Onward Technologies Ltd is a small-cap firm in the IT Software industry with a market cap of Rs 633.10 crore. It is a technology outsourcing firm that specialises in digital and research and development services. The company's Board of Directors recommended a dividend of Rs 3/- per equity share for the fiscal year ending March 31, 2022, subject to shareholder approval.
The company has informed BSE on Friday by saying that "Pursuant to Regulation 30 and Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), we hereby inform that the Board of Directors of the Company at its meeting held on Friday, May 13, 2022 have recommended final dividend of Rs. 3/- per equity share for the financial year ended March 31, 2022, subject to the approval of the shareholders in the ensuing Annual General Meeting."
"Convening of 31st Annual General Meeting of the Company on Monday, July 18, 2022 at through video conferencing or audio-visual conferencing. The notice and necessary instructions to attend the meeting to be followed separately," said the company in a stock exchange filing.
The company has also made known that "The Board of Directors have recommended the appointment of M/s. BSR & Co., LLP, as new statutory auditors in place of retiring statutory auditors for the first term of 5 years, subject to the approval of shareholders in the ensuing 31st Annual General Meeting of the Company to be held on July 18, 2022."
In Q4-FY22, the firm achieved the highest consolidated sales growth of 13% QoQ to INR 875 Mn, with EBITDA of INR 63 Mn, up from INR 38 Mn in Q4-FY21, a 65.8% Y-O-Y gain. The company's EBITDA margins were 7.20 per cent in Q4-FY22, up from 5.73 per cent the year-ago quarter. In Q4-FY22, the firm reported a PAT of INR 32 Mn, up from INR 21 Mn in Q4-FY21, and PAT Margins of 3.66 per cent, up from 3.17 per cent in Q4-FY21. The firm recorded a diluted EPS of INR 1.42/Share for Q4-FY22. Revenue growth from strategic clients in the Industrial Equipment, Heavy Machinery, Transportation & Mobility verticals boosted revenue growth, and 11 clients now generate $1 million or more in yearly revenue.
Expansion of the company's Centre of Excellence (COE) at OMR, Chennai, to 500 seats is a strategic goal of the company as it develops skills in Digital Process Automation and Mechanical Product Engineering. In addition, the COE in Bengaluru was expanded to provide Embedded/Electronics skills for mobility clients. In order to expand its Digital DevOps & Cloud operations, the company recently introduced a new design centre in Hyderabad.
Jigar Mehta, Managing Director, expressed his insights on the company's success by saying that "As our client's progress on their transformation journey with a renewed urgency, we see strong demand for digital and ER&D services from all the large global OEM clients. We were very pleased to deliver record 28% annual revenue growth & 225% PAT growth from previous financial year, which surpassed all our internal projections."
"Last year has been a historic year for our team in all growth parameters and we remain positive about the opportunities in front of us going forward. Our international business grew 28%+ and our domestic Indian business grew at a similar rate of 27%. We have invested in a talent acceleration program across all the centers in India increasing the capacity by 200 engineers as on March 2022. We continue to hire SMEs with strong domain experience across Digital and Embedded SW domains across all our design centers in India to meet the growing demand from USA & European customers. We believe these investments will help us continue to grow at a record pace over the next few quarters," he further added.
The stock closed Friday's trading session at a market price of Rs 278.35, down -20.90 (-6.98 per cent) from its previous closing of Rs 299.25. The stock has risen from Rs 125 on May 17, 2021 to Rs 278.35 currently, representing a multibagger return of 122.68 per cent in 1 Year. The stock has dropped -3.05 per cent year to date (YTD) but has gained 28.60 per cent in the previous six months. The stock has fallen -28.24 per cent over the last month, and -11.07 per cent during the previous five trading days. The stock reached a 52-week high of Rs 429.50 on April 11, 2022, and a 52-week low of Rs 115.15 on May 14, 2021, with the current market price representing a 35.20 per cent drop from the 52-week high. The company has a low PEG ratio of 0.58 per cent and has achieved average profit growth of over 75 per cent over the previous three years. At the current market price, Onward Technologies Ltd. is trading higher than 200-day moving averages but lower than 5 days, 20 days, 50 days, and 100-day moving averages, with a PE ratio of 27.98 and a PB ratio 8.85.