Netweb Technologies posts two-fold jump in profit in FY23

IPO-bound IT hardware company Netweb Technologies has posted over two-fold jump in its profit after tax at Rs 46.93 crore in the financial year ended March 31, 2023, according to a regulatory filing.

The company had posted a profit after tax of Rs 22.45 crore in the financial year (FY) 2021-22.

The revenue from operations of Netweb Technologies grew 80 per cent to Rs 444.97 crore in FY’23 from Rs 247 crore a year ago, according to a ROC filing.

The company had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in March 2023 to raise funds through an Initial Public Offering (IPO).

The IPO consists of a fresh issue of equity shares worth up to Rs 257 crore and an offer-for-sale (OFS) of up to 85 lakh equity shares by selling shareholders.

Netweb Technologies said it has demonstrated improved profitability with EBITDA margins expanding to 15.86 per cent in FY’23 compared to 14.32 per cent in FY22. Similarly, the profit after tax (PAT) margins improved to 10.53 per cent in FY’23 compared to 9.06 per cent in FY’22.

The company’s revenue from the supercomputing system vertical grew by 67.77 per cent to Rs 172.80 crore in FY’23, while revenue from the private cloud and HCI (Hyperconverged Infrastructure) segment witnessed significant growth from Rs 47.90 crore in FY’22 to Rs 146.10 crore in FY’23.

Netweb added 195 new customers to its existing list of customers during fiscal 2023.

The company collaborates with firms like Intel, Samsung, AMD, and NVIDIA to enhance its product offerings.

Netweb has inhouse design and manufacturing capabilities and has deployed over 300 supercomputing systems and over 4000 accelerator or GPU based AI systems and enterprise workstations as of February 2023.

Netweb is one of the few OEMs in the country that qualified for production linked incentives scheme for IT hardware and networking products manufacturing in India.

The company is working towards expanding its geographical footprint beyond India and targeting the European, Middle Eastern, and African (EMEA) markets. PTI