Revenue and Profit Growth
Netweb Technol. has exhibited a remarkable increase in net sales, rising from ₹247.03 crores in March 2022 to ₹1,149.02 crores by March 2025. This represents a near fivefold growth in just three years, underscoring the company’s successful market penetration and operational scaling. Correspondingly, total operating income mirrored this upward trend, reflecting consistent business expansion without reliance on other operating income streams.
Operating profit before depreciation and interest (PBDIT) also showed a healthy rise, climbing from ₹34.60 crores in FY22 to ₹159.04 crores in FY25. Despite a slight compression in operating profit margin from 15.74% in FY23 to 13.84% in FY25, the absolute profit growth remains impressive. Profit after tax (PAT) surged from ₹22.45 crores in FY22 to ₹113.75 crores in FY25, with PAT margins maintaining a stable range around 9.9% to 10.5% over the period.
Notably, earnings per share (EPS) increased substantially, from ₹7.93 in FY22 to ₹20.08 in FY25, reflecting enhanced profitability and shareholder returns. The company maintained a disciplined approach to interest costs, which remained relatively low despite the growth, supporting strong net profitability.
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Balance Sheet and Asset Quality
The company’s balance sheet has strengthened considerably, with shareholder’s funds rising from ₹44.37 crores in FY22 to ₹530.33 crores in FY25. This growth was supported by a substantial increase in reserves, which expanded from ₹38.71 crores to ₹513.66 crores over the same period, indicating strong retained earnings and capital accumulation.
Total liabilities increased in line with business expansion, reaching ₹891.74 crores in FY25 from ₹147.52 crores in FY22. However, the company has effectively reduced its total debt from ₹32.28 crores in FY22 to just ₹1.02 crore in FY25, signalling a significant deleveraging and improved financial stability.
On the asset side, total assets grew from ₹147.52 crores in FY22 to ₹891.74 crores in FY25, driven by increases in both fixed assets and current assets. Net block of fixed assets expanded from ₹9.59 crores to ₹43.01 crores, while current assets surged from ₹134.79 crores to ₹825.38 crores, reflecting enhanced operational scale and working capital requirements.
Inventories and sundry debtors have also increased substantially, consistent with the company’s sales growth. Cash and bank balances showed a notable rise, reaching ₹179.53 crores in FY25, up from ₹7.54 crores in FY22, indicating improved liquidity management.
Cash Flow and Operational Efficiency
Cash flow from operating activities has fluctuated, with a negative cash flow of ₹13 crores in FY25 compared to positive inflows in previous years. This was largely due to significant changes in working capital, which increased by ₹139 crores in FY25, reflecting the company’s investment in inventory and receivables to support growth. Despite this, net cash inflow remained strong at ₹80 crores in FY25, supported by positive investing cash flows of ₹111 crores, largely from asset sales or other investing activities.
Capital expenditure is evident from the increase in gross block and capital work in progress, signalling ongoing investments in infrastructure and technology. The company’s book value per share has improved dramatically from ₹8.71 in FY22 to ₹93.61 in FY25, highlighting substantial value creation for shareholders.
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Summary and Outlook
Overall, Netweb Technol. has delivered a compelling financial performance over the last three years, marked by rapid revenue growth, expanding profitability, and a robust balance sheet. The company’s ability to reduce debt while increasing reserves and shareholder equity demonstrates prudent financial management. Although operating margins have slightly contracted, the absolute profit growth and cash position improvements are positive indicators for future stability and expansion.
Investors may find the company’s historical performance encouraging, particularly given the strong earnings growth and enhanced book value per share. Continued focus on working capital management and margin optimisation will be key to sustaining this trajectory in the coming years.
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