Black Box Limited Achieves Record PAT of Rs 56 Crore in Q3, 37% YoY Growth
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Synopsis
On February 11, 2023, Black Box Limited, the technology arm of Essar, reported a record profit after tax (PAT) of Rs 56 crore for Q3, reflecting a 37% year-on-year increase. The company’s revenue for Q3 was Rs 1,502 crore, showing the impact of a subdued order book but a strong digital infrastructure pipeline.
Key Takeaways
- Black Box reports highest PAT of Rs 56 crore for Q3
- 37% YoY growth in PAT
- Revenue for Q3 at Rs 1,502 crore
- Strong digital infrastructure pipeline across industries
- Order book valued at $465 million
New Delhi, Feb 11 (NationPress) Black Box Limited, the technology division of Essar, revealed its third-quarter (Q3) results today, showcasing a record profit after tax (PAT) of Rs 56 crore, marking a significant increase of 37 percent compared to the previous year.
For the first nine months of FY25, PAT reached Rs 144 crore, reflecting a remarkable 49 percent year-on-year growth, as stated in the company’s filing to the stock exchange.
The PAT margins improved by 120 basis points year-on-year, reaching 3.7 percent in Q3, while for the first nine months of FY25, margins increased by 130 basis points year-on-year to 3.3 percent.
According to the filing, the company's robust operational performance has enhanced profitability despite facing higher exceptional items.
Revenue for Q3 was recorded at Rs 1,502 crore, in contrast to Rs 1,655 crore during the same period last year (Q3 FY24).
For the first nine months of FY25, revenue totaled Rs 4,422 crore, down from Rs 4,801 crore in the same timeframe of the previous fiscal year.
The revenue decline was primarily attributed to a lackluster order book due to delayed decision-making by some major clients, along with the company's strategy to cease operations with tail customers.
Nevertheless, the company’s pipeline for digital infrastructure across various industry sectors, including hyperscalers, continues to expand, positioning Black Box for ongoing growth and market dominance.
The order book was valued at $465 million (approx Rs 3,900 crore) as of December 2024, as reported by the company.
The leading provider of digital infrastructure solutions recorded an EBITDA of Rs 134 crore for the quarter, reflecting a 15 percent year-on-year increase.
For the first nine months of FY25, EBITDA surged by 25 percent year-on-year to reach Rs 384 crore.
EBITDA margins for Q3 improved by 130 basis points year-on-year to 8.9 percent, while for the first nine months of FY25, they rose by 230 basis points year-on-year to 8.7 percent.
This margin enhancement was attributed to increased efficiencies and productivity improvements, as stated in the company’s filing.
Black Box further emphasized that its commitment to continuous improvement and productivity measures has resulted in substantial year-on-year growth in both EBITDA and PAT.
“The rapid advancements in AI and ongoing developments in this sector are projected to ignite a global increase in demand for AI tools across various businesses,” stated Sanjeev Verma, Whole Time Director of Black Box.
“This trend will further propel the necessity for robust digital infrastructure. Consequently, hyperscalers are making significant capital investments in AI infrastructure and data centers, reinforcing our confidence in achieving our revenue growth target of US$2 billion by FY29,” he added.
Deepak Kumar Bansal, Executive Director and Global Chief Financial Officer of Black Box, remarked, “Our unwavering focus on enhancing operating performance has enabled us to achieve our highest-ever quarterly PAT. Over the past few years, the company has consistently generated strong ROE and ROCE, remaining dedicated to delivering positive cash flows and improved returns for our shareholders. Enhanced efficiencies and productivity played a crucial role in achieving margins beyond expectations.”
Black Box is capitalizing on the growing demand for digital infrastructure, especially in light of the surge in AI adoption. The company recently secured three significant US sites from a leading hyperscaler for new data center constructions, alongside orders amounting to Rs 250 crore.
