Orient Technologies Limited is going to concentrate more on the IT infrastructure and products segment as the company charts out its future growth path amid its IPO launch. In FY24, the company saw more than 50% of its revenue come from the IT infrastructure and products vertical, according to Ajay Baliram Sawant, Chairman and Managing Director (CMD) of Orient Technologies.
Ahead of the launch of its public offer, Sawant told NDTV Profit that the company has seen 250–300% growth in the last three years in the cloud infrastructure business.
Orient Technologies Sets IPO Price Band At Rs 195–206 Apiece
Orient Technologies Ltd.'s IPO is scheduled to open for subscription on Wednesday, August 21. The technology firm aims to raise Rs 214.76 crore via the initial public offering (IPO). The mainboard public offer comprises a fresh issue of 58 lakh shares, aggregating to Rs 120 crore, and an offer-for-sale (OFS) of 46 lakh shares, aggregating to Rs 94.76 crore. Orient Technologies IPO price band has been fixed at Rs 195 to Rs 206 per share.
Sawant said that the company’s IT infrastructure solutions contributed 52% of its revenue from operations for FY24.
"Currently, in FY24 numbers, if you see, out of Rs 603 crore revenue, 52% comes from our IT infrastructure solutions and products perspective and that’s a big business we are concentrating on,” Sawant said.
Sawant said that the company's cloud infrastructure is increasing as more and more companies adopt cloud infrastructure. He added that the company’s cloud infrastructure business has grown 250–300% in three years.
“Adoption of cloud infrastructure is increasing day by day. More and more people are adopting cloud infrastructure. We used to provide more of an on-premise infrastructure to customers then we provided virtualized infrastructure to customers and nowadays the adoption is increasing in terms of cloud. We are increasing our business and have grown 250–300% in three years in the cloud infrastructure business,” Sawant said.
“When we started, we started with end-result computing and over a period of time, we started moving into data centre solutions, IT technology-enabled services, cybersecurity and nowadays we use cutting-edge technologies like cloud and digital transformation, which is more of a cloud management and data management service to the customer,” Sawant told NDTV Profit.
Sawant said that the company has mainly three verticals of business and the overall gross margin is around 18%. The IT firm’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin ranges from 9 to 10%.
“There are three lines of business we have: one is IT infrastructure products and solutions, where the margin is 8-12% but as we go to the second line of business, which is IT enabled services, it gives us more than 25–35% margin and the third line of business is new age technology like cloud and data management, where the margin is between 15% and 20%. Overall, if you see, the gross margin is around 18% and the EBITDA margin is 9 to 10%,” Sawant said.
Sawant told NDTV Profit that the company’s clients include Coal India, Mazagon Dock and the GST Network. He added that the company has a mixed bundle of customers from the enterprise space, the government and public sector and the mid-market space.
“Our core focus is on services and we provide our services to Coal India, Mazagon Dock Ltd., and GST Network. They are from the government segment. And there are marquee customers from the banking and insurance perspectives; a few of them are from healthcare, pharma and other educational and retail perspectives as well. We have a mixed bundle of customers that are into the enterprise space, government and public sector and mid-market space as well,” Sawant added.
Sawant said that Orient Technologies was one of the first companies to partner with Dell in India. He added that the company has done business with Dell worth $13 million.
“With Dell, we were the first partner to sign up. We were the first ones to sign up with Nutanix in India and with Fortinet, we were also the first partners to sign up. In the last financial year, we have done more than $13 million in business with Dell,” Sawant said.
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