Black Box Q3 Profit Up 37%, Revenue Down 9%

New Delhi, Feb 11 (PTI) Essar Group's IT arm Black Box has reported a 37.2 per cent increase in consolidated net profit to Rs 56.08 crore for the October-December quarter of 2024-25 compared to Rs 40.87 crore in the same period of the previous fiscal.

Revenue from operations for dropped by 9.28 per cent to Rs 1,501.7 crore in the third quarter of FY25 against Rs 1,655.4 crore in the December quarter of FY24.

The company said subdued order bookings as a result of delayed decision-making with some of its large customers, coupled with its strategy to exit the tail customers led to a decline in revenue.

However, the pipeline continues to remain strong, it said, with the order book standing at USD 465 million. Additionally, the company has already received orders worth USD 80 million in the ongoing quarter.

"Positive impact already seen in Q4 FY25 and expected to strengthen from Q1FY26...Pipeline conversion and improved win-rate expected to positively impact the revenues beginning Q2FY26 onwards," the statement said.


It expressed optimism in demand for digital infrastructure driven by the adoption of AI by businesses. Capex spending by hyperscalers on data centres and models has risen, and increased investments in AI are anticipated this year which reconfirms confidence in Black Box's journey of reaching USD 2 billion in revenue by FY29, it said.

"The recent advancements and ongoing developments in AI are expected to boost demand for AI tools by businesses across the globe. We believe it will lead to an increased demand for digital infrastructure to enhance user experience. Consequently, the hyperscalers have committed large capex towards AI infrastructure and data centre which reconfirms our confidence in our growth aspirations of reaching USD 2 billion in revenue by FY29," Sanjeev Verma, Whole-time Director, Black Box, said.

Sequentially, profit and revenue rose 25 per cent and 0.30 per cent, respectively.

Black Box further has a global headcount of 3,569, with 1,219 staff in India.

With a presence across the United States, Europe, India, Asia Pacific, the Middle East, and Latin America, Black Box offers digital infrastructure solutions to businesses across financial services, technology, healthcare, retail, public services, and manufacturing.

The Black Box scrip settled 3.07 per cent lower at Rs 485.80 apiece on the BSE on Tuesday.