Data Patterns hosted a conference call on Nov 1, 2022. In the conference call the company was represented by Srinivasagopalan Rangarajan, Chairman & Managing Director.

Key takeaways of the call

Order inflow in Q2FY23 was Rs 471.3 crore and the order book as end of Sep 30, 2022 stood strong at Rs Rs 836.6 crore. Including orders received in Oct 2022 and those finalized and yet to be received the order book as end of Oct 31, 2022 stood at Rs 1012 crore.

Order inflow is greater than expected and gives good revenue visibility for the company. Given strong and growing order book the company is confident of delivering stated guidance of 25%-30% topline growth for FY23.   Retains EBITDA margin guidance of  40% for current fiscal. 

Fire control system for BrahMos Missile, Avionics for LCA, RWR for Fighter Aircraft, ELINT for Airborne and Ground Platform and Radar Subsystems are key orders in pipeline for FY23.

Export revenue and order inflow accounts to Rs 34 crore and Rs 50 crore respectively.

New Manufacturing facility is expected to be commenced from Q3 FY23

Working capital days was maintained at about 280 days given continued supply side challenges.

Supply side challenges are still bad but not bad as last year. It has eased out to some extent and in case of some components the shorter are still there forcing the company to resort to stocking its inventory to account for likely delay in supply so as to avoid impact on its production. 

Expect back to back orders from Aruthra, a Medium Power Radar as well as low level transporter radar.  The order for low level transporter radar is expected next year.   Working on lot of upgrades for which flight test is going on.  The company expects to be a major participant for contracts worth Rs 2000-3000 crore in the next 3-4 years. 

Tata project - Comjam requirement and c295 participating in the enquiry.