Slide 1: Data Patterns (India) Limited Investor Presentation Q4 and FY23
Data Patterns ( India ) Limited Investor Presentation Q4 and FY23 May 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
Slide 3: Agenda
Agenda ` 1 CMD’s Message 4 FY23 Order Book Build Up 5 Financial Performance 2 FY23 Achievements 3 Outlook for Next 2 Years 6 Corporate Overview 3 Q4 and FY23 Earnings Presentation
Slide 4: CMD's Comment on FY23 Performance
CMD’s Comment on FY23 Performance ` ‘This year we achieved excellent results with a 32% YoY growth in PAT. Our order book is up 94% at Rs 924 crores. We have also made significant investments on human capital and infrastructure during the last year. As communicated at the time of IPO, we have smooth
Slide 5: FY23 Highlights: Revenues up 1.5x; Highest ever order inflow
FY23 Highlights: Revenues up 1.5x; Highest ever order inflow ` Strong order book as on 31st March 2023 at Rs 9,241 mn Order inflow in FY23 of Rs 9,014 mn, grew 3x YoY Revenue grew 46% YoY to Rs 4,534 mn EBITDA showed 22% growth at Rs 1,718 mn PAT at Rs 1,240 mn, 32% increase YoY Gross Margins at 62%
Slide 6: What We Look to Achieve in Next Two Years
What We Look to Achieve in Next Two Years ` Strong Topline o Targeting larger opportunities in Radar, EW, Growth: 25%+ CAGR Communication Systems and Satellite business Sustainable High EBITDA Margins: o Expects to be a major participant for Rs20-30 ~40% bn worth of contracts in the next 3-4 years o
Slide 7: 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 co
Slide 8: 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 Compr
Slide 9: Focus on Key Product verticals
Focus on Key Product verticals ` Product Demonstrated Capabilities Potential Opportunity • Developed state of the art ESM Receivers from 1MHz to 40GHz Electronic 3 • Both COMINT and ELINT including DF can be used in • Potential large market with future tenders Surveillance & • Truck Mounted Systems
Slide 10: Order Book Buildup in FY23
Order Book Buildup in FY23 ` Order Book as on date is Rs 9,241 mn Orders as on Order Book 31st March, New Orders Orders as on 31st 2022 in FY23 Executed Mar 2023 Rs 4,762 mn Rs 9,014mn Rs 4,535mn Rs 9,241mn Current order book Rs. 10,080 mn including the orders finalised in Apr and May 2023 We are pa
Slide 11: Q4 and FY23: Financial Performance
Q4 and FY23: Financial Performance ` Particulars (Rs. Mn) Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Revenue from Operations 1,851 1,705 1,118 4,534 3,108 Gross Profit 1,070 1,108 742 2,825 2,247 Gross Profit Margin (%) 58% 65% 66% 62% 72% EBITDA 733 875 470 1,718 1,409 EBITDA Margin (%) 40% 51% 42% 38% 45% Dep
Slide 12: Revenue: 1.5x in FY23
Revenue: 1.5x in FY23 Revenue – Q4FY23 and FY23 Rs 3,108 mn Rs 1,705 mn Rs 1,851mn Rs 4,534mn Q4FY22 Q4FY23 FY22 FY23 • Business Smoothened: Less Dependency on Q4 • Annual Numbers are more representative of business than quarterly numbers 12 Q4 and FY23 Earnings Presentation
Slide 13: Diversified Revenue Profile
Diversified Revenue Profile ` Revenue growth across all the three categories Revenue in INR mn Rs 1,851 mn Rs 4,534 mn Rs 1,705 mn 5% 2% Rs 3,108 mn 3% 29% 37% 41% 7% 25% 66% 60% 56% 68% Q4FY22 Q4FY23 FY22 FY23 Production Development Service 13 Q4 and FY23 Earnings Presentation
Slide 14: Order Book grew Exponentially
Order Book grew Exponentially ` Production Development Service Rs 9,241mn 7% Rs 9,241mn Rs 8,880mn 5% 5% 7% 6% 64% 38% Rs.4,760mn 64% 13% 25% 56% 62% 31% 31% Q3FY23 Q4FY23 FY22 FY23 14 Q4 and FY23 Earnings Presentation
Slide 15: Q4FY23: Revenue Breakup
Q4FY23: Revenue Breakup ` Product Rs mn Customer Rs mn ATE 338 BEL 25 AVIONICS 103 Brahmos 92 DoS 79 Nano Satellite 30 DRDO 784 Naval/ Naval System 28 Export 243 EW 274 HAL 1 Radar 1,000 MoD 566 Radar Processor 12 AAI 14 AMC/Service 65 Others 47 Total 1,851 Total 1,851 15 Q4 and FY23 Earnings Presen
Slide 16: Highest Ever Order Inflow
Highest Ever Order Inflow `Order Inflows – Q4FY23 and FY23 Service Rs 2,212 mn Rs. 9,014 mn Development 7% 1% Production 1% 77% 66% Rs 2,890 mn Rs 700 mn 5% 3% 52% 49% 33% 22% 43% 48% Q4FY22 Q4FY23 FY22 FY23 Major order received in Q4FY23 Major order received in FY23 Product Customer Order Type Valu
Slide 17: Robust Performance: Supported by Strong Financials
Robust Performance : Supported by Strong Financials ` Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 65% 65% 65% 66% 58% 1,851 1,705 1,108 1,070 1,118 742 882 572 684 442 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn
Slide 18: Investment in Business
Investment in Business ` Investment in Our People Investment in Facility Investment in Technology ✓ Successfully completed site acceptance test ✓ We hired 250+ staff in FY23 ✓ Spent Rs 44 Cr on new facility of 4 Precision Approach Radar. ✓ Plans to hire 100 more engineers in the next ✓ The facility
Slide 19: Corporate Overview
Corporate Overview Q4 and FY23 Earnings Presentation
Slide 20: Data Patterns – 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 21: 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 ov
Slide 22: 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 an
Slide 23: With a Consistent Track Record of Profitable Growth
With a Consistent Track Record of Profitable Growth ` 39%+~ % growth CAGR FY19-FY23 ~ 36% 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 ~ 61% EBITDA CAGR
Slide 24: Growing Profitability
Growing Profitability ` Improving PAT Lower debt levels/ leverage Improving ROE and ROCE Debt-Equity ratio ROE ROCE Rs mn 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 consider
Slide 25: 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 2
Slide 26: Through 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 27: 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 28: 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 29: 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 30: Progress around Defence modernization programmes
Progress around Defence modernization programmes ` Dharashakti programme Radar Warning Receivers / ESM • Received single vendor orders from DLRL for development and supply • Part of the Radar Warning Receivers / ESM for the Airborne Early Warning of all of the COMINT / ELINT search receivers, Direct
Slide 31: 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 32: 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
Slide 33: 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 34: 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 developm
Slide 35: 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 36: Appendix
Appendix Q4 and FY23 Earnings Presentation
Slide 37: Historical Statement of Profit and Loss
Historical Statement of Profit and Loss ` Particulars (Rs. Mn) FY21 FY22 FY 23 Revenue from Contract with Customers 2,239.5 3,108.5 4,534.5 Other Income 26.0 39.6 92.2 Total Revenue 2,265.5 3,148.1 4,626.7 Expenses: a) Cost of materials consumed 629.8 915.9 1,941.4 b) Changes in inventories of FG, W
Slide 38: Historical Balance Sheet
Historical Balance Sheet ` Particulars (Rs. Mn) Mar-20 Mar-21 Mar-22 Mar-23 Particulars (Rs. Mn) Mar-20 Mar-21 Mar-22 Mar-23 ASSETS EQUITY AND LIABILITIES Equity Non-current assets (a) Share capital 17.0 17.0 103.8 112.0 (a) Property, Plant and Equipment 278.2 292.1 441.6 912.5 (b) Other Equity 1,51
Slide 39: Historical Cash Flow
Historical Cash Flow ` Particulars (Rs. Mn) FY20 FY21 FY22 FY23 Net Profit before tax 284.7 745.2 1,273.8 1,648.4 Adjustments for : Add : Depreciation 54.6 55.7 66.3 84.5 Add : Interest And Finance Charges 133.4 145.0 109.9 77.4 Add : Liquidated Damages (LD) Written Off - - 12.8 44.6 Add : Unrealise
Slide 40: 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) 579 700+ qualified Total Employee Manufacturing 376 Engineers out of 1130 Our senior members in hardware, Strength Support 113 design and development have been with us for more th
Slide 41: 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 42: 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 43: Thank You
Thank You For further information, please get in touch with: Samadrita Saha Sheetal Khanduja samadrita@GoIndiaadvisors.com sheetal@GoIndiaadvisors.com M:+91 7506548571 M:+91 9769364166 Q4 and FY23 Earnings Presentation