8K Miles net soars over 83% to Rs 44.3 crore

Leading cloud computing firm 8K Miles Software Services today reported an over 83 per cent jump in net income at Rs 44.3 crore for the three months to June, while its revenue grew at a faster clip of 88.40 per cent leading to higher margins.

The Silicon Valley-based but Chennai-headquartered company said its revenue grew to Rs 195.73 crore, an increase of 17.46 per cent sequentially, and 88.40 per cent on an annualised. Annualised Editda jumped 75.22 per cent to Rs 64.44 crore. On a quarter on quarter basis, Editda rose 10.47 per cent.

Suresh Venkatachari, promoter-CEO & MD, attributed said the numbers were boosted by all-round good show by all the verticals, especially the recent acquisitions. The company had acquired rival cloud player Cornerstone Advisors during the quarter (in May 2017).

"During the quarter, we made significant progress with highly regulated industry focus and cloud business strategy by acquiring Cornerstone Advisors, a leading electronic medical records implementation and advisory services firm based in the US with many hospital clients," he said.

"This is a great timing for 8K Miles when Apple and Amazon are talking to hospitals and healthcare organisations and others to bring healthcare records data together and developing healthcare apps on mobile and IoT devices to be delivered directly to users, and exploring business prospects in healthcare sector such as electronic medical records, and telemedicine."

Going forward, Venkatachari said big data sharing and analytics will play a vital role in the transformation of healthcare as the industry is fast shifting toward value-based, patient-centric care.

Electronic medical records or EMR selection and implementation will enable us to achieve better Ebitda in the coming quarters, said chief financial officer R S Ramani.

8K Miles was recently recognised by the Forbes magazine as one of the top eight value creators for investors in May 2017 and as one of the three companies from the country to make it to Forbes Asia's 'best under a billion' list.

The 8K Miles counter was down 2 per cent at 1515 hrs at Rs 500 on the BSE whose benchmark Sensex was down 1.2 per cent.