Netweb Technologies India (NETWEB) Q1 24/25 earnings summary

Executive summary

• Inaugurated a new state-of-the-art manufacturing facility in Faridabad in May 2024, enhancing capabilities in high-end computing systems and supporting the Make in India initiative.

• AI systems contributed 14.6% of operating revenue in Q1 FY25, growing 146% year-over-year.

• Achieved 149.7% year-over-year revenue growth in Q1 FY25, reaching ₹1,493.2 million, with PAT up 203.4% to ₹154.4 million and PAT margin improving to 10.1%.

• Robust business pipeline and order book of ₹4,197 million as of June 30, 2024, positioning for sustained growth.

• Unaudited financial results for the quarter ended June 30, 2024, were approved and published, with statutory auditor's limited review confirming no material misstatements.

Financial highlights

• Operating revenue grew by 149.7% year-over-year to ₹1,493.16 million in Q1 FY25.

• Operating EBITDA increased by 131.8% year-over-year to ₹200 million, with a margin of 13.4%.

• Profit after tax rose by 203.4% year-over-year to ₹154.44 million; PAT margin improved to 10.1%.

• PBT rose 204.2% year-over-year to ₹206.9 million; EPS increased 177.5% to ₹2.74.

• Cash conversion cycle improved to 129 days from 159 days year-over-year.

Outlook and guidance

• Maintains 30%-35% CAGR revenue growth guidance for the next two to three years, supported by a strong order book and pipeline.

• Expects continued momentum in AI, private cloud, and HPC, with new product launches and government AI initiatives providing further tailwinds.

• New manufacturing unit (Surface Mounted Technology Line) commenced commercial production on May 10, 2024, supporting future growth.