DRC Systems India Limited, a leading IT solutions provider, has announced significant corporate actions following a board meeting. The company has approved a preferential issue of equity shares and the reappointment of three independent directors, subject to shareholder approval.

Preferential Issue to Raise Rs. 25 Crore

The board of DRC Systems India has given the green light for a preferential issue of 1 crore equity shares at Rs. 25.00 per share to Shiv Minechem. This move is set to raise Rs. 25.00 crore for the company. The equity shares, with a face value of Re. 1.00 each, will be issued at a premium of Rs. 24.00 per share.

Post-allotment, Shiv Minechem is expected to hold a 6.94% stake in DRC Systems India. This strategic investment could potentially bring new opportunities and resources to the company.

Reappointment of Independent Directors

In a move to maintain continuity in its governance structure, the board has approved the reappointment of three independent directors for second terms of five years each:

1. Mr. Keyur Jagdishchandra Shah
2. Mr. Jigar Pradipchandra Shah
3. Ms. Dipti Abhijeet Chitale

The reappointments are subject to shareholder approval. These directors bring experience in various fields, including corporate finance, merchant banking, insolvency resolution, and cross-cultural communication.

Increase in Authorized Share Capital

To accommodate the new share issuance, the board has approved an increase in the company's authorized share capital. The capital will be raised from Rs. 15.00 crore to Rs. 17.50 crore through the creation of an additional 2.5 crore equity shares of Re. 1.00 each.

Annual General Meeting

DRC Systems India has scheduled its 13th Annual General Meeting (AGM). The meeting will be conducted through video conferencing or other audio-visual means, in line with modern corporate practices.

These corporate actions reflect DRC Systems India's efforts to strengthen its financial position and maintain strong corporate governance. The preferential issue could provide the company with additional capital for growth initiatives, while the reappointment of experienced independent directors aims to ensure continued strategic guidance.

DRC Systems India Limited , a leading IT services and consulting firm, has reported strong financial results for the first quarter, demonstrating robust growth across key metrics.

Financial Highlights

The company's consolidated revenue from operations surged by 19% year-on-year to INR 1,829.20 lakhs for the quarter. This impressive growth was accompanied by a 23% increase in EBITDA, which reached INR 649.20 lakhs, with margins holding steady at 35%.

Net profit for the quarter rose by 13% year-on-year to INR 434.70 lakhs, maintaining a healthy net margin of 24%. The company's profit before tax (PBT) stood at INR 489.20 lakhs, marking a 13% increase compared to the same quarter last year and a 4% improvement sequentially.

Key Financial Metrics (Consolidated)

Strategic Developments

A significant highlight of the quarter was DRC Systems securing a prestigious Learning Experience Platform (LXP) development project from the National Payments Corporation of India (NPCI). This project will be executed in phases and includes:

• AI-enabled LXP
• Mobile application
• Advanced coding platform for assessment and practice
• Seamless integration with global learning platforms like Udemy and O'Reilly Media

This win reinforces DRC's leadership in digital transformation and enterprise learning solutions, while supporting NPCI in building a future-ready, digitally skilled workforce.

Management Commentary

Mr. Hiten Barchha, Managing Director of DRC Systems India Limited, commented on the results: "The first quarter highlighted our strategic positioning, supported by strong opportunities in the domestic market. We are seeing encouraging demand pickup in the Middle East and the USA. Our early decision to diversify into the domestic market, especially in government and allied sectors, has proven timely and effective."

Innovation and Technology Investments

DRC Systems continues to invest in next-generation technologies, with a focus on blockchain and artificial intelligence. The company has already deployed several new products leveraging these capabilities with select clients, underscoring its commitment to enhancing client value through innovation.

Outlook

With a strong start to the fiscal year, DRC Systems is delivering consistent growth across key financial metrics. The company maintains a robust pipeline and is experiencing increasing demand across geographies. Management remains focused on operational discipline and is actively pursuing additional large-scale contracts in the government sector.

DRC Systems India Limited operates across three countries, serving clients globally with a team of approximately 200 employees. The CMMI Level-3 accredited company is listed on both the BSE and the NSE in India.