Slide 1: Data Patterns (India) Limited Q1FY24 Earnings Presentation
Data Patterns ( India ) Limited Investor Presentation Q1FY24 August 2023 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 Q1FY24 Performance
CMD’s Comment on Q1FY24 Performance “We are pleased to announce another strong quarter with impressive results. Our Revenue stood at Rs. 896.9 million, up 31% YoY, while our PAT for the quarter increased by 82% to Rs. 258.6 million. The order book also saw a significant growth, reaching Rs. 9,671.1
Slide 4: Q1FY24 Highlights
Q1FY24 Highlights: Strong order book as on 30th June 2023 at Rs 9,671.1 mn Revenue grew 31% YoY to Rs 896.9 mn Order inflow in Q1FY24 of Rs 1,327 mn, grew 2.9x YoY EBITDA showed 31% growth at Rs 278.3 mn Gross Margins at 62% and EBITDA Margins at 31% PAT at Rs 258.2 mn, 82% increase YoY Strong Balan
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: 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 7: 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 other remote sensing, others (Domestic as well a
Slide 8: 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 • Both COMINT and ELINT including DF can be used in 3 Surveillance & • Truck Mounted Systems / UAV Based ESM Systems • POD based jammers / C
Slide 9: Order Book Buildup in Q1FY24
Order Book Buildup in Q1FY24 Order Book as on date is Rs 9,671 mn Orders as on Order Book 31st March, New Orders Orders as on 30th 2023 in Q1FY24 Executed June 2023 Rs 9,241 mn Rs 1,327 mn Rs 897 mn Rs 9,671 mn Current order book Rs. 10,657 mn including the orders finalised in Q2FY24 We are particip
Slide 10: Q1FY24: Financial Performance
Q1FY24: Financial Performance Particulars (Rs. Mn) Q1FY24 Q1FY23 Q4FY23 FY23 FY22 Revenue from Operations 897 684 1,851 4,534 3,108 Gross Profit 558 442 1,070 2,825 2,247 Gross Profit Margin (%) 62.2% 65% 58.0% 62% 72.3% EBITDA 278 213 733 1,718 1,409 EBITDA Margin (%) 31.0% 31.1% 40% 38% 45.3% Depr
Slide 11: Revenue: Increased 31% in Q1FY24
Revenue: Increased 31% in Q1FY24 Revenue – Q1FY24 and FY23 Rs 684 mn Rs 3,108 mn Rs 897 mn Rs 4,534mn Q1FY23 Q1FY24 FY22 FY23 11 Q1FY24 Earnings Presentation
Slide 12: Diversified Revenue Profile
Diversified Revenue Profile Revenue growth across all the three categories Revenue in INR mn Service Development Production Rs 897 mn Rs 4,534 mn Rs 684 mn 5% 9% 7% 29% Rs 3,108 mn 39% 45% 7% 25% 66% 54% 68% 46% Q1FY23 Q1FY24 FY22 FY23 13 Q1FY24 Earnings Presentation
Slide 13: Order Book grew Exponentially
Order Book grew Exponentially Production Development Service Rs 9,671 mn 7% Rs 9,241mn Rs 4,534 mn 5% 7% 5% 13% 26% 62% Rs.4,760mn 64% 13% 25% 61% 33% 62% 31% Q1FY23 Q1FY24 FY22 FY23 14 Q1FY24 Earnings Presentation
Slide 14: Q1FY24: Revenue Breakup
Q1FY24: Revenue Breakup Product Rs mn Customer Rs mn BEL 3 ATE 169 Brahmos 105 DoS 68 AVIONICS 49 DRDO 305 EW 71 Export 124 HAL 7 Radar 547 MoD 282 AMC/Service 60 Others 2 Total 897 Total 897 15 Q1FY24 Earnings Presentation
Slide 15: Strong Order Inflow
Strong Order Inflow Order Inflows – Q1FY24 and FY23 Rs. 9,014 mn Service Development Production Rs 1,327 mn 7% 1% Rs 456 mn 1% 2% 38% 66% 98% Rs 2,890 mn 3% 61% 49% 33% 48% Q1FY23 Q1FY24 FY22 FY23 Major order received in Q1FY24 Major order received in FY23 Product Customer Order Type Value (Rs mn) P
Slide 16: Robust Performance: Supported by Strong Financials
Robust Performance : Supported by Strong Financials Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 65% 65% 66% 58% 62% 1851 897 1070 1118 742 882 572 558 684 442 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn) and Mar
Slide 17: Investment in Business
Investment in Business Investment in Our People Investment in Facility Investment in Technology Successfully completed site acceptance test We hired 124+ staff in Q1FY24 Spent Rs 44 Cr on new facility of 5 Precision Approach Radar. Plans to hire 100 more engineers in the next The facility
Slide 18: 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 and
Slide 19: 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 20: 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 21: Consistent Track Record of Profitable Growth
With a Consistent Track Record of Profitable Growth 39%+~ % 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 CAGR fr
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 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 cha
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 already product, from co
Slide 31: 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 32: 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 33: Well Rounded and Diverse Board
Well Rounded and Diverse Board Mr. Prasad Raghava Menon Mr. Sowmyan Ramakrishnan 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 34: Appendix
Appendix Q4 and FY23 Earnings Presentation
Slide 35: Historical Statement of Profit and Loss
Historical Statement of Profit and Loss Particulars (Rs. Mn) FY21 FY22 FY 23 Revenue from Contract with Customers 2,239.5 3,108.5 4,534.5 Other Income 26 39.6 92.2 Total Revenue 2,265.5 3,148.1 4,626.7 Expenses: a) Cost of materials consumed 629.78 915.9 1,941.4 b) Changes in inventories of FG, WIP
Slide 36: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs. Mn) Mar-20 Mar-21 Mar-22 Mar-23 Particulars (Rs. Mn) Mar-20 Mar-21 Mar-22 Mar-23 EQUITY AND LIABILITIES ASSETS Equity Non-current assets (a) Share capital 17.0 17.0 103.8 112.0 (b) Other Equity 1,518.0 2,060.7 5,641.3 11,558.8 (a) Property, Plant and Equipme
Slide 37: 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 38: 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) 609 750+ qualified Total Employee Manufacturing 395 Engineers out of 1184 Our senior members in hardware, Strength Support 116 design and development have been with us for more than
Slide 39: 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 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 T
Slide 41: Thank You
Thank You For further information, please get in touch with: Sheetal Khanduja sheetal@GoIndiaadvisors.com M:+91 9769364166 Q1FY24 Earnings Presentation