Industry Outlook:
The Indian data center market is projected to grow at a CAGR of 9%, with a total size of ₹5,400 crore by FY28.
Domestic IT services industry is growing at a CAGR of 7.5% to 8.5%, presenting significant opportunities for Orient Technologies.
Challenges and Management Optimism:
Management acknowledges competitive pressures in the end-user computing segment, with a focus shifting towards more profitable cloud and data management services.
Despite seasonal fluctuations in Q3 due to holidays, management remains confident about sustaining growth momentum and achieving operational targets.
The company retains a high customer retention rate of 80-90%, indicating strong client relationships and satisfaction.
Financial Performance:
Q2 FY25 Total Income: ₹225.07 crore, up 50.74% from ₹149.31 crore in Q1 FY24.
Revenue from Operations in Q2 FY25: ₹223.14 crore, a growth of 49.92% from ₹148.85 crore in Q1 FY25.
EBITDA for Q2 FY25: ₹20.72 crore, reflecting a 51.76% increase from ₹13.65 crore in Q1 FY25.
H1 FY25 Total Income: ₹374.38 crore, a growth of 39.61% from ₹268.17 crore in H1 FY24.
H1 FY25 EBITDA: ₹34.37 crore, up 39.42% year-on-year.
EPS for Q2 FY25: ₹4.15, up 60.25% from ₹2.59 in Q1 FY25.
Market Segmentation:
Mid-market segment contributes to 53.89% of total H1 revenue.
BFSI sector contributes 19.62%, while IT customers contribute 9.17%.
Government and PSU account for 8.15%, and healthcare and pharma contribute 2%.
Geographical Presence
The company generating most of its revenue from India, including from multinational corporations.
Its headquarters and corporate office are in Mumbai, with additional offices in Navi Mumbai, Pune, Ahmedabad, New Delhi, Bengaluru, and Chennai. They also have a branch in Singapore.
Strategic Collaboration
OTL focuses on delivering advanced solutions through partnerships with technology leaders like Dell, Fortinet, and Nutanix.
These collaborations allow OTL to meet complex client needs with customized solutions, establishing long-term relationships across industries such as BFSI, IT, ITeS, and healthcare/pharmaceuticals.
Business Verticals
💎 IT Infrastructure: Provides Data Centre Solutions, including servers, storage, networking components (switches, routers, access points), collaboration tools (CCTV, virtual conferencing), and security solutions. It also includes End-User Computing, which covers desktop management, end-user support, and mobile device management.
💎 IT Enabled Services (IteS): Includes Managed Services, Multi-Vendor Support Services, IT Facility Management, Network Operations Centre Services, Security Services, and Renewals.
💎 Cloud and Data Management Services: Focuses on migrating workloads from data centres to the cloud.
Orient Technologies Ltd
CMP: 419
Shriram Finance mngmt Says Have Not Seen Any Slowdown In Credit Demand For Co
Will Replicate H1FY25 Performance In H2
Festive Demand Was Good Across Urban & Rural
Govt Spends On Infrastructure Reduced, Need That To Improve
Expect Double-digit Growth In Gold Loan Portfolio
Credit Cost Was Around 1.8%, Will 4.50 Maintain It Below 2% For FY25
7) Financial Performance Highlights for H1 FY25 (yoy)
👇👇👇
H1FY25 Vs H1FY24
👉Rev: 38.4Cr vs 24.3Cr🔥
👉PAT: 5Cr vs 2.8Cr🔥
5) CLIENTS
👇👇👇
👉L&T , INDIAN RAILWAY , RRVPNL , POWER GRID , ULTRATECH CEMENT , WONDER CEMENT & ETC
3) CAPACITY EXPANSION : BACKWARD INTEGRATION
👇👇👇
👉 Plant – I under development;
location: G-249, Kota-5 ,Purchased 2018 , 85% work complete, Office premises fully completed and operational, Ancillary manufacturing part will be operational by Fiscal 2025-26.
👉 Plant – II under development; location: B-16, IPIA, Kota-5 , Purchased 2021 ,
No constructions , Ready by January 2026 , Will be used as a plant for
full-fledge manufacturing
More detail
E) Substation
👇👇👇
👉Empower your electricity distribution with advanced substations. Engineered for efficiency and reliability, our substations ensure seamless power transformation and distribution.
C) Monopoles
👇👇👇
👉Monopoles offer a smaller footprint and faster erection compared to traditional
lattice towers, making them an ideal choice for power transmission in densely populated urban areas where Right of Way (ROW) is a critical concern.
👉 #KCEIL specialize in turnkey transmission line projects using monopoles and have successfully collaborated with leading public sector undertakings (PSUs) to deliver innovative and efficient solutions for power transmission.
👉Custom-designed monopoles meet
specific needs like span, angle, and cross-arm height. Ideal for height raising over railways and highways, they ensure
higher clearances. Single-sided and multi circuit monopoles optimize ROW usage in urban areas.
Strategic Developments:
Secured multi-year contracts with institutions like SIDBI, NEML, and BECIL, enhancing cloud services revenue.
Strategic empanelment with PSB Alliance, allowing cloud service provision to 12 public sector banks without separate procurement processes.
Anticipated revenue growth from PSB Alliance estimated at ₹100 crore over three years.
Focus on expanding in the cyber security space, reflecting increased customer demand for security solutions.
Operational Insights:
Current order book stands at ₹165.51 crore, expected to be billable in H2 FY25.
Anticipated revenue growth trajectory of 30-35% year-on-year over the next three years.
Current EBITDA margin is around 9.21%, with expectations to reach double-digit margins soon through operational efficiencies.
Orient Technologies Ltd Concall Notes - Nov 2024
Company Overview:
Orient Technologies Limited is primarily a service provider in the information technology sector, with over 27 years of experience.
The company operates in three main segments:
IT Infrastructure Products and Solutions (63% of revenue)
Cloud and Data Management Services (21.33% of revenue)
IT Enabled Services, including Cyber Security Services (16% of revenue)
The customer base is predominantly in India, with a branch in Singapore for IT services.
Order Book
Co. has an outstanding order book worth 100 Crs of which 20% & 30% of the orders are from BFSI and PSU Industries respectively.
Revenue Bifuraction - FY24
Business Segment-wise:
- IT Infrastructure Products and Services: 52%
- ITeS: 22%
- Cloud and Data Management Services: 26%
Industry-wise:
- BFSI: 22%
- Broadcast Media Production & Distribution: 5%
- Communication: 13%
- Healthcare: 4%
- ITeS: 10%
- Manufacturing: 3%
- Others: 30%
- Government & PSU: 14%
New Venture
Orient Technologies Limited (OTL) has recently ventured into "Device as a Service (DaaS)." Under this model, the company offers desktops, laptops, tablets, printers, scanners, smartphones, and servers, bundled with software and managed services.
These offerings are provided on a subscription basis, allowing customers to pay on a "pay-per-use" model.
The company plans to use ₹69.57 crore from IPO Proceeds for the DaaS segment to purchase equipment, including SD-WAN, switches, notebooks, servers, storage devices, and printers for operating lease.
Incorporated in July 1997, Orient Technologies Limited is a rapidly expanding IT solutions provider based in Mumbai, Maharashtra, with deep expertise in creating specialized products and solutions within its business verticals.
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KIMS Mngmt Says Avg Rev Per Occupied Bed Is Also Expected To Rise In Q3
Q3 Is Generally A Weak Qtr But Expect Good Growth Due To Addition Of Facilities
Existing Beds Occupancy May Rise, Cons Occupancy May Remain Same Or Slightly Decline
PROJECT CAPABILITIES
👉PROJECT EXECUTION CAPACITY -
#KCEIL have the capability to independently execute projects worth up to ₹200 crores, showcasing company strength in delivering substantial infrastructure solutions.
👉STRATEGIC PARTNERSHIPS -
Due to the rising demand for largerscale projects, #KCEIL strategically collaborate with industry leaders to effectively manage and execute these opportunities. Company have formed collaborations with prominent engineering companies like Sterlite Power Transmission Limited and Jost Engineering Limited, enabling Company to jointly bid for and execute larger, complex projects
6) ONGOING PROJECTS
👇👇👇
👉Bhawani Mandi
👉Deposit work of wonder cement
👉Gangdhar Line
👉PowerLink Morak-Bhawanimandi
4) ORDER BOOK
👇👇👇
👉Huge Orderbook of 520cr, FY24 revenue is 64cr
👉110+cr worth of order received in H1 FY25. Primarily from railways, solar, and renewable energy sectors.
System (ERS) structures are a temporary solution designed to bypass the existing transmission towers of any voltage in any terrain. They will be used until the main line is reconstructed or restored. The entire structure can then be disassembled and reused.
👉COMPANY SOLUTIONS - The unique feature of ERS structure is that they are made of high strength steel instead of High Strength Aluminium. Our company has successfully used the technology to restore the EHV Lines up
to 400 kV Level using this technology without human need at towers saving life risk
D) OVERHEAD TRANSMISSION LINES
👇👇👇
👉An overhead transmission lines are generally used mode of power transmission using lattice tower structures.
👉The critical components of Overhead Lines are Lattice towers, insulators, conductor, hardware fitting and accessories, Earthing Material and tower accessories etc.
👉The survey, profiling and tower spotting are the main critical activities before erection of towers and laying of Lines.
👉The overhead transmission line construction mainly involves the Civil Foundation of Structure in various type
of soil, Erection of Lattice towers, Erection of Lines accessories on towers and stringing of conductors along with testing and commissioning.
B) Underground Electric Transmission Lines
👇👇👇
a) Overview
👉Undergrounding is an alternative to overhead power transmission, offering low visibility and resilience to adverse weather conditions such as winds, freezing, lightning, and cyclones
b ) KEY ADVANTAGE
👉Reduced weather-related damage.
👉No risk of fire.
👉Lower electromagnetic field (EMF)
emissions in nearby areas.
👉Requires a smaller installation footprint (1 to 10 meters).
👉Reduced risk of theft and unauthorized connections.
c) Cost-Effective Solution - Underground cables are highly protected and more economical in the long run due to their durability and lower maintenance needs.
