Thread by @MarketLearner_

Data Patterns #Q1results analysis📊

#StockMarket #StockMarketIndia #Investing #Investment #Q1FY23 #Earnings

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Contents🔖

👉About the company
👉How were the results
👉Management commentary
👉Future outlook
👉Key triggers
👉Key risks

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First of all, lets try to know about the company🏬

👉Data patterns is a vertically integrated defence and aerospace electronics solutions provider catering to the defence products industry.

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Now, lets see how the results were🧑‍💼

👉Revenue was better than estimates due to good execution in development contracts.

👉Gross margins contracted due to change in contracts & revenue mix.

(4/13)

👉EBITDA margin came lower than estimate while EBITDA was higher than estimate due to sharp increase in revenues.

👉Profit after tax was also above estimates.

(5/13)

👉Radar & Avionics continue to dominate the revenue share for the company with almost 66% share in revenues.

👉Ministry of Defence & HAL remained the top two customers together catering to almost 66% of the company's revenues.

(6/13)

Now, lets have a look at the management commentary👨‍💻

👉Company maintains its FY23E revenue guidance at 25-30% growth with 40% EBITDA margin.

👉Order book as of June 2022 was Rs. 453.4 crores & is now at Rs. 663.55 crores on date. Order inflow during Q1FY23 was Rs. 45.6 crores (98% are production contracts for avionics).

(7/13)

👉The management expects Rs 2000-3000 crores worth orders in the pipeline for the next three to four years.

👉Radars, electronic warfare, avionics will continue to be major drivers for order book & revenues in the next couple of years.

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👉Exports contribution to total revenues is expected at around 10% for FY23E.

👉Company is in process of doubling the existing manufacturing facility at Chennai, which is expected to be fully operational form Q3 FY23 onwards.

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Now, time for future outlook & expectations🔎🔎

👉You can expect the company to deliver a revenue CAGR of 28.2% and a Profit after tax CAGR of 24.3% over the period of FY22 to FY24.

(10/13)

Now, lets see what are the key triggers🔺

👉Strong order inflows with healthy pipeline of orders worth Rs 2000-3000 crores in the next 2 to 3 years.

👉Defence electronics provides huge opportunity of approximately Rs. 1.5 lakh crores in the next 4 to 5 years

(11/13)

👉Fire control system for Brahmos missile, Avionics for LCA, RWR for fight aircraft, ELINT for platforms & radar subsystems are key orders in pipeline for FY23.

👉Large part of electronic components (used in Indian defence platforms) are supplied by forein OEMs.

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Now, lets have a look at the key risks🔻

👉Delay/Change in government policies or procurement.

👉Further deterioration in supply chain issues could possibly delay revenue recognition & may impact margins.

(13/13)

I hope my thread helped you in knowing Data Patterns better than before. Please don't forget to join our telegram channel its absolutely FREE & we are doing a lot of hard work here. telegram.me/TheMarketLearn…

Thanks for reading,
The Market Learner.

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