Netweb Technologies Q2 net profit up 70%, operating income comes in higher by 73.2%

In Q2FY25, Netweb Tech saw its operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) rise by 85.7% YoY to ₹35.7 crore. The operating EBITDA margin for the quarter expanded by 96 basis points YoY to 14.2%. Meanwhile, the net profit margin contracted by 7 basis points YoY to 10.2%.

From a segmental point of view, the company’s income from AI systems skyrocketed by 229% YoY to ₹58.9 crore at the end of H1FY25. The company’s private cloud and hyper-converged infrastructure segment contributed 37% to its revenue, at ₹148.4 crore. Meanwhile, the high-performance computing segment contributed 35% of the company’s revenue in H1FY25, at ₹139.4 crore.

The company’s order book during the quarter grew by 70% YoY to ₹369.7 crore. The company has a pipeline of ₹3,703 crore and is the lowest bidder for projects worth ₹331.6 crore.

Sanjay Lodha, chairman and managing director of Netweb Technologies, said, that the company found significant support during the quarter from the government’s initiatives and industry partnerships that have helped boost India’s AI research ecosystem. Going ahead, the company’s AI segment will be vital to its business strategy and growth. Further, the company has also started receiving overseas orders.

“Continuous improvements in our capabilities, along with the expansion of our operations and product range, position us well for ongoing growth while maintaining our technological leadership,” he added.

Shares of the company have risen by nearly 142.43% since the beginning of the year. The stock has gained over 242.44% in the past year.