Xchanging Solutions gains 16% on announcing interim dividend

In reaction to the announcement, nearly 2 crore shares changed hands at both exchanges, 20 times higher than its monthly average of 10 lakh.

The stock prices of Xchanging Solutions zoomed by 17 percent on July 10 reaching a new 52-week high after the small-cap IT company announced that it will consider paying an interim dividend of Rs 15 on shares with a face value of Rs 10 each for the current financial year 2023-24.

In reaction to the announcement, nearly two crore shares changed hands at both exchanges, 20 times higher than its monthly average of 10 lakh. At the market close at 3.30 pm, share price of Xchanging Solutions was Rs 106.50, up Rs 14.30, or 15.51 percent on the NSE.

After a prolonged consolidation in stock prices spanning from December 23rd 2022 until June 2nd 2023, the stock has gained by Rs 46.09 or 75 percent.

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In Q4FY23, the company reported a revenue of Rs 46 crore, up by 12 percent QoQ. However, it is important to note that in the past five years, the company has delivered poor revenue growth with the CAGR for the same being -1.3 percent.

The OPM (operating profit margin) for FY23 declined to 28 percent against 31 percent in FY22. The PAT (profit after taxes) too declined to Rs 44.90 crore in FY23 against Rs. 52.57 crore in the corresponding fiscal.

Xchanging Solutions Limited is a subsidiary of the US-based parent company DXC Technology which also owns a subsidiary in Malaysia named XChanging (Mauritius) Limited. The company with a diverse clientele ranging from aerospace to hospitality, is primarily engaged in business outsourcing and allied information technology services.