Onward Technologies Limited · NSE:ONWARDTEC
Onward Technologies — Q3 FY2021 Earnings Presentation
24 slides from Onward Technologies's earnings presentation, January 2021
Slide 1: Earnings Presentation 9M/Q3-FY21
EARNINGS PRESENTATION 9M/Q3-FY21
Slide 2: Snapshot
Snapshot Legacy Execution Capabilities Team Strength Ø 3 Decades of Experience in IT Industry Ø 8,500+ Projects Delivered Ø Dynamic & Experienced Leadership Ø Founder, Mr. Harish Mehta also co- Ø 50 Million Hours of engineering work Team founded NASSCOM Ø Among select few specialised ER&D Ø 1,900+ e
Slide 3: Company Overview
Company Overview Key Business Segments • Established in 1991 Onward Technologies Ltd is a leading player today in Engineering Research & Development (ER&D), Digital Transformation and IT consulting services (ITS). Engineering Research & Development (ER&D) • Headquartered at Mumbai, the company cater
Slide 4: Geographical Presence
Geographical Presence Cleveland Troy FY20 Revenue Breakup – Client Location Chicago London Amsterdam Frankfurt USA 41% Pune India Mumbai 50% Bengaluru Europe Chennai UK 4% 5% 4
Slide 5: Key Strengths
Key Strengths Ø Proven expertise in delivering mechanical engineering and digital transformation services to global 1000 companies Ø Ability to ramp-up on-demand across the globe on a short notice Ø Flexible business and engagement model to provide agility and cost effectiveness Ø Right size organiz
Slide 6: Strategic Transformation
Strategic Transformation FY2020 TARGET FY2025 Top 10 Top 10 Customers Customers (47%) (70%) Top 11-50 Customers Top 11-50 Customers (37%) (20%) Remaining Customers Remaining Customers (16%) (10%) ITS 27% Digital ER&D Transfor ER&D 73% mation 50% 50% Ø Over its 3-decade legacy, Onward Tech has develo
Slide 7: Future Growth Strategy
Future Growth Strategy New Capabilities Focus • Focus on newly established capabilities in • Clear strategy for winning larger deals from existing Digital Transformation, Industrial IoT, and customers and new customers in target markets: (North Industry 4.0 America, Europe & India) • Build capabilit
Slide 8: 9M/Q3-FY21 Financial Overview
9M/Q3-FY21 FINANCIAL OVERVIEW
Slide 9: 9M/Q3-FY21 Key Financial Highlights
9M/Q3-FY21 Key Financial Highlights Q3-FY21 Standalone Financial Performance Q3-FY21 Consolidated Financial Performance INR 306 Mn INR 37 Mn 12.09% INR 578 Mn INR 39 Mn 6.75% Revenue from EBITDA EBITDA Margins Revenue from EBITDA EBITDA Margins Operations Operations INR 25 Mn 8.17% INR 1.50/share IN
Slide 10: Q3-FY21 Operational Highlights
Q3-FY21 Operational Highlights • We accelerated our transition to become a 100% Digital Engineering Services company focused on India, North America and Europe markets. • We continue to remain Net Debt Zero company with a clear Goal of becoming Debt Free in FY2022. • From April 2020 till Dec 2020, w
Slide 11: Inaugurated Lab for Embedded Electronics
Inaugurated Lab for Embedded Electronics • Onward has set up a state-of-the-art Embedded Electronics lab at Pune • The Lab infrastructure supports development for Automotive, Off Highway, Medical, Industrial & Consumer Electronics. • It will help the company to develop end-to-end products and progra
Slide 12: Q3-FY21 Standalone Income Statement (IND-AS)
Q3-FY21 Standalone Income Statement (IND-AS) Particulars (INR Mn) Q3-FY21 Q3-FY20 Y-O-Y Q2-FY21 Q-O-Q Operational Income 306 310 (1.3)% 282 8.5% Total Expenses 269 259 3.9% 238 13.0% EBITDA 37 51 (27.5)% 44 (15.9)% EBITDA Margins (%) 12.09% 16.45% (436) bps 15.60% (351) bps Other Income 22 9 NA 30 (
Slide 13: 9M-FY21 Standalone Income Statement (IND-AS)
9M-FY21 Standalone Income Statement (IND-AS) Particulars (INR Mn) 9M-FY21 9M-FY20 Y-O-Y Operational Income 839 914 (8.2)% Total Expenses 717 768 (6.6)% EBITDA 122 146 (16.4)% EBITDA Margins (%) 14.54% 15.97% (143) bps Other Income 56 59 (5.1)% Depreciation 63 69 (8.7)% Finance Costs 16 25 (36.0)% PB
Slide 14: Q3-FY21 Consolidated Income Statement (IND-AS)
Q3-FY21 Consolidated Income Statement (IND-AS) Particulars (INR Mn) Q3-FY21 Q3-FY20 Y-O-Y Q2-FY21 Q-O-Q Operational Income 578 697 (17.1)% 602 (4.0)% Total Expenses 539 622 (13.3)% 545 (1.1)% EBITDA 39 75 (48.0)% 57 (31.6)% EBITDA Margins (%) 6.75% 10.76% (401) bps 9.47% (272) bps Other Income 22 3
Slide 15: 9M-FY21 Consolidated Income Statement (IND-AS)
9M-FY21 Consolidated Income Statement (IND-AS) Particulars (INR Mn) 9M-FY21 9M-FY20 Y-O-Y Operational Income 1,740 2,060 (15.5)% Total Expenses 1,606 1,820 (11.8)% EBITDA 134 240 (44.2)% EBITDA Margins (%) 7.70% 11.65% (395) Bps Other Income 33 8 NA Depreciation 79 86 (8.1)% Finance Costs 19 27 (29.
Slide 16: Financial Overview
FINANCIAL OVERVIEW Ormnwremre TECHNOLOGIES ‘Your imagination, Delivered to Perfection” 16
Slide 17: Historical Standalone Profit & Loss
Historical Standalone Profit & Loss Particulars (INR Mn) FY18 FY19 FY20 9M-FY21 Operational Income 1,066 1,182 1,221 839 Total Expenses 1,030 1,032 1,054 717 EBITDA 36 150 167 122 EBITDA Margins (%) 3.38% 12.69% 13.68% 14.54% Other Income 65 50 67 56 Depreciation 46 48 91 63 Finance Costs 22 21 32 1
Slide 18: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY19 FY20 H1-FY21 Particulars (INR Mn) FY19 FY20 H1-FY21 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 75 62 154 Share Capital 158 160 162 Intangible assets 56 40 33 Other Equity 454 526 556 Intangible ass
Slide 19: Historical Consolidated Profit & Loss
Historical Consolidated Profit & Loss Particulars (INR Mn) FY18 FY19 FY20 9M-FY21 Operational Income 2,445 2,610 2,715 1,740 Total Expenses 2,333 2,386 2,482 1,606 EBITDA 112 224 233 134 EBITDA Margins (%) 4.58% 8.58% 8.58% 7.70% Other Income 48 12 11 33 Depreciation 55 57 113 79 Finance Costs 30 27
Slide 20: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY19 FY20 H1-FY21 Particulars (INR Mn) FY19 FY20 H1-FY21 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 98 80 168 Share Capital 158 160 162 Intangible assets 57 41 33 Other Equity 452 520 528 Intangible a
Slide 21: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 224 233 2,610 2,715 101 2,445 8.58% 8.58% 7.70% 3.87% 2.99% 1,740 67 134 62 112 52 2.74% 4.58% 2.28% FY18 FY19 FY20 9M-FY21 FY18 FY19 FY20 9M-FY21 FY18 FY19 FY20 9M-FY21 EBITDA EBITDA Margin PAT PAT Margin Net D/E (x) Ca
Slide 22: Key Metrics (Consolidated)
Key Metrics (Consolidated) Revenue by Business Revenue by Industry Revenue by Contract Type 9% 5% 7% 14% 5% 7% 27% 4% 22% 33% 31% 29% 4% 31% 26% 24% 22% 25% 21% 24% 26% 22% 26% 27% 69% 73% 71% 74% 78% 76% 67% 69% 42% 43% 31% 36% FY18 FY19 FY20 9M-FY21 FY18 FY19 FY20 9M-FY21 FY18 FY19 FY20 9M-FY21 ER
Slide 23: Capital Market Data
Capital Market Data 80% 60% 40% 20% 0% -20% -40% -60% Jan/ 20 Feb/ 20 Mar/ 20 Apr/ 20 May/ 20 Jun/ 20 Jul/ 20 Aug/ 20 Sep/ 20 Oct/ 20 Nov/ 20 Dec/ 20 Onward Sensex Shareholding Pattern (as on 31st December 2020) Price Data (As of 31st December 2020)* Face Value 10.00 Market Price 107.4 Public 52 Wee
Slide 24: 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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