Mumbai, Aug 14 2024-
Black Box Limited, a leading IT solutions provider, announced its results for the quarter ended June 30. The company’s focus on enhanced productivity and improved deal margins has led to a notable increase in both EBITDA and PAT margins.
For Q1FY25, profit after tax surged by 55 per cent Year-on-Year (YoY), reaching Rs 37 crorte compared to Rs 24 crore in Q1FY24. PAT margins improved to 2.6 per cent, an increase of 110 basis points from the previous year. This strong operating performance has significantly enhanced overall profitability.
Black Box has demonstrated notable financial strength with a remarkable 28 per cent Y-o-Y increase in EBITDA, reaching Rs 115 crore for Q1FY25. EBITDA margins improved substantially by 240 basis points Y-o-Y to 8.1 per cent. The company’s continued focus on enhancing margins and productivity is evident, with efforts geared towards achieving a 9 per cent EBITDA margin by the end of FY25.
Revenue for Q1FY25 stood at Rs 1,423 crore, compared to Rs 1,571 crore in Q1FY24. Despite this, the company’s pipeline remains robust, with the order book growing to $475 million as of June 30, 2024.
During the quarter gone by, deal wins from Data Center and In-Building 5G solutions stood at $11 million; Digital Workplace, Connected Building, CX, Networking Solutions, On Demand solutions and Managed Services stood at $13 million; and deal wins from KVM solutions stood at $4 million. Black Box is Essar’s key investment in the technology space.
The Board has recommended appointment of MSKA & Associates, Chartered Accountants, (an independent member firm of BDO International) as Statutory Auditors of the Company in place of retiring auditors, Walker Chandiok & Co LLP, Chartered Accountants (existing Statutory Auditors of the Company), for a period of five consecutive years commencing from the conclusion of 38th AGM till the conclusion of 43rd AGM of the company to be held in the financial year 2028-29, for approval of shareholders at the forthcoming AGM.
Commenting on the results and performance, Sanjeev Verma, Whole Time Director, Black Box said, “Our strategic exit from low-value, non-accretive customers had a short-term impact on revenue. However, our relentless focus on productivity and margins allowed us to meet EBITDA targets and nearly achieve PAT guidance. Core operations demonstrated robust strength, with substantial growth in key areas, highlighting the resilience of our business model. We have made significant strides, investing heavily in our Go-To-Market strategy, and hiring seasoned sales and solution architects with industry-specific expertise. As we move into FY25, our focus will remain on capitalising on our strong pipeline and robust order book. With each business segment gaining momentum, we are confident in our ability to deliver enhanced performance and meet our revenue and profitability guidance.”
Deepak Kumar Bansal, Executive Director and Global Chief Financial Officer of Black Box, commented, “The growth in topline was affected due to delays in decision-making, leading to delayed project execution coupled with muted demand for our product business from some federal partners during the quarter. However, we continue to deliver on EBITDA and profitability over the last few quarters with strong focus on productivity and deal margins, as evidenced by a 28 per cent YoY growth in EBITDA and 55 per cent YoY increase in our profit after tax. We are optimistic that this trend will continue, enhancing both margins and overall profitability. Further, we secured Rs 410 crore in funding to propel growth across key focus areas and to drive expansion in the digital infrastructure sector.” (Agency)
