Netweb Technologies India Limited , a prominent player in the technology sector, has taken legal action against a customs duty demand of Rs 1.06 crore. The company has filed an appeal with the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), contesting an order passed by the Commissioner of Customs Audit.

Appeal Details

The appeal, filed on August 14, challenges an order-in-original dated May 8, which demanded a differential custom duty of Rs 1,05,94,991 (One Crore Five Lakh Ninety-Four Thousand Nine Hundred Ninety-One only) under the Customs Act 1962.

Company's Stance

Netweb Technologies has asserted that this legal action will not have any material impact on its financials, operations, or other activities. This statement aims to reassure stakeholders about the company's stability despite the ongoing legal proceedings.

Regulatory Compliance

In line with its obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Netweb Technologies has duly informed both the BSE Limited and the National Stock Exchange of India Limited about this development. The company's proactive disclosure demonstrates its commitment to transparency and regulatory compliance.

Company Background

Netweb Technologies India Limited, headquartered in Faridabad, Haryana, is listed on both the BSE and NSE. As a technology company, Netweb continues to navigate the complex landscape of international trade and customs regulations.

The outcome of this appeal could have implications for Netweb Technologies' financial obligations and potentially set a precedent for similar cases in the technology sector. Stakeholders and industry observers will likely keep a close watch on the proceedings at CESTAT and any subsequent developments in this matter.

Netweb Technologies India Limited, a leading provider of high-performance computing solutions, has reported robust financial results for the first quarter, showcasing significant growth across key metrics.

Strong Financial Performance

The company's revenue from operations surged by 102% year-on-year to Rs. 3,012.00 million in Q1. This impressive growth was accompanied by a substantial increase in profitability, with operating EBITDA rising by 127% year-on-year to Rs. 448.00 million. The EBITDA margin for the quarter stood at 14.9%. Profit after tax (PAT) also saw a remarkable 100% year-on-year growth, reaching Rs. 305.00 million, with a PAT margin of 10.1%.

AI Systems Drive Growth

A key highlight of the quarter was the exceptional performance of Netweb's AI systems segment. This division contributed 29% of the operating revenue and experienced a 300% year-on-year growth. The company successfully executed a large AI order in the defense sector, underlining its capabilities in critical national initiatives.

Segment-wise Performance

Netweb operates across three main segments:

1. High-Performance Computing (HPC)
2. Private Cloud and Hyper-Converged Infrastructure (HCI)
3. AI Systems

While all segments showed growth, AI systems emerged as the star performer. The company's management has revised its guidance for AI's contribution to total revenue, expecting it to reach around 22% by the end of the fiscal year, up from the previous estimate of 20%.

Order Book and Pipeline

As of the end of Q1, Netweb's order book stands at Rs. 230.00 crore, with additional L1 (lowest bidder) orders of Rs. 460.00 crore, totaling approximately Rs. 700.00 crore. The company's pipeline is robust, valued at around Rs. 4,000.00 crore, with an expected conversion ratio of 60%.

Client Mix and Sector Contribution

For the quarter, government orders contributed 60% of the total revenue, while enterprise clients accounted for 40%. The space and defense sector saw significant growth, with its contribution rising to Rs. 83.40 crore, marking a 283% year-on-year increase.

Launch of Skylus.ai

During the quarter, Netweb introduced Skylus.ai, a unified composable GPU orchestration platform designed to facilitate rapid deployment and optimization of AI infrastructure. This launch aligns with India's vision of becoming a global AI powerhouse.

Management Commentary

Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, commented on the results: "We are pleased to report yet another strong quarter, continuing our growth momentum. The results reflect the strength of our business model, disciplined execution, and robust demand across our core segments."

Outlook

Netweb Technologies maintains its revenue growth guidance of 35-40% for the fiscal year. The company expects to sustain its EBITDA margins around 14% with PAT margins between 10-10.5%. With a strong order book, expanding product portfolio, and continued investments in capability building, Netweb remains confident in its growth trajectory.

The company's focus on high-growth areas such as AI, coupled with its strong presence in government and enterprise sectors, positions it well to capitalize on the increasing demand for advanced computing solutions in India's rapidly evolving technology landscape.