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Data Patterns hosted a conference
call on May 15, 2023. In the conference call the company was represented by
Srinivasagopalan Rangarajan, Chairman & Managing Director and Venkata
Subramanian Venkatachalam, CFO.
Key takeaways of the call
Order book as end of March 2023
stood healthy at Rs 924 crore, a growth of 94%YoY. Of the order book about 31% is production,
64% is development and 5% is service. Including the orders finalised in April
and May 2023, the current order book is Rs 1,008 crore.
Significant growth in order
intake in 2023-24 with the company
secure orders more than Rs 900 crore in FY23, reflecting a 3x increase compared
to order inflow in FY22. FY23 order intake is largely driven by radar products.
Expects to be a major participant
for Rs 20-30 billion worth of contracts in the next 3-4 years. It is
participating in large value tenders with MoD under Make 1 and 2 categories.
The company has successfully
smoothened or spread out the business through the year. Accordingly, the last
quarter revenue moved from 70% of annual revenue in FY 21 to 55% in FY 22 to
41% in FY 23.
Revenue mix – production 56% (60%
in Q4FY22), development 41% (37% in Q4FY22) and services 2% (3% in Q4FY22). For
FY23 the ratio between production:development:services was 66:29:5 against
68:25:7 respectively.
New Manufacturing facility is commissioned in
Q4FY23
The 2 development radar order
bagged from DRDO last year is scheduled to be delivered only in FY25.
Expects the 30% growth in PAT
will continue for several years.
Targeting larger opportunities in
Radar, EW, Communication Systems and Satellite business. The company have
strong technical competency in radars and electronic warfare segments. Exploring
further opportunities in export market; Working in collaboration with domestic
players
With the successful completion of
the QIP of Rs 500 crore, the company has positioned itself for substantial
revenue growth through new products in the domestic and international markets
in the coming years.
The company has made
significant investments on human capital and infrastructure during the last
year.
Actuarial valuation -lesser
attrition leads to higher provision- and this quarter it has lower attrition
and This has resulted in impacting margin for Q4FY23 along with lesser
concentration of revenue in Q4FY23 compared to last year.
Unlike last year the company
expects lot of radar orders.
Aligning with the sectoral
opportunities, the company is actively pursuing new product development.
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