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IT Stocks Rally: All but one of the 10 constituents in the index saw gains ranging from 2% to 12%
IT Stocks Rally Today
Shares of IT companies Coforge (formerly NIIT Technologies) and Persistent Systems and Zensar Technologies saw strong demand on Thursday, with their stock prices jumping by up to 12% in early trading.
Investors responded positively to their December quarter earnings, which surpassed Wall Street expectations, driving a boost in the Nifty IT index. These stocks emerged as top gainers within the Nifty IT sector, helping push the index up by over 2%. All but one of the 10 constituents in the index saw gains ranging from 2% to 12%, with HCLTech dipping by up to 0.6%.
Among the largest companies, TCS and Infosys showed modest gains of up to 0.5%, following the trend of benchmark indices Sensex and Nifty, which rose by 0.25%.
Coforge shares surged 11.8%, reaching Rs 9,198.20 on the BSE, bringing its market capitalization to Rs 61,198 crore. The stock is nearing its 52-week high of Rs 10,017.95, achieved on December 30, 2024, nearly doubling from its 52-week low of Rs 4,291.05 on May 9, 2024.
Persistent Systems saw a 10% increase, rising to Rs 6,253.85 on the BSE and reaching a market cap of Rs 96,630 crore. The stock had hit a 52-week high of Rs 6,788.80 on December 20, 2024, after trading as low as Rs 3,232.60 in June 2024. Over the past year, the stock has delivered a 50% return, though it has lost over 3% year-to-date (YTD).
Similarly, the shares of Zensar Technologies zoomed nearly 10% to an intraday high of Rs 846.85 on the BSE today after announcing its financial results for Q3FY25 on Wednesday,
Coforge reported impressive earnings in a typically slower December quarter, with a 10.3% increase in net profit to Rs 2,680 crore for Q3 FY25, up from ₹2,428 crore in the same quarter the previous year. Revenue surged 42.8% to Rs 3,318.2 crore, while EBITDA rose by 29.3% to Rs 519 crore.
For the second consecutive quarter, Coforge secured over $500 million in order intake, including four large deals during the October-December period. Its order book, executable over the next 12 months, saw a 40.1% YoY growth, reaching $1,365 million. The company also declared an interim dividend of Rs 19 per share, with the record date set for January 30, 2025.
In addition, Coforge announced its acquisition of a 100% stake in U.S.-based Xceltrait Inc. for $17.85 million.
On the other hand, Persistent Systems saw a 30.4% YoY growth in net profit, totaling Rs 373 crore for Q3 FY25, driven by its AI-led, platform-driven services strategy. Consolidated revenue grew 22.6% YoY to Rs 3,062.28 crore, and operating margins improved by 90 basis points to 14.9%.
Persistent also declared an interim dividend of Rs 20 per share and secured $594.1 million in total contract value (TCV) for the quarter, with $428.3 million in annual contract value (ACV).
Zensar Technologies delivered a solid performance, with revenue rising to Rs 1,325.6 crore, marking a 10.1% year-on-year (YoY) increase.
For the quarter, the company reported an EBITDA of Rs 207 crore and an EBIT of Rs 183.3 crore.
However, Zensar’s profitability saw a slight dip, with net profit falling by 2.7% YoY to Rs 159.8 crore, compared to Rs 161.7 crore in the same quarter last year.
Additionally, Zensar posted operating revenue of $157 million for the third quarter of fiscal year 2025.
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