Macro Economy Review
Global Economy
The global economy appears to be recovering steadily from the
geopolitical conflicts; however, some issues still persist. As a result of pent-up demand,
ongoing supply disruptions, and rising commodity prices, inflation reached multidecade
highs in several economies in 2022, prompting central banks to aggressively tighten
monetary policy to return inflation to their target levels. The impact of the most recent
liquidity issues following a series of global bank crises appears to have been contained;
however, these uncertainties continue to undermine the confidence of consumers and
businesses to spend, thereby impeding economic growth.
As per the International Monetary Funds (IMF) April 2023 outlook,
the global economy is expected to drop from 3.4% in 2022 to 2.8% in 2023 before
accelerating to 3.0% in 2024. After experiencing growth of 2.7% in 2022, it is anticipated
that the advanced economies will witness growth of 1.3% in 2023 and 1.4% in 2024. The
emerging markets saw degrowth until September 2022 due to macroeconomic worries such as
energy-price-driven inflation and increasing interest rates, well as conflict-caused
political instability. Emerging markets and developing economies are expected to grow by
3.9% in 2023 and 4.2% in 2024, following a 4.0% growth rate in 2022.
On a global scale, uncertainty and shifts in geopolitical influence
have resulted in the reorganization of supply chains, as well as changes in trade flows
and relationships. With historically low unemployment rates, the labor markets of
developed economies, most notably the United States, remained robust through the end of
2022.
Indian Economy
India is actively pursuing its goal of becoming a global digital
economy, bolstering its competitive advantage by focusing on and investing in key
intervention areas. The Indian economy continues to demonstrate significant resilience
against external disturbances. Rising borrowing costs and sluggish income growth will
impact private consumption growth, while the withdrawal of pandemic-related fiscal support
measures is expected to delay government consumption growth. According to the second
advanced estimate of the NSO (National Statistical Office), the Indian economy is
estimated to have grown by 7.0% in FY 2022-23, as compared to a 9.1% growth rate recorded
in FY 2021-22. The Union Budget for FY 2023-24 identifies knowledge-based economy and
concentrates on three critical transformational trends that will help India gain a
competitive edge: digital transformation, energy transformation, and supply chain
resilience. The budget outlines Indias strategy to become a global growth engine and
to employ digital as the driving force behind Indias development.
Industry Overview
Indian Information Technology (IT) Sector
India has demonstrated resilience over the past year and continues to
be the worlds fastest-growing major economy. Similarly, the countrys
technology industry continues to experience revenue growth despite global headwinds and is
projected to grow by double digits in constant currency terms by FY 2022-23. According to
NASSCOM, the Indian tech industrys revenue increased by US$ 19 billion to US$ 245
billion in FY 2022-23, registering an annual growth rate of 8.4%.
Indian service export revenue has been projected to touch US$ 194
billion in FY 2022-23, a 9.4% increase over FY 2021-22. The domestic technology sector has
been expected to reach US$ 51 billion, growing at an annual rate of 4.9%. All segments,
including IT services, BPM (Business Process Management), software products, ER&D
(Engineering Research and Development), and the domestic market, have experienced robust
growth during the year.
Indias vast digital infrastructure also played a significant role
in the countrys tech adoption. With continuous investments in new technologies by
the government and private sector, Indias domestic sector has emerged as the
countrys primary driver. In terms of rupees, domestic revenue has increased by 13%
during FY 2022-23, with a notable increase in digital spending among Indian businesses.
Source: NASSCOM
The industry continues to be the net employer with a workforce of over
5.4 million, adding 290,000 jobs in FY 2022-23. With a digitally trained workforce of 36%,
the industry ranks first in terms of AI (Artificial Intelligence) skills penetration,
second in terms of ML (Machine Language) BDA (BIOS Data Area) talent pool, and third in
terms of the number of cloud professionals. In the current unpredictable environment,
industry continues to prioritize growth-oriented investments.
Every sector of the industry is experiencing robust growth.
IT: Application Modernization, Cloud Migration, Platformization, and
Cybersecurity are anticipated to propel the IT industrys 8.3% growth rate in FY
2022-23.
BPM: In FY 2022-23, the BPM (Business Process Management) industry grew
by 8.7% due to digital customer experience, data-driven transformation, and the BPM
industrys position as a key strategic partner to various IT customers.
ER&D: Strong fundamentals and rising demand for Indian ER&D
services are expected to propel this industry to grow by 11.1% in FY 2022-23. Principal
growth drivers included long-term strategic agreements, widespread digitalization, and
cloudification of engineering activities.
Software Products (SW Products): Software product growth is anticipated
to reach 7.8% in FY 2022-23. SW Products are significantlychanging the landscape by
developing scalable, world-class products in India, demonstrating Indias
entrepreneurial acumen and a rapidly developing, diverse, and inventive Deep Tech startup
ecosystem. India has emerged as a hub for Deep Tech startups, with a total of more than
3,000 in FY 2022-23, of which more than 485 inventive Deep Tech startups are developing
innovative solutions.
E-commerce: Newer business models, rising demand from tier 2 and 3
cities, and extensive use of technology in retail through platformization to improve
consumer engagement and experience are expected to fuel 40% growth in the Indian
e-commerce industry.
Digital Engineering
Anacceleratedrateofinvestmentindigitalengineering and related
capabilities owing to increased expenditure on digitalization by industry is essential to
the optimistic investment outlook. Businesses global investments in engineering and
research and development in the ER&D sector are expected to rise sharply over the next
five years, expanding at a double-digit compound annual growth rate (CAGR) of 10% through
2026, according to the latest research from Bain & Company.
Digital investments are projected to grow at a CAGR of 19% between 2022
and 2026, nearly doubling the investment growth rate for ER&D spending. ER&D
spending is projected to increase to 2.72 billion in 2026, up from 1.69 billion in 2021.
Shortening time to market; making new technologies more affordable;
embedding digital capabilities into hardware-centric engineering teams; exploring new
frontiers of value creation; and reengineering for environmental, social, and corporate
governance (ESG) strategies are five major challenges for ER&D-focused companies that
are fueling the innovation race in the ER&D space. Outsourcing is driven by the
abundance of digital talent in global markets and the ease with which software can be
developed and delivered remotely. Concurrently, businesses are outsourcing legacy
disciplines that are frequently less strategically pertinent for original equipment
manufacturers (OEMs). Numerous service providers have substantially optimized legacy
operations, including mechanical engineering, testing, simulation, and compliance.
Each industry utilizes ER&D service providers differently. Advanced
manufacturing and services, automotive and mobility, medical devices, energy and natural
resources, and aerospace and defence industries are most likely to increase outsourcing
and ER&D spending in the next three years.
Expected change in share of outsourced engineering and R&D
activities over the next 3 years
India contributes 26% of the worlds ER&D spending, and by the end
of this decade, that percentage could reach 34% due to government initiatives such as the
production-linked incentive (PLI) scheme, the launch of 5G, and the countrys increasing
pool of engineers. In recent years, India has emerged as a global powerhouse for Deep Tech
innovation capabilities and research and development, and it is firmly committed to
fostering future growth and innovation for global enterprises. Global Capability Centres
(GCCs) have had a significant impact on leader in engineering research and development.
Presently, 40% of the worlds GCCs are present in the country, which
represents a tremendous opportunity for growth. About 1,790 GCC centers are operational in
the country as of CY 2022 of which approximately 150 were opened in CY 2022. The IT/BPM
sector accounted for the largest proportion of the approximately 65 new GCC centers in
India, followed by the engineering and manufacturing sectors with 36 new additions during
the year.
Break-up of 150 GCC centers by Industry added in CY2022
Industries |
No. of GCCs |
IT/ BPM |
65 |
Engineering & Manufacturing |
26 |
Healthcare & Pharma |
15 |
BFSI |
19 |
Professional Services |
16 |
Indiasemergence as a Telecom &
Media |
4 |
Others |
5 |
Government organizations continue to modernize traditional IT systems
and invest in initiatives to improve public access to digital services as constituents
increasingly demand online consumer interactions comparable to those in the private
sector. According to Gartner, Inc., worldwide government IT spending is projected to reach
US$ 588.9 billion in CY 2023, a 6.8% increase from CY 2022.
Digital Transformation
The future will be increasingly driven by human and AI interactions,
which will facilitate enterprise spending on technologies. Digital technologies are
crucial for R&D operations, and R&D is essential for the advancement of Indias
digital vision. Continuous research and development of new IT products and services, as
well as the introduction of innovative solutions, are required to sustain Indias digital
transformation. Next-generation technologies such as data analytics, cloud platforms and
solutions, AI/ML, the metaverse, cybersecurity, and automation must be included in the
development of tools for all industries, including manufacturing, healthcare, and
agriculture. The necessary investments for increased R&D expenditure can be made
through provisions such as tax breaks for businesses and the establishment of networks of
innovation centers that house industries, R&D laboratories, academic institutions,
start-up incubators, and production facilities.
As digital transformation becomes the norm across all industries, the
IT industry will require a large number of highly skilled tech professionals, including
developers, network engineers, programmers, data scientists, 3D, AR (Augmented Reality)/VR
(Virtual Reality), and other professionals. In the face of unprecedented economic, social,
and environmental disruptions, a workforce endowed with the appropriate skills can address
emergent challenges and help businesses thrive by increasing their value quotient. The
Digital India framework has served as a guiding principle for the digital transformation
of various industries, including manufacturing, logistics, healthcare, BFSI, retail,
education, and even agriculture.
Industry Outlook
The Annual CXO Outlook Survey by NASSCOM for 2023 reveals that while
digital transformation remains a core strategic priority for enterprises in
2023, cost reduction and optimization requirements are also in demand
due to the macro environment. Cybersecurity, the cloud, artificial intelligence, and
analytics continue to be the primary focus, albeit with more integrated use cases and
greater value realization. Hyper-automation and virtual experiences are new themes that
drive business e is growth and optimization. Enterprise end-users are demanding greater
domain specialization and purpose-driven partnerships from their technology partners. As a
result, CY 2023 is anticipated to be a year of rationalization (improved utilization and
reduced attrition) for technology providers, as they consolidate and strengthen existing
expertise while pursuing new business opportunities. The growth areas of technology
segments will continue to emphasize digital CX, digitization, cloudification, building
SaaS-enabled products, cybersecurity, and platformization digital components that are
increasingly incorporated into all transactions, partnerships, and mergers and
acquisitions. "Focus on Quality Talent" is an underlying theme that will become
more prominent: enhancing capabilities in niche and pure tech areas like cloud, AI/ML/NLP
through reskilling/upskilling, and improving and increasing emphasis on employee
engagement, culture, health, and wellness. As a result of forward-looking policies, strong
governance, talent, and digital trust to ensure accessibility, privacy, security, and
dependability, Indias tech industry is on track to accelerate growth to US$ 500 billion
by 2030 from its current level of US$ 245 billion as estimated for FY 2023-24.
Over the course of time, technological dynamics would revolve around
the following themes in CY 2023
Demand shifts, geopolitical dynamics, and technological regulation
The significant transition to digital transformation partners
Trust, resiliency, inclusive talent, and sustainability redefining
competition standards
Digital mastery and innovation are the primary differentiating factors.
Company Overview
Company Background
Onward Technologies (hereafter referred to as ‘the Company
or ‘Onward Technologies) is one of the industry leaders in Engineering R&D,
Digital Transformation, and IT Consulting. The Company excels in digital transformation,
embedded systems, engineering technology, data analytics, artificial intelligence (AI),
and machine learning (ML). The Company operates through four diversified lines: Digital
Engineering, Embedded Electronics, Mechanical Engineering and Enterprise IT. During the
year, the Company continued to experience substantial growth in its three focused
verticals - Industrial Equipment & Heavy Machinery which contributed 55% to the total
revenue; Transportation & Mobility, which contributed 30%, and Healthcare, which
contributed 8% to the total revenue. Onward Technologies serves customers in the United
States, the United Kingdom, Germany, Netherlands, Canada Officin Worli,
andIndia.TheCompanysRegistered Mumbai. Through its sales offices in Chicago, Detroit,
Toronto, London, Frankfurt, and Amsterdam, as well as its state-of-the-art development and
design centers in Mumbai, Pune, Chennai, Bengaluru, and Hyderabad, the Company serves
prominent organizations worldwide.
The Companys employees are highly qualified and dedicated to providing
expert consulting and value-added services to clients in a variety of industries,
including multinational corporations. The Company provides services to 7 of the global top
10 automotive OEMs, 5 of the global top 10 industrial equipment manufacturers. As of
March 31, 2023, the Company had a diverse global workforce of over 2,798 employees.
Key Business Strategies and Developments
• Expanding the customer base
Over the years, the Company has built strong ties with its renowned
clientele, resulting in repeat orders. A significant portion revenue comes from Global
2000 clients. The Company has prioritized long-term contracts and recurring revenue,
thereby generating healthy revenue streams.
• Creating higher-margin Line of Business (LOB) segments
The Companys management team has extensive expertise in a wide variety
of business fields. fromserviceproviders majority of the Companys revenues come from
two industry verticals: transportation & mobility, which includes automotive &
rail transportation, and industrial equipment & heavy machinery. The Companys digital
line of business, which is the Companys primary and largest investment area, continues to
see very strong traction and contributed 17% in FY 2022-23 to the Companys revenues.
The Company intends to implement its digital capabilities across all its client verticals
and continues to grow by strategically focusing on complex as well as more profitable
ER&D and Digital Transformation businesses.
• Placing an emphasis on people and policies
The Company continues to educate its workforce and recruit the most
qualified digital specialists. The Company has stayed committed to its HR policies and
benefits to align growth industry norms and foster career development. During the year,
157 net new employees were employed, taking the total headcount to 2798. before
• Achieve exceptional growth across the value chain
The Companys margin expansion is driven by its agile operations and
increasing its share of the business with global OEMs. Over the past seven years, the
Company has consistently paid dividends and is committed to increasing shareholder
returns. Because of its transformation journey over the past few years, the Company has
been able to generate steady cash flows and remain debt-free.
Financial Overview
Financial and operational performance
Standalone: On a standalone basis, the Companys revenues from
operations in FY 2022-23 were Rs. 31,517 Lakhs, increase from Rs. 23,440 Lakhs in FY
2021-22. Growth in revenue has been driven mainly due to increased outsourcing by all the
Companys top clients. During the year, the Company recorded a profit of Rs. 2,173
Lakhs in profits before taxes (PBT). In FY 2022-23, the net profit (PAT) wasRs. 1,629
Lakhs, compared to Rs. 932 Lakhs in FY2021-22. with Consolidated: On a consolidated basis,
revenue from operations increased to Rs. 44,093 Lakhs from Rs. 30,727 Lakhs recorded
during the previous year. In FY 2022-23, taxes (PBT) wasprofit Rs. 1,803 Lakhs. In FY
2022-23, the net profit(PAT) was Rs. 1,148 Lakhs, compared to Rs. 2,368 Lakhs in FY
2021-22.
The revenue split from ER&D was 72%, 20% from digital, and 8% from
IT services. Offshore revenues accounted for 26% of total revenue, while onsite revenues
accounted for 74%.
The subsidiaries continued to support the Companys operations while
maintaining operational discipline in line with its customer-first approach. In FY
2022-23, revenue from subsidiaries was Rs. 19,462.62 Lakhs.
(Rs. in Lakhs)
Particulars |
Standalone |
Consolidated |
|
FY2022-23 |
FY 2021-22 |
FY2022-23 |
FY 2021-22 |
Revenue from Operations |
31,517 |
23,440 |
44,093 |
30,727 |
Total Expenses |
28,852 |
21,676 |
41,365 |
28,586 |
EBITDA |
2,665 |
1,764 |
2,728 |
2,141 |
EBITDA Margin (%) |
8.46% |
7.53% |
6.19 |
6.97% |
Other Income |
945 |
560 |
540 |
2,153 |
Depreciation |
1,270 |
921 |
1,298 |
1,011 |
Finance Costs |
166 |
101 |
166 |
101 |
Profit Before Taxes (PBT) |
2,173 |
1,302 |
1,803 |
3,183 |
Tax |
544 |
369 |
655 |
815 |
Profit After Taxes (PAT) |
1,629 |
932 |
1,148 |
2,368 |
PAT Margin (%) |
5.17% |
3.98% |
2.60% |
7.71% |
PAT (After NCI) |
1,556 |
884 |
1,310 |
2,304 |
Diluted EPS (Rs.) |
7.16 |
4.79 |
5.05 |
12.17 |
Key changes in significant Financial Ratios
Details of significant changes in key financial ratios (i.e., change of
25% or more as previous financial year)
Standalone Basis
Key Ratios |
FY2022-23 |
FY 2021-22 |
Variance % |
Reason for such change |
Debtors Turnover |
3.71 |
3.84 |
(3.40%) |
No significant variance |
Inventory Turnover |
NA |
NA |
-- |
-- |
Interest Coverage Ratio |
2.12 |
1.20 |
76.69% |
Increase on account of
decrease in lease liability and increase in EBIDTA of current year. |
Current Ratio |
2.67 |
2.36 |
13.14% |
No significant variance |
Debt/Equity Ratio |
0.31% |
0.41% |
(22.35%) |
No significant variance |
Return on Equity |
10.53% |
8.41% |
25.24% |
Increase on account of
increase in net profit after tax and increase in other equity of current year. |
Operating Profit Margin
(%) |
8.45% |
7.53% |
12.33 |
No significant variance |
Net Profit Ratio |
5.17% |
3.98% |
29.95% |
Increase on account of
increase in net profit after tax and increase in revenue from operations of current year. |
Return on Capital
Employed |
14.76% |
9.60% |
53.74% |
Increase on account of
increase in EBIT and increase in equity of current year. |
Consolidation Basis
Key Ratios |
FY2022-23 |
FY 2021-22 |
Variance % |
Reason for such change |
Debtors Turnover |
4.02 |
3.92 |
2.64% |
No significant variance |
Inventory Turnover |
NA |
NA |
-- |
-- |
Interest Coverage Ratio |
1.48 |
1.09 |
36.50% |
Increase on account of
decrease in lease liability and increase in EBIDTA of current year. |
Current Ratio |
3.01 |
3.07 |
(2.13%) |
No significant Variance |
Debt/Equity Ratio |
0.29% |
0.37% |
(20.65%) |
No significant Variance |
Return on Equity |
6.81% |
19.93% |
(65.82%) |
Decrease on account of
decrease in net profit after tax and increase in other equity of current year. |
Operating Profit Margin
(%) |
6.19% |
6.97% |
(11.22%) |
No significant Variance |
Net Profit Ratio |
2.60% |
7.71% |
(66.22%) |
Decrease on account of
Decrease in net profit after tax and increase in revenue from operation of current year. |
Return on Capital
Employed |
10.53% |
18.12% |
(41.88%) |
Decrease on account of
decrease in EBIT and increase in equity of current year. |
Business Outlook
The Company is highly focused on capturing major opportunities and
assisting its prospective clients in building a digital future. Through employee
upskilling and reskilling, subcontracting, and strategic partnerships, Onward Technology
continues to cultivate its expertise in a variety of emerging technologies. For the
foreseeable future, the Companys clear growth strategy is to invest in people,
improve skills, and dive deeply into the difficult high-tech digital change with its
current "Global 2000" clients. The Company plans to focus on Industry 4.0,
AI/ML, ADAS (Advanced driver-assistance systems), cloud, and DevOps engineering. The
Companys future development prospects are further supported by a management team
with over three decades of IT services industry experience.
Moving forward, the Company continues to see very positive momentum in
terms of demand from existing customers and new customers signed within the last 12-18
months. Onward Technologies continues to invest in expanding its digital and embedded
capabilities.
Internal Controls
The Companys global presence in many countries and significant
associate strong internal control architecture. The Company has internal control systems
that are commensurate with its scale and nature of operations. These are intended to
provide reasonable assurance regarding the recording and provision of reliable financial
and operational information, compliance with applicable laws, protection of assets from
unauthorized use or loss, execution of transactions with proper authorization, and
adherence to corporate policies.
The Company has a clearly definedplan for delegating authority to
approve revenue and expenditures. The Company has appointed M/s. Ahuja Valecha & Co.,
LLP, Chartered Accountants, as its internal auditors for FY 2022-23. The internal audit
was conducted by M/s. Ahuja Valecha & Co., LLP, based on a plan that is reviewed
annually in consultation with the statutory auditors, M/s. BSR & Co. LLP, Chartered
Accountants, and the Audit Committee.
Risk Management
The Company has adopted a risk management policy with the intention of
integrating risk management into its principal strategic and operational activities.
Risk management encompasses all processes and operations and is
everyones responsibility within an organization. The Company lays the groundwork for
an enterprise-wide risk management strategy, including planning, implementation,
monitoring, review, and continuous improvement. The Company has prioritized the following
significant formulated efficient
• Competition Risks: Indian IT companies, MNC IT organizations,
and entrepreneurs with a significant presence in client relationships, in-house and
captive services companies, etc. compete intensely in the global engineering services
industry. Competitors have increased their focus on key demand areas, such as cloud
computing, cybersecurity, and workforce transformation.
Mitigation: The Company has been providing enhanced solutions based on
new technologies. To strengthen its service portfolio, the Company is also investigating
new verticals and geographies while maintaining a constant focus on partnership and
investment acquisition.
• Regulatory Risks: The Company operates in many countries and
sectors, thereby increasing the risk of non-compliance with regulatory standards vital to
its operations.
Mitigation: To mitigate this risk, the Company has established
specialized units to assess and monitor regional and industry-specific regulatory
requirements. The global regulatory compliance strength frameworknecessitateof thea
Company is intended to identify, evaluate, mitigate, and monitor regulatory risks
affecting the Company. The framework safeguards the Companys reputation, its
employees, and its customers. Regulatory assessments are conducted, and exhaustive
protocols are maintained to ensure compliance. If necessary, mitigation plans are
implemented to address any discovered non-compliances.
• Talent Management Risks: As the Company continues to expand,
talent management and satisfying the ever-increasing demand for new talent are major
ongoing concerns.
Mitigation: The Companys objective is to create a workplace that
promotes transparency and collaboration. The Company has implemented a comprehensive
training strategy to address the development requirements of personnel at all
organizational levels. This provides solutions for professional, technical, functional,
and leadership development. The HR team strives ceaselessly to reach out to every employee
to support their development and provide internal opportunities for career advancement.
This enables them to accomplish their objectives through the development of comprehensive
career and talent development plans.
• Geopolitical Risks: Instability and uneven developmentrisks and
in the global economy have hindered the growth of the IT industry in the past,
mitigationstrategies. and they may do so again in the future. Future global economic or
political unpredictability could lead to IT spending cuts, postponements, low-cost
locations, strong or consolidations, contract terminations, project postponements, or
client purchasing delays.
Increased geopolitical tensions among important economies may impact
the Companys ability to expand internationally.
Mitigation: The Company has established a geopolitical framework to
perpetually investigate geopolitical issues. The initiative evaluates and enhances the
Companys global narrative for clients and employees on a regular basis. To lessen
its reliance on a single nation for revenue growth and service delivery, the Company has
been expanding its operations in other nations. To prevent business disruptions caused by
various restrictions on employee mobility, the Company also maintains its strategy of
employing local talent through numerous internal programmes. The Company invests
strategically in a flexible workforce strategy consisting of on-site, on-shore,
near-shore, and offshore employees to address these issues and empower the best personnel
to address client business needs.
• Tax-related Risk: Any changes in tax regulations in India and
other countries where the Company has a substantial presence could have a negative impact
on the effective tax rate of the Company. Mitigation: The Companys strategy for
mitigating its tax risk is to employ professional tax advisors who keep abreast of the
most recent tax developments in various countries and implement appropriate tax planning
strategies in response to changes in tax laws.
• Foreign Exchange Risk: Approximately 50% of the Companys
revenue comes from clients located outside of India; therefore, the Companys revenue
is realized in foreign currencies. Consequently, the Company is susceptible to
fluctuations in foreign exchange rates.
Mitigation: By utilizing foreign exchange forward contracts and
options, the Company mitigates the risk of fluctuations in foreign exchange rates
associated with receivables and projected transactions in certain foreign currencies. The
Boards policy and procedures establish the period of hedges, the proportion of risk
to be covered, and the counterparty risk to be assumed.
• Business Continuity Risks: In a complex and rapidly changing
global risk landscape, the Companys reputation as a prominent technology business is
determined by its threat resilience and capacity to effectively respond to disruptive
events. If the Company cannot guarantee the continuity of its operations across clients,
delivery sites, and facilitating functions, it faces a danger to its business continuity.
Mitigation: Over the years, Onward Technologies has strived to make
resilience an important part of its business continuity plan, by incorporating exceptional
design into its work, workforce, workspace, business processes, technology, supply chain,
and leadership. In the past, the Company has weathered multiple uncertainties, steered
clear of itself for the same in the future.
Human Resources
Human resources are essential to Onward Technologies long-term
growth as a service Company with a highly technical business model. The Company promotes a
positive and welcoming environment and advocates for a balanced, fair, and equitable human
resource management system. In FY 2022-23 the Company made significant and procedures. The
Company intends to prioritize employee safety, which was evident at the onset and
progression of the pandemic. Throughout the year, the Company introduced several
digitization initiatives to empower employees.
The Human Resource Management System was implemented to automate
fundamental HR functions and provide access from anywhere. In addition, the Company has
outsourced Indian payroll process to a global leader in payroll practices. As of March 31,
2023, Onward Technologies had 2,798 employees. As of March 31, 2023, women comprised 20%
of the Companys workforce.
Cautionary Statement
Certain statements in this Management Discussion
& Analysis Report concerning the future growth prospects are
forward-looking statements, which involve a number of risks and uncertainties that could
cause actual results to differ materially from those in such forward-looking statements.
The risks and uncertainties relating to these statements include, but are not limited to,
risks and uncertainties. These include external factors intense competition in IT services
including those that may affect the Companys cost advantage, wage increases in
India, restrictions on immigration, reduced demand for technology in key focus areas,
disruptions in telecommunication networks, withdrawal of governmental fiscal political
instability, legal restrictions on raising capital or acquiring companies outside India,
and general economic conditions affecting our industry. Internal factors include
fluctuations in the Companys earnings, its ability to manage growth, ability to
attract and retain highly skilled professionals, time and cost overruns on fixed-price,
fixed-timeframe contracts, client concentration, ability to manage international
operations, ability to successfully complete and integrate potential acquisitions,
liability for damages on service contracts, the success of the companies in which it has
made strategic investments, and unauthorized use of its intellectual property.
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