ESDS Software Solution share price was locked in at 5% lower circuit on Friday, after the company reported its Q1 results. The recently listed IT services stock was down 5% at Rs 1,757.65 apiece on the BSE.
The cloud and data-centre services company reported a net profit growth of 14% year-on-year (YoY) to Rs 29.3 crore in the first quarter of FY27. However, the company's net profit declined around 57% from Rs 67.7 crore in the previous quarter.
Revenue in Q1FY27 grew 7.3% YoY to Rs 133.7 crore but dropped 20.2% sequentially from Rs 167.5 crore in the March quarter.
In an exclusive interview with NDTV Profit, Piyush Somani, MD & CEO, Founder, ESDS Software Solution noted that Q1 is the weakest quarter in the whole fiscal year, and Q4 is always a strong quarter for the company.
Hence, he said that the company's business is not a quarterly business and one should look at a YoY comparison instead of QoQ.
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He expects the earnings to improve once AI clusters deliver and expects higher growth from international customers.
The company's order pipeline currently remains very strong, and it plans to install over 50,000 GPUs in the next one year.
However, Somani sees some delay in future contracts due to the shortage of GPUs, while there were no delays in the current orders.
He expects the company to show better performance from Q3 onwards.
ESDS Software Solutions Share Price Performance
ESDS Software Solutions shares made a strong debut on September 4 and has seen a significant rally since then. The stock was listed with over 76% premium at Rs 757 apiece against its IPO price of Rs 429 per share.
Despite today's fall, ESDS Software Solutions shares are up more than 300% from their issue price.
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