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India’s Leading High-end Computing Solutions (HCS) Provider Q4’FY25 & FY’25 - Earnings Presentation BSE: 543945 | NSE: NETWEB | Bloomberg: NETWEB:IN May 2025 1
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Agenda Annexures About Netweb Technologies Quarterly Key Highlights Key Investment Highlights Growth Drivers
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Offers a full stack of product and solution suite with comprehensive capabilities in designing, developing, implementing and integrating high performance computing solutions Collaborates with various technology partners such as Intel Americas, Inc, AMD, Samsung India Electronics Private Ltd, Nvidia & Seagate India Private Ltd Develops homegrown technologies for compute, storage and software stack to deploy High-end Computing Systems (HCS) to meet the rising computational demands of businesses, academia, PSUs, defense and research organizations Compliant with the “Make in India” policy of the Government of India One of the few OEMs in India participating in IT Hardware as well as Telecom & Networking PLI Schemes. It has also received its first PLI claim under IT Hardware PLI 2.0 Scheme Established in 1999 with manufacturing facilities located in Faridabad, Haryana and 18 offices located across India 6 1 2 3 4 5 Business Tailwinds ►► ‘Make in India’ Policy & ‘PLI Scheme’ of the GOI ‘Make AI in India & Make AI work for India’ initiative of the GOI Indigenous LLMs fueling AI demand Increased supercomputing adoption across verticals Explosion of on-prem cloud infra across large enterprises and high data center demand in India About Netweb Technologies India’s leading Indian origin, owned and controlled OEM in the space of High-end Computing Solutions (HCS) 03 500+ 5000+ Private cloud & HCI installations Supercomputers listed 14 times in the world's top 500 supercomputers50+ Supercomputing systems installed Accelerator / GPU based AI systems & enterprise workstations Q4 FY25 FINANCIAL METRICS Note; 1: pib.gov.in. Revenue from Operation: ₹ 4,146.5 Million Customers: Govt. (52.1%) vs Non-Govt. (47.9%) Op EBITDA Margin: 14.4% PAT Margin: 10.3% ROE: 24.0% ROCE: 32.6% GOI's approval of over ₹1,03,000 Mn for the IndiaAI Mission1 to catalyze India’s AI ecosystem
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Snapshot of Our HCS Offerings India’s leading HCS provider with fully integrated design and manufacturing capabilities Our HCS Offering ● Bespoke, and tailored with specialized hardware designs and architecture ● Cater to varied customer specifications (A) High performance computing (Supercomputing / HPC) systems (C) AI systems and enterprise workstations ● Address standalone parallel compute- intensive applications, new age LLM workloads, machine learning, deep learning, and support CF-CAD-CMD Applications. (E) Data Centre servers ● Designed to reduce the complexity of managing critical and heavy workloads. ● Servers are advanced Al powered that allow intelligent and efficient data processing and storage Cluster Management Wide accelerator/ GPU support Generative AIML & DL Simplified Cluster Deployment Low rack space consumption High energy efficiency High in-built Storage ● Private cloud and HCI offers hyper-converged capabilities i.e., combining compute, storage, and network' to build: (B) Private cloud and hyperconverged infrastructure (HCI) HCI Cloud Tools Private & Hybrid Cloud Cloud Native Storage (D) High performance storage (HPS/Enterprise Storage) solutions ● Centralized repository for business-critical information that provides data sharing, data protection across multiple computer systems Unified Storage High IOPs Storage Scalable to Exabytes Parallel File System Storage (F) Software and services for HCS offerings ● Cloud Managed Services – These are the partial or complete management and control of a client's cloud platform, including migration, maintenance, and optimization Cloud solutions 5G related services AI, ML & deep learning as a service
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Sanjay Lodha, CMD Management Commentary “We are delighted to report our highest-ever quarterly and full-year income and PAT. Quarterly operating income grew by 55.9% YoY and 24.1% QoQ to ₹4,146.5 Mn, while quarterly operating EBITDA increased by 47.9% YoY and 36.0% QoQ to ₹597.7 Mn. PAT for the quarter rose by 45.0% YoY and 41.8% QoQ, reaching ₹429.9 Mn. We are pleased to announce that the Board has recommended a final dividend of ₹2.5 per share, resulting in a dividend payout of 12.4%, subject to shareholder approval. The company successfully deployed SAP S/4 HANA to enhance control and oversight of all operational and financial processes. We received our first claim under the PLI Scheme 2.0 for IT hardware, amounting to ₹59.4 Mn for the period from July 1, 2023, to March 31, 2024. This achievement underscores the success of the PLI scheme in boosting domestic production and creating employment opportunities. We remain committed to in-house designing and producing world class latest generation systems supporting the 'Make in India' initiative and contributing to India's growth as a global manufacturing hub. India's vibrant AI research landscape and adoption across verticals, fueled by government initiatives to develop indigenous LLMs, offers significant innovation opportunities. Netweb is strategically positioned to capitalize on this momentum, anchored by our focus on three pillars: HPC, Private Cloud, and AI Systems. In FY25, AI continued to be a major growth engine, contributing 14.8% to revenue with a 112.0% YoY increase. In line with our focused efforts in the AI space, we launched Skylus.ai in FY25, a unified solution to set up a GPU -based AI infrastructure on the go that optimizes GPU resource management and simplifies deployment. The launch of Skylus.ai marks a significant step in strengthening our leadership in the design and solutioning of AI systems in India, contributing t o the nation's vision of becoming the AI factory of the world. Our robust business pipeline and strong order book, supported by continuous capability building and product portfolio expansion, position us for sustained growth and technological leadership”
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Key Highlights Profit and Loss Summary Operating Income Operating EBITDA PBT PAT Q4 FY25 4,146.5 597.7 579.0 429.9 Growth (YoY) 55.9% 47.9% 45.5% 45.0% Growth (QoQ) 24.1% 36.0% 41.5% 41.8% Margin 14.4% 13.9% 10.3% FY25 11,490.2 1,600.1 1,539.7 1,144.8 Growth (YoY) 58.7% 56.1% 51.0% 50.8% Margin 13.9% 13.3% 9.9% Diluted EPS (in INR) 20.24 ₹ in millions
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Key Highlights (Cont.) Balance Sheet Summary 29.4% 20.9% 24.0% ROE* Mar' 24 Dec' 24 Mar' 25 38.5% 28.2% 32.6% ROCE* Mar' 24 Dec' 24 Mar' 25 ₹ in millions (0.24) (0.15) (0.31) Net Debt/ Equity Mar' 24 Dec' 24 Mar' 25 (0.99) (0.55) (1.01) Net Debt/ Op. EBITDA* Mar' 24 Dec' 24 Mar' 25 ^Cash Conversion Cycle is based on Operating Income. *Dec’24 data are annualized. #Net Current Assets calculation excludes Short-term Borrowing, Short-term Lease Liability & Cash & Cash Equivalents as they are part of Net Debt. It includes unutilized proceeds from IPO Particulars Mar'24 Dec'24 Mar’25 Equity Share Capital 112.7 112.7 113.3 Other Equity 4,114.8 4,761.9 5,190.0 Net Worth 4,227.5 4,874.6 5,303.3 Borrowing 16.3 109.1 12.7 Lease Liabilities 79.4 68.3 66.8 Cash and Cash Equivalent 1,112.8 914.6 1,700.8 Net Debt (1,017.1) (737.2) (1,621.3) Net Fixed Assets 447.4 525.6 561.1 Net Current Assets# 2,721.0 3,567.1 3,039.1 Ratios Net Fixed Asset Turnover Ratio 16.2 18.6 22.8 Cash Conversion Cycle* 69 88 73
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Key Highlights (Cont.) Revenue breakup – HCS Offering 1,030 1,728 2,624 4,055 FY22 FY23 FY24 FY25 High performance computing (Supercomputing / HPC) systems Software and services for HCS offeringsData Centre servers AI systems and enterprise workstations High performance storage (HPS/Enterprise Storage) solutions Private cloud and hyperconverged infrastructure (HCI) 479 1,461 2,644 4,027 FY22 FY23 FY24 FY25 243 309 799 1,694 FY22 FY23 FY24 FY25 217 308 339 275 FY22 FY23 FY24 FY25 241 283 337 373 FY22 FY23 FY24 FY25 69 95 176 455 FY22 FY23 FY24 FY25 FY25 – Revenue Breakdown by offerings 35% 35% 15% 3% 3% 4% 1% 4% Supercomputing / HPC Systems Private cloud & HCI AI & enterprise workstations HPS solutions Data centre server Software & service for HCS offerings Network Switches Spare & others ₹ in Millions ₹ in Millions
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272 985 1,392 3,102 FY 22 FY 23 FY 24 FY25 1,409 2,059 2,637 3,273 FY 22 FY 23 FY 24 FY25 526 1,095 2,880 3,343 FY 22 FY 23 FY 24 FY25 Key Highlights (Cont.) *Other enterprises includes BFSI, entertainment and media etc. Revenue breakup – Application Industry 263 271 331 1,713 FY 22 FY 23 FY 24 FY25 Higher Education and Research Space and DefenceOther Enterprises Information Technology and Information Technology Enabled Services FY25 – Revenue Breakdown by application industry 29% 29% 27% 15% Higher Education and Research Information Technology and Information Technology Enabled Services Other Enterprises Space and Defence ₹ in Millions₹ in Millions
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Revenue^ from Repeat Customers Customer Concentration^ 77.7% 90.7% 69.0% 81.4% FY22 FY23 FY24 FY25 49.5% 57.8% 64.5% 65.8% 38.4% 47.1% 50.3% 50.8% FY22 FY23 FY24 FY25 Top10 Top 5 Note: *CAGR FY20 –FY24, ^As a % of revenue from operations excludes other operating revenue Higher education and Research Space & Defence IT & ITES Others Diverse Customer Base 308 Repeat Customers (FY25) Associated for over 5.6 years using Fiscal 2016 as the base Average top 10 customer age (FY25) using Fiscal 2016 as base 4.8 yrs 9.79% Customer Accretion CAGR* 147 New clients onboarded across diverse industries in FY25 Note: *CAGR FY20 –FY25, ^As a % of revenue from operations excludes other operating revenue ; Key Highlights (Cont.)
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₹ in millions 1. Diluted EPS; non-annualised Particulars Q4 FY25 Q4 FY24 YoY Change Q3 FY25 QoQ Change FY25 FY24 YoY Change Operating Income 4,146.5 2,658.9 55.9% 3,339.9 24.1% 11,490.2 7,240.8 58.7% Operating EBITDA 597.7 404.2 47.9% 439.4 36.0% 1,600.1 1,025.3 56.1% Operating EBITDA Mrg (%) 14.4% 15.2% (79) 13.2% 126 13.9% 14.2% (23) Other Income 25.0 39.4 (36.6%) 15.6 60.4% 93.9 118.9 (21.0%) Finance Cost 11.9 28.3 (58.1%) 14.7 (19.3%) 40.9 62.1 (34.1%) Depreciation 31.8 17.3 83.7% 31.0 2.4% 113.4 62.5 81.4% PBT 579.0 398.0 45.5% 409.2 41.5% 1,539.7 1,019.6 51.0% PA T 429.9 296.6 45.0% 303.2 41.8% 1,144.8 759.0 50.8% PAT Margin (%) 10.3% 11.0% (68) 9.0% 127 9.9% 10.3% (43) EPS1 (₹) 7.57 5.43 39.4% 5.38 40.8% 20.24 13.88 45.8% Profit & Loss Summary
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Track record of financial performance and consistent growth 5 Key Investment Highlights Experienced Board & Senior Management Team 6 Long standing relationship with a marquee and diverse customer base 4 Significant product development and innovation through R&D 3 India’s leading Indian origin owned and controlled OEM for HCS with integrated design and manufacturing capabilities 1 Operates in a rapidly evolving and technologically advanced industry with high entry barriers 2
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Opportunities to realize sustainable growth of the business Strong Topline Visibility Enhanced Capabilties Enhanced Opportunities Expanding Product Portfolio Introduced Skylus.ai, a unified solution to set up a GPU-based AI infrastructure on the go Forayed into developing new product lines, viz., Network Switches On-prem AI Sovereign cloud for demand of contemporary data & AI workloads Container Platforms replacing Virtualization Platforms Rising investments in Generative AI infra by Govt & Large enterprises, especially to cater to demand generated by indigenous LLMs Heavy adoption of Private Cloud across sectors Huge demand of high-end compute for booming in-bound data centers across India Foray into Europe & Middle East, plan to setup service network in 4 countries to start withOrder Book ₹ 3,252 Mn L1# ₹ 3,628 Mn Pipeline# ₹ 39,714 Mn # Pipeline excludes L1, L1 excludes Order Book, all figures are as on 31.03.25 Growth drivers State of the art new manufacturing facility with latest Surface Mount Technology (SMT) commissioned in May’24 AI native appliances with built-in GPU resource abstraction using Skylus.ai Under our OEM partnership with NVIDIA, we have established a roadmap to design and develop AI GPU systems based on the world’s most advanced NVIDIA Blackwell platform. This will solidify Netweb's technological leadership in the AI domain Launched Intel Emerald Rapids & AMD Turin based ‘Make in India’ high-end computing servers
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Key Institutional Shareholders Goldman Sachs Managed Funds ICICI Prudential Mutual Fund Vanguard Total International Stock Index Fund Tata Mutual Fund The Regents Of The University Of California Invesco India Mutual Fund Nomura Funds Invesco India Equity Fund iShares MSCI ETF (BlackRock) Eastspring Investments India Fund 71.0% 10.7% 5.3% 0.0% 0.3% 12.6% Total Shareholding Promoter Group FIIs Mutual Funds / AIF Banks and Insurance Body Corporate Others 36.8% 18.4% 0.1%1.2% 43.6% Non-Promoter Shareholding FIIs Mutual Funds /AIF Banks & Insurance Body Corporate Others Shareholding Pattern (March 2025)
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Thank You Chief Financial Officer Investor Relations Advisor Sanjeev Sancheti Email: ir@uirtus.in Ankit Kumar Singhal Email: ankit.singhal@netwebindia.com netwebindia.com company/netweb-technologies twitter.com/netwebtech
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IPO Fund Utilization Objects of the Issue as per Prospectus Objects of the Issue1 Amount Utilized as on 31.03.2025 Funding our CAPEX Requirements Civil Construction 73.1 73.1 Purchase of Equipment 136.6 136.6 Funding our long-term Working Capital Requirements 1,280.2 1,280.2 Repayment or Pre-payment of loans 225.0 225.0 General corporate purposes 225.3 225.3 Total 1,940.2 1,940.2 1: Upon revision of Objects of the Issue, the Surplus amount INR 113.14 million of IPO Proceeds under “Funding our CAPEX requirements” Category has been transferred to “General Corporate Purposes” category vide board resolution dated March 24, 2025. Further such transfer is within allowable limits (i.e. 25% of gross proceeds) as mentioned in the offer document. ₹ in millions
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Quarterly Key Highlights Particulars Mar’24 Dec’24 Mar’25 Receivable Days 85 96 87 Inventory Days 43 67 54 Payable Days (58) (75) (67) Cash Conversion Cycle 69 88 73 Note: All day’s calculation are based on Operating Income. Dec,24 days are Annualized. Cash Conversion Cycle Break-up