Black Box (500463) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was Rs1,423.38 crore, down 9% YoY, amid delayed customer decisions and project execution, muted product demand and exits from low-value customers.

• EBITDA rose 28% to Rs115 crore and net profit increased 55% to Rs37.09 crore as margins improved.

• The $475M order book and growing pipeline supported confidence in FY25 guidance.

Financial highlights

• Consolidated revenue was Rs1,423.38 crore versus Rs1,571.41 crore in Q1 FY24; gross profit rose 5% YoY to Rs439 crore.

• EBITDA increased 28% YoY to Rs115 crore from Rs89 crore; EBITDA margin was 8.1%, up 240 bps.

• Net profit was Rs37.09 crore versus Rs23.94 crore; profit before exceptional items and tax rose to Rs55.51 crore from Rs31.46 crore.

• FY24 revenue was Rs6,282 crore, EBITDA Rs428 crore and PAT Rs138 crore.

Outlook and guidance

• FY25 revenue guidance was Rs6,600–6,900 crore, normalized EBITDA Rs525–560 crore and PAT Rs220–250 crore; management reaffirmed its guidance.

• Management expects H2 to be significantly stronger than H1 and is targeting a 9% EBITDA margin exit rate.

• Growth drivers include deeper share of wallet among top customers, new large-client additions and selective inorganic opportunities.

• Long-term aspiration is $2B revenue within four years, with organic growth expected to take revenue from an ~$800M run rate to $1.2–1.3B.