Share price of this small-cap stock hit a 5% upper circuit on BSE to Rs. 1,765.4 in the trading session of Thursday, after reporting its highest-ever rise in the net profit by 181.8 percent YoY and revenue from operations by 116.5 percent YoY.
With a market capitalisation of Rs. 9,951 crore, the stock has delivered positive returns of nearly 94 percent in the last one year and around 116 percent of multibagger returns in the last six months. So far in 2024, the company has given 49.3 percent of positive returns.
The fluctuations in the share prices were observed after Netweb Technologies Limited announced its financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges.
The revenue from operations of the company stood at Rs. 266 crore in Q4 FY23-24, increasing by 5.13 percent QoQ from Rs. 253 crore in Q3 FY23-24 and 116.5 percent YoY from Rs. 123 crore in Q4 FY22-23.
The net profit increased by 14 percent from Rs. 26 crore in Q3 FY23-24 to Rs. 29.6 crore in Q4 FY23-24, whereas, the same grew by nearly 181.8 percent from Rs. 10.5 crore in Q4 FY22-23 to Rs. 29.6 crore in Q4 FY23-24.
On a year-on-year basis, the EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortisation, grew 170.6 percent from Rs. 16.4 crore in Q4 FY22-23 to Rs. 44.4 crore in Q4 FY23-24, while the EBITDA Margin increased by 328 bps from 13.2 percent to 16.4 percent, during the same period.
Further, the Board of Netweb Technologies have recommended a Dividend of Rs. 2 per share; subject to Shareholders’ approval; which will result in a dividend pay-out of 14.9 percent.
“…AI systems is 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 FY23 to 11% in FY24, underscoring its importance as a significant revenue stream.,” said the Chairman & Managing Director of Netweb Technologies.
According to the March 2024 shareholding data available on the BSE, Goldman Sachs, via multiple funds, holds nearly 23.29 lakh equity shares or a 4.12 percent stake, in the company.
Additionally, the foreign investor Nomura Funds Ireland Public Limited Company also holds around 7.77 lakh equity shares (equivalent to a 1.38 percent stake) in the company.
With fully integrated design and manufacturing capabilities, Netweb Technologies Limited was founded in 1999 and is the leading provider of high-end computing solutions (HCS) in India.
The company’s HCS portfolio includes HPC, private cloud and HCI, AI systems and enterprise workstations, High performance storage (HPS) and Data Centre Servers.
Written by Shivani Singh
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