Slide 1: Q2/H1-FY23 Earnings Presentation
Q2/H1-FY23 EARNINGS PRESENTATION October 2022
Slide 2: Who We Are
WHO WE ARE Onward Technologies is a software outsourcing company specializing in digital and ER&D services. We help global OEMs improve speed to market, accelerate innovation, and maximize returns on their R&D investments.
Slide 3: Transformation from legacy to the NEW: Engineering, R&D and Digital services
Transformation from legacy to the NEW: Engineering, Research & Development and Digital services Who we are Strong balance sheet • A diverse team of 3000+ employees • Net debt-free, sound balance sheet & • 15 offices across 6 countries in USA, EU+UK, India cash reserves • Focused on enhancing clients
Slide 4: Lines of business driving future growth
Lines of business driving future growth Lines of business Focus verticals Digital Mechanical • New Product • Engineering Design & Automation Embedded Development IT • Big Data • Value • SW Development & Analytics • Platform Services - Engineering Maintenance Hardware, Software • Cloud & DevOps • Vir
Slide 5: Consistent growth, steady offshore leverage, multi-year client engagements
Consistent growth, steady offshore leverage, multi-year client engagements Blended growth rate Blended gross margin Multi-year client engagements Growth in revenue from: Reflects cost from: 1) Digital Engineering 1) Digital Engineering & ER&D services & ER&D services Consistent industry- + + leading
Slide 6: Strategic presence across geographies
Strategic presence across geographies 1 Detroit, MI 2 Cleveland, OH 6 3 Chicago, IL 5 1 4 Toronto, ON 7 4 5 London, UK 6 Frankfurt, DE 3 2 8 12 7 Amsterdam, NL 8 Mumbai, IN 9 10 (Corporate HQ) 11 9 Pune (3 COEs*) 10 Chennai, IN 11 Bengaluru, IN 12 Hyderabad, IN *COE: Centre of excellence
Slide 7: Q2/H1-FY23 Financial Overview
Q2/H1-FY23 FINANCIAL OVERVIEW 7
Slide 8: Q2/H1-FY23 Performance Highlights
Q2/H1-FY23 Performance Highlights Q2-FY23 Consolidated Financial Performance Q2-FY23 Standalone Financial Performance INR 1,101 Mn INR 32 Mn 2.91% INR 768 Mn INR 33 Mn 4.30% Revenue from Revenue from EBITDA EBITDA Margins EBITDA EBITDA Margins Operations Operations INR 6 Mn 0.54% INR 0.25/Share INR
Slide 9: Q2/H1-FY23 Operational Highlights
Q2/H1-FY23 Operational Highlights • Revenue in Q2 FY23 grew by 51% year-on-year and by 18% quarter-on-quarter, H1 FY23 YOY growth at 43% • The company experienced substantial growth in revenue from focus verticals Industrial Equipment & Heavy Machinery and Transportation & Mobility, which are contri
Slide 10: Management comments
Management comments Commenting on the performance of the Company, Jigar Mehta – Managing Director said: “I am excited to announce the company has reported robust revenue growth in Q2 and H1 FY23 across all our focus markets and verticals. In absolute numbers, Q2 FY23 marks our highest ever quarterly
Slide 11: Q2-FY23: The transformation and growth journey continues
Q2-FY23: The transformation and growth journey continues Revenue from Operations (INR Mn) Highest year-on-year % 43 Highest quarterly growth in quarterly Y: Revenue from Operations Revenue from Operations o- Y- in Q2-FY23 Q : 18% % Q-o- 51 Y: Y -o- Crossed the INR 1,000 Mn/quarter 2,038 mark: Q2-FY2
Slide 12: Strong growth in revenue from top-25 clients
Strong growth in revenue from top-25 clients Revenue from top-25 clients as a proportion of consolidated revenue (INR Mn) 3,073 Revenue: consolidated 2,404 Revenue: top-25 clients 61% 2,038 76% from s e in w allet share increa QOQ: 5% top 25 cli ents 44% 1,425 78% 65% 1,875 73% 1,101 937 1,549 1,058
Slide 13: Revenue Metrics (Consolidated)
Revenue Metrics (Consolidated) Revenue by Business (%) Revenue by Industry (%) 2% 8% 12% 5% 8% 7% 8% 19% 8% 27% 26% 27% 26% 21% 15% 30% 26% 24% 30% 73% 72% 71% 73% 44% 54% 42% 42% FY20 FY21 FY22 H1-FY23 FY20 FY21 FY22 H1-FY23 Indu strial & Heavy Machinery Transportation & Mobility ER&D ITS Digital O
Slide 14: Quarterly Consolidated Financial Performance
Quarterly Consolidated Financial Performance Particulars (INR Mn) Q2-FY23 Q2-FY22 Y-O-Y Q1-FY23 Q-O-Q Operational Income 1,101 729 51.0% 937 17.5% Total Expenses 1,069 657 62.7% 908 17.7% EBITDA 32 72 (55.6)% 29 10.3% EBITDA Margins (%) 2.91% 9.88% (697) Bps 3.10% (19) Bps Other Income 10 41 (75.6)%
Slide 15: Half-Yearly Consolidated Financial Performance
Half-Yearly Consolidated Financial Performance Particulars (INR Mn) H1-FY23 H1-FY22 Y-O-Y Operational Income 2,038 1,425 43.0% Total Expenses 1,978 1,371 44.3% EBITDA 60 54 11.1% EBITDA Margins (%) 2.94% 3.79% (85) Bps Other Income 31 196 (84.2)% Depreciation 63 49 28.6% Finance Costs 8 5 60.0% PBT
Slide 16: Quarterly Standalone Financial Performance
Quarterly Standalone Financial Performance Particulars (INR Mn) Q2-FY23 Q2-FY22 Y-O-Y Q1-FY23 Q-O-Q Operational Income 768 567 35.4% 691 11.1% Total Expenses 735 520 41.3% 652 12.7% EBITDA 33 47 (29.8)% 39 (15.4)% EBITDA Margins (%) 4.30% 8.29% (399) Bps 5.64% (134) Bps Other Income 20 19 5.3% 29 (3
Slide 17: Half Yearly Standalone Financial Performance
Half Yearly Standalone Financial Performance Particulars (INR Mn) H1-FY23 H1-FY22 Y-O-Y Operational Income 1,459 1,083 34.7% Total Expenses 1,386 1,030 34.6% EBITDA 73 53 37.7% EBITDA Margins (%) 5.00% 4.89% 11 Bps Other Income 49 29 69.0% Depreciation 62 44 40.9% Finance Costs 8 4 100.0% PBT 52 34
Slide 18: Historical Financial Overview
HISTORICAL FINANCIAL OVERVIEW 18
Slide 19: Historical Consolidated Profit & Loss
Historical Consolidated Profit & Loss Particulars (INR Mn) FY20* FY21* FY22 H1-FY23 Operational Income 2,715 2,404 3,073 2,038 Total Expenses 2,482 2,230 2,859 1,978 EBITDA 233 172 214 60 EBITDA Margins (%) 8.58% 7.15% 6.96% 2.94% Other Income 11 53 215 31 Depreciation 113 104 101 63 Finance Costs 3
Slide 20: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 171 366 377 Share Capital 163 220 221 Intangible assets 39 26 34 Other Equity 581 1,412 1,399 Intang
Slide 21: Historical Standalone Profit & Loss
Historical Standalone Profit & Loss Particulars (INR Mn) FY20* FY21* FY22 H1-FY23 Operational Income 1,806 1,727 2,344 1,459 Total Expenses 1,660 1,531 2,168 1,386 EBITDA 145 196 176 73 EBITDA Margins (%) 8.03% 11.35% 7.51% 5.00% Other Income 65 85 56 49 Depreciation 102 93 92 62 Finance Costs 33 21
Slide 22: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 164 184 197 Share Capital 163 220 221 Intangible assets 39 26 34 Other Equity 573 1,262 1,250 Intangib
Slide 23: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 3,073 237 233 2,715 214 2,404 172 2,038 8.58% 6.96% 62 73 7.71% 60 18 7.15% 2.28% 3.04% 0.88% 2.94% FY20 FY21 FY22 H1-FY23 FY20 FY21 FY22 H1-FY23 FY20 FY21 FY22 H1-FY23 EBITDA EBITDA
Slide 24: Hedging & Other Metrics
Hedging & Other Metrics Other Ratios FY20 FY21 FY22 Q2-FY23 Carpet Area 71,948 65,285 87,576 94,747 Number of seats 906 847 1,200 1,304 PBT to Revenue% 3.55% 4.08% 10.35% 0.45% Number of active clients 210 184 145 108 Gain Over 50% Hedge Hedging Details for Q2-FY23* Hedge Rate Hedge Amount (Mn) Actu
Slide 25: Capital Market Data
Capital Market Data Stock Market Performance (as on 30th September, 2022) Dividend per Share (INR) 100% 80% 3.00 3.00 60% 40% 20% 1.50 0% -2 0% Oct-21 Nov- 21 Dec-21 Jan-22 Feb- 22 Mar-22 Apr-22 May -22 Jun-22 Jul-22 Aug-22 Sep- 22 On ward - BSE Sensex FY20 FY21 FY22 Price Data (as on 30th September
Slide 26: 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
Slide 27: Thank You
Ornwrerel TECHNOLOGIES Your Imagination. Delivered to Perfection”™ THANK YOU