Black Box Posts 54.9% Profit Surge in Q1 FY25 Amid Revenue Dip

IT company Black Box reported a 54.9% rise in net profit for Q1 FY25, reaching Rs 37.09 crore. This contrasts with a Rs 23.94 crore profit for the same period last year. Despite a decline in revenue, strategic moves and improved productivity led to increased profitability.

IT company Black Box on Wednesday reported a 54.9 per cent rise in consolidated net profit at Rs 37.09 crore for the June quarter of FY25.

The company had posted a net profit of Rs 23.94 crore for the same period last year, according to a regulatory filing.

Revenue from operations amounted to Rs 1,423.3 crore, down from Rs 1,571.4 crore in Q1 FY24.

Profit and revenue saw a sequential decline of 9.31 per cent and 3.85 per cent, respectively.

''The growth in topline was affected due to delays in decision-making, leading to delayed project execution and muted demand for our product business from some federal partners during the quarter.

''However, we continue to deliver on EBITDA and profitability over the last few quarters with a strong focus on productivity and deal margins, as evidenced by a 28 per cent YoY growth in EBITDA and 55 per cent YoY increase in our profit after tax,'' stated Deepak Kumar Bansal, executive director and global CFO at Black Box.

Black Box's whole-time director Sanjeev Verma mentioned that the firm's ''strategic'' exit from low-value, non-accretive customers had a short-term impact on revenue.

''As we move into FY25, our focus will remain on capitalizing on our strong pipeline and robust order book. With each business segment gaining momentum, we are confident in our ability to deliver enhanced performance and meet our revenue and profitability guidance,'' Verma added.

Shares of Black Box were trading 4.24 per cent lower at Rs 506.95 apiece on the BSE on Wednesday.

(With inputs from agencies.)