MUNICH (dpa-AFX) - The IT service provider Nagarro has made noticeable gains in the first quarter and confirmed its forecast for the year as a whole. "We assume that with growing confidence in the economy, the opportunities for transformative work with our customers will also increase," said CEO Monika Gupta. Nagarro shares rose sharply on Tuesday.

The IT service provider's shares rose by almost 17 percent to 84.60 euros in the morning, significantly curbing their year-to-date loss. In an initial reaction, analyst Martin Comtesse from Jefferies emphasized the good improvement compared to the previous quarter - both in terms of sales and profitability. Despite customers remaining cautious, the outlook was confirmed.

The SDax-listed company announced in Munich on Tuesday that turnover rose by 3.8% to 238.3 million euros in the first quarter compared to the same period of the previous year. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) climbed by almost a quarter to 39.2 million euros. The corresponding margin increased from 13.7 to 16.4 percent. At the bottom line, Nagarro earned just under ten percent more at 16.6 million euros.

After lowering its forecast several times last year, Nagarro expects business to improve in 2024. In the current year, the management is still targeting sales in the region of one billion euros at constant exchange rates. The operating margin is expected to be around 14% and should improve to 18% by 2026. The IT service provider had previously felt the effects of weak capacity utilization and cut jobs./niw/ngu/jha/