9M / Q3-FY22
EARNINGS PRESENTATION
Jan 2022
Value Proposition of Onward Tech
The Power of One
- Agile, diverse, global team of 2250+ employees
- 13 Offices in 6 countries for customer proximity
- Capacity expansions based on Customer requirements planned in India centers in FY22
Global 2000 customers
- 6 of global top-10 automotive companies
- 5 of global top-8 heavy machinery companies
- Strong customer base and relationships to fuel double digit growth in top line
Geared for double-digit growth
- Young leadership team from tier-1 companies
- Focused on growing existing top-25 accounts
- Margin expansion through India advantage (talent pyramid, costs)
Digital play across all lines of business
- Mechanical Engineering
- Electronics and Embedded
- Digital Transformation
- Enterprise IT
2 Focused industry verticals
- Transportation & Mobility
- Industrial Equipment & Heavy Machinery
- Diversification and investment in 2 high- growth verticals: Healthcare & Medical Devices, Hi-Tech
Strong Financial Turnaround
- Net debt-free, sound balance sheet & cash reserves
- 5-yearPAT CAGR at 18.16%
- 6-yeartrack-record of consistent dividend payout
Revenue (INR Mn) & EBITDA Margin (%)
2,610 | 2,715 | 2,404 | 2,198 | |||
8.58% | 8.58% | 7.20% | ||||
6.87% | ||||||
FY19 | FY20 | FY21 | 9M-FY22 | |||
9M-FY22 Segmental | ||||||
Revenue | Digital 8% |
ITS,
21%
ER&D, | ||
71% | ||
9M-FY22 Segmental Revenue | ||
Healthcare 7% | ||
Others 20% | ||
Industrial Equipment | ||
& Heavy Machinery | ||
46% | Transportaion & | |
Mobility | ||
28% |
JAN 2022 | 9M / Q3-FY22 EARNINGS PRESENTATION |
2
Who We Are - Some Key Milestones
- Pune city chosen for expanding operations
- Engineering Design Services became the mainstream focus of the company
- Built a dedicated ODC in Pune for one of the company's top 5 customers
- ISO 9001 and ISO 27001 certification for Pune Center
- Expansion in Europe by incorporating a wholly owned subsidiary in Germany & Branch office in UK
1991
-
2000
2001
-
2010
2011
-
2020
- Mr Harish Mehta founded Onward Technologies in 1991
- An independent 50:50 Joint Venture formed with Novell Inc (Onward Novell Pvt. Ltd).
- Listing on Stock Exchange in India in 1995
- Mr Harish Mehta awarded CEO of the year in 1996 by World HRD Congress in India
- Expanded footprint in North America by incorporating a wholly owned subsidiary in USA
- Mr Jigar Mehta appointed Managing Director in May 2016
- Set up multiple ODCs in Pune & Chennai for American & European clients
- Mr Harish Mehta awarded by Prime Minister Narendra Modi for his contributions to the IT Industry
- Investments made in Embedded & Electronics, and Digital capabilities
- Expansions planned in India (Bengaluru & NCR) as well as in North America & Europe
JAN 2022
9M / Q3-FY22 EARNINGS PRESENTATION | 3 |
Strategic Presence Across Geographies
Cleveland
Chicago Troy
Toronto
HQ
Offshore Development Centre
Office
Strategic presence across geographies
Stockholm
London
AmsterdamFrankfurt
Paris
Tokyo | |||
NCR | Pune | ||
Mumbai | |||
Bengaluru | Hyderabad | ||
FY21 Revenue Breakup - Client Location | |||
India | USA | ||
36% | |||
53% | |||
Europe | |||
5% | |||
UK | |||
6% |
6 Of global top-10 automotive companies
JAN 2022
5 Of global top-8 heavy machinery companies
9M / Q3-FY22 EARNINGS PRESENTATION | 4 |
Growth Strategy Enablers
FY 2021
Top 10
Customers
(45%)
Top 11-50 Customers
(41%)
Remaining Customers
(14%)
Pivot to digital engineering services
- Invested in the digital maturity curve of our customers
- See a clear roadmap of growth in digital budgets
- Witnessing a shift from POC to adoption at scale
- Core areas include Industry 4.0, AI/ML, ADAS, cloud and DevOps
Focused verticals and structured LOBs
- Leadership team with a strong experience across verticals
- Focus on Transportation & Mobility, Industrial Equipment & Heavy Machinery
- Hi-Tech,Healthcare & Medical Devices unlock new, high-growth areas
- Digital play across all lines of business
TARGET FY2025
Top 10
Customers
(70%)
Top 11-50 Customers
(20%)
Remaining Customers
(10%)
Digital 2%
ITS 26%
ER&D
72%
Growth in top-accounts
- Suitably positioned to scale up TCV from top-25 clients
- These accounts are part of Global 2000, projecting large R&D allocations
- Growth/technology-partnerstatus is several accounts
- Focused on long-duration contracts, recurring revenues, consistent billing growth
People, policies, and performance
- Continue to upskill, hire the finest talent in digital engineering
- Agile operations with steadily increasing offshore leverage driving margin expansion
- HR policies, growth opportunities tuned to enhance career path
- Benefits aligned with industry standards
Digital
Transformation
50%
ER&D
50%
JAN 2022 | 9M / Q3-FY22 EARNINGS PRESENTATION | 5 |
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Onward Technologies Ltd. published this content on 15 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 January 2022 05:54:01 UTC.