The IT & BPM industry has emerged as a pivotal force in propelling India’s economic growth, making a substantial contribution to the nation’s GDP and societal advancement. In FY23, the IT sector was responsible for 7.5% of India’s GDP, and projections indicate it will account for 10% by 2025.
At the vanguard of this technological revolution is Axiscades Technologies Ltd, renowned for its advanced engineering solutions. The company has earned a reputation for excellence, catering to critical sectors such as aerospace, defence, heavy engineering, automotive, energy, and healthcare technology.
On May 20, 2024, Axiscades Technologies Ltd disclosed its financial performance for the fourth quarter, revealing a complex picture of its fiscal health. This article aims to delve into and explore the Axiscades Technologies Q4 results in depth.
About Axiscades Technologies Ltd
With a long history of delivering state-of-the-art technology and engineering knowledge, Axiscades Technologies Ltd. is a creative and dynamic worldwide provider of engineering solutions. An industry leader in providing top-notch solutions, Axiscades Technologies Ltd. has built its name on a relentless pursuit of client happiness.
Industry 4.0 and IIOT solutions, digital engineering, manufacturing engineering, enterprise solutions, product design and development, embedded hardware and software, aftermarket support, and enterprise solutions round out the company’s extensive list of offerings.
To take on difficult problems for the future and provide outstanding outcomes, Axiscades makes use of its extensive domain expertise, strong technical skills, and cutting-edge technology.
In addition to a wealth of engineering knowledge, Axiscades Technologies places a premium on new ideas and constant development. The corporation puts money into R&D so it can lead the way in new technology and market trends.
To inspire its employees to think outside the box and discover what else is possible, Axiscades promotes an environment that values creativity and teamwork. Axiscades is able to provide excellent service to its clients because it has established a solid presence in important areas across the globe through strategic alliances and a global network.
With the goal of fulfilling the current and future demands of its clients, Axiscades maintains a customer-centric approach and is dedicated to providing them with excellent engineering solutions through innovation.
The market cap of Axiscades Technologies Ltd is ₹2,099.51 crores as of May 30, 2024. This is the shareholding pattern of the company, as of March 31, 2024:
Source: Q4 FY24 & FY24 Result Presentation – Axiscades Technologies Ltd
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Axiscades Technologies Q4 and FY24 result financial highlights
Let’s look at a few of the key highlights revealed in the quarterly results of the company:
- The company’s operational revenue stood at ₹256 crores for the quarter, marking a year-over-year growth of 14%.
- The annual operational revenue reached ₹952 crores, showing a 17% increase year-over-year.
- The EBITDA for the quarter was reported at ₹32 crores, reflecting a growth of 10% from the previous quarter and a 3% increase year-over-year.
- The annual EBITDA was ₹130 crores, up from ₹124 crores in FY23, indicating a 5% growth.
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Axiscades Technologies Ltd’s quarterly performance
Here are the key financial metrics reflecting the company’s quarterly performance in relation to the previous quarter:
| Q4 FY24(₹ crores) | Q3 FY24(₹ crores) | Change(%) | |
| Revenue | 255.82 | 232.23 | 10.16 |
| Operating profit | 32.49 | 29.98 | 8.37 |
| Profit before tax | 15.92 | 11.03 | 44.33 |
| Net profit | 8.99 | 7.54 | 19.23 |
| EPS | 2.08 | 1.93 | 7.77 |
Axiscades Technologies Ltd’s annual performance
Here are the key financial indicators of the company as compared to the preceding year:
| FY2024(₹ crores) | FY2023(₹ crores) | Change(%) | |
| Revenue | 955 | 822 | 16.18 |
| Operating profit | 133 | 146 | -8.90 |
| Profit before tax | 53 | 21 | 152.38 |
| Net profit | 33 | -5 | 760.00 |
| EPS | 7.82 | -1.37 | 670.80 |
Market reaction – Axiscades share price today
The company released its Q4 results for FY 2024 on May 20, 2024. The Axiscades’ share price opened at ₹605.00 on the next trading day. Post the results, the stock started trading at a downtrend hitting a 52-week low of ₹499.40 on May 29, 2024.
When looking at the share price history of the past 5 years, the Axiscades’ share price has given a return of 689.27%.
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Key operational highlights
- The company’s engineering services revenue surged to ₹694 crores, driven by strong performance in the aerospace, automotive, and energy sectors.
- New customer revenue grew fivefold over the previous year, reaching ₹69 crores.
- A significant deal was secured with an aerospace OEM, valued at $18 million, focusing on in-service repair and manufacturing support.
- Revenues from defence production in Mistral tripled to ₹112 crores, with ₹272 crores in executable production orders.
- The commencement of the Man Portable Counter Drone System (MPCDS) delivery to the Indian Army marked an entry into a substantial market in Indian Defense and globally.
- The digital team expanded to over 75 full-time employees with expertise in automation, AI/ML, and robotics.
- The acquisition of add-solutions GmbH and EPCOGEN opened new opportunities in the automotive and energy sectors.
- The confirmed order book increased by 27% to ₹749 crores.
- Net borrowings were reduced by 60%, from ₹214 crores to ₹85 crores, significantly lowering finance costs.
- Over 500 net billable resources were added, and the attrition rate decreased to 16% from 21%.
- The company strengthened its board positions and corporate governance process.
Peer analysis
Let’s compare the key financial ratios of Axiscades Technologies Ltd with that of its competitors:
| Company | CMP (₹) | Market cap(₹ crores) | P/E | Earnings Yield (%) |
| Axiscades Technologies Ltd | 500 | 2,152 | 65.6 | 4.81 |
| L&T Technology Services Ltd | 4,596 | 48,607 | 38.6 | 3.66 |
| Inspirisys Solutions Ltd | 99 | 392 | 25.4 | 7.36 |
| Onward Technologies Ltd | 391 | 880 | 25.9 | 5.30 |
Bottomline
Axiscades Technologies Ltd has demonstrated a robust financial and operational performance in Q4 and FY24, underscoring its significant position in the engineering services sector. The key financial metrics reveal impressive quarterly and annual performance.
Despite these positive financial results, the market reaction was somewhat tepid, with the share price experiencing a downturn post-results announcement, reaching a 52-week low. This decline could be attributed to broader market conditions or investor expectations.
