Onward Technologies Limited · NSE:ONWARDTEC
Onward Technologies — Investor Presentation (November 2021)
25 slides from Onward Technologies's investor presentation, November 2021
Slide 1: Investor Presentation November 2021
INVESTOR PRESENTATION NOVEMBER 2021
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: Board of Directors
Board of Directors Harish S. Mehta - Executive Chairman Experience: 30 Years Jigar H. Mehta - Managing Director Other Engagements: NASSCOM, Hinditron–Digital (DEC), Indus Experience: 19 Years Entrepreneurs (TiE), Indian Angel Network (IAN), Small Industries Development Bank of India (SIDBI) , Gujara
Slide 5: Leadership Team
Leadership Team Vignesh Kumar - EVP - Sales (International Business) CA Devanand Ramandasani - Chief Financial Officer Experience: ~28 years Experience: ~15 years Previous stint: Siemens, TCS Previous Stint: Datamatics, Infosys Education: BE / MBA Education: CA Pratish Mehta - EVP - USA Operations &
Slide 6: 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 7: Business Overview
BUSINESS OVERVIEW 7
Slide 8: Technology Services for Focus Industry Groups
Technology Services for Focus Industry Groups Digital with AR/VR Engineering Automation Core Capabilities & Strengths Digital Technologies Big Data Analytics Cloud & DevOps AI/ML Transportation & Mobility Platform Services - Hardware, Software Connectivity Solutions Product Sustenanc
Slide 9: Growth Strategy Enablers
Growth Strategy Enablers Pivot to digital engineering services Focused verticals and structured LOBs FY 2021 • Invested in the digital maturity curve • Leadership team with a strong TARGET FY2025 of our customers experience across verticals • See a clear roadmap of growth in • Focus on Transportatio
Slide 10: Customer Success Stories
Customer Success Stories Global off-highway World’s largest construction Leading healthcare major Global transportation and equipment manufacturer equipment manufacturer locomotive company AWS Cloud Engineering Automation Product Re-design Value Engineering Toolchest Platform framework Business Issu
Slide 11: Industry Overview
INDUSTRY OVERVIEW 11
Slide 12: Engineering R&D Service Industry
Engineering R&D Service Industry • In 2020, the global Engineering R&D spend was USD 1.2 Tn, with corporate Engineering R&D spend being USD 2020 Global ER&D Spend USD 772 Bn. 1.2 Tn Expected future CAGR of 7% • In 2021, Indian firms clocked USD 35.9 Billion in ER&D service exports, according to NASS
Slide 13: Digital Transformation
Digital Transformation Indian Digital Economy • The covid-19 pandemic has accelerated the demand for hi-tech by shrivelling human activity into a world of apps. The explosion in online activity has galvanized massive cloud-led adoption, digital adoption, and transformation of the core. Global digita
Slide 14: Financial Overview
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 Share Capital 158 160 163 176 Intangible assets 57 41 39 33 Other Equity 452
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 Other Equity 454 4
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 Industrial & Heavy Machinery Transportation & Mobility Others Health
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 500K > USD 1 Mn Top 10 Clients Top 5 Clients Top Client Revenue by Clien
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 Headcount Outside India ER&D IT Service Digital Transfo
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 30th Se
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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