Onward Technologies Q2 Results Sees Revenue Growth but 63.16% EPS Decline

Onward Technologies Q2 Results: Onward Technologies’ Total revenue for Q2 2024 was ₹123.04 crores, which is a 2.33% increase YoY from ₹120.24 crores in Q2 2023. However, when looking at the previous quarter, the revenue grew 4.63% QoQ from ₹117.6 crores in Q1 2024. Next, the net income, which represents the profit the company made, fell sharply. It was ₹3.54 crores in Q2 2024, showing a 62.99% decline YoY from ₹9.57 crores in the same quarter last year. Compared to the last quarter (QoQ), this was a 50.02% decrease from ₹7.09 crores in Q1 2024.

Onward Technologies’ diluted normalized earnings per share (EPS) also showed a concerning trend, falling 63.16% YoY to ₹1.54 in Q2 2024, down from ₹4.18 in Q2 2023. This indicates that the company is facing significant challenges in maintaining profitability, as its operating income also decreased by 60.57% YoY.

Here’s a summary of Onward Technologies' Q2 results for 2024 based on the provided information:

Source: Here 

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Onward Technologies Q2 Results

Onward Technologies’ revenue from operations was 12,304.08 lakhs in the latest quarter, which is an increase from 11,759.73 lakhs in the previous quarter. This shows the company is making more money from its core business activities. The total income also increased to 12,460.54 lakhs for the quarter, indicating overall growth.

Onward Technologies’ largest cost is for employee benefits, totaling 9,797.65 lakhs. This suggests that the company invests heavily in its workforce. Other expenses include finance costs and depreciation, which also contribute to the total expenses of 11,900.32 lakhs for the quarter.

Onward Technologies’ profit before tax was 560.22 lakhs, showing that the company is profitable before paying taxes. After taxes, the net profit for the period was 354.22 lakhs. The company also reported another comprehensive income/loss, which includes adjustments that affect overall earnings.

Here's the unaudited consolidated financial results for the quarter and six months ended September 30, 2024, presented in a simplified table format for better readability:
(INR in Lakhs)

Onward Technologies Stock Performance

Onward Technologies is a company with a market capitalization of ₹857 crore, which shows its total value in the market. The current price of its stock is ₹379. The stock has reached a high of ₹740 and a low of ₹334 in the past. Its Price-to-Earnings (P/E) ratio is 35.6, indicating how much investors are willing to pay for each unit of earnings. The book value is ₹92.1, representing the company's total assets minus liabilities. Onward Technologies offers a dividend yield of 1.29%, which is the return on investment from dividends. 

Here’s a summary of the market data you provided:

Quarterly Results 

The table for Onward Technologies shows their financial results for the quarters of March 2024, June 2024, and September 2024. In March 2024, the company had sales of ₹118.44 crores and a profit before tax of ₹9.01 crores. By June 2024, sales slightly decreased to ₹117.60 crores, but their operating profit rose to ₹11.70 crores. In September 2024, sales increased to ₹123.04 crores, but their net profit dropped to ₹3.54 crores, with a higher tax rate of 36.79%.

Here’s the table for the quarters of March 2024, June 2024, and September 2024, showing only the relevant particulars:

(Consolidated Figures in Rs. Crores)

About Onward Technologies

Onward Technologies is a software outsourcing company based in Mumbai, India. They specialize in Digital services and Engineering Research and Development (ER&D). The company has a strong global presence in North America and Europe, with advanced offshore delivery centers in India. Onward Technologies supports businesses in important areas like Transportation, Healthcare, and Industrial Machinery.

Onward Technologies has a flexible outsourcing model and a growing team of over 2,400 employees. With two decades of experience, they focus on improving innovation and helping clients get the best returns on their research and development investments.