National, February 10, 2024: Black Box (BSE: 500463) (NSE: BBOX), a leading IT solutions provider, announces its strong performance for the third quarter of fiscal year 2024, marked by significant growth across key financial indicators.
Revenue for Q3FY24 experienced a 5% quarter-over-quarter increase, showcasing Black Box’s ability to navigate challenges and capitalize on opportunities. For the nine months ended FY24, revenue grew by 4% year-over-year, demonstrating steady progress amidst market dynamics. The growth is a result of the company’s strategy to focus on large volume customers, with the pipeline continuing to be robust.
In Q3FY24, Black Box witnessed a remarkable 62% year-over-year increase in EBITDA, reaching Rs. 116 crores, showcasing improved operational performance and effective financial strategies. EBITDA margins displayed an increase by 270 basis points year-over-year to 7.0% for Q3FY24 and by 260 basis points year-over-year to 6.4% for the nine months ended FY24, showing the effectiveness of Black Box’s cost rationalization and enhanced productivity.
Profit after tax for Q3FY24 surged by an impressive 5.2 times year-over-year to Rs. 41 crores, reflecting Black Box’s sound business model and financial management. For 9MFY24, profit after tax increased to Rs 97 crores as compared to Rs 1 crore in 9MFY23. This surge highlights the company’s operating performance that has resulted in better profitability despite higher interest costs.
Black Box secured significant deal wins exceeding $50 million during the quarter, bolstering its order book and reaffirming confidence in its business model’s strength. These wins validate the company’s reputation as a trusted partner in delivering cutting-edge IT solutions to businesses globally.
Commenting on the results and performance Mr. Sanjeev Verma, Whole Time Director, Black Box said,
“We are delighted by our achievements in Q3 and 9MFY24. Our EBITDA margins and overall profitability both on a QoQ and YoY basis has increased substantially due to our emphasis on cost rationalization and enhanced productivity. Strong order book coupled with deal wins in excess of $50Mn during the quarter, makes us confident in our resilient business model. As each of our business segments gathers momentum, it reinforces our confidence in delivering improved performance in the upcoming quarters.”
Mr. Deepak Kumar Bansal, Executive Director and Global Chief Financial Officer of Black Box, commented,
“Revenue for Q3FY24 witnessed a growth of 5% QoQ and was muted on a YoY basis. For 9MFY24 revenue grew by 4% YoY. Our strong focus on profitability over the last few quarters has started yielding positive results as evidenced by our profit after tax surging 5.2 times YoY in Q3FY24. Further, we are optimistic, this trend to continue both in terms of margin enhancement and overall profitability, boosting our confidence in achieving strong performance in fiscal year 2024 and onwards.”
