Apollo Micro shares jump 7% after strong Q2 results

Shares of Apollo Micro Systems Ltd surged about 7 per cent during the trading session on Friday after the company approved and considered results for the September 2023 quarter. The company reported a strong performance in the given period on the back robust growth in the revenue. Apollo Micro Systems reported a 300 per cent rise in the consolidated net profit on a year-on-year (YoY) basis to Rs 6.56 crore in the September 2023 quarter. The company had reported a net profit at Rs 1.64 crore in the year-ago period. In the first quarter of current fiscal, its net profit stood at Rs 1.63 crore. Its revenue from operations surged more than 55 per cent YoY to Rs 87.16 crore for the second quarter of the ongoing financial year. Its revenue from operations stood at Rs 56.27 crore in the year-ago period, while at Rs 57.69 crore in the preceding June 2023 quarter. Following the announcement of quarterly results, Apollo Micro Systems gained about 7 per cent to Rs 120.45 on Wednesday, with a total market captialisation of more than Rs 3,050 crore. The scrip had settled at Rs 113.03 in the previous trading session on Thursday. Apollo Micro's net profit rose 67 per cent YoY to Rs 8.21 crore for the first half of the current financial year, from Rs 4.92 crore in the year-ago period. Revenue from operations jumped 33 per cent YoY to Rs 144.85 crore in April-September 2023 period from Rs 108.33 crore in the H1FY23. The company board considered and approved setting up of a defence equipment manufacturing facility in Hardware Park, Hyderabad. It also approved investment up to Rs 5 crore in plant and machinery for composite manufacturing, it said in the exchange filing. Incorporated in 1985, Apollo Micro Systems expanded into the design and development of systems and subsystems for electronic hardware and software for DRDO, DPSUs, and others. The Hyderabad-based defence player offers complete platform-level solutions, from the development stage to manufacturing, such as underwater mines, railways, automotive, and homeland security markets.