Will Dev IT’s Strategic Partnership with XDuce Help Accelerate Growth in North America?

Synopsis: Dev Information Technology Limited has informed stock exchanges about a strategic alliance with XDuce to accelerate its growth in North America by strengthening market presence and scaling advanced digital services

The shares of this IT company majorly engaged in the business of providing IT enabled services in the domestic as well as the international market were in focus after making strategic partnership with XDuce to optimize and expand operations.

With the market capitalization of Rs. 199 Crores, the shares of Dev Information Technology Ltd were trading at around Rs. 35.6 which is 52 percent discount from its 52 weeks high of Rs. 75.6 and is trading at a P/E of 29.5 whereas industry P/E stands at 32.3 

How will this partnership help? 

Dev Information Technology has entered into an alliance with XDuce to strengthen its business in North America and improve how it serves clients in the US and Canada. This partnership helps Dev IT reach customers faster, build a stronger local presence, and handle larger and more complex projects by improving its delivery capabilities. It also supports the company’s focus on areas like AI, cloud, data, and cybersecurity, where client demand is growing. 

At the same time, Dev IT will continue to operate under its current leadership, which helps ensure smooth operations and consistency as the alliance moves forward. Overall, the tie-up is aimed at steady, long-term growth by combining market access with better execution rather than chasing short-term gains.

About the Company and Financials: 

Dev IT offers a wide range of services such as cloud services, digital transformation, enterprise applications, managed IT services, and application development, helping businesses improve their technology systems and day-to-day operations. Headquartered in Ahmedabad, DEV IT has offices across multiple Indian states and in Canada, giving it a presence in both domestic and overseas markets. 

It also offers products like Talligence, an analytics platform, and ByteSigner, a digital signing solution, which add to its service offerings. The company follows a client-focused approach and works closely with customers to understand their needs and deliver practical solutions. In FY25, DEV IT reported total income of Rs. 183.91 crore, EBITDA of Rs. 23.72 crore, and net profit of Rs. 14.78 crore, showing stable financial performance while continuing to focus on long-term growth in the IT services space.

Year on Year analysis: Revenue from operations has increased from Rs. 36 Crores to 49 Crores, up 36 percent. Operating profit has turned into profit of Rs. 3 Crores from operating loss of Rs. 1 Crore and net profit has increased from Rs. 8 Crores to Rs. 72 Crores, up 800 percent mainly due to sale of exceptional items. 

Quarter on quarter analysis: Revenue from operations has increased from Rs. 43 Crores to Rs. 49 Crores, up 13 percent. Operating profit has decreased from Rs. 4 Crores to 3 Crores, down 25 percent and net profit has increased from Rs. 2 Crores to Rs.  72 Crores, up 3500 percent mainly due to the sale of exceptional items. 

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