AXISCADES Technologies Ltd Management Discussions

Jul 23, 2024|01:04:56 PM

AXISCADES Technologies Ltd Share Price Management Discussions

Key Drivers of the Business

ER&D and Digital Engineering Trends

While ER&D focuses on physical product development, digital engineering emphasises leveraging digital tools and techniques to enhance various aspects of the engineering process, including design, analysis, collaboration, and project management. It encompasses a wide range of digital technologies, such as computer simulations, virtual reality, artificial intelligence, and a data-driven approach, to improve efficiency, accuracy, and innovation in engineering practices.

According to a recent analysis by Bain & Company, executives are forecasting a compound annual growth rate (CAGR) of 10% for engineering and R&D spending until 2026. Investments in digital engineering primarily fuels this projected growth. The analysis suggests that companies investing in engineering and R&D during economic recessions can gain a competitive advantage in the race for innovation. Historical data indicates that in previous downturns, engineering and R&D spending growth was more resilient than GDP growth.

In response to this projected growth, leadership teams are intensifying their efforts to ensure a solid return on investment. Digital engineering is identified as a key driver for the surge in ER&D spending and it is expected to grow by CAGR of 19% till 2026. It involves developing and deploying new, connected, and digitally enabled products and services utilising technologies like Artificial Intelligence (AI), Machine Learning, and cloud computing. Examples of digitally engineered products include autonomous vehicles and Industry 4.0-enabled production plants. The research conducted by Bain & Company highlights five significant challenges faced by ER&D-focused companies in the innovation race. These challenges include reducing time to market, enhancing the affordability of new technologies, integrating digital capabilities into hardware-centric engineering teams, exploring new avenues for value creation, and aligning with Environmental, Social, and Corporate governance (ESG) strategies.

Companies are strategically shifting their approach by outsourcing a broader range of activities, including full programs, rather than augmenting their staff. The primary factor influencing the choice of an outsourcing partner is expertise, rather than cost.

The utilisation of ER&D service providers varies across industries. Bains research indicates that sectors such as advanced manufacturing and services, automotive and mobility, medical devices, energy & natural resources, and aerospace & defence are most inclined to increase outsourcing over the next three years.

Industry Trends

Global Civil Aviation and Aerospace

The burgeoning demand in the aviation industry directly influences the ER&D (Engineering Research and Development) and digital engineering service providers. Given the colossal order backlog and the pressing need for efficient production and delivery, theres an escalating demand for innovation and digital transformation. ER&D sectors would be pressured to expedite research on new materials, sustainable aviation technologies, and manufacturing processes to support the enhanced production rates. Digital engineering service providers, on the other hand, would play a pivotal role in integrating AI, IoT, and other Industry 4.0 technologies into the aerospace manufacturing ecosystem. The drive to fulfil orders while maintaining stringent safety and quality standards will necessitate cutting-edge digital solutions, predictive maintenance, and real-time data analytics. For these providers, this surge in the aerospace sector spells a period of heightened collaboration, innovation, and business growth.

A Surge in New Aircraft Orders:

A combined total of 1,594 new orders between Boeing and Airbus indicates a rebounding confidence in the aviation industry. This can be attributed to several factors , including anticipated post-pandemic recovery, airlines modernising their fleets, and global air travel demand growth.

Industrys Financial Backlog:

The industrys backlog stands at an impressive $720 billion, equating to over 12,000 aircraft units. Given this backlog, even at record production levels, it represents more than seven years of production. This suggests a strong long-term demand but also means the manufacturers have their work cut out in terms of production and delivery for the better part of this decade.


The global automotive sector is undergoing a profound transformation, characterised by unprecedented changes driven by the rapid advancement of electric vehicles (EVs) and autonomous vehicles (AVs). This evolution is witnessing a convergence of industries, reshaped supply chains, and a significant shift in consumer preferences towards more sustainable transportation options. Amidst this dynamic landscape, automotive companies are facing the challenging task of navigating the present changes, while strategically planning for the future of mobility.

Despite a volatile macroeconomic environment, the automotive industry is anticipated to experience growth in the upcoming years. The Automotive ER&D spend is expected to grow at ~6% CAGR by 2032 from current size of ~$167bn to $312bn by 2032 whereas the digital ER&D spends is expected to grow by 16% CAGR for the same period. Indias share to offshoring is expected to be Tripled from $7bn to $20bn by 2032. This will be driven by shift towards electric vehicle, Autonomous and connected vehicle. Looking ahead, car sales are expected to continue their upward trajectory, reaching 74 million units in 2024, thus continuing the recovery trend observed since 2020, approaching the pre-pandemic levels. A notable observation is that despite over 85% of the worlds population residing in the Asia Pacific, Middle East, Africa (MEA), or South America regions, these areas currently have fewer cars than North America and Europe. However, we anticipate that this untapped potential will gradually be unlocked in the years to come, with higher penetration in both car sales and the automotive aftermarket categories. The future of the global automotive sector holds significant promise as it embraces innovation, sustainability, and expansion into new markets.

Heavy Engineering and Construction Industry:

The global Off-highway (Heavy Engineering) vehicle market was valued at USD ~ 800 Billion and is expected to reach 1.35 Trillion USD by 2031 growing at a moderate rate of 6% CAGR during the forecast period between 2023 and 2031, due to rapid growth in construction and mining activities, strong agriculture and forestry demand, and expansion of port & material handling industries.

The global political scenario has dented the recent growth in the sector, however the strong demand in Asia Pacific and Middle- east owing to the surge in infrastructural development across the region provides a significant growth opportunity. The off-highway vehicle market is expected to surge substantially as industrialization, urbanisation, and import-export activities continue to accelerate.

The future of the Heavy engineering/ off-highway vehicle market looks promising with significant opportunities in automation, electrification of off-highway vehicles and expansion in regional markets such as Asia Pacific & Middle –East.

Energy Sector:

The global renewable energy trends are indicating a monumental shift in the energy landscape, moving away from fossil-based fuels like oil and coal towards cleaner and sustainable sources such as wind and solar power. US Energy Secretary Jennifer Granholm recently revealed that this energy transition is expected to create a staggering USD 23 trillion market by 2030, presenting an immense opportunity for businesses worldwide. Over the next five years (2023-2027), GWEC Market Intelligence anticipates an astounding 680 GW of new capacity to be installed, translating to an average of 136 GW per year. This ambitious forecast reflects the industrys determination to accelerate renewable energy adoption and meet growing energy demands sustainably.

Furthermore, GWEC Market Intelligence remains optimistic about wind energys trajectory up to 2030. The latest projections suggest an additional 143 GW to be added by the end of the decade, marking a substantial 13% increase compared to previous forecasts. Consequently, the total estimated new capacity between 2023 and 2030 is now revised to 1221 GW, compared to the earlier forecast of 1078 GW, underscoring the industrys unwavering commitment to driving clean and green energy solutions.

These trends signify a momentous shift towards cleaner and renewable energy sources, highlighting the immense potential of wind energy in combating climate change and fostering a more sustainable global energy landscape. With continuous advancements and growing investments, the wind energy sector is poised to play a pivotal role in shaping a greener and brighter future for generations to come.

Medical Devices:

According to estimates, the global market for medical devices will increase from USD 490 billion in 2022 to USD 720 billion in 2029, growing at a moderate CAGR of 5.5% during the forecast period.

With technological advancements reshaping the medical device sector, the market is expected to see an increase in connected, patient-centric medical devices, which will also strengthen these devices position in healthcare. The medical device industry is therefore poised for sustained growth. Companies are focusing on growing their R&D resources to innovate and capture the rapidly rising markets such as India, China, Latin America etc. The healthcare device market is being driven by current trends like AI/ML, 3-D printed devices, healthcare at home, and wearable technology.

Going forward the transformation of the medical device industry with technological breakthroughs, presents new opportunities as well as challenges for medical device companies.

Semi-Conductor Industry:

The future of the semiconductor industry looks promising, with potential long-term growth drivers firmly in place. Innovations in semiconductors will pave the way for transformative technologies, including artificial intelligence (AI), autonomous electric vehicles, and the Internet of things (IoT). As new semiconductor advancements emerge, that will fuel market demand and open up entirely new markets. The pandemic has caused some unexpected shifts in short-term demand, but it ultimately increased societys reliance on semiconductor-enabled technologies. The global semiconductor industry is on a path of growth and innovation, with a vital role in shaping future technologies and markets. Government push for Make in India for semiconductor sector will open new opportunities and the increasing adoption of electronic components in the automotive vertical is also significant potential for revenue growth

Global Defence Sector:

In 2022, the world observed a significant rise in global military expenditure, reaching a peak of $2.24 trillion, marking a 3.7% increase in real terms. This surge was driven primarily by geopolitical tensions, especially Russias invasion of Ukraine and ongoing strains in East Asia. The escalation in Europe was noteworthy, with the continent seeing its sharpest annual military spending growth since the post-cold War era, largely attributed to increased budgets in Russia and Ukraine. However, many European nations amplified their allocations as well. Concurrently, regions like Asia and Oceania also witnessed raised military outlays.

Indian Defence Sector:

Indias defence sector, transitioning towards self-reliance and indigenisation, presents a promising landscape for Indian defense companies. Historically reliant on imports for a significant portion of its defence procurements, Indias drive for homegrown solutions and accelerated defence procurements creates vast opportunities. The Defence Research and Development Organization (DRDO), at the forefront of championing indigenous projects, signifies the immense potential for ER&D to contribute towards advanced technological solutions and innovations in defence mechanisms. Furthermore, the collaboration between DRDO and private defense companies in the form of DCPP, that is development cum production partners that opened up new opportunities for private players.

The planned growth in defence production and the strategic establishment of defence corridors in major regions and Indias concerted push for indigenous defence capabilities translates into a golden era for established defence players. Indias defence landscape is undergoing a transformative phase, shaped by the nations increasing emphasis on indigenisation and self-reliance. A significant chunk of Indias defence procurements ~70% by value has traditionally been sourced from foreign nations, including Russia, Japan, Israel, and the United States. Such high dependency on imports has occasionally led to delays in modernisation, hampering the operational capabilities of Indian forces. However, with the escalating geopolitical tensions in the region, India prioritises the acceleration of defence procurements and pushes for increased indigenous content. The defence budget for 2023 stands at $56.8 billion, marking a 3.5% increase from the prior year. This upward trajectory in defence expenditure is underpinned by Indias robust economic growth and the perceived security challenges posed by neighbours such as China and Pakistan. The Indian governments vision for the defence sector is rooted in its long-term strategic planning. It projects the defence budget to surge from $67.5 billion in 2024 to $89 billion by 2028, translating to a Compound Annual Growth Rate (CAGR) of 7.2%. Additionally, the defence acquisition budget, pivotal for modernisation and capacity augmentation, is set to grow from $19.7 billion in 2023 to $27.4 billion by 2028. While defence expenditure as a percentage of GDP is anticipated to hover around 2.22%, the Indian government remains committed to promoting indigenous defence production. Implementing various policy measures, such as raising the FDI cap to 74%, streamlining domestic procurement through DAP-2020, and launching the SRIJAN portal, attest to this commitment. In monetary terms, defence production in the fiscal year 2022 amounted to 948 billion, and its expected to witness accelerated growth, reaching between 1,630-1,690 billion by

2027. This surge will likely be driven by policy initiatives, private sector participation, and infrastructure development, especially with the inception of defence corridors in Uttar Pradesh and Tamil Nadu. The overarching goal is to bolster domestic defence production and achieve export targets of $5 billion by 2025.

Digitalisation across industries

Aerospace and Defence:

Digitalization is increasingly vital in Aerospace and Defence (A&D) companies, providing them with a competitive edge and becoming a requirement for competing in government programs. A&D companies are embracing digital thread and smart factory concepts to streamline product development and enhance efficiencies. The digital thread, connecting engineering, supply chain, manufacturing, and aftermarket, enables a model-based enterprise (MBE) that enhances agility. According to Deloitte, over 85% of surveyed manufacturing enterprises, including A&D, are investing in MBE capabilities. Advanced technologies like cloud, big data, AI/ML, digital twins, and IoT empower A&D companies to address operational challenges and achieve innovation.

Smart factory initiatives are gaining traction in the A&D industry in 2023, driven by the need for shortened lead times, improved cycle times, and increased factory efficiency. The smart factory approach helps A&D manufacturers adapt quickly to demand fluctuations and supply chain adjustments. It connects various processes, from engineering to aftermarket, providing critical visibility into material and component supply. Deloittes outlook survey reveals that 36% of respondents still need to embark on the smart factory journey, while 26% are implementing initial initiatives. As companies pursue improvements in cycle time, throughput, inventory levels, and utilisation, smart factory initiatives are expected to expand across A&D manufacturing networks, contributing to enhanced efficiency and agility in the industry.


The automotive industry is experiencing a digital revolution with advancements in technology reshaping automobile design, performance, and efficiency. Innovations such as Artificial Intelligence (AI) and machine learning are revolutionising the industry, improving safety, efficiency, and cost-effectiveness. AI technologies like computer vision and machine learning guide self-driving cars, enhanced vehicle inspections and automated manufacturing processes, making the automotive industry more efficient and safe. Additionally, the industry is leveraging Big Data and Analytics to optimise vehicle lifecycles, enabling predictive maintenance, improving product design, and enhancing sales. The Internet of Things (IoT) is also playing a crucial role in the automotive sector, enabling connectivity between vehicles and other devices. IoT technology facilitates remote vehicle monitoring, predictive maintenance, and real-time traffic updates, enhancing the overall driving experience. Moreover, autonomous vehicles powered by AI and advanced technologies are reshaping the industry, providing improved safety, convenience, and efficiency.

Furthermore, the automotive industry is embracing sustainability by investing in green technologies like electric vehicles (EVs) and renewable energy-based charging grids. EV adoption is driven by governments targets, such as Indias goal of achieving 30% EV penetration by 2030. With government subsidies and incentives, the development and production of electric cars are increasing, making them more accessible to consumers. Additionally, 3D printing technology enables rapid prototyping and the production of lightweight, durable automotive parts, enhancing performance and efficiency. Blockchain technology is revolutionising the industry by providing secure data sharing, verifying supply chains, and supporting shared mobility solutions. Lastly, online retail is gaining momentum in the automotive sector, with consumers increasingly purchasing automotive products and services online, transforming the way cars are bought and sold.

Digital initiatives:

AXISCADES has already started its journey in enabling Digital capabilities in-house. Traditional engineering always been AXISACDES strength but with Digital capabilities, it will be able to add significant value to the existing customers and have confidence to reach out prospective Customers. Digital has two significant focus areas, (1) Internal optimization and data driven approach and (2) Grow % share of Digital Business. However, building such capabilities require strengthening of 3 critical elements: (1) People, (2) Process and (3) Product. People are heart of building any new capability; Digital product and solution building requires strong processes including ability to develop in Agile or Scaled agile due to its complexity and the Product itself which will give credibility and add value to Customer.

AXISCADES is focused on the entire product life cycle and building its own Digital Engineering platform capabilities to advance its competitive advantage in the market. In conclusion, AXISCADES is in a sweet spot to take advantage of large-scale adoption of Digital Engineering / Digitalization in various industries with its core engineering strength, domain expertise, product life cycle system knowledge and Digital Engineering capabilities. The organization will continue to build on its strength and bring agility in adapting to newer market trends. The company has already made significant investment in building the digital team which is expected to be margin accretive in coming years.

ER&D opportunities for India

According to a study by NASSCOM., India has emerged as a lucrative destination for Engineering R&D (ER&D) outsourcing, with significant business opportunities. The India ER&D revenue has consistently grown over the past three years. The revenue figures for the respective years are as follows: USD 31 billion in 2020-21, USD 36 billion in 2021-22, and USD 41 billion in 2022-23.

The Indian ER&D services sector has experienced remarkable growth over the past two decades, and it is projected to reach USD 63 billion by 2025, doubling its value from USD 31 billion in 2020-21. India holds a 30 per cent share of the global

ER&D outsourcing market, which is expected to increase to 50 per cent within the next ten years. Indias strategic position allows it to leverage the ongoing digitisation and technology transformation trends, making it an ideal partner for global multinational companies (MNCs) in their digital transformation endeavours.

With over 1300 ER&D Global Capability Centers (GCCs) across various industry verticals, India has established itself as one of the largest technology hubs for parent organisations. It offers differentiated ER&D services that cater to the diverse needs of global enterprises, including revenue growth, operational excellence, competitive differentiation, product innovation, and regulatory compliance. India has transitioned from merely providing engineering support to taking on end-to-end ownership of engineering and product development initiatives. This success story is attributed to Indias abundant pool of qualified technology and digital talent, a thriving startup ecosystem, strong university collaborations, and a focus on innovation and service delivery.


AXISCADES Technologies Ltd is a renowned global engineering solutions company at the forefront of technological innovation. With a strong market presence and diverse services, AXISCADES caters to industries including aerospace, defense, automotive, energy, and healthcare. Headquartered in Bengaluru with subsidiaries in USA, UK, Canada, Germany, India and China; and offices in Germany, France, Denmark, USA and Canada. AXISCADES has a diverse team of over 2,700 professionals working across 17 locations across North America, Europe, UK and Asia-Pacific, striving to reduce the program risk and time to market. The company offers Product Engineering Solutions across Embedded Software and Hardware, Digitisation and Automation, Mechanical Engineering, System Integration, Test Solutions, Manufacturing Engineering, Technical Publications, and Aftermarket Solutions.

The solutions comprehensive portfolio covers the complete product development lifecycle from concept evaluation to manufacturing support and certification for Fortune 500 Companies in the Aerospace, Defense, Heavy Engineering, Automotive, Medical Devices & Industrial Product industries. The company is known for its robust system of certifications and best practices that address customer requirements and domain expertise.

The companys commitment to research and development has allowed it to develop cutting-edge technologies, embracing digital transformation and emerging trends such as artificial intelligence, machine learning, and automation. AXISCADES also places great importance on talent development, ensuring a skilled workforce capable of delivering high-quality solutions to clients. With a focus on expansion, strategic collaborations, and proactive risk management, AXISCADES Technologies Ltd continues to be a trusted partner for clients worldwide, driving sustainable growth and delivering value to stakeholders. The wholly owned subsidiary of AXISCADES Technologies Ltd, AXISCADES Aerospace & Technologies Private Ltd (ACAT) is into system integration activities for defence & offsets sector business involving hardware.

AXISCADES has strengthened its position as a technology leader by acquiring Mistral Solutions. By integrating Mistral into its portfolio, AXISCADES enhances its ability to offer cutting-edge product design and development services for a wide range of applications, further catering to its customers needs. The synergy between the two companies opens up diversified opportunities and promises substantial growth in revenue and margins. This strategic move strengthens AXISCADES expertise in digital engineering, embedded electronics, and systems engineering domains, enabling the company to have a more significant impact and add substantial value to its clients across various industries and geographic regions.

Overview of Performance

Performance Highlights:

AXISCADES Technologies is pleased to share the exceptional performance achieved in FY23, with the company reaching its highest-ever revenue and profitability. This fiscal year marked a significant milestone as AXISCADES focused on strengthening the core of the organization and implementing key strategic initiatives.

Consistent Results:

In FY23, AXISCADES witnessed strong financial growth, with consolidated revenue increasing 33.7% year on year to reach highest ever revenue at Rs. 813.6 crores. Revenues in USD terms amounted to $101.8 million, representing a substantial growth of 24.3% compared to the previous year.

Sequential Growth:

Throughout the fiscal year, AXISCADES maintained a consistent growth trajectory, recording sequential growth in every quarter of FY23. This highlights the companys ability to adapt to changing market dynamics and capitalize on emerging trends and also its superior execution capabilities.

Strategic Partnerships:

Strategic partnerships played a pivotal role in the companys success. Notably, AXISCADES forged a collaboration with Mangal Industries Limited, a renowned part of the Amara Raja Group. This partnership leverages AXISCADES proven engineering service capabilities to advance product design, manufacturing engineering, and industry 4.0 solutions.

Recognition in the Automotive Sector:

AXISCADES dedication to the automotive sector was recognized by one of its major clients, Bosch. The company was honored with the Rising Star Award in the embedded electronics category at Boschs maiden Enrico Partner Day. This accolade underscores the rapid scale-up and credible progress AXISCADES has achieved in this segment.

Integration with Mistral:

The Company completed the acquisition of Mistral Solutions Pvt Ltd during the year. Mistral has niche capabilities in semiconductors, embedded electronics and defense and serves marquee customers, Globally and in India, in this spectrum. The integration with Mistral is progressing as planned, enabling AXISCADES to synergize offerings across the group. Mistral has exhibited exceptional performance, recording a revenue growth of 40.2% from 196.4 crores to 275.3 crores, accompanied by improved profitability.

Review of Business

Overall, AXISCADES demonstrated strong sales performance in FY23, with a year-on-year revenue growth of 24.3% in $ terms. This growth was primarily driven by increased traction in the newer verticals of Automotive, Energy and the existing verticals of Aerospace, Product Engineering Services (PES), and Product and Solutions (Defence).

Engineering Design Services:

The Engineering Design segment experienced significant growth of 28.8% year-on-year, primarily attributed to the growing contribution from existing customers in Aerospace, Product Engineering Services, and recently acquired clients in the AIP (Automotive and Industrial Products) and Energy verticals.


The Aerospace segment continued its growth trajectory, achieving a noteworthy increase of 44.3% year-on-year. This growth was primarily driven by an expansion of business from existing clients, showcasing the companys strong position and expertise in this domain.

Heavy Engineering (HEG):

The HEG segments performance was muted, mainly due to the delayed revival of major industrial capital expenditure (capex) projects. We are exploring opportunities in digital and analytics in this sector and are hopeful that FY ‘24 will be a growth year for the company in this vertical, considering the new initiatives we have launched in this segment.

Product Engineering Services:

Product & Engineering services business, witnessed growth of 33.5% Y-o-Y, driven by an increased traction from existing clients. Government push for Make in India for semiconductor sector will open new opportunities and we will have competitive advantage in design services. The increasing adoption of electronic components in the automotive vertical is of significant potential for revenue growth.

Automotive and Industrial Products (AIP):

The AIP segment experienced robust growth of 65.2% year-on-year, driven by a ramp-up in recently acquired clients in the areas of Embedded, Mechanical, and Hardware. This growth reflects the companys success in expanding its client base within the AIP vertical. While currently this vertical constitutes 4.3% of FY23 revenue going forward this vertical is expected to contribute significant portion to the companys revenue.


The companys energy vertical has witnessed an impressive 51.1% year-on-year growth, signalling a marked improvement in its performance. This growth underscores the firms strategic foresight in investing within this vertical and recruiting skilled talent. Such initiatives demonstrate the companys dedication to tapping into the burgeoning energy sector and ensuring they have the apt workforce to continue and amplify their industry success.

Products and Solutions:

The Products and Solutions vertical, representing the defence business of the Companys wholly owned subsidiaries, namely AXISCADES Aerospace & Technologies and Mistral Solutions exhibited strong growth during the year. This growth was primarily fueled by the traction gained from recently secured contracts, such as the supply of Anti-drone systems to the Indian defence sector.

Revenue by Verticals

Review of Geographies and Performance.

AXISCADES has a notable international footprint, through its subsidiaries in six significant countries: USA, UK, Canada, Germany, India, and China.

Further the company has a comprehensive network of offices across five countries: Germany, France, Denmark, USA, and Canada. The companys workforce comprises 2,700 professionals spread over 17 locations in North America, Europe, UK, and the Asia-Pacific.

Performance by Region:

Europe: The European business stands out with a robust 43.2% growth year-on-year. This points to a dominant market position and strong acceptance of the companys offerings in the region. USA: The American market also showed a promising upward trajectory with a 17.1% year-on-year growth. This solidifies the USA as a valuable contributor to AXISCADES global success. Asia-Pacific: This region turned in a standout performance, with a 55.9% year-on-year growth. This growth was driven by impressive perfomance by Defence vertical and the customers are predominantly Indian defence players. Canada: Canada remained flat during the year and it is expected to show growth in coming quarters.


Ratio discription

March 31, 2023 March 31, 2022 Variance Explanation
1 Debtors turnover (in days) 80 87 -8%
2 Inventory turnover (in days) 134 161 -17%
3 Interest coverage ratio 4.22 5.06 -17%
4 Current ratio 1.51 0.99 52% Note (i)
5 Debt equity ratio 1.01 0.21 379% Note (ii)
6 Operating margin (%) 19% 13% 42% Note (iii)
7 Net profit margin (%) -1% 4% -116% Note (iv)
8 Return on net worth (%) -1% 7% -121% Note (v)

Note (i) Current liabilities are decreased due to repayment of Purchase consideration on account of Mistral Acquisition. Note (ii) The Borrowings have increased due to payment for Mistral acquisition.

Note (iii) Operating Profit Margin Increased driven by growth in key accounts and operating leverage.

Note (iv) Net Profit is Decreased due to an Exceptional Item on account of additional consideration and interest cost with respect to Mistral acquisition.

Note (v) Reduction is due to an Exceptional Item on account of additional consideration and interest cost with respect to Mistral acquisition.


Based on its nature of business, the company is exposed to specific set of risks, which have been proactively identified and the detailed risk management plan has been developed. The management team of AXISCADES is committed to effectively manage and mitigate the risk to achieve the goal and create value for shareholders.

After the assessment and estimation of these risks, they have been separated into transactional, strategic and external categories to develop an appropriate management and mitigation approach. Typically, transactional risks are managed through well-defined processes and internal controls. On the other hand, strategic and external risks need to be mitigated with approaches that involve enhancements to and through business strategy, operations and financial management, and human resource initiatives.

Key Risks

Risk Description

Mitigation Strategy

Technology changes The fast pace of change in the industry, Continued interaction by Dedicated client relationship
disruptive technologies, evolving teams that can develop a significantly better
customer needs in changing the understanding of clients needs and operating
operating environment, etc. may lead environment.
to a mismatch in terms of the solutions
Focus on innovation and development of solutions.
needed by the customers and those
offered by AXISCADES, which causes - Market research to keep abreast of emerging
slippage in performance. client needs and new technologies that can affect
clients, and Companys, operating environment
by reducing costs or increasing productivity or
fundamentally disrupting business models.
- Partnerships with technology partners, internal
R&D, institutionalised knowledge building and skill
development to develop capabilities in line with
technological changes and strengthen the value
proposition to keep ahead of the competition.
Cyber security risk In todays world cyber security risk could Strict enforcement of a comprehensive IT Security
lead to cyber attack on business. This Management framework covering systems, processes,
could lead to loss of data and reputation. manpower and overall infrastructure.
Campaign on Cyber Security awareness for all
Regular audit and reviews of security management.
Currency risk Company earns major part of its revenue Apart from the natural hedges through costs and
in foreign currency Fluctuation in currency liabilities in the currencies which AXISCADES has
may adversely impact result of operation. exposure to, the FOREX valuation risk can be managed
and mitigated through:
- Diversification in regional markets by increasing
the exposure to a wider basket of currencies.
- Development of a risk management policy
that involves proactive hedging of incremental
exposures through available financial instruments.
Human resource risk Increase in attrition rate. Employee engagement, health & wellbeing and
Competition risk Competition from other players may Expanding our offerings in newer space to provide
impact the business performance of the end to end services to our clients. The Company is
company. also focusing on vertical diversification and customer
diversification to mitigate revenue concentration from
limited customers and verticals.
Compliance risk Changes in laws, regulations, policies and The company has a statutory compliance mechanism to
other Governmental actions could affect ensure compliance of all laws and regulations applicable
the Companys operation periodically. to it, which are certified by functional heads. This is
These laws, regulations and policies periodically audited by internal auditors and secretarial
include those affecting environmental auditors for coverage and compliance. The company
matters, employee welfare, safety, also conducts yearly health checks on selected areas of
wastage emissions etc. statutory compliances to ensure that the company has a
robust compliance process.

Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account." is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.