63 Moons Technologies locked in upper circuit limit on solid Q1FY24 earnings

Shares of 63 Moons Technologies were locked in the 10% upper circuit limit at ₹278.95 apiece on Wednesday after the company reported impressive Q1FY24 numbers. The results showed a marked improvement in the company's performance compared to the same period last year.

It reported a 200% jump in revenues to ₹111 crore in Q1FY24. During the same period of last year, the company reported ₹37 crore in revenue from operations. The operating profit for the June quarter stood at ₹47 crore, a significant shift from the ₹19 crore loss reported in the corresponding period last year.

Furthermore, the net profit for Q1FY24 came in at ₹51 crore, a substantial turnaround from the net loss of ₹9 crore in Q1FY23. Impressively, the net profit demonstrated a sequential improvement of 920%.

In an earlier development in June, the Multi Commodity Exchange of India (MCX) extended its software support contract with 63 Moons Technologies for the third time. The renewed contract spans six months from July 1, entailing a quarterly fee of ₹125 crore, culminating in a total of ₹250 crore for the six-month period.

The announcement of this contract extension on June 29 triggered a strong response from investors, propelling the stock's value by 30% in the subsequent 11 trading sessions, resulting in a new 52-week high of ₹282.10. Over the last five years, the company's shares have delivered a fabulous return of 232% to its shareholders.

The company is engaged in computer programming, consulting, and related services. It is among the global leaders in offering technology IP (intellectual property) and domain expertise to create and trade on next-generation financial markets that are transparent, efficient, and liquid across all asset classes, including equities, commodities, currencies, and bonds, among others.

It has developed a proprietary technology platform benchmarked against global standards, which gives it a decisive edge in driving mass disruptive innovation at the speed and cost of execution unmatched in the financial market industry, its website shows.

Meanwhile, the company witnessed its FII holdings surge to 5.2% in the June quarter. In comparison, during the March quarter (Q4FY23), FIIs held 3.7% of the company's shares. Promoters and regular shareholders each own 45.6% and 49.1%, respectively.

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