Netweb Technologies Q3 2024 Results :Income Grows by 44% & PAT Grows by 20% YoY

Delhi, India :

• Netweb Technologies India Limited (Netweb), a leading Indian-owned and controlled Original Equipment Manufacturer (OEM) specializing in High-End Computing Solutions (HCS), has unveiled its financial results for the third quarter of Fiscal Year 2023-24 (Q3 FY24). The Board of Directors of Netweb, in a meeting held on January 23, 2024, officially acknowledged and approved the Unaudited Financial Results for this quarter.
• Netweb stands out by offering a comprehensive range of products and solutions catering to diverse end-user industries, including Information Technology (IT), IT-enabled Services (ITES), Banking, Financial Services and Insurance (BFSI), National Data Centers, and Government entities such as Defense, Education, and Research and Development (R&D) Institutions.

Key Highlights in Q3 FY 24:

•  Total Income:
  – Achieved the highest-ever quarterly income at ₹2,579 million, marking a robust growth of 44.3% compared to Q3 FY23.
• Gross Profit:
  – Recorded a Gross Profit of ₹551 million, reflecting a substantial increase of 20.2% over Q3 FY23. The Gross Margin for Q3 FY24 stood at 21.8%.
•  EBITDA:
  – Attained the highest-ever quarterly EBITDA at ₹388 million, showcasing a notable 23.9% increase over Q3 FY23. The EBITDA margin for Q3 FY24 reached 15.0%.
•  PAT (Profit After Tax):
  – Achieved an all-time high quarterly PAT of ₹260 million, displaying a commendable 20.0% increase over Q3 FY23. The PAT Margin for Q3 FY24 was recorded at 10.1%.
• Net Debt:
  – Demonstrated significant improvement in net debt, reaching ₹(183) million compared to ₹284 million in Dec’22.

Q3 Results Highlights:

• The Total Income for Q3’FY24 exhibited a substantial growth, surging by 44.3% year-over-year (YoY) and an impressive 74.3% quarter-over-quarter (QoQ), reaching ₹2,579 million. Notably, there was a noteworthy increase of approximately 340% YoY in the revenue generated from the AI Systems and Enterprise Workstations Segment.
• The Gross Profit for the quarter stood at ₹551 million, reflecting a year-over-year (YoY) growth of 20.2% and a quarter-over-quarter (QoQ) increase of 40.8%. However, the Gross Profit Margin experienced a decline, settling at 21.8%, compared to 25.7% in the corresponding quarter of the previous year.
• The Gross Profit Margin for business is best assessed on an annual basis, given involvement in the high-end compute segment where margins can fluctuate from quarter to quarter. For the 9 months ending in December 2023, the Gross Profit Margin stood at 25.4%.
• The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter witnessed a notable increase, growing by 23.9% on a year-over-year (YoY) basis to ₹388 million. Additionally, on a quarter-over-quarter (QoQ) basis, EBITDA experienced a substantial increase of 74.2%.
• The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin for the quarter stood at 15.0%. The Profit After Tax (PAT) for the quarter demonstrated a solid performance, increasing by 20.0% year-over-year (YoY) and an impressive 71.8% quarter-over-quarter (QoQ), reaching ₹260 million. The PAT margin for the quarter was recorded at 10.1%.