Shares of Netweb Technologies Ltd hit an upper circuit during the trading session on Thursday after the company reported a strong set of numbers in the March 2024 quarter. The company announced its earnings on Wednesday, May 1, when stock markets were closed on the account of Maharashtra Day.
Netweb Technologies posted a nearly three-fold jump in its net profit to Rs 29.66 crore in the quarter ended on March 31, 2024, on account of a boom in demand for artificial intelligence-based solutions. The company had posted a net profit of Rs 10.52 crore in the same period a year ago.
The domestic computer server maker’s revenue from operations grew 115.48 per cent to Rs 265.80 crore in the March 2024 quarter, compared to a bottomline of Rs 123.39 crore in the year ago period. The company also reported its highest ever quarterly Ebitda at Rs 44.4 crore, up 170.6 per cent YoY, with Ebitda margins coming in at 16.4 per cent for the quarter.
Following the announcement, shares of Netweb Technologies surged 5 per cent, locked in the upper circuit limit, to Rs 1,765.40 on Thursday. The total market capitalization of the company stood at Rs 9,950 crore. The scrip had settled at Rs 1,681.35 in the previous trading session on Tuesday.
Shares of Netweb Technologies were listed at the bourses in July 2023, when the company raised a total of Rs 631 crore via its primary offering by selling its shares for Rs 500 apiece. The stock has zoomed more than 250 per cent from its issue price in just nine months of listing.
For the entire financial year 2023-24, the company’s total income grew 65.1 per cent to Rs 736 crore, while net profit rose 61.7 per cent to Rs 75.9 crore. Netweb’s Ebitda stood at Rs 114.4 crore, up 61.8 per cent YoY for FY24, with Ebitda margins of 15.5 per cent for the entire fiscal.
The company’s order book stood at Rs 411.2 crore as of March 31, 2024, while it is expanding with its latest surface mount technology facility, which is to be commissioned in the first quarter of FY25. The company onboarded 171 new clients in FY24 while its income from AI systems has grown about 2.6 times YoY, and is now over 11 per cent of operating income.
Netweb Technologies designs, manufactures and deploys HCS comprising proprietary middleware solutions, end-user utilities, and precompiled application stack. It develops homegrown compute and storage technologies, and deploys supercomputing infrastructure to meet demands of businesses, academia, and research organizations.
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