Highest ever sales and profit in Q4 and FY24, stock hits upper circuit; order book surges over 450 per cent in FY24 of this small cap IT company

The company’s order book has grown substantially by over 450 per cent, from Rs 712 million to Rs 4118 million in FY24, stock rallied over 100% in the last six months only.

One of India's leading providers of high-end computing solutions (HCS), with fully integrated design and manufacturing capabilities, Netweb Technologies India Limited (NTI) has announced its Quarterly Results. This Small-Cap IT company posted record-breaking growth in Q4 FY24 as well as FY24. Following this, the company’s shares hit the upper circuit today.

In the fourth quarter of FY24, the company achieved remarkable financial milestones, with total income reaching an all-time high of Rs 2,698 million, marking a remarkable growth of 116.5 per cent compared to Q4 FY23. The company’s EBITDA also soared to unprecedented levels, standing at Rs 444 million, exhibiting a remarkable increase of 170.6 per cent over the same quarter last fiscal year, with an EBITDA margin of 16.4 per cent. Additionally, the quarterly Profit After Tax (PAT) surged to a record Rs 297 million, marking an impressive rise of 181.8 per cent over Q4 FY23, with a PAT Margin of 11.0 per cent.

FY24 Performance

For the entirety of FY24, the financial performance remained robust, as evidenced by the highest ever total income of Rs 7,360 million, reflecting a notable growth of 65.1 per cent over FY23 while EBITDA also reached unprecedented heights, reaching Rs 1,144 million, marking a substantial increase of 61.8 per cent over the previous fiscal year, with an EBITDA margin of 15.5 per cent. Furthermore, PAT reached a peak quarterly figure of Rs 759 million, showcasing a commendable increase of 61.7 per cent over FY23, while maintaining a PAT Margin of 10.3 per cent.

Business Highlights

The order book stands at Rs 4,112 million, a significant increase from Rs 712 million on March 31st, 2023. In pursuit of expansion, a state-of-the-art manufacturing facility equipped with the latest Surface Mount Technology is set to be commissioned in Q1 FY25. Moreover, the company successfully onboarded 171 new clients during FY24.

Furthermore, income from AI systems has experienced exponential growth, approximately 2.6 times year-over-year, and currently contributes over 11 per cent of the operating income.

Stock Performance

At the start of the day's trading session, the stock opened at Rs 1765.40 per share, compared to the previous day's closing figure of Rs 1681.35 per share on the BSE. As of the time of writing this article, the shares are currently at Rs 1765.40 per share on the BSE. The stock has reached the upper circuit price limit of 5 per cent, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers.

The company's stock has yielded a remarkable return of approximately 253 per cent compared to its IPO issue price of Rs 500 each. The company's current market capitalisation stands at Rs 9950 crore, and the stock has generated an impressive multibagger return of around 115 per cent in just six months.

Investors must keep this small-cap IT stock on their radar.