Mumbai. Leading IT solutions provider Black Box Ltd has announced its results for the quarter ended June 30. Productivity and better deal margins have led to a significant increase in both EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and PAT (Profit After Tax) margins.
For Q1 FY25, profit after tax grew 55% yearonyear to Rs 37 crore from Rs 24 crore in Q1 FY24. PAT margin improved to 2.6%, an increase of 110 basis points from the previous year. This strong operating performance has led to a significant increase in overall profitability.
Black Box also demonstrated great financial strength with EBITDA growing by a remarkable 28% to Rs 115 crore for Q1 FY25. EBITDA margins improved by a remarkable 240 basis points yearonyear to 8.1%. The company continues to focus on improving margins and productivity, with efforts being made towards achieving 9% EBITDA margins by the end of FY25.
Revenue stood at Rs 1,423 crore in the first quarter of FY25, as against Rs 1,571 crore in the same period last fiscal. Despite this, the company's pipeline remains strong. The order book has grown to $475 million as of June 30, 2024.
During the last quarter, deals from data center and inbuilding 5G solutions were worth $11 million. Digital workplace, connected building, CX, networking solutions, ondemand solutions and managed services were worth $13 million. Deals from KVM solutions were worth $4 million. In the technology sector, Essar has a major investment in Black Box.
The Board has recommended the appointment of MSKA & Associates, Chartered Accountants, (an independent member firm of BDO International) as Statutory Auditors of the Company in place of the retired Auditors, Chartered Accountants (the existing Statutory Auditors of the Company). This recommendation has been made for a period of five consecutive years from the conclusion of the 38th AGM of the Company to be held in the financial year 202829 to the conclusion of the 43rd AGM, subject to the approval of the shareholders at the ensuing AGM.
Commenting on the results and performance, Sanjeev Verma, Whole Time Director, Black Box said, “Our strategic exit from low value and low growth customers had a shortterm impact on revenue. However, our continued focus on productivity and margins allowed us to meet EBITDA targets and almost achieve PAT guidance.
Core operations demonstrated strong strength, with substantial growth in key regions, highlighting the resilience of our business model. We've made significant progress, invested heavily in our gotomarket strategy, and hired experienced sales and solution architects with industryspecific expertise.
As we move into FY25, our focus will remain on leveraging our robust pipeline and strong order book. With each business segment gaining momentum, we are confident in our ability to deliver superior performance and grow our revenues and profits.''
Deepak Kumar Bansal, Executive Director and Global Chief Financial Officer, Black Box, said, “Top line growth was impacted due to delays in decision making, which led to delays in project execution along with slow demand for our product business from certain partners.
However, we have continued to deliver on EBITDA and profitability over the last few quarters with a strong focus on productivity and deal margins, as reflected by a 28 per cent yearonyear growth in EBITDA and a 55 per cent yearonyear growth in profit after tax.
He said, “We hope this will continue going forward, leading to an increase in both margins and overall profitability. In addition, we have secured funding of Rs 410 crore to boost expansion in key focus areas and in digital infrastructure.”
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– / Written By Top News Bulletin
Image Credit: KhasKhabar.