Subcontracting cost escalation
Subcontracting costs increased 36% YoY to ₹34 crores due to inability to deploy employees to Europe/US amid geopolitical conditions, temporarily impacting cost ratios.
Onward Technologies · Material risks, their source context, and severity in the latest available quarter.
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Subcontracting costs increased 36% YoY to ₹34 crores due to inability to deploy employees to Europe/US amid geopolitical conditions, temporarily impacting cost ratios.
European automotive OEMs facing project cancellations and shutdowns; however management indicated positive momentum with select specialized customers.
Offshore mix moderated slightly this quarter due to customer on-site requirements; full offshore leverage for margin expansion may take 2-4 quarters to resume.
Target of ₹30-40 lakh revenue per employee (vs current ₹22 lakh) discussed but management refused to provide specific timeline, only reaffirming double-digit growth targets.