AXISCADES Delivers Another Quarter of Strong and Consistent Results

Hyderabad: AXISCADES Technologies Ltd. [AXISCADES (BSE: 532395 | NSE: AXISCADES), a leading end-to-end engineering and technology solution provider to the aerospace, defence, heavy engineering, automotive, energy, medical & healthcare sectors, and global OEMs, reported third-quarter FY 2021–22 results on December 31, 2021.

Financial highlights for the quarter:

• Total income in Q3 FY22 was INR 1,702 million, up from INR 1,388 million in Q2 FY22.

• EBITDA stands at INR 201 Mn, translating to an EBITDA margin of 82%.

• PAT for Q3 FY22 is INR 79 Mn, representing a 7% year-on-year increase.

• Aerospace saw a 1% increase in revenue. Q-o-Q

• As of December 31st, 2021, there was a strong order book of USD 0 Mn, representing a 32.7% increase. Q-o-Q

Commenting on the performance, Mr David Bradley, Chairman of AXISCADES, said: "The performance for Q3 has been very encouraging. This is the second consecutive quarter where the company has delivered strong revenue growth of 20%+ Q-o-Q. This growth was backed by strong traction in the product and solutions vertical and an improved outlook in the aerospace vertical. Our EBITDA stands at INR 201 Mn, up 11.82%, improved by 116 bps Q-o-Q. We are hopeful of continuing the good growth next quarter also. During the quarter, the company secured a multi-year contract renewal from Airbus and has been recognised as a preferred supplier to Airbus EMES3. I am also glad to announce the appointments of Arun Krishnamurthi as MD and CEO and Shashidhar SK as Chief Financial Officer (CFO). I am confident that under the leadership of newly appointed management, the company will strengthen the current position and make the focused investments that augment the company’s capabilities, ensuring strategically oriented differentiation in the market."

Commenting on the results and outlook, Mr Arun Krishnamurthi, CEO & MD of AXISCADES, said, "The performance for Q3 was in line with expectations. During the quarter, we added five new strategic clients, all of which have the potential to grow. Our strategy is to pivot AXISCADES to a digital-first company with a focus on embedded software, AI/ML, PLM on the cloud and Industry 4.0. We are looking at strengthening the relationships with our existing clients and partnering with them to innovate on new frameworks and solutions. As has been consistently demonstrated, AXISCADES has significant strengths in aerospace and heavy engineering. Our focus will be on growing these areas as well as diversifying into other sectors that offer strong potential in the engineering space."

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Performance Highlights

(All Numbers in INR Millions except % data)

(All Numbers in USD Millions except % data)

Key Operational Highlights

• added 1 new customer in automotive and 4 in the heavy engineering vertical.
• We have secured a multi-year contract renewal from Airbus and have been recognised as a preferred supplier to Airbus EMES3.
• New orders have been received for the Strategic Technology Solutions vertical.
• We appointed Arun Krishnamurthi as MD & CEO and Shashidhar SK as CFO.
• During the quarter, Jupiter Capital, the company's promoter company, significantly reduced the equity shares pledged with the company’s Currently, equity shares are pledged to constitute 16.17% of total shareholding, compared to pledged shares of 46.17% of the total shareholding in the last quarter.