Dcx Systems Limited · NSE:DCXINDIA
Dcx Systems — Investor Presentation (January 2023)
28 slides from Dcx Systems's investor presentation, January 2023
Slide 1: DCX Systems Limited Investor Presentation
DCX Systems Limited Investor Presentation January 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by DCX Systems Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contr
Slide 3: Table of Contents
Table of Contents Company Overview Business Overview Industry Overview Financial Highlights Way Ahead 3
Slide 4: Company Overview
Company Overview
Slide 5: About Us
About Us Among leading Indian manufacturers for electronic sub-systems and cable harnesses in terms of manufacturing capabilities and revenues in FY22 in Strategically located Growing Opportunity- defence and aerospace sector (1) Manufacturing facility Indian Aerospace and in Bengaluru, Karnataka an
Slide 6: Key Milestones
Key Milestones ▪ Granted authorization for export of Munitions ▪ Executed first deemed export 2018 List items to M/s IAI Elta System, Israel for end use of Indian order Air Force and Navy ▪ Awarded AS-9100:2016 and ▪ Signed lease deed for 6,070 square meters of land in ISO 9001:2015 certification Ae
Slide 7: Strong & Experienced Management
Strong & Experienced Management Dr. H.S. Raghavendra Rao | Chairman and Managing Director ▪ Promoter of Company with more than 2 decades of experience in electronics manufacturing and aerospace sectors Ranga KS | Chief Financial Officer ▪ Conferred with honorary doctorate in Business Management by ▪
Slide 8: Key Strengths
Key Strengths Asset Light Business Model with Just-in-Time Inventory leading to higher return ratios Among preferred Indian Offset Partners for defence and aerospace Technology enabled and scalable industry with global accreditations end-to-end capabilities Business model with visibility of Well-pos
Slide 9: Business Overview
Business Overview
Slide 10: Business Verticals
Business Verticals Cable and Wire System Integration Services Kitting Harness Assemblies System integration services are part of Manufacture comprehensive array of cables and wire harnesses assemblies such as radio Supply assembly ready kits of electronic comprehensive array of electronics and frequ
Slide 11: Among Preferred IOPs with Global Accreditations
Among Preferred IOPs with Global Accreditations Order Book as of December 31, 2022 ▪ Among largest IOPs for IAI Group, Israel, for Indian defence market ▪ Ready kits of electronic and electro-mechanical parts ▪ Undertake “Build-to-Print” system integration and manufacture cable and wire harness asse
Slide 12: Long Standing Relationships with Customers
Long Standing Relationships with Customers Average Years of Relationship with Suppliers Top 1 4 years Customers present in Israel, United States, Korea and Top 5 6 years India Top 10 6 years 6 years >5 years Top 15 Average period of business relationship with top 3 customers Repeat Orders from top 3
Slide 13: Reputed clientele supporting DCX in various ways
Reputed clientele supporting DCX in various ways Key Customers Working closely with clients: • For timely execution • For ‘Just-in-Time’ Inventory Management • To improve quality of raw materials supplied Obsolescence proof Customers provide Customers typically As of December 31, DCX and its Manufac
Slide 14: Strategically located in aerospace Special Economic Zone with advanced and modern manufacturing facility
Strategically located in aerospace Special Economic Zone with advanced and modern manufacturing facility Facility spread over 30,000 square feet – strategically Facility situated within SEZ that offers duty located in same city as some key domestic customers free imports, exemption from GST and supp
Slide 15: Technology enabled and scalable end-to-end capabilities
Technology enabled and scalable end-to-end capabilities Specialized capabilities across products Maintain quality standards of the product Array of electronic, electro-mechanical and wired assemblies, and full-system integration services - can be configured as per customers’ requirements By meeting
Slide 16: Well-positioned to capitalize on industry tailwinds
Well-positioned to capitalize on industry tailwinds Growing defense landscape both in India and Global Markets serves as High India market potential for DCX Numerous Government key opportunity for DCX CAGR: 15.4% USD Mn Initiatives Cable and 1,477.3 Wiring Harness 541.2 Size Positive Indigenisation
Slide 17: Industry Overview
Industry Overview
Slide 18: Growing landscape for defence serves as key opportunity for DCX
Growing landscape for defence serves as key opportunity for DCX Growth Drivers Global Defence Spending Forecast (in USD billion) CAGR: 3.99% Ongoing political tensions and geopolitical uncertainty 2,524 2,600 2,652 2,290 2,427 2,181 Great power struggle and competition amongst nations Modernisation
Slide 19: Indigenous Industry Drivers
Indigenous Industry Drivers Corporation of Ordnance Factory Board (OFBs) Budget Allocations FDI Norms 03 02 04 Positive Indian Offset – Indigenisation List 01 05 Self Reliant DCX is well positioned to take advantage of various initiatives introduced by Government of India 19 Source: F&S Report
Slide 20: Financial Highlights
Financial Highlights
Slide 21: Q3 FY23 Financial Highlights
Q3 FY23 Financial Highlights Standalone Consolidated Particulars (Rs. Crs.) Q3 FY23 Q3 FY22 Y-o-Y (%) Q3 FY23 Revenue from Operations 355.95 417.18 (14.68%) 355.95 Raw Material Expenses 322.01 388.40 322.01 Employee Cost 2.66 2.43 2.66 Other Operating expenses (Incl. FX Loss) 8.22 6.23 8.27 FX Loss
Slide 22: 9M FY23 Financial Highlights
9M FY23 Financial Highlights Standalone Consolidated Particulars (Rs. Crs.) 9M FY23 9M FY22 Y-o-Y (%) 9M FY23 Revenue from Operations 743.08 728.24 2.04% 743.09 Raw Material Expenses 663.15 677.56 663.14 Employee Cost 7.73 5.61 7.73 Other Operating expenses (Incl. FX Loss) 34.14 14.56 34.39 FX Loss
Slide 23: Strong and Growing Order Book
Strong and Growing Order Book Segmental Split of Order Book Sizeable order book – DCX order book has grown from 45 orders (FY20) to 48 Orders (FY22) FY22 5% 1% Orders from several customers are for Rs. Cr. projects to be executed in FY23 to FY25 94% System Integration Cable & Wire Harness Kitting 2,
Slide 24: Way Ahead
Way Ahead
Slide 25: Way Ahead
Way Ahead Strengthen relationships with existing Continue improving operational efficiencies Strengthen system integration operations through economies of scale, supply chain customers and expand customer base and expand cable & wire harness rationalization and resource planning assembly business -
Slide 26: Backward Integration into EMS
Backward Integration into EMS Other Services & DCX to invest Rs. 45 cr in Raneal Advanced Systems T-o-T MRO Business 4% (100% Subsidiary of DCX) 6% 3% (Invested Rs. 2.10 cr till Dec ‘22) EMS 12% To set up EMS Strategy – Revenue manufacturing unit Mix Target for FY26 System Integration, IOP/Cable Har
Slide 27: Glossary
Glossary Term Description Term Description DAP Defence Acquisition Policy LRSAM Long Range Surface-to-Air Missiles EMS Electronic Manufacturing Services MRO Maintenance, Repair and Overhaul F&S Report Frost & Sullivan Report (dated March 29,2022) MRSAM Medium Range Surface-to-Air Missiles FDI Foreig
Slide 28: Thank You
Thank You Company : Investor Relations Advisors : DCX Systems Limited Adfactorspr Pvt. Ltd. Mr. Nagaraj R Dhavaskar Mr. Amit Sharma Amit.sharma@adfactorspr.com Mr. Rahul Trivedi rahul.trivedi@adfactorspr.com www.dcxindia.com www.adfactorspr.com 28