Data Patterns hosted a conference call on May 24, 2022. In the conference call the company was represented by Srinivasagopalan Rangarajan, MD & CEO.

Key takeaways of the call

Order book as end of March 31, 2022 was Rs 476 crore and of which about 62% is production contracts, 25% is development contracts and 13% is service contracts. Order inflow in Q4FY22 and FY22 was higher at RS 70 crore (up Rs 41 crore) and Rs 289 crore (up from Rs 137 crore) respectfully. Of FY22 order inflow about 48% is production contracts, 49% development contract orders and 3% is service contracts.

Development order book growth at 4x at Rs 121cr in FY22. 

Expects revenue growth in the range of 25-30% for FY23 as well as FY24.  FY23 EBITDA margin was expected upwards of 40%.

Expects order inflows of Rs 400 crore plus in next one year.

Revenue seasonality reducing but high – Q4 is still >50% of yearly revenue

Capex planned for FY23 is at Rs 60-70 crore to be used in SMT line expansion and improving test infrastructure. The company spent Rs 38.2 crore in FY22.

The company aims to maintain working capital days at 280-300 days in medium term

Order pipeline is very large and the company expects to be a major participant for orders worth Rs 2000-3000 crore in next 3-4 years.   

Last year we had margin was more and this is not this Q4 vs Q3. Gross margin 69% to 72%.

Repaid loans of Rs 27 crore in FY22 from IPO proceeds.  Short term borrowings would be in the range of Rs 25-50 crore in FY23.

Doubling the existing manufacturing facility: To be fully operational from Sep'22 onwards.

Exploring larger opportunities in export market; Working in collaboration with domestic players.