Netweb Technologies Achieves 16% Profit Growth to Rs 30.3 Crore in Third Quarter of FY25

Netweb Technologies, a domestic IT server manufacturer, reported a 16.56% increase in profit, reaching Rs 30.32 crore for the third quarter ending December 31, 2024. This growth was attributed to the rising demand for artificial intelligence projects, as stated in their regulatory filing on Saturday. In the same period last year, the company had recorded a profit of Rs 26 crore.

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Revenue from operations saw a significant rise of approximately 32%, amounting to Rs 334 crore during the reported quarter. This is an increase from Rs 253.4 crore in the December quarter of the previous fiscal year. The company expressed satisfaction with achieving its highest quarterly income and profit after tax (PAT).

AI and International Market Expansion

Sanjay Lodha, chairman and managing director of Netweb Technologies, highlighted their strategic growth efforts. "We are delighted to report that we recorded our highest quarterly Income and PAT. In line with our growth strategy, export revenue contribution stood at 9.0% in Q3 FY25, reflecting our efforts to expand the international market presence and capitalize on global opportunities," he stated.

India's AI research ecosystem is thriving due to government support and industry partnerships. Lodha noted that this environment offers substantial innovation potential. Netweb is strategically positioned to leverage these opportunities, focusing on high-performance computing (HPC), private cloud, and AI.

AI as a Revenue Driver

Artificial intelligence has become a crucial revenue source for Netweb Technologies. Over nine months of FY25, AI contributed 14.7% to their revenue, showing a year-on-year growth of 136.3%. This underscores the company's commitment to advancing in AI-related projects.

As of December 2024, Netweb Technologies holds an order book valued at Rs 360 crore. This positions them well for continued growth and expansion in both domestic and international markets.