Netweb Tech rises after Q2 PAT climbs 70% YoY to Rs 26cr

Revenue from operations jumped 73.17% YoY to Rs 251.06 crore during the quarter.

Total income soared 71.02% to Rs 253.11 crore during the quarter as compared with Rs 148 crore in corresponding quarter last year.

Profit before tax (PBT) stood at Rs 34.46 crore in Q2 FY25, up 70.51% as compared with Rs 20.21 crore in Q2 FY24.

Total expense jumped 71.08% year on year to Rs 218.64 crore during the quarter. Cost of materials consumed was at Rs 228.70 crore (up 124.46% YoY) while employee benefits expense stood at Rs 15.90 crore (up 11.5% YoY) during the period under review.

EBITDA advanced 69.71% year on year to Rs 37.76 crore in the quarter ended 30 September 2024. EBITDA margin reduced to 14.9% as compared to 15% registered in Q2 FY25.

Sanjay Lodha, chairman and managing director of Netweb Technologies, said, 'We are delighted to report that our Total Income rose by 71.0% YoY for Q2 FY25 and by 95.0% YoY for H1 FY25, reaching Rs 2,531.1 Mn in Q2 FY25 and Rs 4,061.2 Mn in H1 FY25.

With India's AI research ecosystem thriving through government initiatives and industry partnerships, the potential for innovation is immense. Netweb is well-positioned to harness these opportunities. Our strategic focus on three pillars HPC, Private Cloud, and AI keeps us at the forefront of technological evolution.

AI has rapidly become a pivotal contributor to our revenue, growing its share to ~15% in H1 FY25, with a YoY growth of 193%. Fuelled by innovation, this strong growth highlights AI's role as a cornerstone of our business strategy and our future growth.

Our business pipeline and order book remain strong. We're pleased to state that we have started receiving export orders and this aligns with our growth strategy to enter overseas markets. Continuous improvements in our capabilities, along with the expansion of our operations and product range, position us well for ongoing growth while maintaining our technological leadership.'

Netweb is a high-end computing solutions (HCS) provider, with fully integrated design and manufacturing capabilities. Its HCS offering comprises HPC, private cloud and (HCI), AI systems and enterprise workstations, high performance storage (HPS) and data centre servers.