Netweb Technologies India's board approves Rs 23.4 crore capital expenditure; stock hits upper circuit

Netweb Technologies India Ltd.'s stock hit the upper circuit limit of 10 per cent on the BSE in the morning deals on Thursday, November 2. The rally in the stock was witnessed after the company posted its July to September quarter (Q2FY24) results and its board approved a capital expenditure of Rs 23.4 crore from the initial public offering (IPO) proceeds.

"Approval for capital expenditure up to Rs 234 million (23.4 crore) out of the proceeds of the Initial Public Offering (IPO) of the company," the regulatory filing read.

Further, the Audit Committee of the Company and the Board of Directors of the Company are duly authorised to make an expenditure for the purchase and installation of a surface-mounted technology line at the rented premises of the company situated in Faridabad, Haryana.

At around 9:55 a.m., shares of Netweb Technologies traded 9.37 per cent or Rs 71, higher on the BSE at Rs 828.65 apiece. The market capitalisation of the company stood at Rs 4,645.82 crore.

Post-market hours on Wednesday, Netweb Technologies India reported a consolidated net profit of Rs 15 crore as against Rs 9 crore, which translates to an increase of 67 per cent year-on-year (YoY).

The revenue of the company rose twofold to Rs 145 crore during the quarter from Rs 74 crore logged in the same period a year ago. The earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 40.6 per cent to Rs 19.22 crore as against Rs 13.67 crore in the same period a year ago.

Conversely, the company's margin, a key to assessing profitability, fell 525 basis points (bps) to 13.25 per cent from 18.5 per cent YoY.

The IPO of the company ran between July 17, 2023, and July 19, 2023. The allotment for the Netweb Technologies India IPO was finalised on Monday, July 24, 2023. The shares were listed on bourses on July 27, 2023.

Since its debut, shares of Netweb Technologies India have lost over 20 per cent.

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