Netweb Technologies reiterates FY24 revenue, gross margin guidance
Chairman and Managing Director, Sanjay Lodha, said Netwebs, a provider of server, storage, and high-performance computing (HPC) solutions, is on track to achieve gross margin guidance of 25-26% and revenue growth of 40% for the financial year 2024 (FY24).
New Delhi-based Netweb Technologies, a leading provider of server, storage, and high-performance computing (HPC) solutions, reported a robust set of earnings for the third quarter of the current financial year.
The profit after tax for the quarter grew 20% year-on-year (YoY) to ₹26 crore from ₹21.68 crore in the same quarter last year. Revenue was at ₹257.91 crore, over 44% higher than ₹178.69 crore in Q3 last year. Earnings before interest, tax, depreciation, and amorisation (EBITDA) was around ₹39 crore, up 24% YoY. But margin contracted 248 basis points to 15%. One basis point is one hundredth of a percentage point or 0.01%.
In a post-earnings call with CNBC-TV18, Sanjay Lodha, the CMD of Netweb Technologies, discussed the earnings guidance for the rest of the year. He expects gross margins at 25-26% for FY24, while reiterating the 40% revenue growth target for the year.
"Our PAT has remained consistent at 10%, as per our earlier indications. We have consistently communicated that our gross margins would hover around 25-26%. Even in Q1 (first quarter), despite a margin of 37%, we forecast that the normal margins would stabilise at 25-26%," he noted.
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Netweb Technologies recently secured a fastest supercomputer order from the Indian Space Research Organisation's (ISRO's) Department of Space valued at ₹150 crore. The total order book now stands at ₹330 crore, Lodha had stated after making the announcement.
Elaborating on the challenges of quarter-on-quarter evaluations, Lodha highlighted the unpredictable nature of orders and projects. He emphasised that variations in margins over short periods are not a cause for concern, reassuring stakeholders that the company is on track to maintain the projected gross margin.
The market capitalisation of Netweb Technologies is ₹7,648 crore. The stock has gained nearly 57% over the past year.
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(Edited by : Shweta Mungre)
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