Slide 1: Cover letter to stock exchanges
Date: 02.08.2022 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: Data Patterns (India) Limited Investor Presentation Q1FY23
` Data Patterns (India) Limited Investor Presentation Q1FY23 2nd August 2022 Q1FY23 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: MD's Comment: On a Strong Growth Trajectory
MD’s Comment: On a Strong Growth Trajectory ` “Company delivered good Q1 results in line with our expectations. Our primary focus now is to create a strong order book and increase operational efficiency. Having designed all the major sub-systems in Radar, Electronic Warfare, Communications, Avionics
Slide 5: Q1FY23: Financial Performance
Q1FY23: Financial Performance ` Particulars (Rs. Mn) Q1FY23 Q1FY22 YoY(%) Q4FY22 FY22 Revenue from Operations 684 372 84 1,705 3,108 EBITDA 213 173 23 875 1,410 EBITDA Margin (%) 31.1 46.4 - 51.3 45.4 Depreciation / Amortization 20 14 38 19 66 EBIT 193 158 22 856 1,344 EBIT Margin (%) 28.2 42.5 - 50
Slide 6: Operational and Financial Highlights: Order Book Doubled
Operational and Financial Highlights: Order Book Doubled ` Strong order book as on date – Rs 664 crore; another Rs 343 crore Contract negotiation Completed - Taking the total order book to Rs Order 1,000 crore+ Orderinflows inflowsof Rsat Revenue CAGR of 456 Revenue CAGR at xxxmn; grew in Q4 23%by g
Slide 7: Record Revenue in Q1: YoY Growth of 84%
Record Revenue in Q1: YoY Growth of 84% Revenue - Q1FY23 and FY22 Rs 684mn Rs 2,239mn Rs 3,108mn Rs 372mn Q1FY22 Q1FY23 FY21 FY22 Q1 Highlights • Revenue almost doubled to Rs 684mn. Equal proportion of Development and Production contracts in Q1. • Production revenue was Rs 317mn • Gross Margin at 65
Slide 8: Diversified Revenue Profile: Development Orders give Good Visibility
Diversified Revenue Profile: Development Orders give Good Visibility ` Developmental contracts/order book translates to strong production revenues Revenue in INR mn Service 3,108 1,705 3% 7% Development Production 2,239 25% 37% 8% 16% 1,561 683 1,311 7% 592 8% 372 7% 438 60% 9% 28% 68% 1% 10% 45% 76
Slide 9: Robust Order Book
Robust Order Book ` If all the projects where negotiations are completed (A and B Below) are converted into orders, the order book will be more than INR 1,000 Cr – Highest Ever for the Company 4,978 5,810 5,770 4,760 4,534 1,815 5,855 4,980 4,760 Service 10% 3% 14% 12% 13% 13% 7% 13% 13% 14% Develop
Slide 10: Production Orders Dominate Q1 Inflow
Production Orders Dominate Q1 Inflow ` Expects Further Order Inflow of Rs 300+cr in FY23 Service Order Inflows – Q1FY23 and FY22 Development Rs 2,890mn Production 3% Rs 456 mn 49% Rs 371mn 2% 2% Rs 1,370mn 13% 30% 98% 30% 48% 68% 57% Q1FY22 Q1FY23 FY21 FY22 Major order received in Q1FY23 Major order
Slide 11: Order Book Buildup in Q1FY23
Order Book Buildup in Q1FY23 ` On track to have a strong order book in the current year Orders as on Order Back 31st March, New Orders log as on Orders 2022 in Q1FY23 30th June Executed 2022 Rs 4,760 mn Rs 456 mn Rs 684 mn Rs 4,534 mn Fire control system for BrahMos Missile, Avionics for LCA, RWR fo
Slide 12: Robust Performance: Revenue Doubled and Margin Maintained
Robust Performance : Revenue Doubled and Margin Maintained ` Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 90% 71% 88% 65% 65% 1700 1108 684 442 592 418 386 438 336 372 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn)
Slide 13: Q1FY23: Revenue Breakup
Q1FY23: Revenue Breakup ` Product Rs in mn Customer Rs in mn AMC 53.3 BEL 7.7 ATE 110.1 BrahMos 44.9 Avionics 171.5 MoD 278.1 Service 5.2 DDFLRU (EW) 17.5 DRDO 41.1 Fire Control System 1.3 HAL 173.0 Missile 7.2 Precision Approach Radar 278.1 Export 106.2 PWM 14.5 Others 31.8 Radar Processor (Exports
Slide 14: Business Outlook for FY23
Business Outlook for FY23 ` Tailwinds Targeting larger opportunities in Satellite business • Strong order book pipeline ensuring high revenue visibility • Government thrust on Make in India, Required Expects to be a major participant for Rs20-30bn worth of Policy initiatives contracts in the next 3-
Slide 15: Corporate Overview
Corporate Overview Q1FY23 Earnings Presentation
Slide 16: 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: 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 5,855 3,108 4,980 4,760 2,239 Consistently higher 1,561 gross margins and 1,815 1,311 improving EB
Slide 18: 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% 23% 24% 556 30% 15% 25% 12% 210 6% 77 13% 6% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Strong cash flow Strong operating cash flow generation Lowe
Slide 19: Efficient Operations: Working Capital Improving
Efficient Operations: Working Capital Improving ` Debtor Days and T/O Ratio Creditor Days and T/O Ratio 1.3 1.3 1.4 1.6 4.7 9.0 18.6 8.1 286 270 79 254 233 40 45 20 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Inventory Days and T/O Ratio Cash Conversion Cycle 1.5 2.0 3.0 2.6 449 416 241 355 329 186 141
Slide 20: 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
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: Led by a 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 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: Appendix
Appendix Q1FY23 Earnings Presentation
Slide 30: 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 31: Historical Balance Sheet
Historical Balance Sheet ` Particulars (Rs. Mn) Mar20 Mar21 Mar22 Particulars (Rs. Mn) Mar20 Mar21 Mar22 ASSETS EQUITY AND LIABILITIES Equity Non-current assets (a) Share capital 17.00 17.00 103.80 (a) Property, Plant and (b) Other Equity 1,517.95 2,060.70 5641.30 278.21 292.08 441.60 Equipment Tota
Slide 32: Historical Cash Flow
Historical Cash Flow ` Particulars (Rs. Mn) Mar20 Mar21 Mar22 Net Profit before tax 284.29 745.34 1273.8 Adjustments for : Add : Depreciation 54.78 55.52 66.30 Add : Interest And Finance Charges 133.43 145.02 109.90 Less: Profit on sale of assets (1.78) (1.24) - Less: Interest Income (25.64) (22.21)
Slide 33: 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 34: 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 35: 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 36: 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 Q1FY23 Earnings Presentation