Onward Technologies - Young and Up & Coming ER&D player
Size of the company
• 2798 FTEs across US, Canada, UK, Germany & India
• 20% women
• 88% on T&M and 12% Fixed Price
1/n
Size of the company
• 2798 FTEs across US, Canada, UK, Germany & India
• 20% women
• 88% on T&M and 12% Fixed Price
1/n
Revenue split by industries
• Industrial Equipment & Heavy Machinery (includes mining) - 55%
• Transportation & Mobility vertical (includes automotive and rails) - 30%
• Healthcare & MedTech - 8%
Revenue split by Business Lines
• ER&D - 70%
• Digital - 17%
• ITS - 13%
2/n
• Industrial Equipment & Heavy Machinery (includes mining) - 55%
• Transportation & Mobility vertical (includes automotive and rails) - 30%
• Healthcare & MedTech - 8%
Revenue split by Business Lines
• ER&D - 70%
• Digital - 17%
• ITS - 13%
2/n
Revenue split by Geography
• USA - 39%
• Europe - 12%
• India - 49%
Client summary
• Active Clients - 98 down from 145 of FY22 (some are strategic exits)
• > $1mn -15 clients
• Top 5 client - 43%
• Top 25 clients - 81% revenues
3/n
• USA - 39%
• Europe - 12%
• India - 49%
Client summary
• Active Clients - 98 down from 145 of FY22 (some are strategic exits)
• > $1mn -15 clients
• Top 5 client - 43%
• Top 25 clients - 81% revenues
3/n
• Automotive: Works with 6 companies out of the top 10 automotives. New signings are continuing. Ramp us will happen over the next couple of quarters for these newly signed clients
• Healthcare - Mgmt believes will be a huge growth driver for both FY2024 and FY2025
4/n
• Healthcare - Mgmt believes will be a huge growth driver for both FY2024 and FY2025
4/n
Guidance
• Global business should reach 70% in next two years
• Margins to go from 11.5% to mid teens in 2023
• 98th client that Onward signed few months ago has the potential to be in top 25 clients. So, the sky is blue
5/n
• Global business should reach 70% in next two years
• Margins to go from 11.5% to mid teens in 2023
• 98th client that Onward signed few months ago has the potential to be in top 25 clients. So, the sky is blue
5/n
Plan for new vertials
• For now, the focus is limited to the existing three vertical but in 24-25, may look at Hitech (Semiconductors etc...)
6/n
• For now, the focus is limited to the existing three vertical but in 24-25, may look at Hitech (Semiconductors etc...)
6/n
Opportunities
• It's operating at 72% Onsite ratio. As the maturity kicks in, a 2-3% shift to Offshore could lead to good uptick in margins
• Currently 88% revs come from T&M and as the maturity kicks in and a 5-10% shift to Fixed Price could lead to good uptick in margins
7/n
• It's operating at 72% Onsite ratio. As the maturity kicks in, a 2-3% shift to Offshore could lead to good uptick in margins
• Currently 88% revs come from T&M and as the maturity kicks in and a 5-10% shift to Fixed Price could lead to good uptick in margins
7/n
Threats
• 88% of FY23 revenues come from T&M. So, if key customers were to consolidate and give the work to large players, Onward could be at risk
• Looks like lot of new client wins have happened recently, so, the key is to be able to execute and deliver
8/n
• 88% of FY23 revenues come from T&M. So, if key customers were to consolidate and give the work to large players, Onward could be at risk
• Looks like lot of new client wins have happened recently, so, the key is to be able to execute and deliver
8/n
This is the end of the summary but hopefully, it's just a start of what could be an Upward journey for Onward!
The End!
The End!
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