Netweb Technologies Surges 18% After Strong Q4 Results, Declares 125% Dividend

Image Source: CNBC TV18

Netweb Technologies India Ltd, a high-performance computing solutions company, witnessed its stock price spike more than 18% in initial trade after posting strong Q4 results for FY25 and announcing a 125% dividend. The firm posted solid revenue growth fueled by growth in AI systems and manufacturing of IT hardware. A detailed analysis follows:

Stock Price Surge & Market Reaction

Netweb Technologies' stock price surged 18.37% to ₹1,681.45 each on the BSE.
The stock has risen 10% in a month, but is still down 43% year-to-date (YTD).

Q4 FY25 Financial Performance

Net profit: ₹43 crore, up 45% YoY from ₹29.65 crore.
Revenue: ₹414.6 crore, up 55.9% YoY.
EBITDA: ₹59.77 crore, up 47.9% YoY, although EBITDA margin narrowed to 14.4%.

AI Systems & IT Hardware Expansion

Revenue from AI systems increased 112% YoY and accounted for 14.8% of total revenue.
Launched Skylus.ai, a GPU-based AI infrastructure solution.

Dividend Announcement & Shareholder Benefits

Dividend: ₹2.5 per share, 125% of face value ₹2.
Subject to approval by shareholders at the next AGM.

PLI Scheme & Government Incentives

Received ₹59.4 million under PLI Scheme 2.0 for IT hardware, stimulating domestic production.
Enhances India's standing in high-performance computing.

Future Outlook & Growth Strategy

Order book at ₹325.2 crore shows robust demand pipeline.
Growth in AI-enabled computing and manufacturing of IT hardware likely to power future growth.

This outstanding performance reflects Netweb Technologies' strong market position as a leading company in India's technology-driven growth story.

Sources: MSN, Mint