IT firm Black Box posts robust EBITDA and PAT growth in Q2, FY25 first half

Leading IT solutions provider Black Box Ltd on Monday reported strong quarterly and half-yearly EBITDA and profit after tax (PAT) growth for the period ended September 30.

EBITDA for the quarter increased to Rs 135 crore, reflecting a growth of 34 percent YoY and 18 percent QoQ.

For the first half (H1) of FY25, EBITDA grew by 31 percent YoY, reaching Rs 250 crore.

EBITDA margins for Q2 FY25 improved substantially by 260 basis points YoY to 9.0 percent, while for H1 FY25, EBITDA margins improved by 250 bps YoY, standing at 8.6 percent, according to the company.

Profit after tax (PAT) for Q2 FY25 stood at Rs 51 crore, growing by 60 percent YoY and 38 percent QoQ.

For H1 FY25, PAT increased to Rs 88 crore, reflecting a growth of 58 percent YoY. PAT margins improved by 140 bps YoY, reaching 3.4 percent in Q2 FY25, while for H1 FY25, PAT margins stood at 3.0 percent, reflecting a growth of 120 bps YoY.

Revenue for Q2 stood at Rs 1,497 crore, compared to Rs 1,574 crore in Q2 FY24. For H1 FY25, revenue stood at Rs 2,921 crore, compared to Rs 3,146 crore in H1 FY24.

“Hold-up in decision making, leading to delayed project execution, impacted revenue. However, the pipeline continues to remain strong with an order book of $455 million as of September 2024,” said the company.

Black Box said it is committed to driving revenue growth and has undertaken certain strategic initiatives to create an organization that is ready for the future, driven by technological advancements.

“Our strategic focus on reorganizing the business into industry verticals and a horizontal business layer will help us transition into the next phase of growth. A focused approach to targeting premium customers will lead to deeper engagement with our clients, making us one of the preferred digital infrastructure solutions providers globally,” said Sanjeev Verma, whole-time director of Black Box.

“We have secured funding of Rs 386 crore, which will strengthen our balance sheet and help us make accelerated investments to propel growth across key focus areas,” Verma added.

With a focused approach led by experts in each vertical, the company is gearing up for its next phase of growth, with expected outcomes from early FY26 onwards.

Deepak Kumar Bansal, executive director and global chief financial officer of Black Box, said, “Our commitment toward better performance, achieved through operating leverage, is starting to yield results as our operating and profitability margins continue to rise quarter on quarter.

“As we re-architecture our GTM, we will see further improvement in our operating performance, higher profitability, and improved cash flows. At Rs 51 crore of PAT in Q2 FY25, we are already at a run-rate of above Rs 200 crore of PAT, and are hopeful to achieve our full-year FY25 profitability targets,” Bansal added.