RPSG Ventures shares hit 20% upper circuit after it returns to black in June quarter

Shares of RPSG Ventures hit an upper circuit of 20 per cent during the early trading session on Friday, after the company returned to black in the quarter ended in June 2023 on a sequential (QoQ) basis, while it reported a strong performance in the quarter.

RPSG Ventures clocked a net profit of Rs 362.40 crore in the June 2023 quarer, surging more than 412 per cent on year-on-year (YoY) basis compared to a net profit of Rs 70.66 crore in the June 2022 quarter. The company had clocked a net loss of Rs 132.15 in the March 2023 quarter.

Revenue from the operations of the company surged about 18 per cent to Rs 2,296.06 crore for the April-June 2023 period, which was Rs 1,952.78 crore in the year ago period. Its revenue from operation stood at Rs 1,791.85 crore in the preceding March 2023 quarter.

Shares of RPSG Ventures hit an upper circuit of 20 per cent to Rs 669.15, hitting its new 52-week highs. However, it gave up some gains to trade at Rs 639 at 10.30 am. The company was commanding a total marketcap of more than Rs 1,885 crore. The stock had settled at Rs 557.65 on Thursday.

Operating profit of the RPSG Ventures came in at Rs 616 crore, with operating profit margins at 27 per cent. Earnings per share (EPS) of the company stood at Rs 51.84.

RPSG Ventures is a RPSG Group company, backed by Sanjiv Goenka. The company was demerged from CESC in 2018, wherein each shareholder of CESC was given 1 share of RPSG Ventures for every 5 shares held in CESC As part of the demerger, IT service operations of CESC were transferred to the company.

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RPSG Ventures owns and operates a diversified portfolio of businesses including information technology services, business process management (BPM), fast moving consumer goods (FMCG), Ayurveda formulations, real estate, sports and restaurants. All of its businesses are carried out through various subsidiary companies except for its IT services business.

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