Netweb Technologies India (NETWEB) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly income and PAT in Q3 FY25, with nine-month operating income up 60.3% YoY to ₹7,344 million and PAT up 54.6% YoY to ₹715 million.

• AI segment contributed 14.7% of nine-month FY25 operating revenue, growing 136.3% YoY; exports accounted for up to 9.0% of revenue.

• Endorsed by NVIDIA CEO at AI Summit 2024 for AI GPU systems; OEM partnership with NVIDIA for Blackwell platform.

• Unaudited standalone financial results for Q3 and 9M FY25 were approved and reviewed with no material misstatements.

• Strong business pipeline and robust order book, with ongoing capability enhancements and product expansion supporting sustained growth.

Financial highlights

• Q3 FY25 operating income: ₹3,340 million; PAT: ₹303 million; EPS: ₹5.38.

• 9M FY25 operating EBITDA: ₹1,002.5 million (margin 13.7%); PAT margin at 9.6%.

• Net worth as of Dec'24: ₹4,874.6 million; net debt: -₹737.2 million (net cash position); cash conversion cycle improved to 88 days.

• Return on equity at 20.9% and return on capital employed at 28.2% as of December 2024.

• Earnings per share (basic) for Q3 FY25 was ₹5.38, compared to ₹4.77 in Q3 FY24.

Outlook and guidance

• Medium-term revenue growth guidance maintained at 30%-35% CAGR; EBITDA margin expected to remain around 14%.

• Strong business pipeline with ₹38,149 million in pipeline, ₹3,481 million in L1, and ₹3,603 million in order book as of Dec'24.

• Export revenue expected to be 10%-11% of total sales in the next year, with similar margin profile to domestic business.

• Expansion into Europe and Middle East planned, with new service networks in four countries.

• No near-term absolute revenue guidance; focus remains on sustainable long-term growth.