Orient Technologies has announced a significant new contract, further solidifying its position in the IT services sector.

Contract Details

Orient Technologies has been awarded a Purchase Order from The New India Assurance Company Limited for the Annual Maintenance Contract (AMC) of Network, Backup, and Storage Devices at NIA Data Centres. The contract, valued at approximately ₹30.81 crore (₹308.12 million), is inclusive of GST and spans over a period of three years.

Scope of Work

The order encompasses:

• Maintenance of Network infrastructure
• Management of Backup systems
• Upkeep of Storage Devices

This comprehensive AMC demonstrates Orient Technologies' expertise in managing critical IT infrastructure for large-scale operations.

Strategic Implications

This new contract is expected to strengthen Orient Technologies' foothold in the Managed Services domain, particularly for Network, Backup, and Storage infrastructure. It showcases the company's growing capabilities in providing essential IT services to major corporations.

Company's Statement

In its regulatory filing, Orient Technologies stated, "This order further strengthens the Company's position in delivering Managed Services for Network, Backup, and Storage infrastructure, reinforcing our capabilities in the services domain."

About Orient Technologies

Orient Technologies, formerly known as Orient Technologies Private Limited, is a player in the IT services sector. The company is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

This latest contract underscores Orient Technologies' continued growth and its ability to secure significant deals in the competitive IT services market.

Orient Technologies Limited , a leading IT Asset Lifecycle Management partner, has reported a robust financial performance for the first quarter, with significant growth across key metrics and strategic investments in cybersecurity.

Financial Highlights

The company's total income for Q1 stood at Rs. 214.48 crore, marking a substantial 43.65% year-over-year increase from Rs. 149.31 crore in the same quarter last year. Revenue from operations saw an impressive growth of 42.81%, reaching Rs. 212.56 crore.

Orient Technologies' profitability also showed improvement, with EBITDA rising by 26.91% to Rs. 17.33 crore. The company's profit after tax (PAT) increased by 8% to Rs. 10.03 crore, resulting in earnings per share of Rs. 2.41 for the quarter.

Sector-wise Revenue Contribution

The company's revenue is well-diversified across various sectors:

New Contract Wins and Order Book

Orient Technologies secured multiple contracts across diverse sectors in Q1, with a total order value of approximately Rs. 104.66 crore. Notable wins include:

• Rs. 16.00 crore order in the Device as a Service (DaaS) segment
• Rs. 28.66 crore contract for cloud-based email and office collaboration solutions in the public sector
• Rs. 18.00 crore order for implementing a VAT automation system for government departments
• Rs. 34.50 crore engagement for AI-based server infrastructure and enterprise endpoints for a leading technology firm
• Rs. 3.50 crore contract for networking and security solutions for a global enterprise
• Rs. 4.00 crore order for network security and endpoint protection solutions in the healthcare sector

These new contracts have bolstered the company's order book to Rs. 414 crore, scheduled for execution.

Strategic Investments and Business Restructuring

Orient Technologies is making significant investments to enhance its capabilities and service offerings:

1. The company is investing over Rs. 18 crore in building a Security Operating Center (SOC) and Network Operating Center (NOC), expected to be operational by the end of Q2.
2. The business has been restructured into two main lines:
   • IT Infrastructure Solutions
   • Application & IT Infrastructure Services

The company aims to achieve a 50-50 revenue split between these two segments in the future.

Management Outlook

While management anticipates margin pressure in Q1 and Q2 due to ongoing investments, they expect improvement from Q3 onwards. The company is focusing on expanding its Device as a Service (DaaS) offerings and aims to become one of the top five system integrators in India within the next three years.

Mr. Ajay Sawant, Chairman and Managing Director of Orient Technologies, commented during the earnings call, "We are investing significantly in our Security Operating Center and Network Operating Center, which we expect to be operational by the end of Q2. These investments, while putting pressure on our margins in the short term, are crucial for our long-term growth strategy, particularly in the cybersecurity space."

Orient Technologies' strong performance in Q1, coupled with its strategic investments and diverse order book, positions the company well for continued growth in the evolving IT services landscape.