Slide 1: Data Patterns (India) Limited Q3FY24 Earnings Presentation
Data Patterns ( India ) Limited Investor Presentation Q3FY24 February 2024 Q4 and FY23 Earnings Presentation
Slide 2: 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 s
Slide 3: CMD's Comment on Q3FY24 Performance
CMD’s Comment on Q3FY24 Performance “We are pleased to announce another successful quarter in-line with our expectations. Revenue grew by 25% YoY to Rs 1,395 mn. We have consistently maintained robust margins, with Gross Margins at 68% and EBITDA Margins at 43%. This achievement reflects our unwaver
Slide 4: Q3FY24 Highlights
Q3FY24 Highlights Strong order book as on 31st Dec 2023 at Rs 9,628 mn Revenue grew 25%YoY to Rs 1,395 mn Order inflow in Q3FY24 of Rs 991 mn EBITDA showed 28% YoY growth at Rs 600 mn Gross Margins at 68% and EBITDA Margins at 43% PAT at Rs 509 mn, 53% increase YoY Strong Balance Sheet; Net Debt Fre
Slide 5: What We Look to Achieve in Next Two Years
What We Look to Achieve in Next Two Years Strong Topline Growth: o Targeting larger opportunities in Radar, EW, 25%+ CAGR Communication Systems and Satellite business Sustainable High o Expects to be a major participant for Rs20-30 Margins: ~40% bn worth of contracts in the next 3-4 years o Efficien
Slide 6: Order Book Buildup in Q3FY24
Order Book Buildup in Q3FY24 Order book as on date is 9,754 mn Orders as on Order Book 30th Sep, New Orders Orders in Q3FY24 Executed as on 31st 2023Rs Dec 2023 10,032 mn Rs 991 mn Rs 1,395 mn Rs 9,628 mn Current order book Rs. 10,090 mn including the orders negotiated We are participating in large
Slide 7: Q3FY24: Financial Performance
Q3FY24: Financial Performance Particulars (Rs. Mn) Q3FY24 Q3FY23 YoY(%) Q2FY24 QoQ (%) 9MFY24 9MFY23 YoY (%) Revenue from Operations 1,395 1,118 24.8 1,083 28.8 3,375 2,684 25.8 Gross Profit 944 742 27.2 733 28.8 2,236 1,756 27.3 Gross Profit Margin (%) 67.7 66.3 140bps 67.7 0 66.2 65.4 80bps EBITDA
Slide 8: Revenue: Increased 25% in Q3FY24
Revenue: Increased 25% in Q3FY24 Revenue – Q3FY24 and 9MFY24 Rs 1,395 mn Rs 3375 mn Rs 1,118 mn Rs 2,684 mn Q3FY23 Q3FY24 9MFY23 9MFY24 8 Q3FY24 Earnings Presentation
Slide 9: Diversified Revenue Profile
Diversified Revenue Profile Revenue growth across all the three categories Service Development Production Rs 1,395 mn Rs 3,375 mn Rs 1,118 mn 5% 5% 26% Rs 2,683 mn 7% 6% 40% 28% 31% 69% 65% 55% 63% Q3FY23 Q3FY24 9MFY23 9MFY24 9 Q3FY24 Earnings Presentation
Slide 10: Consistent Order Book Growth
Consistent Order Book Growth Production Development Service 7% Rs 9,628 mn Rs 8,880 mn 4% 6% 56% 63% 38% 33% Q3FY23 Q3FY24 10 Q3FY24 Earnings Presentation
Slide 11: Q3FY24: Revenue Breakup
Q3FY24: Revenue Breakup Product Rs mn Customer Rs mn Radar 287 MOD 458 HAL 249 EW 363 DRDO 238 Avionics 306 BrahMos 361 FCS 240 BEL 44 ATE 67 DOS 13 AMC 66 Export 13 Others 67 Others 20 Total 1,395 Total 1395 11 Q3FY24 Earnings Presentation
Slide 12: Strong Order Inflow
Strong Order Inflow Order Inflows – Q3FY24 and 9MFY24 Rs 1,633 mn Rs 6,802 mn 2% 7% 2% 20% Rs 991 mn 1% Rs. 3,762 mn 63% Service 1% 55% Development 41% Production 43% 36% 58% 78% Q3FY23 Q3FY24 9MFY23 9MFY24 Major order received in Q3FY24 Major order received in 9MFY24 Product Customer Order Type Val
Slide 13: Robust Performance: Supported by Strong Financials
Robust Performance : Supported by Strong Financials Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 66% 58% 64% 69% 68% 1,851 1070 1,395 944 1,118 1,083 742 747 897 575 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn) a
Slide 14: Strategy for Next Phase of Growth
Strategy for Next Phase of Growth Model to Proprietary Product Development Key Differentiators for Data Patterns Leveraging existing competencies MOD Business • Leveraging existing competencies across target Capabilities product categories with significant lead and Proprietary Leverage existing comp
Slide 15: Focus on Key Product Verticals
Focus on Key Product Verticals Product Demonstrated Capabilities Potential Opportunity • Designed and launched compete satellite in India • Capabilities to design payloads like ESM, Imaging (RF and ESM), • Large market for Defence and LEO satellites 1 Satellite • other remote sensing, others Compreh
Slide 16: Focus on Key Product Verticals
Focus on Key Product Verticals Product Demonstrated Capabilities Potential Opportunity • Developed state of the art ESM Receivers from 1MHz to 40GHz Electronic 3 • Both COMINT and ELINT including DF can be used in • Potential large market with future tenders Surveillance & • Truck Mounted Systems /
Slide 17: Data Patterns – One of the fastest growing companies in Defence and Aerospace
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 and
Slide 18: Evolving as a product company with a strong lineage
Evolving as a product company with a strong lineage 3 5 Investment in infrastructure and Way Forward people to scale up Product portfolio 2 expansion leveraging • Rs 450 Mn spent on the new facility; Fully operational existing building blocks Leading to development of multiple products in-house over
Slide 19: Competencies built over the past 30+ years
Competencies built over the past 30+ years Reusable building blocks End-to-end capabilities Produces 1,000+ building blocks that can be used on multiple end Among the few Indian company having design capabilities across the entire systems in defence and aerospace spectrum of strategic aerospace and
Slide 20: With a Consistent Track Record of Profitable Growth
With a Consistent Track Record of Profitable Growth Rs mn 40%+~ % growth CAGR FY19-FY23 ~ 36% Revenue CAGR from FY19-FY23 Order Book Revenue from operations 9,241 4,535 3,108 5,855 2,239 4,980 4,760 1,561 1,311 1,815 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 High Profitability ~ 61% EBITDA C
Slide 21: Growing Profitability
Growing Profitability Improving PAT Lower debt levels/ leverage Improving ROE and ROCE Rs mn Debt-Equity ratio ROE ROCE 0.45 38% 0.39 31% 33% 1,240 * 939 24% 23% 22% 556 17% 0.16 15% 12% 77 210 6% 0.01 0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 * FY23 *Without considerin
Slide 22: 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 1.2 8.3 9.0 18.6 8.1 10.5 308 44 45 286 270 40 254 233 35 20 FY19 FY20 FY21 FY22 FY23 ** FY19 FY20 FY21 FY22 FY23 Inventory Days and T/O Ratio Cash Conversion Cycle* 1.5 2.0 3.0 2.6 2.4 362 339 241 278
Slide 23: Well-Invested and 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 s
Slide 24: 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 an
Slide 25: 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 Displays
Slide 26: 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 systems
Slide 27: Progress around Defence modernization programmes
Progress around Defence modernization programmes Dharashakti programme Radar Warning Receivers / ESM • Received single vendor orders from DLRL for development and supply • Part of the Radar Warning Receivers / ESM for the Airborne Early Warning of all of the COMINT / ELINT search receivers, Directio
Slide 28: 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 cha
Slide 29: 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 already product, from co
Slide 30: Servicing Marquee Clients
Servicing Marquee Clients Marquee 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 servi
Slide 31: Led by a Highly Reputed and an 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 developmen
Slide 32: 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 degr
Slide 33: Appendix
Appendix Q4 and FY23 Earnings Presentation
Slide 34: Historical Statement of Profit and Loss
Historical Statement of Profit and Loss Particulars (Rs. Mn) FY21 FY22 FY 23 9MFY24 Revenue from Contract with Customers 2,239.5 3,108.5 4,534.5 3375.1 Other Income 26 39.6 92.2 337.5 Total Revenue 2,265.5 3,148.1 4,626.7 3,712.6 Expenses: a) Cost of materials consumed 629.78 915.9 1,941.4 1,301.1 b
Slide 35: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs. Mn) Mar-21 Mar-22 Mar-23 Sep-24 Particulars (Rs. Mn) Mar-21 Mar-22 Mar-23 Sep-24 ASSETS EQUITY AND LIABILITIES Equity Non-current assets (a) Share capital 17.0 103.8 112.0 112.0 (a) Property, Plant and Equipment 292.1 441.6 912.5 996.3 (b) Other Equity 2,060
Slide 36: Historical Cash Flow
Historical Cash Flow Particulars (Rs. Mn) FY20 FY21 FY22 FY23 Net Profit before tax 284.7 745.2 1,273.8 1,648.4 Adjustments for : Add : Depreciation 54.6 55.7 66.3 84.5 Add : Interest And Finance Charges 133.4 145.0 109.9 77.4 Add : Liquidated Damages (LD) Written Off - - 12.8 44.6 Add : Unrealised
Slide 37: Core groups or departments for design and development of products
Core groups or departments for design and development of products Department # of Employees Design & Engineering (D&E) 697 865+ qualified Total Employee Manufacturing 410 Engineers out of 1298 Our senior members in hardware, Strength Support 122 design and development have been with us for more than
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 i
Slide 39: 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 T
Slide 40: Thank You
Thank You For further information, please get in touch with: Monali Jain monali@GoIndiaadvisors.com M:+91 7597304020 Sheetal Khanduja sheetal@GoIndiaadvisors.com M:+91 9769364166 Q3FY24 Earnings Presentation