Netweb Technologies Q4 net profit nearly triples to ₹29.6 crore on AI growth
Upstox
3 min read • Updated: May 2, 2024, 11:02 AM
Summary
Netweb Technologies saw a stellar Q4 with net profit tripling to ₹29.6 crore, fueled by surging demand for AI-based solutions. Revenue doubled, and AI Systems are now a key contributor, driving optimistic projections for 30-35% growth in the coming years.
Domestic computer server maker Netweb Technologies posted a nearly three-fold jump in its net profit to ₹29.6 crore in the fourth quarter ended on March 31, 2024, on account of a boom in demand for artificial intelligence-based solutions.
The company had posted a net profit of ₹10.5 crore in the same period a year ago. Revenue from operations of Netweb Technologies more than doubled to ₹265.88 crore during the reported quarter from ₹123.39 crore in the year-ago period.
Netweb Technologies' income from AI Systems has grown by about 2.6 times on a year-over-year basis and is now over 11% of operating income. "We are delighted to announce that our company has achieved its highest-ever quarterly and annual income and profits. As stated earlier, AI systems are now clearly progressing towards becoming the third pillar of our growth. This is reflected by its revenue growing 2.6 times YoY, while its contribution to the company's total revenue has grown from 7% in FY' 23 to 11% in FY' 24, underscoring its importance as a significant revenue stream," Netweb Technologies, Chairman and Managing Director, Sanjay Lodha said. He said that Netweb is the only manufacturing partner of Nvidia in India and it is getting shipments from GPU (graphics processing unit) chip makers without delay. "We have projected our growth in the range of 30-35% over the next 2-3 years," Lodha said.
Nvidia at present dominates the GPU market with around 88% market share. The demand for GPU-based servers has boomed due to the exponential rise in AI-based service demand.
For the year ended March 31, 2024, Netweb Technologies' net profit grew 66% to ₹75.9 crore from around ₹47 crore in the March 2023 quarter. The annual income from operations of Netweb Technologies grew by about 63% to ₹724 crore from ₹445 crore in the 2022-23 financial year.
The company's order book grew close to sixfold to ₹411 crore as of March 31, 2024, from ₹71.2 crore in March 2023.
"Given the widespread adoption of Generative AI models and substantial contributions from the global AI developer community across diverse and innovative use cases, India is poised to become the AI factory of the world. This presents promising opportunities for expanding our diverse product offerings," Lodha said. Netweb onboarded 171 new clients during the reported fiscal year.
About Netweb Technologies:
Incorporated in 1999, Netweb Technologies India (NTI) is one of India‘s leading high-end computing solutions (HCS) providers, with fully integrated design and manufacturing capabilities. The company has delivered good profit growth of 95.2% CAGR over the last 5 years. On the other hand, the ROE (return on equity) for Netweb Technologies also stands at 40.3% for 3 years. The company employs nearly 200 employees in India.
At 10:36AM, shares of Netweb technologies traded 5% higher at ₹1,764.45 on NSE on 2 May, 2024.