Homegrown HPC firm Netweb reports 66% increase in net profit

Netweb Technologies, the high-end computing (HPC) solutions provider announced its second-quarter earnings for the fiscal year 2024, reporting ₹148 crore in total income, doubling year-on-year (YoY) and 146% quarter-on-quarter (QoQ). Gross profit is ₹39.2 crore up by 71.4% YoY and 76.6% QoQ. The company also announced profit after tax (PAT) of ₹ 15.1 crore, up by 66% YoY. That said the gross profit margin was 27.0%, down from 31.0% in the corresponding quarter of the previous year. 

“As evident, India has significant potential to seize the opportunities presented by the growth of Large Language Model (LLM) models and the widespread adoption of AI across businesses worldwide. This bodes well for the growth of our multiple product lines. Our business pipeline and order book remain robust. Our ongoing capability enhancements and the expansion of our operations and product portfolio position us well for sustainable growth while maintaining our technological leadership,” said Sanjay Lodha, chairman and managing director.

To be sure, Netweb Technologies went public this July. Founded in 1999, Netweb Technologies specialises in high-end computing solutions, serving sectors like information technology (IT), IT-enabled services, media, entertainment, banking and financial services, data centres, and government. The company has 16 offices in the country, with a manufacturing facility in Haryana. In the financial year 2023, the company’s revenue increased by 80% year-on-year to ₹445 crore, compared to ₹247 crore in the previous fiscal.

In 2021, Netweb qualified for the production-linked incentive scheme (PLI) for IT hardware. It was among 14 applicants to qualify under the scheme. The next year in 2022, Netweb qualified for the PLI scheme for telecom and networking products. The company was among the 42 beneficiaries with a committed outlay of ₹4,115 crore.