RateGain Q1 Results: Company Net Profit Jumps by 196%

RateGain Technologies, a prominent Software as a Service (SaaS) provider to the travel and hospitality industry, experienced a significant 80% rise in its consolidated revenue in Q1 FY24, reaching Rs 2,144 crore, compared to Rs 1,193 crore in the same period of the previous year. 

During the quarter, the company’s operating profit experienced a remarkable 217% growth, amounting to Rs 378 crore, compared to Rs 119 crore in the same quarter the previous year. However, the operating profit margin jumps from 10% to 17.6%. 

The company witnessed a 196% increase in its net profit for the quarter ended June 2023, reaching Rs 84.2 crore, as compared to Rs 249 crore recorded in the corresponding period of the previous year. Moreover, the net profit margins also improved from 7.1% to 11.6% in Q1 FY24. 

If we bifurcate the revenue by geographic area, we find that 60.8% of the company’s revenue comes from North America, 25.9% from Europe, 11.5% from the Asia Pacific, and the remaining 1.8% from other countries. 

The company reported a total customer portfolio of 3057, with an addition of 115 new customers in the last quarter. 

Today, the stock commenced trading at Rs 464.30, Flat from the previous day’s closing price of Rs 464.30. Finally, the stock concluded today’s session at Rs 486. The stock’s 52-week highs and lows are Rs 511 and Rs 252.45 respectively. Currently, its market capitalization stands at Rs 5264 Crore. 

Additionally, the stock is currently very close to its all-time high price of Rs 525, which was reached on January 18, 2022. 

Over the past three months, the stock has delivered an impressive return of 35%, while in the last one year, it has generated a return of 66%. 

In terms of ownership, the promoters hold 55.76% of the company’s shares, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 5.33% and 17.78%, respectively.  

Moreover, both the FIIs and DIIs have increased their holding in the company as per the June quarter update. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.