Infibeam Incorporation gains as Q2 profit more than doubles

In the month of November, the stock rallied 39% as compared to 1% decline in the S&P BSE Sensex till Tuesday

Infibeam Incorporation was up 4.5% at Rs 185 on the BSE in early morning trade after its consolidated net profit more than doubled at Rs 21.6 crore in the second quarter ended September 2017 (Q2FY18). The company had profit of Rs 7.8 crore in year ago quarter.

Total revenue during the quarter under review increased 76% year-on-year (YoY) at Rs 202 crore against Rs 115 crore in the corresponding quarter of previous fiscal.

EBITDA (earnings before interest, taxes, depreciation and amortization) margins improved to 20% in Q2FY18 from 18.57% in Q2FY17.

The company said its Infibeam Web Services (IWS) segment has grown 92% YoY with 38% EBITDA margin. The revenue contribution from IWS Segment has increased to 61% in Q2FY18 from 29% in Q2FY17.

The stock had strong run-up prior to September quarter results, rallied 39% thus far in the month of November, as compared to 1% decline in the S&P BSE Sensex till Tuesday. It hit 52-week high of Rs 196 on November 6, on the BSE in intra-day trade.

At 09:47 AM; it was trading 2% higher at Rs 180, against 0.29% decline in the benchmark index. A combined 1.51 million shares changed hands on the counter on the NSE and BSE so far.