Black Box (500463) Q3 23/24 earnings summary

Executive summary

• 9MFY24 revenue rose 4% YoY to Rs 4,801.23 crore, while EBITDA increased 75% to Rs 306 crore and net profit reached Rs 96.77 crore.

• Q3FY24 revenue was Rs 1,655.47 crore, up 5% QoQ; EBITDA margin expanded to 7.0% and net profit rose to Rs 40.87 crore from Rs 7.79 crore.

• Customer decision delays tempered order conversion and growth, but management cited a strong pipeline and expected double-digit growth in FY25.

Financial highlights

• Q3FY24 revenue from operations was Rs 1,655.47 crore versus Rs 1,671.71 crore YoY; 9MFY24 revenue was Rs 4,801.23 crore versus Rs 4,605.64 crore.

• Q3FY24 EBITDA was Rs 116 crore, up 62% YoY and 15% QoQ; 9MFY24 EBITDA was Rs 306 crore, up 75% YoY.

• Q3FY24 net profit was Rs 40.87 crore versus Rs 7.79 crore; 9MFY24 net profit was Rs 96.77 crore versus Rs 0.60 crore.

• Q3FY24 EBIT was Rs 97 crore, up 83% YoY; 9MFY24 EBIT was Rs 240 crore, up 101% YoY.

• Q3FY24 PBT was Rs 51.70 crore versus Rs 15.20 crore; 9MFY24 PBT was Rs 109.50 crore versus Rs 10 crore.

Outlook and guidance

• FY24 targets were revenue of Rs 7,000–7,500 crore, normalised EBITDA of Rs 400–450 crore and PAT of Rs 140–175 crore; management expected profitability trends to continue.

• Management expected double-digit FY25 growth, supported by a robust pipeline and anticipated easing of enterprise customer delays; formal FY25 guidance was to follow near the fiscal-year start.

• The near-term EBITDA margin ambition was 10%, supported by improved deal margins, cost agility, productivity and revenue scale.

• Growth priorities included deeper customer penetration, new client additions, operating efficiency and selective inorganic opportunities.