Slide 1: Data Patterns (India) Limited Investor Presentation Q3 and 9MFY22
Data Patterns (India) Limited Investor Presentation Q3 and 9MFY22 8th February 2022 Q3 & 9MFY22 Earnings Presentation 1
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
Slide 3: Q3 and 9M Performance
Q3 and 9M Performance 3
Slide 4: Growth Par Excellence
Growth Par Excellence ` “We debut with strong earnings in our first results post IPO. In Q3FY22 our topline has doubled and we have maintained high profitability. Our strong order book and bidding pipeline gives us good visibility of strong growth trajectory. Macro environment remains favorable, and
Slide 5: Consistent Growth
Consistent Growth ` Working with ISRO for last 20 Years Strong order book as on 31st December is at Rs 5,770mn Revenue grew 2x YOY to Rs 438mn; EBITDA increased 32x YOY Healthy EBITDA Margins of 35.7% for Q3 and 38.1% for 9M period Strong Balance Sheet; Net Debt Free Company High Return ratios - RoE
Slide 6: Financial Highlights of Q3 and 9MFY22
Financial Highlights of Q3 and 9MFY22 ` Particulars (Rs. Mn) Q3FY22 Q3FY21 YoY(%) Q2FY22 QoQ (%) 9MFY22 9MFY21 YoY (%) Revenue from Operations 438 224 96 592 -26 1,403 669 110 Gross Profit 386 175 121 418 -8 1,139 455 150 Gross Profit Margin (%) 88.0 78.0 10 70.5 18 81.2 68.1 13 EBITDA 157 5 - 210 -
Slide 7: Revenue Composition Improving
Revenue Composition Improving ` Sriharikota Launch Countdown System Revenue Q3FY21 Revenue Q3FY22 operating for 2 decades without failure Development , Development , Production, 23% Production, 13% 64% 67% Services, Rs 224mn Rs 438mn 19% Services, 13% Revenue 9MFY21 Revenue 9M FY22 Development , Dev
Slide 8: Driven by Strong Order Inflows
Driven by Strong Order Inflows ` Order Inflows – Q3FY22 and 9MFY22 Strong team of 450+ Engineers Rs 2,195 mn Rs 494 mn 3% 18% 0.8% 48% Rs 359 mn 30% Rs 954 mn 17% 32% 81% 38% 50% 38% 46% Q3FY21 Q3FY22 9MFY21 9MFY22 Production Development Service Production Development Service Expected order inflow o
Slide 9: Order Book Buildup in 9MFY22
Order Book Buildup in 9MFY22 ` Order Back Orders as on New Orders log as on 31st March Orders in 9MFY22 31st Dec 2021 Executed Rs 2,195 mn 2021 Rs 4,980 mn Rs 1,403 mn Rs 5,770mn On track to have a strong order book in the current year Q3 & 9MFY22 Earnings Presentation 9
Slide 10: Diversified Order Book and Revenue Portfolio
Diversified Order Book and Revenue Portfolio ` Developmental contracts/order book translates to strong production revenues Order Book in Rs mn Revenue in Rs mn 1,815 5,855 4,980 5,770 2,239 3% 7% 13% 10% 8% 14% 5% 6% 16% 22% 1,561 1,311 7% 1,417 8% 13% 9% 89% 28% 82% 80% 68% 76% 93% 78% 64% FY19 FY2
Slide 11: Robust Performance: Seasonality Improving but Q4 still Significant
Robust Performance : Seasonality Improving but Q4 still Significant ` Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 62% 63% 78% 69% 90% 71% 88% 1,571 1,091 592 418 386 438 336 379 372 241 224 175 66 41 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY
Slide 12: Working Efficiently
Working Efficiently ` Debtor Days and T/O Ratio Creditor Days and T/O Ratio 1.3 1.3 1.4 2.4 4.7 9.0 18.6 17.8 286 79 270 254 151 40 20 20 FY19 FY20 FY21 9MFY22 FY19 FY20 FY21 9MFY22 Inventory Days and T/O Ratio Cash Conversion Cycle 1.5 2.0 3.0 2.8 449 416 241 355 186 263 120 132 FY19 FY20 FY21 9MFY
Slide 13: Domestic Push for Defence; Budget 2023
Domestic Push for Defence; Budget 2023 ` Budgetary allocation for the Ministry of Defence Increased Defence Expenditure Govt increased the defence expenditure from Rs 4.8lacs cr 2022-23 to Rs 5.2lac cr in FY23 ith a major push on procurement of 2019-20 2020-21 2021-22 (Budgetary Estimate) weapons an
Slide 14: Investment Thesis
Investment Thesis ` Well Positioned to benefit from GOI thrust on ‘Make in India’ De-risked Business Model Well Invested and State of the Art Manufacturing Facilities Growing Order Book Well Reputed and Experienced Management Team Consistent Track Record of Profitable Growth Q3 & 9MFY22 Earnings Pre
Slide 15: Corporate Overview
Corporate Overview 15
Slide 16: Data Patterns – 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 17: With a Consistent track record of Profitable Growth
…With a Consistent track record of Profitable Growth ` 40%+~ % growth CAGR FY19-FY21 ~ 30.7% Revenue CAGR from FY19-FY21 Robust revenue and order book growth Order Book Rs mn Revenue from operations Rs mn 5,855 2,240 5,770 4,980 Consistently higher 1,561 1,403 1,311 gross margins and 1,815 improving
Slide 18: ...and Growing Profitability
…and Growing Profitability ` Improving PAT Margins Improving ROE and ROCE Improving PAT margins and high PAT and PAT margins ROE ROCE ROCE Rs mn 25% 35% 23% 27% 13% 23% 6% 556 322 14% 210 12% 77 6% FY19 FY20 FY21 9MFY22 FY19 FY20 FY21 Strong cash flow Strong operating cash flow generation Lower debt
Slide 19: 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 20: 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 Displ
Slide 21: 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 syst
Slide 22: 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
Slide 23: 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 concept
Slide 24: 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 Pr
Slide 25: Through 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 ✓ Manua
Slide 26: 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 develop
Slide 27: Appendix
Appendix 27
Slide 28: 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 29: Historical Statement of Profit and Loss
Historical Statement of Profit and Loss ` Particulars (Rs. Mn) FY19 FY20 FY21 Revenue from Contract with Customers 1310.63 1560.98 2239.50 Other Income 14.46 40.94 26.00 Total Revenue 1325.09 1601.92 2265.50 Expenses: a) Cost of materials consumed 454.31 532.13 629.78 b) Changes in inventories of FG
Slide 30: Historical Balance Sheet
Historical Balance Sheet ` Particulars (Rs. Mn) Mar19 Mar20 Mar21 Sep21 Particulars (Rs. Mn) Mar19 Mar20 Mar21 Sep21 ASSETS EQUITY AND LIABILITIES Equity Non-current assets (a) Share capital 17.00 17.00 17.00 93.49 (a) Property, Plant and 294.21 278.21 292.08 354.85 (b) Other Equity 1,311.93 1,517.9
Slide 31: Historical Cash Flow
Historical Cash Flow ` Particulars (Rs. Mn) Mar19 Mar20 Mar21 Sep21 Net Profit before tax 103.59 284.29 745.34 307.75 Adjustments for : Add : Depreciation 58.57 54.78 55.52 29.58 Add : Interest And Finance Charges 107.77 133.43 145.02 48.14 Less: Profit on sale of assets - (1.78) (1.24) - Less: Inte
Slide 32: 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 33: 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) 416 500 qualified Total Employee Manufacturing 263 Engineers out of 818 Our senior members in hardware, Strength Support 79 design and development have been with us for more than
Slide 34: 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 35: 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