Black Box Limited announced its unaudited financial results for the quarter and half year ended September 30, 2023.
Revenues for Q2FY24 remained flat on both YoY and QoQ basis.
For H1FY24 revenues grew by 7.2 per cent YoY.
The order book continues to remain strong reflected in new order wins. However, few delays at customer sites have led to flat revenue growth.
Further, the company has started exiting some of the low-revenue customers who do not have future growth potential and are drag on margins.
EBITDA margins for Q2FY24 increased by 320 bps YoY and 70 bps on QoQ basis to 6.4 per cent.
For H1FY24 Margins increased by 260 bps YoY to 6.1 per cent.
Focus on cost rationalisation and improved productivity have started to yield positive results increasing our EBITDA margins.
Profit after tax for Q2FY24 increased by robust 33 per cent QoQ to Rs 32 crore.
For H1FY24 profit after tax stood at Rs 56 crore as compared to loss of Rs 7 crore in H1FY23.
Operating leverage has resulted in better profitability despite higher interest costs.
Commenting on the results and performance Sanjeev Verma, Whole Time Director, Black Box said: “We are extremely pleased with our performance for Q2 and H1FY24. We have reported strong improvement in EBITDA margins and overall profitability owing to cost rationalisation programme and improved productivity yields. Our project order book in North America continues to be robust on the back of order wins in excess of US$80 million during the quarter. Our business model remains resilient and each of our business segments continue to gain traction which gives us the confidence to deliver better performance over the coming quarters.”
Deepak Kumar Bansal, Executive Director and Global Chief Financial Officer of Black Box, commented, “Revenues for Q2FY24 remained flat on YoY and QoQ basis whereas for H1FY24 revenue grew by 7 per cent YoY. Order book continues to be strong, however, we have exited some of the low-revenue customers account who do not have future growth potential and were drag on margins. Our strong focus on profitability over the last few quarters has started yielding positive results and we are confident that this improvement trajectory should continue in the future as well.”