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.
Read Here | Netweb Technologies jumps 10% on collaboration with NVIDIA for AI and high-performance computing
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.
Also Read | Cyient DLM reports highest ever revenue in a quarter, but shares cool off from day's high
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Gonda Lok Sabha election: BJP's Kirti Vardhan Singh takes on Beni Prasad Verma's granddaughter Shreya
May 19, 2024 10:19 PM
Faizabad Lok Sabha election: Can Ayodhya Ram Temple strengthen BJP's stronghold here?
May 19, 2024 10:16 PM
Amethi Lok Sabha election: Can BJP's Smriti Irani retain the Congress bastion she won in 2019?
May 19, 2024 10:12 PM
Rae Bareli Lok Sabha Election: Can Rahul hold on to this Gandhi family bastion?
May 19, 2024 10:09 PM