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.