Slide 1: Investor Presentation Q3 & 9M FY25
Investor Presentation Q3 & 9M FY25
Slide 2: Disclaimer / Safe Harbor
Disclaimer / Safe Harbor 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 w
Slide 3: Table of Contents
Table of Contents 01 COMPANY OVERVIEW 02 BUSINESS OVERVIEW 03 INDUSTRY OVERVIEW 04 FINANCIAL HIGHLIGHTS 05 WAY AHEAD 06 GLOSSARY
Slide 4: Q3 & 9M FY25 Financial Highlights
Q3 & 9M FY25 Financial Highlights
Slide 5: Q3 FY25 Financial Highlights
Q3 FY25 Financial Highlights Standalone Consolidated Particulars (Rs. Crs.) Q3 FY25 Q3 FY24 Y-o-Y (%) Q2 FY25 Q-o-Q (%) Q3 FY25 Revenue from Operations 283.11 197.98 43.00% 195.47 44.84% 200.01 Raw Material Expenses 272.75 178.79 190.00 185.76 Employee Cost 3.56 3.19 3.53 5.73 Other Operating expens
Slide 6: 9M FY25 Financial Highlights
9M FY25 Financial Highlights Standalone Consolidated Particulars (Rs. Crs.) 9M FY25 9M FY24 Y-o-Y (%) 9M FY25 Revenue from Operations 616.65 677.20 (8.94%) 533.71 Raw Material Expenses 597.52 618.95 509.10 Employee Cost 10.45 9.26 16.52 Other Operating expenses (Incl. FX Gain/Loss) 9.88 9.10 13.71 T
Slide 7: Key Recent Developments
Key Recent Developments DCX received Purchase Orders worth INR 460.30 crores from Lockheed Martin Global Inc, USA for Supply of Electronic Assemblies Our WoS Raneal Advanced Systems received Purchase Order from Lockheed Martin Global Inc, USA worth INR 379.67 crores to supply Electronic Assemblies D
Slide 8: Company Overview
Company Overview
Slide 9: About Us
About Us • 30,000 sq. ft. • Preferred & largest • Diverse mix of domestic manufacturing unit, Indian Partner to & international strategically located in SEZ Israeli Defence customers across Israel, in Bengaluru Company, IAI. US, Korea & India • New Raneal EMS 40,000 sq. • Expanding into other ft. fa
Slide 10: Our Journey
Our Journey 2011-12 2015 2020 2022-23 Incorporated as Granted industrial license by Commissioned new Raneal Advanced Systems incorporated as wholly- private company Department of Industrial Policy & manufacturing facility at Hi- owned subsidiary, for backward integration into EMS Fulfilled
Slide 11: Consistent Growth
Consistent Growth Revenue Growth ( Rs. In crores) Consistent growth in top line 1500 1254 1424 driven by competent & 1102 experienced leadership with 1000 focused vision and robust 641 500 449 execution capabilities 0 2020 2021 2022 2023 2024 Healthy CAGR of 26% on revenue growth over the last 5 yea
Slide 12: Experienced & Dynamic Leadership
Experienced & Dynamic Leadership Dr. H.S. Raghavendra Rao | Chairman & Managing Director Promoter of Company with over 3 decades of experience in electronics manufacturing, defence & aerospace sectors Diwakaraiah N J | Chief Financial Officer Conferred with Business Leader of the Year award by E
Slide 13: Integrated Business Model
Integrated Business Model Shift to Product Company Offset / Non-Offset Focus on transfer of technology from OEM 06 01 Strong relationship with Israeli Defence and Make-in-India Product Companies, built over a Decade Cater to diverse end applications – defence, IOP / Non-IOP partner for Israe
Slide 14: Strong Manufacturing base with Tech-enabled Product Development
Strong Manufacturing base with Tech-enabled Product Development 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
Slide 15: Business Overview
Business Overview
Slide 16: Diversified Business Structure
Diversified Business Structure DCX Systems Limited Manufacturing System Integration Others Cable & Wire EMS (PCB IOP Non IOP Kitting MRO Harness Assembly) Focus on growing this Core competency of Preferred IOP for IAI Focusing on Supply assembly ready Testing & high margin business Compa
Slide 17: Manufacturing
Manufacturing Manufacturing Cables & Wire Harness Design & development of complex cables & wire harness Cater to electronic warfare & communication systems Established product portfolio covering cables & wire harnesses assemblies, like RF cables, co-axial, mixed signal, power, & data cables
Slide 18: Electronics Manufacturing Services
Electronics Manufacturing Services RANEAL ADVANCED SYSTEMS For Used in Defence, Better cost Manufacturing, Aerospace, control Qualification & Industrial Supply chain Life cycle support Electronics, Medical rationalization & of high reliability Electronics etc. resource planning electronic
Slide 19: NIART Systems – Railways Opportunity
NIART Systems – Railways Opportunity JV with ELTA Systems DCX formed JV with ELTA Systems – named NIART Systems Ltd – to develop MOATs / Benefits obstacle detection solutions Company benefits from technical JV to obtain ToT from ELTA & leverage know-how from ELTA while leveraging DCX’s manufac
Slide 20: System Integration
System Integration System integration (SI) services include electronics and electro-mechanical assemblies Covers in-house quality testing, e.g. vibration & environmental stress testing of complex RF products Used in radar, communication, surveillance & missile systems Preferred IOP partner for globa
Slide 21: IOP Capability for Offset Opportunities
Offset Opportunities Electronic Assemblies Automatic missile detection radars Among largest IOPs for IAI IOP Capability for Group, Israel, for Indian defence market Unmanned aerial vehicle systems “Build-to-Print” System Integration and Barak Systems manufacture cable & wire harness assemblies M
Slide 22: Others Business Verticals
Others Business Verticals MRO Sizeable opportunity in Maintenance, Repair & 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 better margins Minimal capex involved Kitting Supply assembly r
Slide 23: Strong & Increasing Customer-base Supporting DCX
Strong & Increasing Customer-base Supporting DCX Key Customers Working closely with clients: For timely execution For ‘Just-in-Time’ Inventory Management To improve quality of raw materials supplied Customers typically DCX & its customers Obsolescence proof – Customers provide Operational reim
Slide 24: Industry Overview
Industry Overview a -
Slide 25: Indigenous Industry Drivers
Indigenous Industry Drivers Atma Nirbhar Bharat • Positive Indigenization List / Make in India • Budget Allocation • Corporation of Ordnance Factory Board (OFBs) • FDI Norms • Indian Offset – Self Reliant Industry Tailwinds: • Application of EMS products in civilian & other sectors like medical devi
Slide 26: Growing Defence Landscape presents key Opportunities
Growing Defence Landscape presents key Opportunities Growth Drivers Global Defence Spending Forecast (in USD billion) CAGR: 3.99% Ongoing political tensions and geopolitical uncertainty 2,524 2,600 2,652 2,290 2,427 2,181 Great power struggle and competition amongst nations Modernisation of armed fo
Slide 27: Well-placed to Capitalize on Industry Tailwinds
Well-placed 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 Defence Acquisition Policy 2020 EMS Industry Size
Slide 28: Financial Highlights
Financial Highlights
Slide 29: September '24 Standalone Balance Sheet
September ‘24 Standalone Balance Sheet Rs. in Crores Rs. in Crores 31st Mar-24 30th Sep-24 31st Mar-24 30th Sep-24 Total Equity & Liabilities Total Assets Shareholders Funds 1118.91 1133.49 Non Current Assets 51.34 195.736 Share Capital 22.28 22.28 Property, plant & Equipment 28.00 26.257 Other Equi
Slide 30: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (Rs. Cr.) March ‘23 March ‘24 Net Profit Before Tax 86.10 85.40 Adjustment:- Depreciation 1.82 2.48 Interest Expenses 18.71 23.90 Interest Income (29.40) (43.24) Excess of cost over fair value of investments - - Profit on Sale of Fixed Asset (0.13) 0.00 Ope
Slide 31: Way Ahead
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Slide 32: De-Risking Strategies
De-Risking Strategies Backward New Grow Share of Grow Cable & Integration Geographies Non-Offset Wire Harness into EMS Penetration Projects Business • Tap into new • PCBAs manufacturing • Expand global presence • Focus on growing this opportunities in through subsidiary, in aerospace & defence produ
Slide 33: Move Towards Product Company
Move Towards Product Company Technology Driven Product Company Focus on Transfer of ToT also saves Govt. identified list of indigenous Save on R&D costs by products (cannot be imported, must Technology (ToT), manpower cost and acquiring ToT from be manufactured in India) – DCX aims especially from I
Slide 34: 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 35: Thank You
Thank You Company : Investor Relations Advisors : DCX Systems Limited Adfactors PR Pvt. Ltd. Mr. Amit Sharma cs@dcxindia.com amit.sharma@adfactorspr.com Mr. Rahul Trivedi rahul.trivedi@adfactorspr.com www.dcxindia.com www.adfactorspr.com 35