 "Black Box reports 59% increase in profit amid revenue dip in Q2FY25")
Black Box, the Essar Group’s IT arm, has reported a 59.3 per cent rise in its consolidated net profit for the second quarter of financial year 2025 (Q2FY25), an impressive showing which the digital infrastructure firm attributed to improved operating leverage and cost efficiency efforts. And it comes amid a slight dip in revenue for Q2FY25.
The digital infrastructure firm’s net profit was recorded at Rs. 51.14 crore for Q2FY25 against Rs 31.96 crore for the same quarter previous year.
Revenue from operations dipped 4.8 per cent to Rs 1497.23 crore for Q2FY25, compared with Rs 1,574.35 crore in the corresponding period last year due to delayed project execution and longer decision-making cycles.
Expenses decreased 7.2 per cent to Rs 1,425.16 crore for Q2FY25, compared with Rs 1536.08 crore in the previous year.
The company has initiated strategic changes, with a new Go-To-Market (GTM) business strategy focusing on select industry verticals, aiming for deeper customer engagement and accelerated revenue growth from FY26. This approach is aligned with the company’s plans to capitalise on AI-driven demand for data centre solutions across its global footprint.
“As we re-architecture our GTM, we will see further improvement in our operating performance, higher profitability and improved cash flows,” said Deepak Kumar Bansal, Executive Director, Global Chief Financial Officer, Black Box.
“At Rs 51 crore of PAT in Q2FY25 we are already at a run-rate of above Rs 200 crore of PAT and are hopeful to achieve our full year FY25 profitability targets,” he said.
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Black Box’s Ebitda margin for Q2FY25 was recorded at 9 per cent, up from 6.4 per cent in the corresponding period last year.
Black Box’s restructuring efforts, along with a renewed focus on its top 300 clients, are expected to drive growth and strengthen the company’s operational efficiencies.
“A focused approach to targeting premium customers will lead to deeper engagement with our clients making us among the preferred digital infrastructure solutions provider globally,” said Sanjeev Verma, Whole Time Director, Black Box.
The company holds an order book valued at $455 million as of September 2024, and recently secured Rs 386 crore in funding to bolster its balance sheet, positioning it for future investments and expanded market reach.