Q2 results: Essar-owned Black Box reports higher sequential revenue, margins improve

Black Box reported more orders from data hyperscalers

Essar Group-backed listed technology firm Black Box Ltd reported a 14 percent increase in its revenue for the July-September quarter on a sequential basis to Rs 1,585 crore, while its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also grew by 23 percent over the same period to Rs 143 crore.

EBITDA margins for the reported quarter also grew by 60 basis points to 9 percent. Profit for the quarter grew by 17 percent to Rs 56 crore. In a release, Black Box attributed the financial results to growing order wins and order backlog, as well as ramped up order executions and a healthy order pipeline.

Black Box booked orders worth Rs 1,906 crore during the July-September quarter, higher than the Rs 1,536 crore of orders booked in the April-June quarter. The company's order book at the end of the July-September quarter stood at Rs 4,846 crore. Much of the new orders came in the form of extensions with existing clients, including from financial services firms, as well as from data hyperscalers.

"Our transformation journey is driving sustained, profitable momentum, backed by a strong and diversified order book. We are witnessing strong traction in high-growth areas such as data centers and overall digital infrastructure, across our operating markets, and are scaling strategically to capture these opportunities," said Sanjeev Verma, chief executive officer of Black Box.

In a release, Black Box noted that it entered a strategic partnership with Aptiv-owned firm Wind River, to accelerate innovation in edge and cloud computing. The firm added that the partnership is expected to yield a revenue of Rs 1,350 crore in the next five years.