 "UP, IT sector, IT services")
Domestic computer server maker Netweb Technologies posted a nearly three-fold jump in its net profit to Rs 29.6 crore in the fourth quarter ended on March 31, 2024, on account of a boom in demand for artificial intelligence-based solutions.
The company had posted a net profit of Rs 10.5 crore in the same period a year ago.
Revenue from operations of Netweb Technologies more than doubled to Rs 265.88 crore during the reported quarter from Rs 123.39 crore in the year-ago period.
Netweb Technologies' income from AI Systems has grown by about 2.6 times on a year-over-year basis and is now over 11 per cent of operating income.
"We are delighted to announce that our company has achieved its highest-ever quarterly and annual income and profits. As stated earlier, AI systems are now clearly progressing towards becoming the third pillar of our growth. This is reflected by its revenue growing 2.6 times YoY, while its contribution to the company's total revenue has grown from 7 per cent in FY'23 to 11 per cent in FY'24, underscoring its importance as a significant revenue stream," Netweb Technologies, Chairman and Managing Director, Sanjay Lodha said.
He said that Netweb is the only manufacturing partner of Nvidia in India and it is getting shipments from GPU (graphics processing unit) chip makers without delay.
"We have projected our growth in the range of 30-35 per cent over the next 2-3 years," Lodha said.
Nvidia at present dominates the GPU market with around 88 per cent market share. The demand for GPU-based servers has boomed due to the exponential rise in AI-based service demand.
For the year ended March 31, 2024, Netweb Technologies' net profit grew 66 per cent to Rs 75.9 crore from around Rs 47 crore in the March 2023 quarter.
The annual income from operations of Netweb Technologies grew by about 63 per cent to Rs 724 crore from Rs 445 crore in the 2022-23 financial year.
The company's order book grew close to sixfold to Rs 411 crore as of March 31, 2024, from Rs 71.2 crore in March 2023.
"Given the widespread adoption of Generative AI models and substantial contributions from the global AI developer community across diverse and innovative use cases, India is poised to become the AI factory of the world. This presents promising opportunities for expanding our diverse product offerings," Lodha said.
Netweb onboarded 171 new clients during the reported fiscal year.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
