Netweb Technologies zooms 10%, hits all-time high on stellar Q2 show

Netweb Technologies shares hit an all time high of Rs 2,949.65 per share on the BSE, climbing 10 per cent in Monday’s intraday trade. The stock price jumped after the company's stellar show in its topline as well as bottomline growth in the quarterly earnings for the second quarter of financial year 2024-25 (Q2FY25).

The company reported total income of Rs 253.1 crore for Q2 FY25, reflecting a year-on-year growth of 71.0 per cent compared to Q2 FY24. Earnings before interest, tax, depreciation and amortisation (Ebitda) reached Rs 37.8 crore, marking an increase of 69.7 per cent over the same period, with an Ebitda margin of 14.9 per cent. 

The profit after tax (PAT) stood at Rs 25.7 crore, also up 69.8 per cent year-on-year, resulting in a PAT margin of 10.2 per cent. 

The company's order book totaled Rs 369.7 crore as of September 2024, compared to Rs 217.4 crore as of September 2023. As of September 2024, the company’s net debt was reported at Rs (66.39) crore.

Notably, income from AI Systems experienced significant growth, increasing by 229 per cent year-on-year, and its contribution to the company's operating revenue rose to 14.8 per cent in the September quarter.

“With India's AI research ecosystem thriving through government initiatives and industry partnerships, the potential for innovation is immense. Netweb is well-positioned to harness these opportunities. Our strategic focus on three pillars—HPC, Private Cloud, and AI—keeps us at the forefront of technological evolution. AI has rapidly become a pivotal contributor to our revenue, growing its share to 15 per cent in H1FY25, with a 193 per cent Y-o-Y increase,” said  Sanjay Lodha, chairman and managing director, Netweb Technologies

Netweb Technologies share price history

The company’s stock has outperformed the market year to date as it has risen 133.5 per cent, while gaining 211.1 per cent in the last one year. In comparison BSE Sensex has risen 12.3 per cent year to date and 24.1 per cent in a year. 

The company has a total market capitalisation of Rs 15,534.69 crore. Its shares are trading at a price to earnings multiple of 175.23  times and at an earning per share of Rs 15.30. 

At 12:03 PM, the stock price of the company pared most of its gains and was trading 2.97 per cent higher at Rs 2761.10 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.28 per cent to 80,997.45 level.

Headquartered in New Delhi, Netweb Technologies, a provider of server, storage, and high-performance computing (HPC) solutions operates from across 15 offices in India.