During Tuesday’s trading session, the shares of a leading global player in Mechanical Engineering Design and IT Services surged nearly 11.5 percent to Rs. 345 on BSE, after reporting financial results Q3 FY25 results with a rise in net profit by 70 percent QoQ and revenue guidance.
With a market cap of Rs. 737.6 crores, at 03:11 p.m., the shares of Onward Technologies Limited were trading in the green at Rs. 325.35, up by around 5.2 percent, as compared to its previous closing price of Rs. 309.4.
What’s the news
The fluctuations in the share prices were observed after Onward Technologies Limited announced the financial results for Q3 FY25, through the recent filings with the stock exchanges.
For Q3 FY25, 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.
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Management Guidance for FY25
For FY25, the company has projected revenue to be in the range of Rs. 490 crores and Rs. 510 crores. Additionally, the management of Onward Technologies anticipates an EBITDA margin of 9-11 percent for FY25.
Revenue growth targets for 2024 and beyond include reaching significant milestones, with either 10 customers contributing $10 million each annually or 20 customers contributing $5 million each annually, through a combination of offshore and onsite services.
Stock Performance
The stock has delivered negative returns of nearly 46 percent of returns in one year, as well as around 23 percent returns in the last six months.
Meanwhile, the shares of Onward Technologies have gained by around 2.2 percent in the last one month.
About the company
Established in 1991, Onward Technologies Limited is one of the key industry players in Engineering Research & Development (ER&D), Digital Transformation, and IT Consulting. It operates through three diversified business lines: Digital Engineering services, Embedded Electronics services, and Mechanical Engineering services.
Written by Shivani Singh
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