Netweb Technologies India (NETWEB) Q2 24/25 earnings summary

Executive summary

• Operating revenue for H1 FY25 grew 95.5% year-on-year to ₹4,004 million, with PAT doubling to ₹412 million year-on-year.

• AI segment revenue share rose to 15% in H1 FY25, up 193% year-on-year.

• Commissioned a new high-end computing server, storage, and switch manufacturing facility, enhancing Make in India capabilities.

• Began receiving export orders, targeting Europe and Middle East, with margins similar to domestic business.

• Unaudited standalone financial results for the quarter and half year ended September 30, 2024, were approved and reviewed by the Board and auditors.

Financial highlights

• Q2 FY25 operating income increased 73.2% year-on-year to ₹2,511 million; H1 FY25 operating income up 95.5% to ₹4,004 million.

• Q2 FY25 operating EBITDA rose 85.7% year-on-year to ₹357 million; H1 FY25 operating EBITDA up 100.6% to ₹559.1 million.

• Q2 FY25 PAT grew 69.8% year-on-year to ₹257 million; H1 FY25 PAT up 103.4% to ₹412 million.

• EPS for H1 FY25: ₹7.3; CEPS: ₹8.2.

• Net worth as of Sep'24: ₹4,559.7 million; net debt: -₹663.9 million (net cash position).

Outlook and guidance

• Confident in maintaining 35% year-on-year revenue growth, supported by a robust order book and pipeline.

• AI segment expected to maintain or exceed 15% revenue share in FY25, with potential for further growth.

• EBITDA margin guidance for FY25 in the 14%-14.5% range.

• Expansion into Europe and Middle East with plans to set up service networks in four countries.

• Continued investment in R&D and new product lines, including network switches and AI sovereign cloud.