The latest results also have been undoubtedly impressive. For the second quarter, the total revenue of Rs 50.32 crore represented a 17 per cent growth over the corresponding period's revenue figure. The operating profit reported was Rs 6.53 crore, which was up from Rs 3.25 crore in the corresponding period last year. At the same the time, net profit has risen from Rs 2.37 crore to Rs 3.21 crore, a growth of over 35 per cent, netting an annualised EPS of Rs 8.50. Growth in net profit was lower mainly on account of lower other income. In the corresponding period, other income was Rs 2.49 crore.

This year, the figure was just Rs 0.04 crore; thus tremendously improving the quality of earnings. If one were to compare the figures in the preceding quarter, the income has grown by 12 per cent. Growth in net profit, however, has been a substantial 76 per cent. The prime reason for a sustained profit growth has been a focus on higher value services, in what is considered to be a competitive and difficult operating environment. It has not only ensured strong revenue growth but also provided a major boost to profit margins which is reflected in the first and the second quarter's results.

Besides improving the quality of earnings. The company has now entered into a regional service participation agreement with the French Express which has resulted in expansion of its network to over 520 locations in southern India. The company also entered into other strategic tie-ups, which will enhance its market presence further.

As for the scrip performance, the improved financial performance has been factored in to a very large extent. The stock has raced up by over 80 per cent since the beginning of the current financial year, when the market first became aware of the turnaround and growth potential. The stock raced up to Rs 172 from Rs 95, before reacting a little and settling at 130.

Except for this technical correction in the last few weeks, the stock has managed to maintain a major uptrend. The stock is yet to break any important level, which could possibly signal a reveral or a break in uptrend. In the short-run, the support exits at Rs 89, and a dip below would weaken its short-term outlook. On the upper side, it is unlikely that it will have to face any major resistance.