Onward Technologies Limited · NSE:ONWARDTEC
Onward Technologies — Q2 FY2022 Earnings Presentation
25 slides from Onward Technologies's earnings presentation, Oct 1, 2021
Slide 1: H1 / Q2-FY22 Earnings Presentation
H1 / Q2-FY22 EARNINGS PRESENTATION
Slide 2: Value Proposition of Onward Tech
Value Proposition of Onward Tech The Power of One Digital play across all lines of business Revenue (INR Mn) & EBITDA Margin (%) • Agile, diverse, global team of 2250+ employees • Mechanical Engineering 2,610 2,715 2,404 • 13 Offices in 6 countries for customer • Electronics and Embedded proximity •
Slide 3: Who We Are – Some Key Milestones
Who We Are – Some Key Milestones • Mr Harish Mehta founded Onward Technologies in 1991 • An independent 50:50 Joint Venture formed with Novell Inc 1991 (Onward Novell Pvt. Ltd). - • Listing on Stock Exchange in India in 1995 2000 • Mr Harish Mehta awarded CEO of the year in 1996 by World HRD Congres
Slide 4: Strategic Presence Across Geographies
Strategic Presence Across Geographies Stockholm Cleveland Chicago Troy London Amsterdam Frankfurt Toronto Paris Tokyo NCR Pune Mumbai Hyderabad FY21 Revenue Breakup – Client Location Bengaluru Chennai India USA 53% 36% Europe 5% UK HQ 6% Offshore Development Centre Office Strategic presence across 6
Slide 5: Growth Strategy Enablers
Growth Strategy Enablers Pivot to digital engineering Focused verticals and structured FY 2021 services LOBs TARGET FY2025 • Invested in the digital maturity curve • Leadership team with a strong of our customers experience across verticals Top 10 Top 10 Customers • See a clear roadmap of growth in
Slide 6: Financial Overview
FINANCIAL OVERVIEW 6
Slide 7: H1 / Q2-FY22 Key Financial Highlights
H1 / Q2-FY22 Key Financial Highlights Q2-FY22 Consolidated Financial Performance Q2-FY22 Standalone Financial Performance INR 729 Mn INR 72 Mn 9.88% INR 567 Mn INR 47 Mn 8.29% Revenue from Revenue from EBITDA EBITDA Margins EBITDA EBITDA Margins Operations Operations INR 56 Mn 7.68% INR 2.84 /Share
Slide 8: H1 / Q2-FY22 Operational Highlights
H1 / Q2-FY22 Operational Highlights • With an aggressive focus on execution, the company was able to deliver a 21% YoY growth in Revenues, while the absolute EBIDTA grew by 26% due to better utilisations. • Steady Growth from Top 20 customers for Digital Engineering Services across Electronics/ Embe
Slide 9: Management Comments
Management Comments Commenting on the performance of the Company, Jigar Mehta – Managing Director said “I’m pleased with the overall team performance last quarter with record 21% YoY revenue growth. We were able to deliver continuous double-digit growth due to our focus on aligning our investments o
Slide 10: Q2-FY22 Consolidated Income Statement (IND-AS)
Q2-FY22 Consolidated Income Statement (IND-AS) Particulars (INR Mn) Q2-FY22 Q2-FY21 Y-O-Y Q1-FY22 Q-O-Q Operational Income 729 602 21.10% 696 4.74% Total Expenses 657 545 20.55% 715 (8.11)% EBITDA 72 57 26.32% (19) NA EBITDA Margins (%) 9.88% 9.47% 41 Bps NA NA Other Income 41 8 NA 155 (73.55)% Depr
Slide 11: H1-FY22 Consolidated Income Statement (IND-AS)
H1-FY22 Consolidated Income Statement (IND-AS) Particulars (INR Mn) H1-FY22 H1-FY21 Y-O-Y Operational Income 1,425 1,162 22.63% Total Expenses 1,372 1,068 28.48% EBITDA 53 94 (43.72)% EBITDA Margins (%) 3.72% 8.10% 438 Bps Other Income 196 11 NA Depreciation 49 55 (11.77)% Finance Costs 5 13 (60.60)
Slide 12: Q2-FY22 Standalone Income Statement (IND-AS)
Q2-FY22 Standalone Income Statement (IND-AS) Particulars (INR Mn) Q2-FY22 Q2-FY21 Y-O-Y Q1-FY22 Q-O-Q Operational Income 567 423 34.04% 516 9.88% Total Expenses 520 361 44.04% 511 1.76% EBITDA 47 62 (24.19)% 5 NA EBITDA Margins (%) 8.29% 14.66% (637) Bps 0.97% 732 Bps Other Income 19 29 (34.48)% 10
Slide 13: H1-FY22 Standalone Income Statement (IND-AS)
H1-FY22 Standalone Income Statement (IND-AS) Particulars (INR Mn) H1-FY22 H1-FY21 Y-O-Y Operational Income 1,083 805 34.53% Total Expenses 1,030 704 46.31% EBITDA 53 101 (47.52)% EBITDA Margins (%) 4.89% 12.55% (766) Bps Other Income 29 36 (19.44)% Depreciation 44 50 (12.00)% Finance Costs 4 11 (63.
Slide 14: Historical Financial Overview
HISTORICAL FINANCIAL OVERVIEW 14
Slide 15: Historical Consolidated Profit & Loss
Historical Consolidated Profit & Loss Particulars (INR Mn) FY19 FY20* FY21* H1-FY22 Operational Income 2,610 2,715 2,404 1,425 Total Expenses 2,386 2,482 2,231 1,372 EBITDA 224 233 173 53 EBITDA Margins (%) 8.58% 8.58% 7.20% 3.72% Other Income 12 11 53 196 Depreciation 57 113 104 49 Finance Costs 27
Slide 16: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY19 FY20 FY21 H1-FY22 Particulars (INR Mn) FY19 FY20 FY21 H1-FY22 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 98 80 171 174 158 160 163 176 Share Capital Intangible assets 57 41 39 33 452 520 581 950
Slide 17: Historical Standalone Profit & Loss
Historical Standalone Profit & Loss Particulars (INR Mn) FY19 FY20* FY21* H1-FY22 Operational Income 1,182 1,806 1,727 1,083 Total Expenses 1,032 1,660 1,531 1,030 EBITDA 150 145 196 53 EBITDA Margins (%) 12.69% 8.03% 11.35% 4.89% Other Income 50 65 85 29 Depreciation 48 102 93 44 Finance Costs 21 3
Slide 18: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY19 FY20 FY21 H1-FY22 Particulars (INR Mn) FY19 FY20 FY21 H1-FY22 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 75 70 164 166 Share Capital 158 160 163 176 Intangible assets 56 41 39 33 454 455 Other Equi
Slide 19: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 154 2,610 2,715 101 2,404 233 224 173 74 62 10.81% 1,425 8.58% 8.58% 7.20% 3.72% 3.87% 3.08% 2.28% 53 FY19 FY20 FY21 H1-FY22 FY19 FY20 FY21 H1-FY22 FY19 FY20 FY21 H1-FY22 EBITDA EBITDA Margin PAT PAT Margin Net D/E (x) D
Slide 20: Revenue Metrics (Consolidated)
Revenue Metrics (Consolidated) Revenue by Business Revenue by Industry 2% 8% 4% 5% 8% 7% 34% 27% 26% 21% 31% 27% 26% 21% 26% 24% 26% 26% 69% 73% 72% 71% 46% 36% 42% 42% FY19 FY20 FY21 H1-FY22 FY19 FY20 FY21 H1-FY22 ER&D ITS Digital In dustrial & Heavy Machin er y Transpor tati on & Mobil ity Others
Slide 21: Customer Metrics (Consolidated)
Customer Metrics (Consolidated) Client Deal Size Breakup Revenue of Major Clients 8% 12% 14% 1 7% 5 29% 32% 31% 31% 2 8 9 46% 47% 45% 47% 4 3 9 10 FY19 FY20 FY21 H1-FY22 FY19 FY20 FY21 H1-FY22 USD 3 Mn > USD 1 Mn > USD 3 Mn USD 500 K > USD 1 Mn Top 10 Clients Top 5 Clients Top Client Revenue by Clie
Slide 22: Employee Metrics (Consolidated)
Employee Metrics (Consolidated) Headcount by Location Headcount by Business 128 102 105 120 126 111 6 46 108 114 233 197 1,466 1,397 806 824 983 949 958 1,106 2,429 2,377 1,973 2,160 FY19 FY20 FY21 H1-FY22 FY19 FY20 FY21 H1-FY22 India Headcount Headcou nt Ou tside India ER&D IT Service Digital Tran
Slide 23: Hedging & Other Metrics
Hedging & Other Metrics Other Ratios FY19 FY20 FY21 H1-FY22 Carpet Area 70,873 71,948 65,285 65,285 Number of seats 889 906 847 847 PBT to Revenue% 5.82% 3.55% 4.08% 13.77% Number of active clients 199 210 184 210 Gain Over 50% Hedge Hedging Details for H1-FY22* Actual Hedge Rate Hedge Amount (Mn) A
Slide 24: Capital Market Data
Capital Market Data 350% Dividend per Share (INR) 300% 250% 200% 3.00 150% 100% 1.50 1.50 50% 1.00 0% Oct-20 Nov- 20 Dec-20 Jan-21 Feb- 21 Mar-21 Apr-21 May -21 Jun-21 Jul-21 Aug-21 Sep- 21 -50% Onward Sensex FY18 FY19 FY20 FY21 Price Data (As of 30th September 2021)* Shareholding Pattern (as on 30t
Slide 25: Disclaimer
Disclaimer Onward Technologies Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of the information or opinions contained in this presentation. Such information and opinions are in all e
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