IT solutions provider Black Box Ltd announced a 55 percent year-on-year rise in profit after tax (PAT) for the quarter ending June 30, 2024, reaching Rs 37 crore. PAT margin improved to 2.6 percent. An inflation of 110 basis points from last year. Black Box has also reported 28 percent year-on-year growth in EBITDA to Rs 115 crore in the quarter and is making efforts to achieve 9% EBITDA margin by the end of this financial year.
Revenue for the quarter unbend at Rs 1,423 crore compared to Rs 1,571 crore in the first quarter of the last financial year. Despite this, the company’s pipeline remains strong, with the order book growing to $475 million by June 30, 2024.
Commenting on the results and performance, Sanjeev Verma, Whole-Time Director, Black Box, said that, “Our strategic exit from low-value, non-accretive customers had a short-term impact on revenues. 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 areas, highlighting the resilience of our business model.
We have made significant progress, investing heavily in our go-to-market strategy, and hiring experienced sales and solutions architects with industry-specific expertise. As we move into FY2015, our focus will be on leveraging our strong pipeline and strong order book. “With each business segment gaining momentum, we are confident in our ability to deliver superior performance and meet our revenue and profitability guidance.”
Deepak Kumar Bansal, Executive Director and Global Chief Financial Officer, Black Box, commented that, “Topline growth was impacted due to lateness in decision making, which led to delays in project execution along with slow demand for our product business from some federal 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 evidenced by the 28% year-on-year growth in EBITDA and 55% year-on-year growth in our profit after tax. We are optimistic that this trend will continue, leading to growth in both margins and overall profitability. Additionally, we have secured funding of Rs 410 crore to drive growth in key focus areas and expansion in the digital infrastructure sector.”
