AXISCADES Logs Robust Margin Growth
Deepthi | Myequity news | Date : 02-02-2019 20:35:00 IST
AXISCADES Engineering Technologies Ltd., (AXISCADES), India’s leading Product Engineering Solutions company today announced the consolidated financial results for the third quarter ended 31st December 2018.
Financial & Business Updates
Engineering Design Services revenue grew 12.3% q-o-q despite lower working days and holiday season in 3rd quarter. With two new logos and increasing investments from existing customers, AXISCADES looks to capitalize on the momentum driven by expanding engineering needs.
There is a significant improvement in order book and pipeline in strategic solutions division. During Q3FY19, Company has won contracts totaling to USD 20Mn, the execution of which improve revenues and margins of this segment in the coming quarters. Pipeline continues to be robust.
During the quarter, Consolidated EBIDTA Margins improved to 7.6% from negative in the immediate previous quarter on the back of cost reduction initiatives and improvement in utilization. Robust order book coupled with various initiatives being undertaken sets the stage for a strong performance in FY19-20.
Further, the Board in its meeting today, on recommendation of Nomination & Remuneration Committee, has appointed David Bradley and Ajay Lakhotia as Non-Executive and Non- Independent Directors.
Until recently, Mr. Bradley served as Executive Vice-President of Global Product Solutions at Assystem managing a business of USD 750Mn. He was instrumental in developing and scaling several accounts into USD 50+Mn relationships. Mr. Bradley also served as a Member of the Management Board of Assystem since December 13, 2007 and was CEO of Assystem UK Ltd.
The Board is being further strengthened with the induction of Ajay Lakhotia a veteran Venture Capitalist in Technology Sector with investments across e-commerce, IOT and Automation Sector to help strategize Company entry into new areas. Other Updates
The phase II of Company’s acquisition of Mistral is in the last leg and is expected to close by end of March 2019. Additionally, Edelweiss has been mandated to finalize financial and strategic investors for the Company as part of next phase of its growth journey.
Dr. Vivek Mansingh, Chairman of Board
said “this past quarter we have seen strong operating performance across the company. AXICADES Aerospace & Technology closed couple of deals totaling to US$20M. From the business side, the pipeline looks healthy and robust and we should see healthy conversion in Q4 and beyond. Company will continue to work on cost rationalization across the company.”
About AXISCADES Engineering Technologies:
AXISCADES is India’s leading product engineering solutions company catering to the futuristic needs of aerospace, defence, heavy engineering, automotive, energy, medical & healthcare sectors. Its proven technology products and services, coupled with industry best practices, enable global OEMs to create innovative, sustainable, safer and smarter products. The company offers solutions in mechanical engineering, embedded software and hardware, system integration, manufacturing and aftermarket solutions across domains addressing every stage of product lifecycle development. Headquartered in Bengaluru, AXISCADES has 14 engineering centers worldwide including North America, Europe and Asia.