Is Netweb Technologies India’s next big tech giant? Stunning Q1 growth revealed!

Netweb Technologies India Limited, a front-runner in India’s High-End Computing Solutions (HCS) sector, revealed its first-quarter financial results for FY25, showcasing remarkable growth and strategic expansions. The announcement came after a board meeting on July 20, 2024, where the unaudited financial results were officially recorded.

The company reported a total income of ₹1,532 million in Q1 FY25, achieving a year-over-year (YoY) growth of 154.4%. This substantial increase from Q1 FY24’s ₹602.2 million underscores Netweb’s robust performance in the competitive tech market. Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at ₹239 million, marking a 164.1% increase from the previous year, with the EBITDA margin rising to 15.6%. Moreover, the Profit After Tax (PAT) surged by 203.4% to ₹154 million, enhancing the PAT margin to 10.1%.

In a significant boost to its manufacturing prowess, Netweb commissioned a state-of-the-art facility in Faridabad on May 10, 2024. This facility, inaugurated by the Honorable Secretary of the Ministry of Information & Technology, Government of India, represents a milestone for the ‘Make in India’ initiative. It’s equipped with the latest Surface Mount Technology (SMT) and covers all aspects of production for high-end computing systems like servers, storage, and switches.

Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, highlighted the strategic importance of this expansion, stating, “This new facility represents a substantial leap in our manufacturing capabilities, and is set to enhance our offerings in server, storage, and switch manufacturing.”

The company’s focus on integrating Artificial Intelligence (AI) systems has paid off, with income from this segment growing by 146% YoY. AI systems now contribute 14.6% to the company’s operating revenue, demonstrating Netweb’s commitment to harnessing cutting-edge technologies to drive innovation and operational efficiency.

Netweb’s strategic pillars—High-Performance Computing (HPC), Private Cloud, and AI—underscore its role at the forefront of technological evolution, meeting the dynamic needs of global businesses. “Our strategic focus ensures that we are leading the charge in technological advancements, providing cutting-edge solutions that address the ever-evolving market demands,” added Lodha.

With a solid order book of ₹4,197 million as of June 2024 and continuous enhancements in capabilities, Netweb is well-positioned for sustained growth. The company’s leadership in technology and strong business pipeline support its vision to remain at the forefront of the High-End Computing Solutions industry in India and globally.