Netweb Technologies India Limited · NSE:NETWEB
Netweb Technologies India — Q1 FY24 Earnings Presentation
26 slides from Netweb Technologies India's earnings presentation, Aug 13, 2023
Slide 1: Revised earning presentation cover letter to exchanges
CIN : U72100HR1999PLC103911 PAN NO : AABCN4805A GST NO : 06AABCN4805A1Z3 Date : 13.08.2023 To, To, BSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, “Exchange Plaza”, Bandra – Kurla Complex, Dalal Street, Fort, Bandra (EAST), Mumbai – 400 051 Mumbai – 400 001. NSE S
Slide 2: Q1FY24 - Earnings Presentation
India’s Leading High-end Computing Solutions (HCS) Provider Q1FY24 - Earnings Presentation August 2023 BSE: 543945 NSE: NETWEB Bloomberg: NETWEB:IN
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation may contain certain “forward-looking statements” within the meaning of applicable securities laws and regulations, which may include those describing the Company’s strategies, strategic direction, objectives, future projects and/or prospects, estimates etc. I
Slide 4: Agenda
Agenda 1 About Netweb Technologies 2 Quarterly Key Highlights 3 Key Investment Highlights
Slide 5: About Netweb Technologies
About Netweb Technologies India’s leading Indian origin, owned and controlled OEM in the space of High-end Computing Solutions (HCS) ● Offers a full stack of product and solution suite with comprehensive capabilities in designing, developing, implementing and integrating high Business Tailwinds ►► p
Slide 6: Key Milestones
Key Milestones Qualified for PLI Scheme of GOI for IT Hardware 1999 ESTABLISHED Outstanding Contribution in Awarded Intel Technology Promotion of electronics & Provider Platinum 2018 manufacturing of servers Best HPC Data Center from MEITY Specialist 2021 Received Orders for Tyrone KABRU - IMS CHENN
Slide 7: Snapshot of Our HCS Offerings
Snapshot of Our HCS Offerings India’s leading HCS provider with fully integrated design and manufacturing capabilities (A) High performance computing (Supercomputing / HPC) (B) Private cloud and hyperconverged infrastructure (HCI) systems ● Bespoke, and tailored with specialized hardware designs and
Slide 8: Management Commentary
Management Commentary “Operating Income in Q1 FY24 stood at ₹598 mn, a decline of 13.7% against the corresponding quarter previous year. Despite the decline observed in the current quarter, we maintain our confidence in achieving robust growth in the current financial year. It's important to recogni
Slide 9: Growth Drivers
Growth Drivers Opportunities to realize sustainable growth of the business Strong Topline Visibility Enhanced Capabilties Expansion of Operations Expanding Product Portfolio To capitalize on emerging Heavy adoption of Private Forayed into developing Pipeline# opportunities, will establish Cloud in t
Slide 10: Agenda
Agenda 1 About Netweb Technologies 2 Quarterly Key Highlights 3 Key Investment Highlights
Slide 11: Quarterly Key Highlights
Quarterly Key Highlights Profit and Loss Summary ₹ in millions Operating Gross Operating Cash PBT PAT Income Profit EBITDA Profit 598.04 221.72 86.29 67.99 50.91 63.80 Growth (YOY) (13.7%) 14.8% (8.1%) (10.3%) (9.2%) 1.6% Growth (QOQ) (51.5%) (31.9%) (43.1%) (52.0%) (51.6%) (45.7%) Margin 37.1% 14.4
Slide 12: Quarterly Key Highlights (Cont.)
Quarterly Key Highlights (Cont.) Balance Sheet Summary ₹ in millions Particulars June’22 March’23 June’23 Net Debt/ Equity Net Debt/ Op. EBITDA* 0.39 Equity Share Capital 56.58 101.85 103.89 0.51 0.30 0.41 Other Equity 444.73 834.81 1403.48 Net Worth 501.31 936.66 1507.37 Total Borrowing 319.13 356.
Slide 13: Revenue breakup – HCS Offering
Quarterly Key Highlights (Cont.) Revenue breakup – HCS Offering Q1 FY24 – Revenue Breakdown by offerings 320 91 89 500 79 209 171 ₹ in millions 205 153 5% 7% 25% Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 10% High performance Private cloud and hyperconverged AI systems a
Slide 14: Revenue breakup – Application Industry
Quarterly Key Highlights (Cont.) Revenue breakup – Application Industry Q1 FY24 – Revenue Breakdown 490 413 by application industry 306 ₹ in millions 249 216 156 12% Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 36% Higher Education and Research Information Technology and Information Technology En
Slide 15: Quarterly Profit and Loss
Quarterly Profit and Loss ₹ in millions Particulars Q1 FY 24 Q1 FY 23 YoY Change Q4 FY 23 QoQ Change FY 23 Operating Income 598.04 693.10 (13.7%) 1,233.90 (51.5%) 4,449.72 Gross Profit 221.72 193.22 14.8% 323.55 (31.9%) 1,206.07 Gross Profit Margin (%) 37.1% 27.9% 920 bps 26.4% 1070 bps 27.1
Slide 16: Agenda
Agenda 1 About Netweb Technologies 2 Quarterly Key Highlights 3 Key Investment Highlights
Slide 17: Key Investment Highlights
Key Investment Highlights 1 4 India’s leading Indian origin owned Long standing relationship with a and controlled OEM for HCS with marquee and diverse integrated design and manufacturing customer base capabilities 2 5 Operates in a rapidly evolving and Track record of financial performance technolo
Slide 18: India's leading Indian origin owned and controlled OEM for HCS
1. India’s leading Indian origin owned and controlled OEM for HCS with integrated design and manufacturing capabilities Full stack of product and solution suite with comprehensive capabilities in designing, developing, implementing and integrating Deep Expertise in System Design & Architecture HPC s
Slide 19: Rapidly evolving, technologically advanced industry with high entry barriers
2. Operates in a rapidly evolving and technologically advanced industry with high entry barriers Experience of installing 300+ HPC systems, 50+ private cloud & HCI, 4000+ accelerator/GPU based AI systems & enterprise workstations 1 2 3 Experience Setting up AI & deep learning Developing and building
Slide 20: Significant product development and innovation through R&D
3. Significant product development and innovation through R&D Independently design and innovate products and solutions offerings and provide services tailored to specific customer requirements The company’s R&D Facilities has enabled it to increase its product lines across different HCS offerings Ku
Slide 21: Long standing relationship with a marquee customer base
4. Long standing relationship with a marquee customer base Revenue^ from Repeat Customers Customer Concentration Government & Defense Educational Institutes 93.7% Top10 Top 5 87.5% 54.5% 57.2% 47.0% 45.5% 40.2% 78.3% 28.3% Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 BFSI Other Enterprise 133 Rep
Slide 22: Track record of financial performance and consistent growth
5. Track record of financial performance and consistent growth Revenue (INR Mns) Gross Margin (INR Mns & % Margin) EBITDA (INR Mns & % Margin) CAGR 75.7% CAGR 81.5% CAGR 109.5% 27.1% 27.50% 15.9% 18.00% 4,456.5 14.4% 16.00% 27.00% 26.50% 11.1% 14.00% 25.7% 12.00% 26.00% 2,479.4 25.50% 10.00% 24.5% 1
Slide 23: Experienced Board and Senior Management Team (1/2)
6. Experienced Board and Senior Management Team (1/2) Board of Directors Sanjay Lodha Mrutyunjay Mahapatra Chairman and Managing Director Independent Director ● Founded Netweb Technologies in 1996 which was acquired by our ● Has served as Deputy MD at SBI & MD and CEO of Syndicate Bank Company in Au
Slide 24: Experienced Board and Senior Management Team (2/2)
6. Experienced Board and Senior Management Team (2/2) Senior Management – led by people with significant Other Key Management Personnel experience in HCS Industry Hemant Agarwal Prawal Jain Chief Operating Officer Chief Financial Officer and Chief Human Resource Officer ● 20+ years of experience wit
Slide 25: Shareholding Pattern
Shareholding Pattern Opportunities to realize sustainable growth of the business 1.73% 0.00% 0.47% Top 10 Institutional Shareholders 0.00% 0.00% Goldman Sachs Managed Funds 360 One AIF Promoter Group Tata Mutual Fund 97.80% FIIs BNP Paribas Arbitrage 30th Jun, 2023 Mutual Funds / AIF /ALF The Regent
Slide 26: Thank You
Thank You Chief Financial Officer Investor Relations Advisor Prawal Jain Sanjeev Sancheti Email: prawal.jain@netwebindia.com Email: ss@uirtus.in Phone No.: +91 7838300460 Website: www.uirtus.in Phone No.: +91 9836244222 netwebindia.com/ company/netweb-technologies/ twitter.com/netwebtech
Netweb Technologies India — Q1 FY24 Earnings Presentation on 6ix