Dcx Systems Limited · NSE:DCXINDIA
Dcx Systems — Investor Presentation (November 2023)
36 slides from Dcx Systems's investor presentation, November 2023
Slide 1: DCX Systems Limited – Corporate Presentation
DCX Systems Limited Where Vision Meets Technology Corporate Presentation November 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 01 Company Overview 04 Financial Highlights 02 Business Overview 05 Way Ahead 03 Industry Overview 06 Glossary 3
Slide 4: Company Overview
Company Overview
Slide 5: About Us
About Us ◼ Unique business model providing end-to-end solutions of cable & wire harnesses, electronic sub-systems, high-end System Integration and PCB Assembly for Defence & Aerospace Industry. Entered into JV with ELTA Systems Ltd, Israel for Developing Obstacle Detection System for Railway Industr
Slide 6: Key Milestones
Key Milestones ◼ Commissioned new manufacturing facility at Hi-Tech Defence and ◼ Granted industrial license by Department of 2020 Aerospace Park SEZ in Bengaluru, Industrial Policy and Promotion, GoI - manufacture items including microwave Karnataka 2023 ◼ Started Commercial components, electronic
Slide 7: Consistent Growth
Consistent Growth Consistent growth in top line through robust business verticals and execution capabilities Revenue Growth ( Rs. In crores) 1254 1102 641 ◼ Healthy CAGR of 40% on revenue growth over the last 3 years 2021 2022 2023 ◼ Strong CAGR of 56% in PAT Growth ( Rs. In crores) PAT over last 3
Slide 8: Strong & Experienced Management (1/2)
Strong & Experienced Management (1/2) “Most Admired Company “Business Leader of “Excellence in Defence & of the Year” the Year Award” Aerospace Award” by ET Ascent by ET Ascent by Midday Icons “Star Exporter Award – “Young Entrepreneur of the “Excellence Award for Manufacturer Category” Year Award”
Slide 9: Strong & Experienced Management (2/2)
Strong & Experienced Management (2/2) Ranga KS | Whole Time Director & Chief Financial Officer ▪ Qualified Chartered Accountant ▪ Holds Bachelor’s degree in Science from Bangalore University ▪ Previously associated with Micro Plastics Pvt Ltd & Alpha Design Technologies Pvt Ltd Shiva Kumara R | Vice
Slide 10: Board of Directors
Board of Directors Neal Jeremy Castleman Kalyanasundaram Panchangam Lathika Non- Independent and Non- Chandrasekaran Nagashayana Siddharth Pai Executive Director Independent Director Independent Director Independent Director ◼ He holds a Bachelor of science ◼ He is an associate of the Institute of ◼
Slide 11: Unique Business Model
Unique Business Model Offset / Non-Offset Build to Print Turnkey Model ◼ Strong relationship with Israeli Defence ◼ Domain expertise in developing & Companies, built over a Decade manufacturing aerospace & defence ◼ Partner for Israel / US OEMs to supply wide electronics products on Build to Print r
Slide 12: Key Strengths – End to End Solution Provider
Key Strengths – End to End Solution Provider Among preferred Indian Experienced & qualified Core competency & Promoters & senior Growing Cable & Wire Offset Partners for defence & Harness portfolio with aerospace industry across experience in electronics management team supported manufacturing by co
Slide 13: Business Overview
Business Overview
Slide 14: Business Structure/Model
Business Structure/Model DCX Systems Limited Manufacturing System Integration Others Cable & Wire EMS Offset Non-Offset Kitting MRO Harness (PCB Assembly) ◼ Focus on growing this ◼ Core competency of ◼ Preferred IOP for IAI ◼ Focusing on ◼ Supply assembly ◼ Testing & high margin business Company & G
Slide 15: Among Preferred IOPs with Global Accreditations
Among Preferred IOPs with Global Accreditations ◼ Among largest IOPs for IAI Group, Israel, for Indian defence market ◼ Undertake “Build-to-Print” system integration and manufacture cable and wire harness assemblies Key Certifications Defence Industrial License from Ministry of Commerce and Industry
Slide 16: Manufacturing
Manufacturing Cables & Wire Harness Backward integration into EMS ◼ Expertise in complete design & development of complex ◼ Horizontal integration with new verticals like Printed cables & wire harness Circuit Board Assembly for aerospace & defence ◼ Caters to electronic warfare and communication sys
Slide 17: Raneal Advanced Systems
Raneal Advanced Systems Raneal Advanced Systems (100% Subsidiary of DCX) EMS/PCBA Manufacturing unit Leading to Better cost control, For Manufacturing, Qualification & Life Used in Defence, Aerospace, Industrial Supply chain rationalization & resource cycle support of high reliability Electronics Ap
Slide 18: System Integration
System Integration ◼ System integration (SI) services are part of comprehensive array of electronics and electro-mechanical and enclosure assembly ◼ Services include in-house testing, including vibration & environmental stress testing of complex radio frequency products to ensure high quality final
Slide 19: Others
Others Kitting MRO • Supply assembly ready kits of electronic and electro- • Sizeable opportunity in Maintenance, Repair & mechanical parts Overhaul • DCX would be in better position to offer MRO services as it has in-house testing machinery provided by OEMs • Additional stream of revenue with bette
Slide 20: 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 Meeting specific requirements and quality expectations Array of electronic, electro-mechanical and wired assemblies, and full- system integration services - can
Slide 21: Strategically located in aerospace SEZ with advanced manufacturing facility
Strategically located in aerospace SEZ with advanced & 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 supplies ensuring shor
Slide 22: New Initiatives
New Initiatives
Slide 23: Growth Strategy: Manufacturing and Joint Ventures with Global Leaders
Growth Strategy: Manufacturing and Joint Ventures with Global Leaders DCX's growth journey is fortified by strategic joint ventures that epitomize its commitment to innovation and expansion EMS - RANEAL ELTA-DCX JV JV’s and/or Technology Acquisition ◼ Raneal plays a role in fulfilling a key portion
Slide 24: Industry Overview
lew > Sen J) > Oo ~ Sa ~~ ” = me) £
Slide 25: Indigenous Industry Drivers
Indigenous Industry Drivers Corporation of Ordnance Factory Board (OFBs) Budget Allocations FDI Norms 03 02 04 Positive Indian Offset – Indigenisation List Self Reliant 01 05 Industry Tailwinds for DCX • Application of EMS products in civilian and other sectors like medical devices • Transfer of Tec
Slide 26: Growing landscape for defence serves as key opportunity for DCX
Growing landscape for defence serves as key opportunity for DCX Global Defence Spending Forecast (in USD billion) Growth Drivers CAGR: 3.99% Ongoing political tensions and 2,524 2,600 2,652 geopolitical uncertainty 2,290 2,427 2,181 Great power struggle and competition amongst nations Modernisation
Slide 27: Well-positioned to capitalize on industry tailwinds
Well-positioned to capitalize on industry tailwinds High India market potential for DCX USD Mn CAGR: 15.4% Numerous Government Initiatives Cable & Wire Harness 1,477.3 Industry Size 541.2 Positive Indigenisation List 2022 2029 USD Mn CAGR: 49.7% 4,510.0 EMS Industry Size Defence Acquisition Policy 2
Slide 28: Financial Highlights
Financial Highlights
Slide 29: Q2 FY24 Financial Highlights
Q2 FY24 Financial Highlights Standalone Particulars (Rs. Crs.) Q2 FY24 Q2 FY23 Y-o-Y (%) Q1 FY24 Q-o-Q (%) Revenue from Operations 309.12 173.88 77.78% 170.10 81.73% Raw Material Expenses 283.54 151.01 156.62 Employee Cost 3.08 2.64 2.99 Other Operating expenses (Incl. FX Gain/Loss) 3.47 10.33 2.62
Slide 30: H1 FY24 Financial Highlights
H1 FY24 Financial Highlights Standalone Particulars (Rs. Crs.) H1 FY24 H1 FY23 Y-o-Y (%) Revenue from Operations 479.23 387.13 23.79% Raw Material Expenses 440.15 341.14 Employee Cost 6.07 5.07 Other Operating expenses (Incl. FX Gain/Loss) 6.09 25.92 Total Expenditure (Incl. FX Gain/Loss) 452.31 372
Slide 31: H1 FY24 Standalone Balance Sheet
H1 FY24 Standalone Balance Sheet Rs. in Crores Rs. in Crores Mar-23 Sep-23 Mar-23 Sep-23 Total Equity & Liabilities Total Assets Shareholders Funds 567.06 592.64 Non Current Assets 31.12 35.19 Share Capital 19.35 19.35 Property, plant & Equipment 10.82 13.46 Other Equity 547.71 573.29 Right of use A
Slide 32: Standalone Cash Flow Statement
Standalone Cash Flow Statement Rs. in Crores Mar-21 Mar-22 Mar-23 Net Profit Before Tax 39.81 75.56 86.10 Adjustment:- Depreciation 2.43 2.18 1.82 Interest Expenses 4.74 7.24 18.71 Interest Income -22.40 -22.02 -29.40 Excess of cost over fair value of investments 0.02 - - Profit on Sale of Fixed Ass
Slide 33: Way Ahead
Way Ahead
Slide 34: Recent Developments
Recent Developments ✓ Commenced operations from September 2023 - Wholly owned Subsidiary Raneal Advanced Systems Private Limited’s facility to manufacture Printed Circuit Board Assemblies (PCBAs) ✓ Established a Joint Venture between DCX Systems Limited and ELTA Systems Limited for Obstacle Detectio
Slide 35: Glossary
Glossary Term Description Term Description DAP Defence Acquisition Policy IPC Institute for Printed Circuit LRSAM Long Range Surface-to-Air Missiles DOMW Defence Offset Management Wing MoD Ministry of Defence EMS Electronic Manufacturing Services MRO Maintenance, Repair and Overhaul PCBA Printed Cir
Slide 36: Thank You
THANK YOU Aerospace SEZ Sector, Plot No 29, 30 & 107, Hi-Tech Defence & Aerospace Park, KIADB Industrial Area, Devanahalli, Bangalore, Karnataka 562110. INDIA Contact : Mr. Niraj Khandelwal DGM-Corporate Affairs Email: niraj@dcxindia.com www.dcxindia.com