Onward Technologies Ltd (ONWARDTEC) Q4 FY23 Earnings Concall Transcript

Onward Technologies Ltd (NSE:ONWARDTEC) Q4 FY23 Earnings Concall dated May. 12, 2023.

Corporate Participants:

Asha Gupta — Investor Relations

Jigar Mehta — Managing Director

Analysts:

Nikhil Chandak — JM Financial Family Office — Analyst

Sugandhi Sud — InCred Asset Management — Analyst

Amit Mittal — Blue River Capital — Analyst

Rajendra Shah — Fidelity Management — Analyst

Shubham Ajmera — Aurora Family Office — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Onward Technologies Limited Q4 FY23 Earnings Conference Call. [Operator Instructions] I now hand the conference over to Ms. Asha Gupta from E&Y LLP, Investor Relations. Thank you and over to you ma’am.

Asha Gupta — Investor Relations

Thank you, Ziko[phonetic]. Good evening to all of you. Welcome to the Q4 FY23 Earning Call of Onward Technologies Limited. The results and presentation have already been mailed to you and you can also view them on the website at www.onwardgroup.com. To take us through the results today and answer your question we have with us Mr. Jigar Mehta, Managing Director of Onward Technologies Limited. He will start the call with a business update and financial performance for the quarter, which will be then followed by Q&A session. I would like to remind you that anything that is said on this call that reflects any outlook for the future or which can be construed as forward-looking statements must be viewed in conjunction with the risks and uncertainties that we see.

This risk and uncertainities are included but not limited to what we have mentioned in the prospectus filed with the SEBI and subsequent annual report that you can find it on our website. Having said that, I will now hand over the call to Mr. Jigar Mehta, over to you, Jigar.

Jigar Mehta — Managing Director

Yes, hi, thank you, Asha. Good evening, everyone, and thank you for joining our Q4 and full-year FY23 earnings call. It is a pleasure to speak with all of you this evening. Let me start with the financial year performance and then we speak about the quarterly and business update. FY23 was a remarkable year for us and we were very happy that we could meet several of our own internal corporate milestones. Despite uncertain macroeconomics our team was able to deliver strong revenue growth of 43.5% to INR440 crores, INR440.9 crores of revenue. This was the highest-ever growth on an annual basis.

EBITDA stood at INR27.3 crores, reflecting a growth of 27.4% and EBITDA margin was at 6.2% on an annual basis. We witnessed broad-based growth driven by our three focused verticals which is industrial equipment and heavy machinery, now 55% of our total revenues. Transportation and mobility vertical which includes automotive and rail which contributes 30% of our revenue and the fast-growing healthcare and MedTech vertical which contributed 8% of our top-line. We continue to see robust demand in all three of our focused verticals. And I’ll talk a bit more about that later on. The digital services business of the line of business, continued to grow well as shared earlier and now contribute 70% of our revenues on a consolidated basis.

In terms of geography, US and North-America, which is North America includes US, Canada, and Mexico grew at 70% of our revenue, grew at 70% compared to the previous financial year while Europe and India closed this year with 33% and 30% growth respectively. Additionally our focus on verticals and strategic clients all supported by a network of offshore capability centers have contributed meaningfully to both our topline and the bottom line. Now talking through the Q4 performance and the financial at the consolidated level, it was another quarter for us with consistent performance and our operating revenue stood at INR121.4 crores, reflecting on marked growth of 38.8% on year-on year basis and 4.8% on quarter-on-quarter basis.

Our EBITDA stood at INR14.1 crore with the EBITDA margin now at 11.6% rounded off to the highest level on the technology [indecipherable] in terms of quarterly performance. We reported double-digit EBITDA margin and aspire to see continuous improvement every quarter from year on. Net profit-after-tax was at INR7.2 crore. We now have a little bit less — we have a little less than 100 clients — active clients is up by 98 out of which 15 contribute more than $1 million per year in terms of revenues and very happy to share that our top 25 clients continue to grow very well and contributed 81% of the total revenues of the company.

Our global headcount is at 2,798 full time employees, this is post the exit of several large domestic projects in the [indecipherable] which we’ve been doing in India for the last several years. We have a diverse global team now across US, Canada, UK, Germany, and India, and again, happy to share that more than 20% are women engineers and employees and we are committed to growing this number every year going forward. I’m also happy to share and announce the development that Mr. Pawan Nathani has joined us as our new CFO. He will be an integral part of the company’s management team, has been on the technologies to achieve both long-term financial and operational goals.

A quick background about Pawan, Pawan is 42 years old, qualified chartered accountant, and lives in Pune. He has 20 plus years of industry experience and in the last 11 years he was part of a very fast-growing midstate software services company headquartered in Pune, where his role was, there he was responsible for the financial control for [indecipherable] and also responsible for consolidated record to report function of the company. Now just talking a bit more about the future and the demand environment. FY23-24, we continue to be very positive about where we are heading as an organization. We have made huge transformational changes over the last 12 months and this financial year our focus continues to improve our operational parameters which indirectly and directly will affect our bottom line, which is the EBITDA percentages.

We will see balanced growth from all our top clients and across both digital — across all three digital embedded and mechanical lines of businesses. We will continue to maintain, US and Europe as our fastest — as the biggest geographical focus for the company. So no plans to get into new markets. And in India, we have five centers, we are continuously investing in all the five centers, which is Mumbai, Pune, Chennai, Banglore, and Hyderabad in terms of infrastructure, in terms of hiring a lot of talent and expanding continuously TAP program where we hire [indecipherable] to strengthen all the New Age digital technologies, the number of where we continue to see huge demand.

Talent acquisition team is working full year and even today we have high of 100s of open positions, both internal and to support our clients. Thank you, everyone, and I will now hand over the floor to the operator to start the Q&A session. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions]. Our first question is from the line of Nikhil Chandak from JM Financial Family Office. Please go ahead.

Nikhil Chandak — JM Financial Family Office — Analyst

Yeah. Hi, Jigar. Congrats on a good result. I had couple of questions, one was on the margin trajectory from quarter Q4 fiscal ’24 and beyond. You already are at 11.5%, 12% EBITDA margin. So where does this margin goes for example, if one were to look at exit margins for fiscal ’24, say March ’24 quarter, where should this margin number be headed towards? That’s one. Second is, I see that India business is still 40% of our total income. So does that continue that trend continuing where India remains 40% or do you see that India business going down over a period of time and that could further help the margins to improve from where it is right now?

Jigar Mehta — Managing Director

Hi, Nikhil. Good evening. So I’ll answer both your questions. I think the second question first, because that’s related to the first one. So our focus is, if you see that in the first year — in the first quarter in terms of where our international business be obviously much faster based on the investments that we have done then the India business. We continue to remain bullish on both the markets, India business which is focused on the GCC customers. And our global business, which is expanding our presence, both on the offshore site and on-site with the customers.

So, now, coming back to your question our India revenue — sorry, our global revenue we believe in the next two years our global revenue will be close to 70% of our consolidated revenues. And that’s where all our investments, our focus is going today as we speak. While India revenues will continue to grow. Our international revenues will grow at a much, much faster pace. And that’s where majority of our investments that we spoke about in the last three years have gone where we had very diluted earnings or EBITDA in the business.

Now coming back to the margin, the first question that you had from 11.5%. We see a very positive trend in terms of where we are today and in terms of the investments that we’ve already done. We’ve exited a lot of large projects in the domestic market, which was the legacy business and those continuing to the last eight, ten years[phonetic], and that obviously are consolidated overall our focus. So we do believe we can get very close to mid-teens in 2023, and that’s where we are striving hard and working towards.

Nikhil Chandak — JM Financial Family Office — Analyst

Okay. Understood. Thanks. And the question I had is so we’ve ended fiscal ’23, at something like INR440 crores of revenue and you earlier have spoken about $100 million on our aspirational revenue target by fiscal ’26. So does that business plan still hold on track? How should one think about $100 million by ’26?

Jigar Mehta — Managing Director

So, we are very focused on the target. We are very focused on the milestone that we shared what we are aiming towards, [indecipherable] in the leadership team. It’s focused on and we continue to believe that realistic target where the market is [indecipherable] for a young company like us. And we have our own differentiators, the clients that we have 98 live clients so to get to $100 million. We don’t need new clients, which is the toughest part in our business model. It’s more about investing in the latest technologies, building capabilities and capacities for our customers.

So from our perspective, we continue to see a very robust demand from our existing customers. There is definitely a slowdown. There is definitely a consolidation happening at various levels at our customer sites so the demand environment continues to be very robust and we are optimistic that we can actually get those numbers in the next few quarters by 2026.

Nikhil Chandak — JM Financial Family Office — Analyst

Perfect. So this $100 million is all organic. I think there is no acquisition built into this $100 million target.

Jigar Mehta — Managing Director

So because when we shared the targets, about couple of years ago, it was a consolidated target which was organic and inorganic, and post that is when the infinity[Phonetic] finance came onboard as a private equity investor. So and we were looking at inorganic opportunities as well as we have discussed in the last several earnings calls. But we’ve seen such a huge exciting environment where we could grow 40% plus this year, that is 20% plus last year. We believe inorganic is the right base [indecipherable] stage of our business model. There are good opportunities available to us, which actually has factored[phonetic] into $100 million much faster. We are very open to it. So the entire board is very supportive of that and every quarter earlier always engaging the profit to multiple companies which potentially could fit our strategy.

Nikhil Chandak — JM Financial Family Office — Analyst

Understood, perfect. Thank you so much. Thank you.

Jigar Mehta — Managing Director

Thank you.

Operator

[Operator Instructions]. Our next question is from the line of Sugandhi Sud from InCred Asset Management. Please go ahead.

Sugandhi Sud — InCred Asset Management — Analyst

Yes. Hi, congratulations on the great results, and thanks for taking my questions. I wanted to understand in terms of your — you mentioned that the headcount was impacted by pending certain contracts in IT. So, have we been hiring outside that space and you said that hiring outlook and expansion continues to be strong. That’s the first question. And within your — for what type of pipeline you have, do — we’ve seen a lot of strong growth from your top client and within the vertical — key verticals. So, going forward do you see demand come uniformly from across verticals or is it — we’re going to be similar in terms of services?

Jigar Mehta — Managing Director

Hi, good evening. I hope, I got the questions in order. But let me address the first question in terms of the headcount. So what we’ve done and what we had shared earlier as well is so we — currently we are structured in — our revenue structure by three lines of businesses, which is ER&D, which includes mechanical and embedded. The second is digital and third is ITS. ITS portion, which was 21% of our revenue and probably close to 25% to 30% of our headcount last financial year FY ’22, even though it is 100% in the domestic business, right? Domestic industry, which is under in India markets.

Now that’s the business that we had shared two years ago, that we will slowly start exiting whenever the contracts come up for renewal and when is the right opportunity where the customer can transition it to some other suppliers. And we had committed that we will not lose jobs toward that. And that’s what we have now reduced that in Q4 of this year, that 21% is down to 8%. So about 400 people net in the last 12 months had been transitioned out from the business model. Was that your question?

Sugandhi Sud — InCred Asset Management — Analyst

Yes, sir. [technical issue] So some of these would have absorbed across organization in the ER&D and digital [technical issue] and some of them would have — there might have been some natural attrition for this [technical issue].

Jigar Mehta — Managing Director

So, absolutely. Two things. So, one is, we were large managed services contracts. So attrition was not very high in these clients, in these contracts. And it was very budgeted being a long-term contract. So we had given an opportunity to all our employees, [indecipherable] move from ITS to digital to cloud to data science. We invested behind them in terms of training and in all the certifications and lot of them moved gradually towards the digital part with actually was our fastest growing in terms of the last few years. Lot of people preferred to stay in the old — preferred to continue in ITS and they are doing very well. They are the ones who transitioned out to the new suppliers to support the same large system integration — integrators [indecipherable] clients that we have.

Sugandhi Sud — InCred Asset Management — Analyst

Sir, in terms of your realization per employee I noticed that it is one off actually as the business mix has improved. But within ERD, are you experiencing some stability to be able to charge higher because of the nature of [Indecipherable].

Jigar Mehta — Managing Director

So you’re absolutely right. So ITS was it become a commodity when you look at the domestic market, right. So and that’s the reason over about five years ago, we started transitioning out of the ITS business. First we started moving away from the India market 100% than going global. That showed[phonetic] all the global offices came up in the U.S., Canada and Europe. And a lot of our key people, my entire management team, all [Indecipherable]. So if you look at it even today, a majority of my management team sit outside of India. That’s the first part.

The second part is the rate is obviously much, much higher based on just economics for digital, for data analytics, and of course for embedded and electronics space. Whether it is [indecipherable] various other areas that we are competing with today on the software and hardware side and only supporting large MNC OEMs, so the rate structure and the rate for employee also goes up substantially.

Sugandhi Sud — InCred Asset Management — Analyst

So, within [Indecipherable] could you give us some how much digital is [technical issue]?

Jigar Mehta — Managing Director

Yeah, absolutely. So in Q4, so all these details are captured in the earnings deck this time, we know the team has done a fabulous job in putting a lot of the data together and sharing the result[phonetic]. I know it was just released a few hours ago. Our ER&D revenues which includes mechanical and [Indecipherable] is 72% of our revenue in Q4, 20% of digital and 8% of ITS. So the way I would look at it is the 8% ITS is client contracts, which are — lot of [Indecipherable] moves slowly towards a digital and the customers also asking, moving to the client or the contracts on the digital side. So we don’t see the need to exit those contracts and vice-versa. So it’s more about expanding that and investing in the training that the whole business moves towards digital.

Keep in mind, this is shared again with the new force. What we are working towards and there we believe that the $800 billion in the next few years is 70% of our revenues will come from the global markets, which is U.S. and Europe. And we are targeting that 50% of our revenues, which come from digital services. So 50% of the digital services, 50% will be mechanical and electronics engineering. And there will be no [Indecipherable].

Sugandhi Sud — InCred Asset Management — Analyst

Sure. That’s very helpful. Sir, just to repeat the other question on the pipeline between industrial and transportation and healthcare, is it — do you expect a similar mix or do you expect that to also evolve based on the pipeline that you have?

Jigar Mehta — Managing Director

So great question. In terms of the demand environment from all three verticals from our existing clients continues to be robust. So we see a huge opportunity in all the three areas. But healthcare being a very small percentage or in terms of rupee value of our overall revenue, that will grow the fastest, right. And that’s where you have a new — we’ve recently signed-up the customers over the last two years. The demand is 100% digital and some embedded. There is obviously no IT there. And the volume of the deals, obviously, are much, much higher and the entire healthcare business of Onward is 100% [indecipherable] U.S. and Europe, there is no India markets that we are part of. That’s where the revenue is generated from. So that revenue will continue to grow very fast.

Our new expansion — new investments in Michigan and new investment in UK and Germany, they grow our automotive business much faster as well, which comes under Transportation and Mobility. And on the industrial equipment and heavy machinery side, we today work with the best and the biggest brands in the world where demand is there. We are moving away from pure-play mechanical more and more towards embedded and now digital. So we see opportunity across the spectrum in terms of buying the existing clients.

And I shared just one more — I just want to add one more point to clarify. What’s happening for us right now is as a young company and obviously, our revenues are growing with our existing clients, which is now at 81%, out of 45[phonetic] clients, but the other 70 odd clients that we had are also growing exponentially in terms of all the new clients that our sales team have won in the last few years and lot of them are also come through the good work that we do to references. So there is a huge opportunity that they will grow as well.

Just to add to that, for example, we signed multiple healthcare company [Indecipherable] agreement that became a supplier just in the last one quarter. Similarly on the automotive side, we work with six companies today, out of 10, the top 10 automotive and two — one we already signed last quarter [Indecipherable] and one more we expect — are hoping to sign in in Q1 or Q2 of this year. All the work has been completed. The first pilot has been successful. Now it’s [indecipherable].

So we are moving slowly in the right direction. And so, to summarize, all the industry verticals will grow. Healthcare will be a huge growth driver for us, not only in ’23, ’24 but also ’24, ’25. And that also [Indecipherable] well with our strategy of digital services.

Sugandhi Sud — InCred Asset Management — Analyst

Thank you. That’s very helpful.

Jigar Mehta — Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] Our next question is from the line of Amit Mittal from Blue River Capital. Please go ahead.

Amit Mittal — Blue River Capital — Analyst

Hi, Jigar. Congratulations on the excellent set of numbers. And actually, when I look at your reported numbers, the growth looks like 40% year-on-year. When it comes to revenue for FY ’23, but actually the non-focus area, the IT business our growth is close to 60%. So again, congratulations.

There’s a couple of questions I had, so one is on the — on our topline concentration, which is close to 17%, 18%. Just your thoughts on, are we planning to reduce this or are we okay with this kind of concentration?

Jigar Mehta — Managing Director

So, Amit, we are a very young company. As I said, INR440 crores in the software, export market is very significant small number. We have just started working with all of these companies. And if you look at our top one — top clients or top five clients or top 10 clients, 81% sounds very exciting, because that’s where we believe we want to move towards. So we are not concerned about having too much there, because the same client we are expanding at a much faster pace.

But if you look at the other 24 clients as well, they all also growing at a very fast pace. And we do believe that more and more we shift towards from a commodity business to our digital services business. There will be a huge opportunity to grow with all the top 25 clients, and at the same time, the new clients that we have won in the last two years.

Amit Mittal — Blue River Capital — Analyst

Sure.

Jigar Mehta — Managing Director

Just to summarize this that the new clients that we are signing today are straight away have the potential — if we do execute the strategy guide that our 98 clients today which is, let’s say, will be just signed last quarter has the potential to enter top 25 as well, right. So please look at it from that perspective, because the numbers are very small when you look at the R&D budgets of these large global corporations.

Amit Mittal — Blue River Capital — Analyst

Fair. I want just to carry-forward from the last participant’s question, you mentioned additional some automotive client last quarter and you expect something this quarter also. Could you share some light on the kind of work that we do for these clients the kind of work that we are getting for these client, could just elaborate on the nature of work?

Operator

[Operator Instructions] Ladies and gentlemen, the line for the management is reconnected. Mr. Amit Mittal, you can go ahead with your question.

Amit Mittal — Blue River Capital — Analyst

Hi. Sorry, Jigar. So just from you mentioned that you’ve some contract recently with some of these top Auto guys. You just shed some light on the nature of work that we are doing for some of these companies?

Jigar Mehta — Managing Director

Sure. So Amit what I shared was for us, in our — actually on the ER&D space, I believe you know that space well, so what I shared earlier was, we have recently after two, three, four years of pilot projects, references, site visits we have now become a official supplier to the OEMs in U.S. and Europe. And this is in the electronic and embedded space where we have become a supplier and the other client is on the digital and data science space, where we have become a supplier. And one of the first large project that we are — that we have been selected for is on process automation. And that’s what we are building the team for them today. Because again for the project has just started, I mean, I probably shared very little information, but very happy to share, I guess over the next few quarters as we ramp up the team for these customers.

Amit Mittal — Blue River Capital — Analyst

Sure. And just lastly, a bookkeeping question on the tax rate. I mean, do we get to 25% in FY ’24, demands are 33%, 34%%?

Jigar Mehta — Managing Director

Amit, more deeper [Phonetic] I am not really an expert on this, will get back to you.

Amit Mittal — Blue River Capital — Analyst

Sure, sure. Perfect. Thanks a lot, Jigar, and all the best.

Jigar Mehta — Managing Director

Thank you.

Operator

Thank you. [Operator Instructions]. Our next question is from the line of Yash Rajendra Shah from Fidelity Management. Please go ahead. Yash Rajendra Shah, your line has been unmuted. Please go ahead with your question. Mr. Yash Rajendra, your line has been unmuted, you can go ahead with your question.

Rajendra Shah — Fidelity Management — Analyst

Hello, can you hear me?

Operator

Yes, we can hear you now. Please go ahead.

Rajendra Shah — Fidelity Management — Analyst

Yeah, you see. You have a very large runway Jigar, you have a very broad runway, but what are the risk and worries that you have in terms of this blistering growth that you foresee?

Jigar Mehta — Managing Director

Great question. We were never been asked this question before. But in terms of worry I think it’s more significantly. I think it’s on the execution side. I think where our team has done a phenomenal job I believe is on delaying new clients, showcasing our capabilities and moving up from a pure-play mechanical to embedded, now digital. Where are on-track with some amazing, amazing talent. Yeah, that’s a close to almost 3,000 people who are all working very hard.

Now, the challenge for us is the only thing which I believe for the next few years, is on the execution side. As far as we keep focusing on executioning and delivering for our existing clients and not get distracted and I think that’s fundamentally the biggest internal conversations that we have week-in week-out.

Rajendra Shah — Fidelity Management — Analyst

So that’s in your control.

Jigar Mehta — Managing Director

It’s not just attracting talent because it’s in our control, that’s what we believe. Yes.

Rajendra Shah — Fidelity Management — Analyst

Yeah. But JB [Speech Overlap]

Jigar Mehta — Managing Director

Hard work is done, that’s what we believe.

Rajendra Shah — Fidelity Management — Analyst

And the potential for all your business, concentrating [Phonetic] is huge, it seems like the next five, ten years are — this also help the country helping lot of foreign exchange, it keeps reminding also [Phonetic].

Jigar Mehta — Managing Director

We were trying to build the foundation that we believe we have a decent foundation now. Now it’s all about adding lot more depth and that’s what we said. In the last earnings call as well that our investment cycle has not completed, we’ve just started. We are continuously adding a lot of SMEs on the digital on the embedded space. We are [Speech Overlap]

Rajendra Shah — Fidelity Management — Analyst

Are you looking at any new vertical?

Jigar Mehta — Managing Director

Possibly down in the next months. Could you hear me clearly?

Rajendra Shah — Fidelity Management — Analyst

Are you looking at any new vertical also?

Jigar Mehta — Managing Director

Not currently. The key verticals for this year with so many external macroenvironment factors. I think we have three verticals that will continue to focus on this year. But next year, our goal is to get into Hi-Tech, and we hope we can start investing in that in a very big, very soon.

Rajendra Shah — Fidelity Management — Analyst

And what do you mean by Hi-Tech? Could you please explain?

Jigar Mehta — Managing Director

Semiconductors, and a bit of the large product companies, the dream companies in the world like Apple, Facebook, Google. They are also doing a lot of work on product development.

Rajendra Shah — Fidelity Management — Analyst

Thank you. Thank you very much.

Jigar Mehta — Managing Director

Thank you.

Operator

[Operator Instructions]. Next question is from the line of Shubham Ajmera from Aurora Family Office. Please go ahead.

Shubham Ajmera — Aurora Family Office — Analyst

Yeah. Hi, congrats on good set of numbers. Sir, I have a question on mistaken [Phonetic] patterns of 100 million mark, which — sir, just wanted to check how confident are you touching this, you mentioned like it 23% [Phonetic]. And also on the margins front, so I think, you mentioned we will be achieving and meeting margins in coming years. So what will be our target margin by financial year ’26 as such?

Jigar Mehta — Managing Director

Sorry, I didn’t get the last part. What is the targeted?

Shubham Ajmera — Aurora Family Office — Analyst

I’m sir, asking about the targeting margins by financial year ’26. As we mentioned that we will targeting and meeting margin of next financial ’24. So what would be the expected guidance on the margins front on ’26?

Jigar Mehta — Managing Director

So, what we are seeing is we are not a large company, we are a young company, and we have to invest. I think mid-teens is a good place for a company, that I personally believe, and I think our Board believes, that mid-teens is a good place for us to be at. And then invest everything back-in the business. So our business, I would say, more than 90% is opex. So in terms of hiring as per needs, hiring training, hiring [indecipherable] we’ve for a lateral and, of course the firepower in terms of sales, and the ring makers we need outside India.

So mid-teens is what I would like to say is that. I think we are — we will be very happy to be with. But the real focus is to continue to make sure that we serve our customers and we are investing in technology, especially on the digital and embedded, where Onward is very new for the next few years. So I’m not restricting only for the next one, two years, I’m saying for the next five years, I think needs opportunity for Onward to invest and build capabilities.

Rajendra Shah — Fidelity Management — Analyst

Okay. Got it. And on the revenue front, on the revenue guidance for the offshore [Phonetic] quantity service?

Jigar Mehta — Managing Director

We don’t provide revenue guidance that we continue to serve those demands. And our focus is to keep growing and investing in U.S. and Europe, and we believe we are on the right path. We are adding great people. Our customers are growing and the demand environment seems to be positive in terms of what we are doing especially on the offshore side. So the whole focus is we have to keep expanding offshore for the next few quarters — for the next few years. And we have product capability in centers now. So just earlier it’s driven by Onward just only in Pune. Now we have five amazing locations, which are already been invested with strong leadership teams. So the opportunity for us is to meet the client demand is very high today, than what it was two years ago.

Shubham Ajmera — Aurora Family Office — Analyst

Yeah. Okay. Okay. Thank you.

Jigar Mehta — Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] That was the last question of our question-and-answer session. I would now like to hand the conference over to the management for closing comments.

Jigar Mehta — Managing Director

Thank you. Thank you, everybody, for joining us this evening on very short notice. Appreciate the support that all of you guys have given us. We continue to be positive in terms of what we’re doing. We are at start of a beautiful journey. And we continue to believe that the hard work and the huge investment that we reported in terms of building these clients, now we’ll channelize the energy for the next few quarters and nearest towards execution as we scale up the business in all the three regions, which is U.S., Europe, and India. Thank you, again. If there any more questions, we are very happy to address them through our new IR Manager, Tim Young through the quarter. Thank you, again. Asha, over to you.

Asha Gupta — Investor Relations

Thank you. On behalf of Onward Technologies Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.