Shares of E2E Networks Ltd, an AI cloud provider, on February 5 hit 5% upper circuit after the stock saw heavy correction in the last four months.
Th Larsen & Toubro-backed company's stock fell a whopping 60% in four months. E2E specialises in providing CPU- and GPU-based cloud computing platforms, enabling customers to conduct large-scale general and AI workloads through its relationship with Nvidia.
On February 5, the stock was trading 5% higher at Rs 2,308.3 apiece. Its 52-week low is Rs 772 and 52-week high is Rs 5,487. The market capitalisation of the stock is Rs 4,600 crore. On February 5, the stock saw 15 times more volumes as compared to a day earlier.
Although the company saw a significant improvement in results since Q3 of the previous financial year, few of its metrics dropped on a sequential basis.
The company's net profit stood at Rs 11.59 crore in Q3 of the current financial year. This marks a remarkable rise of 108 percent from the Rs 5.58 crore net profit it had reported in Q3 of the previous financial year. However, the net profit dropped nearly 5 percent sequentially from Rs 12.15 crore in Q2.
Its revenue from operations also saw a strong rise on a year-over-year basis, but fell sequentially. The company reported Rs 41.6 crore revenue in Q3FY 25, up 74 percent from Rs 23.95 crore in Q3FY 24, down 13 percent from Rs 47.55 crore in Q2FY 25.
The company’s total income, however, rose on an yearly basis as well as sequentially. It reported a total income of Rs 12.79 crore in the October-December quarter.
In December, L&T completed the acquisition of a 15% stake in E2E Networks Ltd through a preferential allotment. In addition to this, L&T is set to acquire a further 6% stake from the promoters of E2E Networks, with the secondary acquisition expected to be finalised on or before May 30, 2025.
L&T made an investment of Rs 1,079.27 crore for a 15% stake via preferential allotment and Rs 327.75 crore for an additional 6% stake through secondary acquisition.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
