Shares of E2E Networks Ltd locked in the 5% lower circuit at ₹1,903.10 on the NSE during Wednesday’s session, despite the company reporting strong Q4 FY25 earnings. The stock fell by ₹100.10 from the previous close of ₹2,003.20, even as investors digested both earnings and a key leadership change.
Q4 FY25 Financial Highlights:
- Standalone net profit surged 286.65% YoY to ₹13.61 crore, up from ₹3.52 crore in Q4 FY24.
- Revenue from operations rose 13.84% YoY to ₹33.47 crore.
- Profit before tax (PBT) more than tripled to ₹17.58 crore, compared to ₹5.57 crore in the year-ago quarter.
- Total expenses jumped 71.74% YoY to ₹41.32 crore.
- Purchase of services and consumables: ₹8.41 crore (up 91.57%)
- Employee benefit expenses: ₹6.42 crore (up 20%)
- Finance costs: ₹2.19 crore (down 2.23%)
Despite the stellar profit growth, the spike in overall costs and market sentiment likely weighed on the stock price.
Leadership Change:
The company also announced a change in its finance leadership. Megha Raheja has resigned as Chief Financial Officer (CFO), effective post-business hours on April 17, 2025. The Board has approved the appointment of Nitin Jain as the new CFO, effective the same day.
E2E Networks, known for its indigenous hyperscale cloud infrastructure solutions, specializes in advanced Cloud GPU offerings, including NVIDIA A100, H100, and the newly launched H200 GPUs.
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