Netweb Tech shares jump 11% after strong AI performance, order pipeline in Q3

Shares of Netweb Technologies India Ltd. jumped as much as 12% on Monday, January 19, in response to its strong earnings performance in the December quarter.

The company's revenue of ₹804 crore, grew by 140% from the same quarter last year and was a strong beat on expectations.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹97.5 crore from ₹44 crore last year. EBITDA margins though, declined sequentially as well as from the same period last year. The management had highlighted during the earnings call that strategic order execution will impact PBT margins by 150-200 basis points.

Netweb's results were aided by earlier than expected execution of the second strategic order worth ₹450.39 crore. During the September quarter earnings call, the management had said that it was expecting strategic orders execution from the fourth quarter of the current financial year.

AI systems also were a strong contributor to the results. The segment contributed to 64.2% of Netweb's overall topline for the quarter, while for the first nine months of the financial year, the contribution stood at 47.6%.

At the end of the quarter, Netweb had an order pipeline worth ₹4,270.3 crore and an L1 order pipeline worth ₹331 crore.

Shares of Netweb Technologies are trading 9.7% higher after the earnings announcement at ₹3,666.3. The stock is up 67% over the last 12 months.

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