Netweb Technologies India Limited — Investor Meet, 24-01-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Netweb Technologies India Limited reported record quarterly income of ₹3340 million and profit after tax (PAT) of ₹303 million. Operating income increased 60.3% year-over-year for the first nine months of FY25, totaling ₹7344 million. The operating EBITDA rose 61.4% year-on-year to ₹1002 million, with an operating EBITDA margin of 13.7%. PAT for the same period grew 54.6%, reaching ₹715 million, yielding a PAT margin of 9.6%.

**Future Outlook and Growth Drivers:** Management emphasized the potential of India's AI ecosystem, forecasting continued expansion in the HPC, Private Cloud, and AI sectors. AI revenue contributions soared 136.3% year-on-year, now accounting for 14.7% of total revenue. Netweb's partnership with NVIDIA could enhance product offerings in AI GPU systems.

**Order Book and Operational Updates:** Currently, the order book stands robust at ₹360 crore with a healthy project life cycle between 12 to 16 weeks. Management reported that around ₹250 crore of the previous order book has been executed.

**Analyst Q&A Insights:**

- **Revenue and Profitability:** Analysts sought clarification on revenue projections and margins. Management reiterated a commitment to maintaining a 14% EBITDA margin, referencing the execution of larger projects.

- **Market Positioning:** Responding to inquiries about competitive pressures, management expressed confidence in their customer base, which includes prominent international firms.

- **Operational Challenges:** Management downplayed supply chain concerns arising from U.S. GPU export restrictions, emphasizing continued demand.

- **Capex and Capital Allocation:** Capital allocation remains focused on growth, with minimal future capex needed beyond the current plans.

- **Strategic Priorities:** Analysts inquired about the AI Mission led by the Indian government, to which management stated they're preparing to participate actively in upcoming RFPs.

**Market or Regulatory Updates:** No immediate regulatory concerns were highlighted that could adversely impact operational strategies.

**Strategic Focus Areas:** Management conveyed a commitment to innovation and maintaining a competitive edge through product development and market expansions, alongside a strong focus on AI capabilities.

**Investor Insight:** The company demonstrates solid financial health and strategic growth potential with ongoing investment in AI and HPC. Overall, this positions Netweb as an attractive prospect in the current market landscape for those considering a ‘buy’ position.