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Muted sales growth in FY24 notwithstanding, Black Box is poised for its next growth phase aided by a growing deal pipeline, revamped go-to-market strategy, and focus on data centres, according to a report by brokerage firm Ventura Securities . Black Box, an Essar Group company, is a digital infrastructure integrator. Its portfolio includes data centre solutions , advanced networking solutions, AI-powered analytics and IoT-enabled devices .
ET Year-end Special Reads Stocks to buy in 2025: 66 ideas from top brokerages for your new year portfolio What does 2025 hold for India's IT services sector? 2025 may be the year of EVs in India, dominated by SUV launches "Despite muted sales growth in FY24, primarily due to delays in project execution and decision-making, Black Box is poised for next growth phase," it said, adding that the firm has revamped its strategy by focusing on the top 300 customers and exiting less profitable long-tail customers, as they do not contribute to margin growth. Black Box plans to concentrate on data centres, primarily in North America and India, Ventura said. Data centres constitute about 20% of the company's revenues.
With a customer base that includes major hyperscalers like Meta , Amazon, and Microsoft, which are expected to significantly invest in data centre buildouts, it said the contribution to revenues of Black Box from data centres is expected to grow to Rs 1,994 crore by FY27 at a CAGR of 15 %. Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Basics of Generative AI: Unveiling Tomorrows Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program Marketing Modern Marketing Masterclass by Seth Godin By - Seth Godin, Former dot com Business Executive and Best Selling Author View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Strategy Succession Planning Masterclass By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd. View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI and Analytics based Business Strategy By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI View Program Web Development A Comprehensive ASP.
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Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The company sees India as a hyper-growth market, where they are constructing a strategy to be a significant player, it added. Moreover, Black Box's experience in large-scale operations across North America is expected to give it a competitive advantage in the Indian market. The company intends to collaborate with its global clients who are looking to enter India, while also exploring potential partnerships with local businesses, it said.
Black Box reported a 60 % jump in consolidated net profit to Rs 51.14 crore for the July-September quarter. Its revenue for the quarter under review declined 4.
89 % to Rs 1,497.2 crore from Rs 1,574.3 crore in Q2 FY24.
"We expect revenues to grow at a CAGR of 8 % from Rs 6,281.6 crore in FY24 to Rs 7,996 crore by FY27. "The company has a strong (deal) pipeline of USD 2 billion, and plans to increase the conversion rate to 25 % from current 20 %," Ventura said.
Black Box caters to five verticals -- banking, finance, healthcare, technology and industrial. It has a network of 75 delivery centres, of which 21 are in the US and 14 in India. Globally, the company has a workforce of over 4,000 across 35 countries.
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