As Esconet Technologies Limited celebrates the successful completion of one year since its equity shares were listed on the NSE EMERGE platform on February 23, 2024, it is a fitting moment to reflect on the company’s remarkable journey. What began in 2012 as Esconet Technologies Private Limited has evolved into a leading system integrator, offering expertise across IT infrastructure, cloud computing, managed services, and data security sectors. Over the years, Esconet has consistently expanded its service offerings and market presence, building a legacy of innovation and growth.
Recognizing the increasing demand for high-performance IT solutions in the Indian market, Esconet had introduced its own brand, HexaData , specializing in servers, workstations, and storage systems. Furthermore, the company’s strategic collaboration with NVIDIA has significantly enhanced its footprint in artificial intelligence (AI) and machine learning (ML), further advancing its technology portfolio.
Esconet's Initial Public Offering (IPO), launched a year ago, has played a pivotal role in cementing the company's position as a trusted advisor, manufacturer, integrator, and service provider to a diverse range of private and public sector organizations. Today, Esconet stands at the forefront of technological innovation, fully equipped to meet the growing demand for server, storage, network, security, virtualization, cybersecurity, and data protection solutions for small and medium enterprises (SMEs), large enterprises, and government entities.
As we mark this significant milestone, it is essential to review the key performance indicators (KPIs) that reflect Esconet's growth and financial health over the past year.
Revenue Trends In the fiscal year ending March 31, 2024, Esconet achieved a revenue of ₹140.59 Crores, a notable increase from ₹96.9 Crores in the previous fiscal year (FY 2023). The company’s robust performance in the first half of FY 2024 (ending September 30, 2024) resulted in a revenue of ₹106.92 Crores, underscoring its continued strength in revenue generation.
Profitability Esconet Technologies reported a net profit of ₹5.43 Crores for FY 2024, compared to ₹3.04 Crores in FY 2023. In the first half of FY 2024 (ending September 30, 2024), the company posted a net profit of ₹2.68 Crores. This consistent profitability reflects the company’s ability to generate stable earnings in a dynamic and competitive market environment.
Initial Listing Esconet Technologies made a strong debut on the NSE EMERGE platform on February 23, 2024, offering its shares at an issue price of ₹84. Upon listing, the stock opened at ₹290, reflecting an impressive 245% premium over the issue price, which speaks volumes about investor confidence in the company’s growth trajectory.
Subsequent Market Movements Following its market debut, the stock saw some volatility, closing at ₹275.50 on its first trading day, a 5% decline from the listing price. However, it remained well above the IPO issue price, reinforcing positive investor sentiment. Over the past year, the stock has reached a high of ₹539.95, further demonstrating Esconet’s potential in the market.
EBITDA Esconet showed significant improvements in operational efficiency, with its EBITDA increasing from ₹6.34 Crores in FY 2023 to ₹10.21 Crores in FY 2024. For the half-year period ending September 30, 2024, EBITDA stood at ₹4.59 Crores. This upward trend signals enhanced profitability and effective cost management—key factors in the company’s long-term value creation.
Debt-to-Equity Ratio Esconet’s financial leverage improved significantly in FY 2024, with the debt-to-equity ratio decreasing from 1.99x in FY 2023 to just 0.06x. For the half-year ending September 30, 2024, this ratio stood at 0.14x. The reduction in debt levels signifies a more conservative capital structure, strengthening the company’s balance sheet and enhancing its financial stability.
Reputation and Market Positioning The success of Esconet’s IPO has enhanced the company’s visibility and credibility, positioning it as a key player within its industry. The market debut significantly boosted Esconet’s profile, unlocking new opportunities for growth and expansion.
Regulatory Compliance Adherence to stringent regulatory standards post-IPO is crucial for maintaining investor confidence. Esconet’s commitment to compliance ensures transparency in its operations and alignment with industry best practices, fostering trust among stakeholders and supporting sustainable long-term value.
Over the past year, Esconet Technologies Limited has made key advancements to strengthen its market position and expand operations. The company launched a new assembly line to increase manufacturing capacity and invested in a state-of-the-art testing facility and micro data center (Micro DC), improving operational efficiency and solution delivery.
Esconet was also elevated to NVIDIA’s Preferred Partner status, enhancing its technological alliances and ability to offer cutting-edge AI and machine learning solutions. Additionally, the company secured a historic order worth ₹39.78 Crores, reflecting growing industry trust in its capabilities.
Esconet raised ₹32.69 Crores through the preferential allotment of 7,34,000 equity shares and 2,13,600 convertible warrants, securing funds for future growth. As part of its global expansion, Esconet established a wholly owned subsidiary in Singapore, Esconet Singapore Pte. Ltd.
Moreover, Esconet is in the process of acquiring a majority stake in Fluidech IT Services Private Limited, a growing cybersecurity firm. This acquisition will strengthen Esconet's cybersecurity offerings, enabling the company to provide comprehensive solutions in a critical market. These developments demonstrate Esconet’s continued commitment to innovation, growth, and technological advancement.
The first year since Esconet Technologies' successful listing on the NSE EMERGE platform has been a story of growth, stability, and accomplishment. With impressive financial performance, a strong market position, and an unwavering commitment to innovation and service excellence, Esconet Technologies is well-positioned for continued success in the coming years.
As the company continues to build upon its legacy, the future holds exciting opportunities for both Esconet and its valued investors. Here's to another year of growth, achievement, and technological leadership as Esconet Technologies paves the way for a bright and prosperous future in the ever-evolving world of IT and technology services.
Join us as we celebrate this milestone and stay tuned for more exciting developments from Esconet Technologies Limited.
*Formerly known as: Esconet Technologies Private Limited
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