Black Box shares hit upper circuit after strong Q2 performance

Shares of Black Box Ltd hit an upper circuit during the trading session on Monday after the company announced a strong set of performance in the September 2024 quarter. The IT solutions provider announced its results for the Q2FY25 and H1FY25 during the trading hours for the day.

Black Box reported a net profit of Rs 51 crore in the second quarter ended September 30, 2024, registering a rise of 60 per cent on a year-on-year (YoY) basis. The net profit stood at Rs 32 crore in the year-ago period. On a sequential (QoQ) basis, the net profit rose 38 per cent from Rs 37 crore in the June 2024 quarter.

The company's revenue from operations dopped 5 per cent YoY to Rs 1,497 crore Q2FY24, which was at Rs 1,574 in the year-ago period. Ebitda for the quarter rose 34 per cent YoY to Rs 135 crore, which stood at Rs 101 crore in the same quarter previous year. Ebitda and revenue rose 18 per cent and 5 per cent respectively on a QoQ comparison.

Following the announcement of Q2 results, shares of Black Box rose 5 per cent to Rs 566.40, locked in the buyer's circuit limit, commanding a total market capitalisation (m-cap) of more than Rs 9,500 crore. The scrip had settled at Rs 539.45 in the previous trading session on Friday.

Ebitda margins for the quarter improved nearly 260 basis points (bps) to 9 per cent for the quarter, which was 6.4 per cent in the year ago period. Similarly, PAT margins spiked 140 bps to 3.4 per cent for the quarter from 2 per cent in the year ago period, the company's statement said.

Black Box is a global digital infrastructure integrator delivering network and system integration services and solutions, support services, and technology products to businesses in the United States, Europe, India, Asia Pacific, the Middle East, and Latin America and has around 4,000 professionals globally.

Black Box has strong service offerings in network integration, digital connectivity infrastructure, data center build-out, modern workplace, and cybersecurity for businesses across various industries including financial services, technology, healthcare, retail, public services like airports; manufacturing, and other sectors.