Q2 2025 Onward Technologies Ltd Earnings Call Transcript
Key Points
- Onward Technologies Ltd (BOM:517536) achieved its highest quarterly revenue of INR123 crores, with a six-month total of INR240 crores.
- The company has onboarded over 300 new employees, with a net hiring of 133, to strengthen its delivery engine for future growth.
- Onward Technologies Ltd (BOM:517536) has set a revenue target of INR490 crores to INR520 crores for the current financial year, with an expected EBITDA margin between 9% and 11%.
- The company has initiated a new ESOP scheme to align employee incentives with market performance, enhancing accountability and responsibility.
- Onward Technologies Ltd (BOM:517536) plans to consolidate its operations by building a new campus in Pune, which will accommodate over 2,000 employees and include state-of-the-art facilities.
- The company's EBITDA margin took a hit due to a slowdown in the automotive and Tier 1 segments.
- Revenue growth was lower than expected, partly due to geopolitical uncertainties and a slowdown in Europe and the US.
- The number of active customers decreased from 86 to 82, reflecting challenges in maintaining client relationships amid geopolitical tensions.
- Despite hiring efforts, the company faces challenges in execution and scaling up projects, impacting its financial performance.
- The GCC business, which is growing, typically has lower margins compared to direct customer engagements in the US and Europe, potentially affecting overall profitability.
Ladies and gentlemen, good day, and welcome to Onward Technologies Q2 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Jyoti Gupta. Thank you, and over to you, ma'am.
Thank you. Good evening to all of you. Welcome to Q2 FY25 earnings call of Onward Technology Limited. The results and presentation have already mailed to you, and you can also view them on our website of www.onwardgroup.com.
To take us through the results today and to answer your questions, we have with us Mr. Jigar Mehta, Managing Director of Onward Technology Limited. He will start the call with the business update and financial performance for the quarter, which will be then followed by a Q&A session.
As usual, I would like to remind you that anything that is said on this call that reflects any outlook for future, which can be construed as a forward
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