The shares of the digital services provider fell up to 10 percent after domestic institutional investor offloaded 1,81,577 equity shares in the company via bulk deal.
With a market capitalization of Rs 676.41 crore, the shares of Onward Technologies Limited were trading at Rs 298.35 per share, decreasing around 9 percent as compared to the previous closing price of Rs 328.55 apiece.
Reason for fall
The shares of the company have seen negative movement after Dii, Incred Asset Management sold 1,81,577 equity shares in the company at an average price of Rs 325.22 per share in the company. However, Suchita Sunil Manohar bought 1.42 lakh shares at an average price of Rs 326.59 per share
Financial analysis
Onward Technologies reported revenue from operations of Rs. 123.4 crores, registering a marginal growth of around 0.3 percent QoQ from Rs. 123 crores in Q2 FY25, and an increase of about 8.2 percent YoY from Rs. 114.1 crores in Q3 FY24.
The company’s net profit (PAT) for Q3 FY25 grew to Rs. 6 crores, representing a rise of around 70 percent QoQ from Rs. 3.54 crores in Q2 FY25, but a year-on-year decline of nearly 11 percent from Rs. 6.8 crores in Q3 FY24.
Further, EBITDA for Q3 FY25 increased to Rs. 11.2 crores, compared to Rs. 7.9 crores in Q2 FY25, reflecting a significant growth of about 42 percent QoQ. For the quarter ended December 31, 2024, the EBITDA margin was 9.1 percent, while the PAT margin stood at 4.9 percent.
Also read….
Management Guidance
Onward Technologies has projected FY25 revenue between Rs. 490 crores and Rs. 510 crores. The management also expects an EBITDA margin of 9-11 percent for the same period, reflecting stable growth expectations for the company in the upcoming fiscal year.
Moreover, revenue growth targets for 2024 and beyond aim for key milestones, including 10 customers contributing $10 million annually or 20 customers contributing $5 million each, through a mix of offshore and onsite services.
Company profile
Onward Technologies Limited is a software technology outsourcing company, which specializes in digital and engineering research and development (ER&D) services. It is primarily focused on two industry verticals, namely industrial equipment and heavy machinery and transportation and mobility.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
