Netweb Tech locks in 5% upper circuit after profit shoots up 181% in Q4

The cloud services company, Netweb Technologies’s share gained and locked in 5 per cent upper circuit at Rs 1765.40 a piece on the BSE in Thursday intraday trade. A total of 8,222 stocks of the company changed hands on the BSE. In comparison the S&P BSE Sensex rose 0.30 per cent at 74,740 levels. 

This came after the company delivered a strong show in its January-March quarter results of financial year 2023-24 (Q4FY24) on Wednesday.

The company posted its highest ever quarterly income of Rs 269 crore, an increase of 116.5 versus Rs 126 crore reported in the corresponding quarter of the previous year. 

It posted Ebitda of Rs 44 crore, an increase of 170.6 per cent over Rs 16 crore in Q4FY23. Further the company’s Ebitda margin also improved by 328 basis points to16.4 per cent year on year (Y-o-Y) from 13.2 per cent in 

Profit after tax (PAT) came in at Rs 29 crore for the March quarter, a hike of  of 181.8 per cent Y-o-Y over Rs 10 crore reported in Q4FY23 with the PAT Margin improving to 11.0 per cent from 8.4 per cent in the year ago period. 

“We are delighted to announce that our company has achieved its highest-ever quarterly and annual income and profits. As stated earlier, AI systems are now clearly progressing towards becoming the third pillar of our growth. This is reflected by its revenue growing 2.6 times YoY, while its contribution to the company's total revenue has grown from 7 per cent in FY23 to 11 per cent in FY24, underscoring its importance as a significant revenue stream,” said  Sanjay Lodha, Chairman and Managing Director, Netweb Technologies. 

The company also announced a dividend of Rs 2 per share; subject to shareholders’ approval; which will result in a dividend pay-out of 14.9 per cent.

Netweb Technologies is a computing solutions (HCS) provider, with integrated design and manufacturing capabilities. It provides servers, storage, backup, and HPC solutions customised to business requirements.