Slide 1: Data Patterns (India) Limited Investor Presentation Q2FY24
Data Patterns ( India ) Limited Investor Presentation Q2FY24 November 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 Q2FY24 Performance
CMD’s Comment on Q2FY24 Performance “We are happy to announce strong revenues and order inflow for Q2 and H1FY24. Revenues in Q2 were in-line with our expectations and grew 23% YoY to Rs 1,083 mn . The order book also saw growth, reaching Rs. 10bn while order inflows stood at Rs 1,445mn during Q2. W
Slide 4: Q2FY24 Highlights
Q2FY24 Highlights Strong order book as on 30th Sep 2023 at Rs 10bn Revenue grew 23%YoY to Rs 1,083 mn Order inflow in Q2FY24 of Rs 1,445 mn EBITDA showed 35% growth at Rs 408 mn Gross Margins at 69% and EBITDA Margins at 38% PAT at Rs 338 mn, 61% increase YoY Strong Balance Sheet; Net Debt Free Comp
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: ~ 35-40% bn worth of contracts in the next 3-4 years o Effi
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 Satellite • other remote sensing, others Compreh
Slide 8: Focus on Key Product verticals
Focus on Key Product verticals Product Demonstrated Capabilities Potential Opportunity • Electronic Developed state of the art ESM Receivers from 1MHz to 40GHz • 3 Both COMINT and ELINT including DF can be used in • Potential large market with future tenders Surveillance & • Truck Mounted Systems /
Slide 9: Order Book Buildup in Q2FY24
Order Book Buildup in Q2FY24 Order book as on date is Rs 10,032mn Orders as on Order Book 30th June, New Orders Orders as on 30th 2023 in Q2FY24 Executed Sep 2023 Rs 9,671 mn Rs 1,445mn Rs 1,083 mn Rs 10bn Current order book Rs. 10,820 mn including the orders negotiated converted We are participatin
Slide 10: Q2FY24: Financial Performance
Q2FY24: Financial Performance Particulars (Rs. Mn) Q2FY24 Q2FY23 YoY(%) Q1FY24 QoQ (%) H1FY24 H1FY23 YoY (%) Revenue from Operations 1083 882 22.8 897 20.7 1,980 1,565 26.5 Gross Profit 747 572 30.7 575 30.1 1,322 1,014 30.4 Gross Profit Margin (%) 69.0 64.9 413bps 64.1 494bps 66.8 64.8 40bps EBITDA
Slide 11: Revenue: Increased 23% in Q2FY24
Revenue: Increased 23% in Q2FY24 Revenue – Q2FY24 and H1FY24 Rs 1,083 mn Rs 882 mn Rs 1,980 mn Rs 1,565 mn Q2FY23 Q2FY24 H1FY23 H1FY24 11 Q2FY24 Earnings Presentation
Slide 12: Diversified Revenue Profile
Diversified Revenue Profile Revenue growth across all the three categories Service Development Production Rs 1,083 mn 4% Rs 1,980 mn Rs 882 mn 3% Rs 1,565 mn 5% 25% 59% 6% 50% 34% 72% 37% 61% 45% Q2FY23 Q2FY24 H1FY23 H1FY24 12 Q2FY24 Earnings Presentation
Slide 13: Consistent Order Book Growth
Consistent Order Book Growth Production Development Service 7% Rs 10,032 mn Rs 8,365 mn 4% 7% 37% 59% 59% 34% Q2FY23 Q2FY24 13 Q2FY24 Earnings Presentation
Slide 14: Q2FY24: Revenue Breakup
Q2FY24: Revenue Breakup Product Rs mn Customer Rs mn DRDO 615 Radar 745 MoD 291 EW 187 DoS 77 Avionics 84 HAL 57 Export 16 AMC 47 BrahMos 14 ATE 18 BEL 10 Naval 3 Others 2 Total 1,083 Total 1,083 14 Q2FY24 Earnings Presentation
Slide 15: Strong Order Inflow
Strong Order Inflow Order Inflows – Q2FY24 and H1FY24 Rs 4,713 mn 7% Rs 5,169 mn Rs. 2,771mn 84% Service Rs 1,446 mn 77% 1% Development 2% 36% 34% Production 64% 63% 16% 23% Q2FY23 Q2FY24 H1FY23 H1FY24 Major order received in Q2FY24 Major order received in H1FY24 Product Customer Order Type Value (R
Slide 16: Robust Performance: Supported by Strong Financials
Robust Performance : Supported by Strong Financials Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 65% 66% 58% 64% 69% 1851 1070 1118 1,083 742 747 882 897 572 575 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn) and M
Slide 17: One of the fastest growing companies in Defence and Aerospace Electronics in India
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 18: 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 19: 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 20: With a Consistent Track Record of Profitable Growth
With a Consistent Track Record of Profitable Growth 39%+~ % growth CAGR FY19-FY23 ~ 28% 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 ~ 46% EBITDA CAGR fr
Slide 21: 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 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 1.2 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 23: State of the Art Manufacturing Facilities
Through Well-Invested and State of the Art Manufacturing Facilities ~ 8.56 Acres Key features of manufacturing facility Manufacturing facility at Chennai, India Of land including the new ✓ 100,000 class clean room land acquired in Aug 22 in ✓ Electronic assembly facility Chennai, SIPCOT area ✓ BGA r
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 an
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 Displays
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 systems
Slide 27: 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 28: 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 29: 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 30: 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 31: Appendix
Appendix Q4 and FY23 Earnings Presentation
Slide 32: Historical Statement of Profit and Loss
Historical Statement of Profit and Loss Particulars (Rs. Mn) FY21 FY22 FY 23 H1FY24 Revenue from Contract with Customers 2,239.5 3,108.5 4,534.5 1980.0 Other Income 26 39.6 92.2 224.5 Total Revenue 2,265.5 3,148.1 4,626.7 2204.5 Expenses: a) Cost of materials consumed 629.78 915.9 1,941.4 886.0 b) C
Slide 33: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs. Mn) Mar-21 Mar-22 Mar-23 Sep-24 Particulars (Rs. Mn) Mar-21 Mar-22 Mar-23 Sep-24 ASSETS EQUITY AND LIABILITIES Equity Non-current assets (a) Share capital 17.0 103.8 112.0 112.0 (a) Property, Plant and Equipment 292.1 441.6 912.5 996.3 (b) Other Equity 2,060
Slide 34: Historical Cash Flow
Historical Cash Flow Particulars (Rs. Mn) FY20 FY21 FY22 FY23 H1FY24 Net Profit before tax 284.7 745.2 1,273.8 1,648.4 811.5 Adjustments for : Add : Depreciation 54.6 55.7 66.3 84.5 59.5 Add : Interest And Finance Charges 133.4 145.0 109.9 77.4 39.8 Add : Liquidated Damages (LD) Written Off - - 12.8
Slide 35: 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) 662 825+ qualified Total Employee Manufacturing 421 Engineers out of 1277 Our senior members in hardware, Strength Support 126 design and development have been with us for more than
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 i
Slide 37: 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 38: Thank You
Thank You For further information, please get in touch with: Monali Jain monali@GoIndiaadvisors.com M:+91 7597304020 Sheetal Khanduja sheetal@GoIndiaadvisors.com M:+91 9769364166 Q2FY24 Earnings Presentation