Slide 1: Exchange filing cover letter for investor presentation
Date: 29.01.2023 To To Na onal Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, 25th Floor, P.J. Towers, Bandra(E), Dalal Street, Mumbai -400051 Mumbai- 400 001 NSE Symbol- DATAPATTNS Company Code: 543428 Sub: Investor’s Presenta on Dear Sir/Madam, In pursuance to Re
Slide 2: Investor Presentation Q3 and 9MFY23
Data Patterns ( India ) Limited Investor Presentation Q3 and 9MFY23 January, 2023 Q3 and 9MFY23 Earnings Presentation
Slide 3: 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 4: Agenda of the Presentation
Agenda of the Presentation ` Chairman’s Statement Overview of Nine Months Q3 and 9M Financial Performance Opportunities in Pipeline Corporate Overview 3 Q3 and 9MFY23 Earnings Presentation
Slide 5: CMD's Comment on Nine Month's Performance
CMD’s Comment on Nine Month’s Performance ` “We exceeded our own internal goals by achieving revenue growth of 2x times in 9MFY23, the best ever in our company's history. With the expectation of new orders in Q4, we are focused on improving execution effectiveness to promote operating leverage and m
Slide 6: Our Achievements
Our Achievements Record Profitability in 9MFY23 ` Strong order book as on 31st Dec at Rs 888cr Revenue CAGR of Order inflow in Q3 of 33% and EBITDA Record Revenue: grew 91% YoY to Rs 268cr Rs 163cr, grew 3x CAGR of 73% over YoY EBITDA 2x at Rs 99cr FY19-FY22 Healthy Gross Margins at 65% and EBITDA M
Slide 7: Order Inflow in Q3FY23
Order Inflow in Q3FY23 ` Order Intake of Rs 163cr- Meeting Expectations Radar Electronic Warfare Avionics and Navy Others Rs 7cr Rs 24cr Rs 75cr Rs 57cr Production order from Production order from Development and Development order from HAL and AAI BrahMos Production orders from DRDO DRDO and BEL Oth
Slide 8: Order Book Buildup in Q3FY23
Order Book Buildup in Q3FY23 ` Order Book as on date is Rs 1,014cr including orders received in Jan’23 and those finalised and yet to be received Orders as on Order Back 30th Sep, New Orders log as on Orders 2022 in Q3FY23 31st Dec Executed 2022 Rs 8,366 mn Rs 1,633mn Rs 1,118mn Rs 8,881mn We are pa
Slide 9: CFO's Comment on Quarter's Performance
CFO’s Comment on Quarter's Performance ` “In Q3, we achieved our best performance ever in the history of the company. We achieved a healthy gross margin of 66% and a revenue growth of 2.5x during Q3FY23. With our EBITDA doubled, our EBITDA and net profit margins stood strong at 42% and 30% respectiv
Slide 10: Q3 and 9MFY23: Financial Performance
Q3 and 9MFY23: Financial Performance ` Particulars (Rs. Mn) Q3FY23 Q3FY22 Q2FY23 9MFY23 9MFY22 Revenue from Operations 1,118 438 882 2,684 1,403 Gross Profit 742 385 572 1,756 1139 Gross Profit Margin (%) 66.3 87.8 64.9 65.4 81.2 EBITDA 470 156 302 985 535 EBITDA Margin (%) 42.1 35.6 34.2 36.7 38.1
Slide 11: Record Revenue: 2x in 9M
Record Revenue: 2x in 9M Revenue – Q3FY23 and 9MFY23 Rs 1,118mn Rs 2,683mn Rs 1,403mn Rs 438mn Q3FY22 Q3FY23 9MFY22 9MFY23 Q3 Highlights 9M Highlights • Revenue grew 2.5x to Rs 1,118mn • Revenue doubled at Rs 2,684mn • Production revenue was Rs 727mn • Production revenue was Rs 1,678mn • Gross Margi
Slide 12: Diversified Revenue Profile
Diversified Revenue Profile ` Developmental contracts/order book translates to strong production revenues Revenue in INR mn Service Rs 1,118mn Rs 3,108mn Rs 2,683mn Development 7% 7% Production 25% 6% 28% 31% Rs 1,403mn Rs 438mn 13% 19% 9% 68% 13% 65% 63% 67% 79% Q3FY22 Q3FY23 9MFY22 FY22 9MFY23 Q3
Slide 13: Q3FY23: Revenue Breakup
Q3FY23: Revenue Breakup ` Product Rs mn Customer Rs mn ATE BEL 2 138 Brahmos 60 AVIONICS 202 DoS 39 Communication 157 DRDO 403 EW 193 Export 140 Radar HAL 188 334 Radar Processor Indian Navy 4 16 AMC/Service MoD 282 78 Total 1,118 Total 1,118 Q3 and 9MFY23 Earnings Presentation 12
Slide 14: Strong and Growing Order Book
Strong and Growing Order Book ` Rs 8,880mn Rs 8,880mn Service 7% 6% 7% 6% Development Production Rs 5,770mn Rs 4,760mn 56% 10% 56% 22% 13% 25% 38% 38% 68% 62% Q3FY22 Q3FY23 FY22 9MFY23 Order Book in Rs mn Q3 and 9MFY23 Earnings Presentation 13
Slide 15: Order Inflow
Order Inflow ` Expects Further Order Inflow of around Rs 150+cr in Q4FY23 Order Inflows – Q3FY23 and 9MFY23 Service Rs 1,633mn Development 7% Rs 6,802mn 7% 2% Production 1% 20% 63% Rs 494 mn 78% Rs 2,195 mn 1% 18% 2% 48% 36% 81% 50% Q3FY22 Q3FY23 9MFY22 9MFY23 Major order received in Q3FY23 Major or
Slide 16: Robust Performance: Supported by Strong Financials
Robust Performance : Supported by Strong Financials ` Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 88% 65% 65% 65% 66% 1,700 1,108 ,1,118 742 882 572 684 386 442 438 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn) a
Slide 17: Investment in Business
Investment in Business ` Investment in Our People Investment in Facility Investment in Technology ✓ We hired 400+ employees in 9M of ✓ Spent Rs 36cr till now for expansion ✓ Successfully completed site this year of the new facility acceptance test of two Precision ✓ Plans to hire 100 more in the ✓ B
Slide 18: Corporate Overview
Corporate Overview Q3 and 9MFY23 Earnings Presentation
Slide 19: 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 20: Consistent Track Record of Profitable Growth
With a Consistent Track Record of Profitable Growth ` 38%+~ % growth CAGR FY19-FY22 ~ 33% Revenue CAGR from FY19-FY22 Robust revenue and order book growth Order Book Rs mn Revenue from operations Rs mn 8,880 3,108 2,684 5,855 2,239 4,980 4,760 Consistently higher 1,561 gross margins and 1,815 1,311
Slide 21: Growing Profitability
Growing Profitability ` Improving PAT Margins Improving ROE and ROCE Improving PAT margins and high PAT and PAT margins ROE ROCE ROCE Rs mn 38% 939 31% 33% 29% 687 23% 24% 22% 556 30% 15% 26% 12% 210 25% 77 6% 13% 6% FY19 FY20 FY21 FY22 9MFY23 FY19 FY20 FY21 FY22 9MFY23 Strong cash flow Strong opera
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 1.5 4.7 9.0 18.6 8.1 6.8 286 270 79 254 233 246 53 40 45 20 FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21 FY22 H1FY23 Inventory Days and T/O Ratio Cash Conversion Cycle 1.5 2.0 3.0 2.6 2.1 449 416 241 35
Slide 23: 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
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
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 Display
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 syste
Slide 27: 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 c
Slide 28: 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 concepti
Slide 29: 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 Prod
Slide 30: Highly Reputed and 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 developm
Slide 31: 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 32: Appendix
Appendix Q3 and 9MFY23 Earnings Presentation
Slide 33: Historical Statement of Profit and Loss
Historical Statement of Profit and Loss ` Particulars (Rs. Mn) FY20 FY21 FY22 Revenue from Contract with Customers 1560.98 2239.50 3108.55 Other Income 40.94 26.00 39.70 Total Revenue 1601.92 2265.50 3148.11 Expenses: a) Cost of materials consumed 532.13 629.78 915.90 b) Changes in inventories of FG
Slide 34: Historical Balance Sheet
Historical Balance Sheet ` Particulars (Rs. Mn) Mar20 Mar21 Mar22 Sep22 Particulars (Rs. Mn) Mar20 Mar21 Mar22 Sep22 ASSETS EQUITY AND LIABILITIES Equity Non-current assets (a) Share capital 17.00 17.00 103.80 103.80 (a) Property, Plant and (b) Other Equity 1,517.95 2,060.70 5641.30 5811.70 278.21 2
Slide 35: Historical Cash Flow
Historical Cash Flow ` Particulars (Rs. Mn) Mar20 Mar21 Mar22 Sep22 Net Profit before tax 284.29 745.34 1273.80 480.80 Adjustments for : Add : Depreciation 54.78 55.52 66.30 41.10 Add : Interest And Finance Charges 133.43 145.02 109.90 27.70 Less: Profit on sale of assets (1.78) (1.24) - Less: Inter
Slide 36: 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 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) 537 500+ qualified Total Employee Manufacturing 339 Engineers out of 1036 Our senior members in hardware, Strength Support 101 design and development have been with us for more th
Slide 38: 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 39: 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 Q3 and 9MFY23 Earnings Presentation