Onward Technologies Limited · NSE:ONWARDTEC
Onward Technologies — Investor Presentation (March 2023)
21 slides from Onward Technologies's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
INVESTOR PRESENTATION March 2023
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 transportation, mobility, and industrial products companies improve speed to market, accelerate innovation, and maximize returns on their R&D investments.
Slide 3: Overview
Overview Leadership Strong balance sheet • Founded by first-gen entrepreneur, seasoned IT veteran & • Net debt-free, sound balance sheet NASSCOM founder, Mr. Harish Mehta and cash reserves • Headquartered in Mumbai, India; founded in 1991 • 6-year track-record of consistent • Led by his son, Managin
Slide 4: A journey of transformation: From IT services to digital & ER&D
A journey of transformation: From IT services to digital & ER&D Transformation process initiated under new management Infinity Holdings buys 24.2% equity New digital center in Mr. Harish Mehta Chennai, ER&D launches the 1991-99 center in Hyderabad company in New offices in Acquired Pune 20
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 alignment across lines of business, focus verticals
Strategic alignment across lines of business, focus verticals 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
Slide 7: Strong growth in revenue from global operations
Strong growth in revenue from global operations Revenue (INR Mn) 9M-FY23 Revenue by Geos (INR Mn) Revenue (INR Mn) FY22: 3073 9M: 3196 3,000.00 USA 2,500.00 FY21: 2404 USA 39% Europe India 56% India 9M: 2198 2,000.00 Europe 9M: 1740 5% 1,500.00 1,000.00 • Revenue grew 26% from INR 174 crores to INR
Slide 8: Q3 FY 2023 Performance: the transformation & growth journey continues
Q3 FY 2023 Performance: the transformation & growth journey continues Revenue (INR Mn) EBITDA (%) 3500 8 3000 7 6 2500 5 2000 4 1500 3196 3 5.66 1000 2198 2 1100 1160 1160 2.91 500 1 770 0 0 Q2 FY 2023 Q3 FY 2023 Q3 FY 2022 Q3 FY 2023 9M FY 2022 9M FY 2023 Q2 FY 2023 Q3 FY 2023 8 8
Slide 9: Consolidated revenue metrics
Consolidated revenue metrics Revenue by Business (%) Revenue by Industry (%) 2% 8% 16% 5% 8% 7% 8% Digital services 7% 27% 26% 19% 27% 26% 21% outpace growth in 14% other LOBs 30% 26% 30% 24% 73% 72% 71% 70% 55% 42% 42% 44% FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 ER&D ITS Digital Industrial &
Slide 10: Consolidated financial highlights
Consolidated financial highlights Revenue by top 1, 5, 10, 25 clients (9M FY2023) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 100% 237 233 80% 214 172 60% 132 8.58% 6.96% 62 73 7.71% 40% 80% 42 56% 7.15% 2.28% 20% 42% 3.04% 1.31% 19% 2.94% 0% Top 1 Top 5 Top 10 Top 25 FY20 FY21
Slide 11: Capital market data
Capital market data Stock Market Performance (as on 31st December, 2022) Dividend per Share (INR) 60% 40% 3.00 3.00 20% 0% 1.50 -20% -40% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Onward - BSE Sensex FY20 FY21 FY22 Price Data (as on 31st December, 2022) Shar
Slide 12: Financial Overview
Orrwverrel TRCHNOGOLOGILES Your Imagination. Delivered to Perfection!” FINANCIAL OVERVIEW
Slide 13: Historical Consolidated Profit & Loss
Historical Consolidated Profit & Loss Particulars (INR Mn) FY20* FY21* FY22 9M-FY23 Operational Income 2,715 2,404 3,073 3,196 Total Expenses 2,482 2,230 2,859 3,064 EBITDA 233 172 214 132 EBITDA Margins (%) 8.58% 7.15% 6.96% 4.13% Other Income 11 53 215 37 Depreciation 113 104 101 97 Finance Costs
Slide 14: 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 15: Historical Standalone Profit & Loss
Historical Standalone Profit & Loss Particulars (INR Mn) FY20* FY21* FY22 9M-FY23 Operational Income 1,806 1,727 2,344 2,271 Total Expenses 1,660 1,531 2,168 2,126 EBITDA 145 196 176 145 EBITDA Margins (%) 8.03% 11.35% 7.51% 6.38% Other Income 65 85 56 63 Depreciation 102 93 92 95 Finance Costs 33 2
Slide 16: 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 17: 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 18: Thank You
THANK YOU Onward Technologies (ONWARDTEC: NSE) 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. Headquartered in Mumbai, India, we are an employer of choice
Slide 19: Appendix: Industry updates
Ortwremrel TECHNOLOGIES Your Imagination. Delivered to Perfection” Appendix: Industry updates
Slide 20: Engineering R&D Service Industry
Engineering R&D Service Industry The global Engineering and R&D market has had a good start to the new decade; spending increased by USD 2021 Global ER&D Spend 5.7% Y-o-Y to exceed USD 1.3 Tn in 2021. 120 Bn Expected future CAGR of 7% ER&D Spending has recovered quickly despite economic uncertai
Slide 21: Digital Transformation
Digital Transformation • Digital Engineering spend in 2025, will be nearly as high as the overall ER&D spend of 2018 Indian Digital Economy growing at a CAGR of 18% (2018-2025) touching at USD 1,278 Bn. • India is leading the shift from hardware to software across sectors due to relatively abundant
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