8K Miles Software Shares Jump 12% On Q1 Earnings

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8K Miles Software Services shares jumped over 12 per cent on Friday, following the cloud computing company’s June quarter earnings announcement.

8K Miles reported a net profit of Rs 19.33 crore on sales of Rs 103.89 crore in the June quarter. Profit jumped 57 per cent sequentially, while revenue growth was 20 per cent compared to previous quarter, leading to sharp rally in shares, traders said.

“We enhanced our existing customers in the pharma industry… also added a couple of new customers in pharma industry and four new customers in healthcare. We have brought a lot of new engineers in the last quarter which we were able to place in projects,” said Suresh Venkatachari, chairman and managing director of 8K Miles Software Services.

8K Miles EBITDA or operating margin expanded sharply to 35.4 per cent in the June quarter as compared to 30.5 per cent in the December quarter.

Mr Venkatachari told NDTV Profit that the company’s EBITDA margin has always been in the 33-34 per cent range, except for the December quarter, when margins dipped to 30 per cent because of addition of more employees in the US.

“Going forward, we will like to maintain this kind of EBITDA margin, which has been aided by our Cloud Easy solutions, where we are able to do a complete cloud transformation for our BFSI and pharma customers,” he added.

In terms of geographies, 8K Miles is focused on North America, theMiddle East and Asia-Pacific regions, the company said today. Mr Venkatachari said there are lots of opportunities in Europe, but 8K Miles is measuring the impact of Brexit before taking a decision.

“We were considering setting up operation in Britain, but that has been pulled back because of Brexit… We are waiting to see the impact in the next few months,” he said.

8K Miles shares closed 11 per cent higher at Rs 1,970 as compared to 0.33 per cent drop in the broader Sensex.