLog India, which will allow us to serve the nation's B2B and hub-to-hub logistics market through advanced drone solutions. We are also in the process of obtaining the necessary licenses from the DGCA and the Airport Authority to fly commercial drones on various routes across Bengaluru. We remain committed to providing our customers with the most innovative and effective solutions, and we are excited about the growth and success that lies ahead," the CEO of Magellanic Cloud stated.

Magellanic Cloud shares climbed from Rs 12.54 to the current market price in 5 years, representing a multibagger return of 1,727.75%. The stock gained Rs 8.04 during the course of the previous three years, rising to the present market price, for a multibagger return of 2,634.93%. The stock has gone up from Rs 77.70 to the current market price in the last year, resulting in a multibagger return of 194.98%. On a YTD basis, it has soared from Rs 115.21 to the current market price, resulting in a multibagger return of 98.94% so far in 2023. During Q4FY23, the company recorded promoters shareholding of 58.65% and public stake of 41.36%.