CoForge, Persistent Systems, Sonata Software and RailTel Shares were in high demand on Tuesday on back of positive news on these counters. CoForge was trading 8 percent higher with strong volumes. RailTel Corp shares were trading firm on order win. NSE Nifty was marginally higher at the time of publication of this report.

Coforge's Strong Q2 Performance Boosts Stock by 8%

Coforge shares surged nearly 8% in early trading on October 23, driven by the company's solid Q2 earnings performance. Investor sentiment was buoyed by a 9% quarterly rise in net profit to Rs 255.20 crore, up from Rs 234.60 crore in the previous quarter, as well as robust revenue growth of 27.5% to Rs 3,062 crore. A significant factor in the improved performance was Coforge's recent acquisition of Cigniti Technologies, which contributed to both earnings and revenue growth. Additionally, the company reported a total order intake of $516 million, with three large deals, marking the eleventh consecutive quarter with order intake surpassing $300 million.

Key Highlights from Coforge’s Q2 Earnings

Net Profit Growth:
Coforge posted a 9% increase in net profit for Q2, rising to Rs 255.20 crore, reflecting its resilience and ability to deliver consistent shareholder value.

Revenue Surge:
The company reported a substantial 27.5% sequential rise in revenue to Rs 3,062 crore, showcasing its strong market positioning and the positive impact of its acquisition strategy.

Order Intake Remains Robust:
Coforge recorded $516 million in order intake during Q2, maintaining a solid performance for the eleventh consecutive quarter with order intake exceeding $300 million.

RITES Secures Rs 454 Crore Order from Karnataka Mining Environment Restoration Corporation

RITES Ltd. announced a significant contract win worth Rs 454 crore from the Karnataka Mining Environment Restoration Corporation. Initially, this order was for the construction of railway Private Freight Terminals (PFTs) at Dharmapura and Susheel Nagar in the Ballari district on a project management consultancy (PMC) basis. It has now been converted to a turnkey project, increasing the scope and profitability of the contract.

Sonata Software Bags Multi-Year Contract with Fortune 500 Client

Sonata Software has secured a new contract under a multi-year deal with a Fortune 500 manufacturer of consumer and industrial products. Under this agreement, Sonata will play a pivotal role in supporting the client's global business expansion and digital transformation journey. This partnership further enhances Sonata’s position as a key player in enabling digital transformation for large enterprises.

Persistent Systems Q2 Results Propel Shares by 7%

Persistent Systems saw its shares jump by 7% post its Q2 results, underscoring the company's continued operational strength and growth prospects.

Profit Growth:
Persistent Systems posted a 6.1% increase in net profit to Rs 325 crore, compared to Rs 306.4 crore in the previous quarter.

Revenue Increase:
The company’s revenue rose by 5.8% to Rs 2,897.2 crore, up from Rs 2,737.2 crore sequentially.

EBIT Growth:
EBIT also increased by 5.8% to Rs 406.2 crore, maintaining an EBIT margin of 14%, which was unchanged from the previous quarter.

Dollar Revenue:
In dollar terms, revenue grew by 5.3% to $345.5 million, highlighting the company's strong international business.

Constant Currency Revenue Growth:
The company recorded 5.1% growth in constant currency terms, slightly down from 5.6% in the previous quarter, yet indicative of steady underlying growth.

Jio Financial and Allianz in Talks for Insurance JV in India

Jio Financial Services is reportedly in talks with Allianz SE to establish a joint venture in the insurance space in India. Allianz is looking to wind down two of its existing JVs in the country, seeking a fresh start in collaboration with Jio Financial. This development could significantly bolster Jio’s presence in the Indian financial services landscape, particularly in the insurance sector.

RailTel Corporation Shares Gain Despite Profit Decline

RailTel Corporation saw a mixed quarter, with shares gaining due to new order wins, despite an 18.2% decline in net profit to Rs 139.3 crore.

Revenue Growth:
Revenue increased by 31.6% to Rs 13,372.4 crore, highlighting strong operational performance despite profit contraction.

New Business Growth:
RailTel’s new business value grew by 23%, reaching Rs 513 crore, signaling robust pipeline growth.

Total Premium Growth:
The total annualized premium equivalent surged by 31%, touching Rs 2,170 crore, reflecting increased demand for RailTel’s services.

New Order Secured:
RailTel also secured a work order worth Rs 36.8 crore from South Eastern Railway for the provision of an electronic interlocking system and signaling arrangements, further reinforcing its presence in critical infrastructure projects.