Netweb Technologies shares hit 5% upper circuit on robust profit, revenue in fourth quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Netweb Technologies shares jumped 5% to hit the upper circuit limit of ₹1,765.4 apiece on the BSE after the company reported multi-fold jump in its net profit to ₹ 29.6 crore in the three months ended March 2024.

The strong growth in net profit was aided by heightened demand for artificial intelligence-driven solutions. The rise marks a nearly three-fold surge from the net profit of ₹10.5 crore recorded in the corresponding period a year ago.

The domestic manufacturer of computer servers also posted 115% year-on-year growth in revenue at ₹265.88 crore during the fourth quarter ended March 31, 2024, from ₹123.39 crore in the same period in the preceding fiscal. On a quarter-on-quarter (QOQ) basis, the revenue rose by 4.9%.

The company’s earnings before interest taxes, depreciation and amortisation (EBITDA) margin witnessed an uptick of 170 basis points (bps) from the previous quarter and 300 bps from the same period in the previous year.

Notably, the contribution of AI systems revenue soared to 11%, up from 7% in the previous fiscal year, signalling its growing importance as a key revenue driver, Netweb Technologies Ltd said in a stock exchange filing.

In FY24, Netweb Technologies experienced a remarkable revenue surge of 62.7%, accompanied by a slight decline of 160 bps in EBITDA margin to 14.2%.

The company’s order book in FY24 stood at ₹411.2 crore compared to ₹71.2 crore on March 31, 2023.

Additionally, the company is set to enhance its manufacturing capabilities with a state-of-the-art facility featuring the latest Surface Mount Technology, scheduled to be operational in the first quarter of this fiscal.

Customer acquisition remained robust, with Netweb Technologies onboarding 171 new clients in the 2023-24 fiscal year, underscoring its commitment to expanding its client base and market reach.

“We are delighted to announce that our company has achieved its highest-ever quarterly and annual income and profits. As stated earlier, AI systems are now clearly progressing towards becoming the third pillar of our growth. This is reflected by its revenue growing 2.6 times YoY, while its contribution to the company’s total revenue has grown from 7% in FY23 to 11% in FY24,” Sanjay Lodha, Chairman and Managing Director, Netweb Technologies, said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow