Slide 1: Stock exchange filing cover letter
Date: 01.11.2022 To To Na onal Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, 25th Floor, P.J. Towers, Bandra(E), Dalal Street, Mumbai -400051 Mumbai- 400 001 NSE Symbol- DATAPATTNS Company Code: 543428 Sub: Investor’s Presenta on Dear Sir/Madam, In pursuance to Re
Slide 2: Investor Presentation Q2 and H1FY23
Data Patterns ( India ) Limited Investor Presentation Q2 and H1FY23 31st Oct, 2022 Q2 and H1FY23 Earnings Presentation
Slide 3: Disclaimer
Disclaimer ` This presentation and the accompanying slides (the “Presentation”), which have been prepared by Data Patterns (India) Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and
Slide 4: Agenda of the Presentation
Agenda of the Presentation ` Chairman’s Statement Overview of Half Year Q2 and H1 Financial Business Outlook Performance Opportunities in Pipeline and Corporate Overview Defence Expo Highlights 3 Q2 and H1FY23 Earnings Presentation
Slide 5: MD's Comment on Half Year Performance
MD’s Comment on Half Year Performance ` “Data Patterns is uniquely positioned to benefit from the strong sectoral tailwinds given our R&D strength and our manufacturing capabilities. Our current quarterly performance is one of the best in the history of the company and has surpassed our internal tar
Slide 6: Our Achievement in First Half Year
Our Achievement in First Half Year Record H1 Profitability ` Strong order book as on 30th Sep at Rs 837cr Revenue CAGR of Order inflow in H1 33% and EBITDA Record Revenue; grew 62% YoY to Rs 156cr of Rs 517cr, grew 3x CAGR of 73% over YoY EBITDA increased 36%YoY to Rs 51cr FY19-FY22 Healthy Gross Ma
Slide 7: What We Look to Achieve in Next Two Years
What We Look to Achieve in Next Two Years ` Targeting larger opportunities in Radar, EW and Satellite Strong Top Line business Growth: 25-35+% Expects to be a major participant for Rs20-30bn worth of Sustainable High contracts in the next 3-4 years Margins: 40% Efficient execution to promote operati
Slide 8: Defence Expo'22 Highlights
Defence Expo’22 Highlights ` First Defence expo where only 1. India targets to achieve 1. It is in process of Indian companies participated Rs 350bn worth exports; building the scaled down and featured only Made in equally endorsed by version of the space India Equipments PSUs and private players su
Slide 9: Order Inflow in Q2FY23
Order Inflow in Q2FY23 ` Order Intake of Rs 471cr- Ahead of Expectations Radar Electronic Warfare Avionics and Navy Others Rs 363cr Rs 30cr Rs 22cr Rs 56cr Export production order Development order from Development Orders from Development and from UK DRDO, Dehradun DRDO, Bangalore Production orders
Slide 10: Order Book Buildup in Q2FY23
Order Book Buildup in Q2FY23 ` Order Book as on date is Rs 1,012cr including orders received in Oct’22 and those finalised and yet to be received Orders as on Order Back 30th June, New Orders log as on Orders 2022 in Q2FY23 30th Sep Executed 2022 Rs 4,534mn Rs 4,713mn Rs 881 mn Rs 8,366 mn Fire cont
Slide 11: CFO's Comment on Half Year Performance
CFO’s Comment on Half Year Performance ` “We have delivered the highest ever second quarter revenue. H1 revenue growth is 62% and we have maintained strong gross margins of 65%. Order inflow is greater than expected which gives us good revenue visibility. We are continuously making efforts on managi
Slide 12: Q2 and H1FY23: Financial Performance
Q2 and H1FY23: Financial Performance ` Particulars (Rs. Mn) Q2FY23 Q2FY22 YoY (%) Q1FY23 QoQ (%) H1FY23 H1FY22 YoY (%) Revenue from Operations 882 592 49.0 684 28.9 1,565 965 62.2 Gross Profits 572 418 36.8 242 136.4 1,014 754 34.5 Gross Profit Margin (%) 64.9 70.5 64.7 64.8 78.2 EBITDA 302 206 46.6
Slide 13: Record Revenue Growth of 62% YoY in H1
Record Revenue Growth of 62% YoY in H1 Revenue – Q2FY23 and H1FY23 Rs 882mn Rs 1,565mn Rs 965mn Rs 592mn Q2FY22 Q2FY23 H1FY22 H1FY23 Q2 Highlights H1 Highlights • Revenue growth was 49% to Rs 882mn • Revenue growth was superior at 62% to Rs 1,565mn • Production revenue was Rs 633mn • Production reve
Slide 14: Diversified Revenue Profile
Diversified Revenue Profile ` Developmental contracts/order book translates to strong production revenues Revenue in INR mn Service 1,705 3,108 Development 3% 7% Production 25% 37% 881 1,565 683 6% 592 25% 965 9% 3% 34% 7% 438 5% 68% 10% 20% 60% 45% 11% 13% 72% 82% 84% 61% 67% 46% Q2FY22 Q3FY22 Q4FY
Slide 15: Q2FY23: Revenue Breakup
Q2FY23: Revenue Breakup ` Product Rs mn Customer Rs mn AMC 22.6 BEL 14.9 ATE 229.4 BrahMos 14.7 Avionics 23.3 DOS 95.4 BTP/Services 2.9 DRDO 213.4 Communication 10.2 DRO 0.2 EW 169.1 Export 234.2 IFF 4.0 Naval System 35.5 HAL 4.6 Radar 359.9 Indian Navy 4.4 Radar Processor 21.5 MOD 279.5 Services 3.
Slide 16: Order Book grew Exponentially
Order Book grew Exponentially ` 8,365 8,365 7% 7% 7% 7% 5,810 4,760 12% 59% 59% Service 21% 13% Development Production 25% 67% 34% 34% 62% Q2FY22 Q2FY23 FY22 H1FY23 Order Book in Rs mn Q2 and H1FY23 Earnings Presentation 15
Slide 17: Highest Ever Order Inflow in any Quarter
Highest Ever Order Inflow in any Quarter ` Expects Further Order Inflow of Rs 300+cr in H2FY23 Order Inflows – Q2FY23 and H1FY23 Rs 4,713mn 7% Rs 5,169mn 7% Service Service Development 84% Development 77% Production Production Rs 1,350 mn Rs 1,714 mn 2% 2% 56% 50% 16% 23% 42% 48% Q2FY22 Q2FY23 H1FY2
Slide 18: Robust Performance: Supported by Strong Financials
Robust Performance : Supported by Strong Financials ` Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 71% 88% 65% 65% 65% 1700 1108 882 572 684 592 418 386 442 438 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn) and Ma
Slide 19: Well Managed Working Capital
Well Managed Working Capital ` Debtor Days and T/O Ratio Creditor Days and T/O Ratio 1.3 1.3 1.4 1.6 1.5 4.7 9.0 18.6 8.1 6.8 286 270 79 254 233 246 53 40 45 20 FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21 FY22 H1FY23 Inventory Days and T/O Ratio Cash Conversion Cycle 1.5 2.0 3.0 2.6 2.1 449 416 241 35
Slide 20: Investment in Business
Investment in Business ` Investment in Our People Investment in Facility Investment in Technology ✓ We hired 200+ engineers in first ✓ Spent Rs 30cr till now for expansion ✓ Successfully completed site half of year of the new facility acceptance test of Precision ✓ Plans to hire 100 more freshers in
Slide 21: Corporate Overview
Corporate Overview Q2 and H1FY23 Earnings Presentation
Slide 22: One of the fastest growing companies in Defence and Aerospace Electronics
Data Patterns – One of the fastest growing companies in the Defence and Aerospace Electronics sector in India… ` Among the few vertically integrated defence and aerospace electronics solutions providers catering to the indigenously developed defence products industry Vertically integrated defence an
Slide 23: Consistent Track Record of Profitable Growth
With a Consistent Track Record of Profitable Growth ` 38%+~ % growth CAGR FY19-FY22 ~ 33% Revenue CAGR from FY19-FY22 Robust revenue and order book growth Order Book Rs mn Revenue from operations Rs mn 3,108 5,855 8,365 4,760 2,239 4,980 Consistently higher 1,561 gross margins and 1,815 1,311 improv
Slide 24: Growing Profitability
Growing Profitability ` Improving PAT Margins Improving ROE and ROCE Improving PAT margins and high PAT and PAT margins ROE ROCE ROCE Rs mn 38% 939 31% 33% 23% 24% 556 30% 15% 25% 23% 12% 18% 210 6% 25% 77 353 13% 6% FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21 FY22 H1FY23 Strong cash flow Strong opera
Slide 25: State of the Art Manufacturing Facilities
Through Well-Invested and State of the Art Manufacturing Facilities ` Key features of manufacturing facility Manufacturing facility at Chennai, India ~ 5.75 Acres ✓ 100,000 class clean room Of land in Chennai, SIPCOT ✓ Electronic assembly facility area ✓ BGA repair work station with display ✓ Manual
Slide 26: Diverse Product Offering
Diverse Product Offering ` Category Select Product offerings Category Select Product offerings COTS modules designed Commercial in context of reusable BrahMos • Fire control systems off the shelf Programme building blocks for (COTS) • Mobile autonomous launcher building Military • Airborne launcher
Slide 27: Over Last Three Decades
Over Last Three Decades ` TERLS Tracking Radar Wind Profile Micro Satellite Designed wide open RWR and 2021 Radar ELINT for airborne platforms • Initiated expansion of Launch pad manufacturing facility with countdown doubling of available floor system C-Band Tracking Radar Fixed Wing Cockpit Display
Slide 28: A De-Risked Business Model
A De-Risked Business Model ` 1 Developmental Contracts DRDO Defence PSU Projects leads to Production / Repeat requirements Programs leads to Annuity requirements 5 Exports / Offsets 2 MoD Tenders Available Radars, Electronic Warfare, Fire Available Products / Requirements is Products / control syste
Slide 29: Well-Positioned to benefit from Make in India Opportunity
Well-Positioned to benefit from Make in India Opportunity ` Focused on designing & developing indigenized products making it a beneficiary of India’s “AtmaNirbhar” defence structural reforms Defence Modernization Program Focused on designing and building own products across the manufacturing value c
Slide 30: Driven by Innovation Focused Business Model
Driven by Innovation Focused Business Model ` Focused on in-house development led by innovation and design and development efforts Building complete systems from the Partner with customers through the life cycle of a 450+ engineers, most of whom building blocks and sub-systems product, from concepti
Slide 31: Servicing Marquee Clients
Servicing Marquee Clients ` Marqee customers in the Indian defence & aerospace ecosystem Government Departments Indian DPSU Others Ministry of Defence Indian government space organisation History of business continuity & reliable product service for marquee customers History of reliable product Prod
Slide 32: Highly Reputed and Experienced Management Team
Led by a Highly Reputed and an Experienced Management Team ` Ms. Rekha Murthy Rangarajan Mr. Srinivasagopalan Rangarajan Promoter, Whole Time Director Promoter, Chairman & Managing Director • Over 2 decades of experience in administration, facility • Over 3 decades of experience in business developm
Slide 33: Well Rounded and Diverse Board
Well Rounded and Diverse Board ` Mr. Sowmyan Ramakrishnan Mr. Prasad Raghava Menon Non-executive, Independent Director Non-executive, Independent Director • Ex-Executive Director and CFO of Tata • Served as Managing Director of Tata Power. Chemicals Ltd and Ex-Tata Power Company Ltd. • Bachelor’s de
Slide 34: Appendix
Appendix Q2 and H1FY23 Earnings Presentation
Slide 35: Historical Statement of Profit and Loss
Historical Statement of Profit and Loss ` Particulars (Rs. Mn) FY20 FY21 FY22 H1FY23 Revenue from Contract with Customers 1560.98 2239.50 3108.55 1565.30 Other Income 40.94 26.00 39.70 35.50 Total Revenue 1601.92 2265.50 3148.11 1600.80 Expenses: a) Cost of materials consumed 532.13 629.78 915.90 74
Slide 36: Historical Balance Sheet
Historical Balance Sheet ` Particulars (Rs. Mn) Mar20 Mar21 Mar22 Sep22 Particulars (Rs. Mn) Mar20 Mar21 Mar22 Sep22 ASSETS EQUITY AND LIABILITIES Equity Non-current assets (a) Share capital 17.00 17.00 103.80 103.80 (a) Property, Plant and (b) Other Equity 1,517.95 2,060.70 5641.30 5811.70 278.21 2
Slide 37: Historical Cash Flow
Historical Cash Flow ` Particulars (Rs. Mn) Mar20 Mar21 Mar22 Sep22 Net Profit before tax 284.29 745.34 1273.80 480.80 Adjustments for : Add : Depreciation 54.78 55.52 66.30 41.10 Add : Interest And Finance Charges 133.43 145.02 109.90 27.70 Less: Profit on sale of assets (1.78) (1.24) - Less: Inter
Slide 38: Defence modernization programmes
Defence modernization programmes ` Light weight EW requirements Arudhra Radar • EW capability will help in supplying products for Light weight EW • Expected to supply ~55 units of AGRU/ Arudhra radar products which have a heavy requirement in mountainous borders as they • Likely to generate revenues
Slide 39: Core groups & departments for design and development of products
Core groups & departments for design and development of products ` Department # of Employees Design & Engineering (D&E) 520 more than 500 qualified Total Employee Manufacturing 311 Engineers out of 983 Our senior members in hardware, Strength Support 96 design and development have been with us for m
Slide 40: Indian defence and aerospace industry is rapidly evolving into a self sustaining one
Indian defence and aerospace industry is rapidly evolving into a self sustaining one ` Competition at two levels for Indian defence suppliers – Anticipated Future Positioning We are poised to take up Data Patterns emerging opportunities Platform/ Solution Sub-system (end to Focused end)/ Integration
Slide 41: Thank You
` Thank You For further information, please get in touch with: Monali Jain Sheetal Khanduja monali@GoIndiaadvisors.com sheetal@GoIndiaadvisors.com M:+91 7597304020 M:+91 9769364166 Q2 and H1FY23 Earnings Presentation