Shares of Netweb Technologies Ltd slipped 11% in early deals on Monday after the IT firm reported its Q3 earnings. The firm reported a 16.56 percent rise in profit to Rs 30.32 crore in the third quarter ended December 31, 2024, led by demand for artificial intelligence-related projects. The firm posted a profit of Rs 26 crore in the same period a year ago.
The stock slipped 10.82% to Rs 2085.60 on Monday against the previous close of Rs 2338.85 on BSE. Market cap of the firm fell to Rs 12,116 crore. The company announced its earnings on January 18, 2024.
Revenue from operations climbed about 32 percent to Rs 334 crore in the previous quarter from Rs 253.4 crore in the December quarter of the last fiscal.
"We are delighted to report that we recorded our highest quarterly Income and PAT. In line with our growth strategy, export revenue contribution stood at 9.0 percent in Q3 FY25, reflecting our efforts to expand the international market presence and capitalize on global opportunities," Netweb Technologies chairman and managing director, Sanjay Lodha said in a statement.
He said India's flourishing AI research ecosystem, supported by government initiatives and industry partnerships, presents immense innovation potential.
The company also reported a 28.3% growth in EBITDA at Rs 439.4 crore against Rs 342.5 crore in the December 2023 quarter.
EBITDA margins came at 13.2 per cent for the quarter.
Shares of Netweb Technologies listed on the bourses in July 2023 after the company raised a total of Rs 631 crore via its IPO at an issue price of Rs 500 apiece. The stock had zoomed more than 250 per cent from its issue price in just nine months of listing.
Netweb Technologies designs, manufactures and deploys HCS comprising proprietary middleware solutions, end-user utilities, and precompiled application stack. It develops homegrown compute and storage technologies, and deploys supercomputing infrastructure to meet demands of businesses, academia, and research organizations.