Netweb Technologies reports 9% decline in profit YoY for Q1 FY24; revenue down by 13%

Netweb Technologies on Sunday reported a year-on-year (YoY) decline of 9.2 per cent in profit at Rs 5.1 crore for Q1 FY2023-24. The company had recorded a PAT of Rs 5.6 crore in the corresponding quarter last year. 

The Faridabad-based company’s profit declined by 51.2 per cent on a quarter-on-quarter (QoQ) basis. Netweb Technologies reported a profit after tax of Rs 10. 5 crore in the last quarter of FY23. 

Company’s revenue also dipped by 13.2 per cent YoY to Rs 60.2 crore, they had reported a revenue of Rs 64.9 crore in Q1 of FY 2022-23. On a QoQ basis, the income fell by 51.7 per cent to Rs 60.2 crore from Rs 124.6 crore in the quarter ended March 31.

Its EBITDA has also declined by 4.6 per cent to Rs 9 crore for June quarter from the Rs 9.5 crore reported in the same quarter last year. But the EBITDA margin rose by 135bps to 15 per cent from the earlier margin of 13.7 per cent. 

Netweb Technologies have significantly decreased their net debt by 43.8 per cent to Rs 10.9 crore in Q! FY24 compared to Rs 19.4 crore debt in corresponding quarter last year. 

“Despite the decline observed in the current quarter, we maintain our confidence in achieving robust growth in the current financial year. It is worth noting that evaluating our business solely on a quarter-to-quarter basis might not provide a comprehensive understanding. An assessment based on the overall annual performance would offer a more accurate reflection of our progress,” said Sanjay Lodha, Chairman & MD of Netweb Technologies. 

“The combination of our robust pipeline, ongoing capability enhancements, new strategic partnerships, and expansion of our operations and product portfolio positions us well for sustainable growth while upholding our technological leadership,” he added. 

Lodha further said, “The recent notification from DGFT restricting import of Servers wef 1st November 2023 opens a window of opportunity for us, as it aligns with our “Make in India," driven growth potential. Growth of LLM models and massive adoption of AI across businesses augurs well for our growth.” 

Netweb is a leading advanced computing solutions provider which also offers a range of services including HPC, private cloud, AI systems, and more. They have a manufacturing facility in Haryana’s Faridabad and 16 offices across India. Netweb Technologies was listed on NSE and BSE in July 2023.