IT shares rally; Sonata Software, Zensar Technologies up over 10%

Shares of midcap information technology (IT) companies have rallied by up to 15% on the BSE after they reported a good set of numbers for the quarter ended June 2018 (Q1FY18).

IT shares are trading higher for the fourth straight day due to persisting weakness in the rupee.The Indian rupee hit record low of 70.32 per dollar on Thursday.

Zensar Technologies, Sonata Software and Datamatics Global Services were trading higher by more than 10%, while Nucleus Software Exports, Mindtree, Cyient, Majesco, Trigyn Technologies and Mphasis were up in the range of 2% to 8% on the BSE. On comparison, the S&P BSE Sensex was down 0.36% or 137 points at 37,715 at 01:38 pm.

Zensar Technologies hit a new high of Rs 1,428, up 12% on the BSE.  RPG Group has reported a stellar industry- leading Y-on-Y revenue growth of 18.1% in the first quarter of the fiscal year (Q1FY19).

“All the core businesses of Zensar have shown good growth in constant currency terms. This is reflected in Y-o-Y profit after tax growth at 67.5% in this quarter highlighting efficient cost management and increased contribution from ZenROD solutions” said Naveen Khandelwal, chief financial officer, Zensar Technologies.

Zensar Technologies fixed September 10, 2018 as record date for 1:5 stock split to make shares more affordable to small shareholders and to increase liquidity. In past six months, the stock rallied 56% against 11% rise in the S&P BSE Sensex.

Sonata Software too surged 12% to Rs 367, trading close to its 52-week high of Rs 386 touched on April 25, 2018 on the BSE in intra-day trade. The company reported 34% Y-o-Y net profit growth at Rs 576 million in Q1FY19 on 8% Y-o-Y jump in revenues at Rs 6,883 million over the previous year quarter.

Datamatics Global Services soared 15% to Rs 118 after the company posted 34% Y-o-Y growth in net profit at Rs 216 million. Operational revenue grew 25% at Rs 2,608 million on Y-o-Y basis. EBITDA increased by about 300 basis points at 12.15% during the quarter.

On the National Stock Exchange, the Nifty IT index hit a new high of 15,022 in intra-day trade today with Infosys hitting a fresh record high of Rs 1435, up 2% on the NSE.