Defence company DCX Systems announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Revenue stood at Rs 746.20 crore in Q4FY24 as compared to Rs 510.55 crore in Q4FY23. EBIT stood at Rs 51.91 crore in Q4FY24, vis-à-vis Rs 55.16 crore in Q4FY23. EBIT margin stood at 6.96% in Q4FY24 as compared to 10.80% in Q4FY23. Profit after Tax (PAT) stood at Rs 32.95 crore in Q4FY24 as compared to Rs 41.13 crore in Q4FY23. FY24 Financial Highlights: Operational Revenue stood at Rs 1423.58 crore in FY24 from Rs 1253.30 crore in FY23. EBIT stood at Rs 124.41 crore in FY24, up from Rs 111.40 crore in FY23. EBIT Margin for the full year stood at 8.74%in FY 24, as compared to 8.89% in FY23. Profit After Tax (PAT) for the full year is Rs 75.78 crore in FY 24 as compared to Rs 71.68 in FY 23. Order Book as on 31st March 2024, is over Rs 801.16 crore. Commenting on the company’s performance, Dr. H.S. Raghavendra Rao, Chairman & Managing Director, DCX Systems, said, “DCX Systems continued to navigate the turbulent global markets successfully during this quarter. Despite macro-economic headwinds and geo-political tensions, we were able to maintain healthy growth and profit margins. In FY24, our consolidated revenues stood at Rs 1424 crore, while EBIT and PAT were Rs 124.41 crore and Rs 75.78 crore, respectively. This year we clocked the highest turnover in the history of DCX, with our continuous efforts we were able to boost operational efficiency and supply chain measures helped to improve the revenues and margins. We recently raised funds to the tune of approximately Rs 500 crore through QIP. The proceeds out of fund raised through QIP would be utilized towards investment in NIART Systems, our JV agreement with ELTA Systems, we shall be developing and supplying obstacle detection solutions based on radar and optics technologies for the railway industry and also Invest in Opportunities through JV/Subsidiaries catering to Defence and Aerospace Sector through Transfer of Technology from Original Equipment Manufacturers (OEMs). Our backward integration strategy through our 100% subsidiary M/s. Raneal Advanced Systems Private Limited started Commercial production from September 2023 and has been the driving force in controlling the supply chain. Our focus remains on penetrating in new geographies, focusing on Make in India initiative and establishing DCX as a Product manufacturing company through Transfer of Technology (ToT) and securing raw materials supply to support the anticipated growth with better margins and rationalizing expenses to improve operational efficiencies. I thank the entire team of DCX and all our stakeholders for your faith and support which helps us set and achieve new benchmarks.” Result PDF
Defence company DCX Systems announced Q3FY24 & 9MFY24 results: Standalone Q3FY24: Q3FY24 operational revenue was Rs 197.98 crore, showing a decline from Q3FY23's Rs 355.95 crore. EBIT for Q3FY24 stood at Rs 21.28 crore, down from Q3FY23's Rs 28.99 crore. EBIT margin increased to 10.75% in Q3FY24, up from 8.14% in Q3FY23, marking an improvement of 261 basis points. PAT for Q3FY24 was registered at Rs 11.89 crore, a decrease from Rs 17.29 crore in Q3FY23, but the PAT margin increased by 115 basis points to 6.01%. Standalone 9MFY24: Over the 9MFY24, revenue reached Rs 677.20 crore, compared to Rs 743.08 crore over the same period in FY23. EBIT for the 9MFY24 period was Rs 70.63 crore, reflecting a year-over-year growth of 25.05% from Rs 56.48 crore in 9MFY23. EBIT margin for 9MFY24 stood at 10.43%, a significant increase of 283 basis points from 7.60% in 9MFY23. PAT for 9MFY24 rose by 36.33% to Rs 42.16 crore from Rs 30.92 crore in 9MFY23, with PAT margin improving by 206 basis points to 6.22%. Order Book Status: As of December 31, 2023, DCX Systems reported an order book of over Rs 1,095 crore. Strategic Updates: DCX Systems raised approximately Rs 500 crore through a Qualified Institutional Placement (QIP) by issuing 1.46 crore shares. The company entered into a joint venture with ELTA Systems, Israel, launching NIART Systems for railway industry obstacle detection solutions. DCX Systems was recognized as a Four Star Export House. Commercial production commenced at the subsidiary Raneal Advanced Systems specifically for Printed Circuit Board Assemblies. Commenting on the company’s performance, Dr. H.S. Raghavendra Rao, Chairman & Managing Director, DCX Systems, said, “DCX Systems continued to navigate the turbulent global markets successfully during this quarter. Despite macro-economic headwinds and geo-political tensions, we were able to maintain healthy profit margins. In Q3FY24, our revenues stood at Rs 197.98 crore, while EBIT and PAT were Rs 21.28 crore and Rs 11.89 crore, respectively. While lower orders executed under System Integration had a bearing on topline, our efforts to boost operational efficiency and supply chain measures helped improve EBIT margins. We recently raised funds of approximately Rs 500 crore through a successful QIP. The proceeds would be utilized towards investment in NIART Systems, Investment in JVs/Subsidiaries in Defence and Aerospace sector and General Corporate Purposes. DCX through its well laid out strategies and focus is marching ahead to become a technology driven Product manufacturing company in line with the initiatives of Make in India Policy through JVs / Subsidiaries. Through NIART Systems, our JV agreement with ELTA Systems, we shall be developing and supplying obstacle detection solutions based on radar and optics technologies for the railway industry. Our backward integration strategy through Raneal Advanced Systems is also gaining traction as operations at this EMS facility are in swing. We continue to scout to acquire technology (TOT) from OEMs in the area of Aerospace and defence and Civil Applications. We are striving to grow our order book and are optimistic about the future. Our focus remains on securing raw materials to support the anticipated growth and rationalizing expenses to improve operational efficiencies. I thank the entire team of DCX and all our stakeholders for your faith and support which helps us set and achieve new benchmarks.” Result PDF
Defence company DCX Systems announced Q2FY24 & H1FY24 results: Q2FY24: Revenue stood at Rs 309.12 crore in Q2FY24, as compared to Rs 173.88 crore in Q2FY23, a rise of 77.78% on a YoY basis, driven by the successful execution of the order book. EBIT stood at Rs 30.64 crore in Q2FY24, vis-à-vis Rs 15.85 crore in Q2FY23, improving 93.37% YoY. EBIT margin for the quarter increased to 9.91% as compared to 9.11% in Q2FY23. Improvement in operational efficiency and supply chain measures helped improve the margins. Profit after Tax (PAT) for the quarter is Rs 20.41 crore compared to Rs 7.87 crore YoY growth of 159.28%. PAT margin improved by 207 bps H1FY24: Operational Revenue stood at Rs 479.23 crore in H1FY24, up by 23.79% from Rs 387.13 crore in H1FY23. During the half year, the Company made higher sales of System Integration projects, leading to a YoY increase in Revenue. EBIT stood at Rs 49.35 crore in H1FY24, up from Rs 27.49 crore in H1FY23; YoY increase of 79.51% EBIT Margin for the half year stood at 10.30%, a rise of 320 bps as compared to 7.10% in H1FY23. Profit After Tax (PAT) for the half year is Rs 30.26 crore compared to Rs 13.64 crore in the same period of last financial year; YoY increase of 121.90%. PAT Margin improved by 279bps. Order Book (as of September 30, 2023) is over Rs 1,258 crore. DCX Systems Limited entered into a joint venture (JV) agreement with Israel-based ELTA Systems (part of IAI). Under this, a subsidiary has been incorporated in Israel, which would offer obstacle detection solutions based on radar and optics technology for the railway industry. Commenting on the company’s performance, Dr H.S. Raghavendra Rao, Chairman & Managing Director, DCX Systems, said, “Our Q2 & H1FY23 performance has been in line with expectations. The Company successfully navigated macroeconomic headwinds and performed well during this period. Overall, we saw higher revenue from System Integration, complemented by the cables and wire harness business. In Q2FY23, our revenues increased 77.78% YoY to Rs 309.12 crore, while EBIT and PAT grew 93.37% and 159.28% YoY to Rs 30.64 crore and Rs 20.41 crore, respectively. Our efforts to boost operational efficiency and supply chain measures helped improve the EBIT margin. We recently incorporated a subsidiary NIART Systems Limited in Israel through a JV agreement with ELTA Systems. Through this, we shall be developing and supplying obstacle detection solutions based on radar and optics technologies for the railway industry. I am also happy to share that in September we commenced operations in our PCBA facility under Raneal Advanced Systems. This is in line with our backward integration strategy. We continue to scout to acquire technology (TOT) from OEMs in the area of Aerospace and defence and Civil Applications. This would also be supported by potential inorganic growth in offset defence obligations and Non-offset defence opportunities. We have a healthy and strong order book which gives an optimistic outlook for the near future. Our focus remains on securing raw materials to support the anticipated growth and rationalizing expenses to improve operational efficiencies. I thank the entire team of DCX and all our stakeholders for your faith and support which helps us set and achieve new benchmarks.” Result PDF
Defence company DCX Systems announced Q1FY24 results: Revenue stood at Rs 170.10 crore in Q1FY24, as compared to Rs 213.25 crore in Q1FY23, a dip of 20.24% on a YoY basis, as prioritized by project-specific demand from our customers. EBIT stood at Rs 18.71 crore in Q1FY24, vis-à-vis Rs 11.64 crore in Q1FY23, registering an improvement of 60.74% YoY. EBIT margin for Q1FY24 increased 555 bps to 11.00% as compared to 5.45% in Q1FY23. A higher share of system integration projects executed during Q1FY24 had a bearing on the overall blended margins, which was offset by the risk mitigation measures undertaken by the company eliminating forex loss and improving operational efficiency and supply chain measures. Profit After Tax (PAT) for Q1FY24 is Rs 9.85 crore compared to Rs 5.76 crore in Q1FY23, with YoY growth of 71.01% and margins improving by 309 bps. Focus and theme of FY24 would be on improvement in margins at EBIT and PAT levels. Commenting on the company’s performance, Dr. H.S. Raghavendra Rao, Chairman & Managing Director, DCX Systems, said, “Our Q1FY24 performance has been in line with the policy of improvement of margins at various levels of operating efficiency and strong supply chain management. On a quarter comparative analysis despite a revenue dip of 20.24%, the company has shown strong PAT from Rs 5.77 crore in Q1FY23 to Rs 9.85 crore in Q1FY24, improving margins at a PAT level by 309 bps and registering a percentage growth of 71.01%. The historical data would suggest that the major portion of business targets are achieved in the 3rd and 4th quarter of the financial year and FY24 first quarter has been no exception to this. The first quarter witnessed business stability, stabilized supply chain management, and results of the risk management strategy fully executed. In Q1FY24, our revenues stood at Rs 170.10 crore, while EBIT was Rs 18.71 crore, significantly improving the margins by 60.74% whereas PAT grew 71.01% YoY to Rs 9.85 crore. Top line growth witnessed a dip of 20.24% specifically based on priority being accorded to selective projects by our customers. However, the order book position continues to be strong at Rs 1,535 crore as of June 30, 2023, which is considered healthy. Our ongoing backward integration through our Wholly owned subsidiary Raneal Advanced Systems Private Limited (EMS) facility has been completed during the first quarter of this fiscal year and the company is on the verge of completing all the licensing formalities to commence commercial operations soon. On the System Integration front, our relationship with existing foreign OEMs continues to grow stronger with incremental orders in the pipeline. Based on the positive feedback, we are also executing non-offset-based projects in this line of business. The company is further focused to make geographical penetration into larger markets in the world in the space of aerospace and defence. While the company is in an advanced stage of discussions with foreign OEMs to acquire product technology in Aerospace and Defence, Civil Applications, and MRO (Maintenance, Repairs, and Overhauling), potential inorganic growth opportunities under Make-In-India and Aatmanirbhar Bharat programs would fuel future growth plans of the company. We have a healthy pipeline of orders, based on which we are optimistic for the near and medium-term future, while consistently striving to maintain and improve operational efficiencies and thereby margins in operations. I thank the entire team of DCX and all our stakeholders for your continued faith and support which helps us set and achieve new benchmarks.” Result PDF
Defence company DCX Systems announced Q4FY23 & FY23 results: Standalone Q4FY23: Revenue for the quarter was Rs 510.55 crore, compared with Rs 374.04 crore in Q4FY22, driven by continuous execution of the order book EBITDA (excluding other income & forex loss) stood at Rs 49.82 crore in Q4FY23, vs Rs 45.11 crore in Q4FY22 EBITDA margin for the quarter stood at 9.76%, a decrease of 230 bps as compared to 12.06% in Q4FY22. A higher share of system integration projects executed during this quarter had a bearing on the overall blended margins. Profit After Tax (PAT) for the quarter is Rs 41.09 crore compared to Rs 32.42 crore in Q4FY22 Standalone FY23: In FY23, revenue stood at Rs 1,253.63 crore with a YoY growth of 13.73%. Growth was mainly driven by the ongoing conversion of the order book. In FY23, EBIDTA (excluding other income & forex loss) stood at Rs 113.01 crore – YoY growth of 34.73% EBIDTA margin at 9.01% - YoY improvement of 140 bps PAT for FY23 stood at Rs 72.01 crore, compared with Rs 65.61 crore in FY22 Commenting on the company’s performance, Dr. H.S. Raghavendra Rao, Chairman & Managing Director, DCX Systems, said, “Our Q4 & FY2022-23 performance has been in line with expectations. Despite headwinds in the global supply chains, hardening interest rates in USD borrowings, and steep depreciation of INR v/s USD during the year, the company has been able to navigate successfully and execute projects, delivering value to clients and stakeholders. The fourth quarter witnessed stability in business, signs of improvement in the supply chain, and a reduction in borrowings. In FY23, our revenues stood at Rs 1,253.63 crore, growing 13.73% year-on-year. EBITDA (excluding other income and FX loss) and PAT grew 34.73% and 9.75% to Rs 113.00 crore and Rs 72.01 crore, respectively. Top-line growth was driven by the successful execution of projects. Despite a change in product mix during this quarter, margins improved on account of better operational efficiencies. Our ongoing backward integration plans are progressing well. We have invested Rs 6.60 crore in Raneal Advanced Systems and continue to focus on our EMS business, which would leverage our manufacturing expertise. On the System Integration front, our relationship with IAI continues to grow stronger with incremental orders in the pipeline. Based on the positive feedback, we are also exploring non-IOP-based projects in this line of business. While we are open to acquiring product technology in Aerospace, Defence, and Civil Applications, potential inorganic growth opportunities under Make-In-India and Aatmanirbhar Bharat programs would also support growth. We have a strong pipeline of orders, based on which we are optimistic for the near and medium-term future. We continue to focus on procuring raw materials to support the anticipated growth while striving to maintain and improve operational efficiencies. I thank the entire team of DCX and all our stakeholders for your faith and support which helps us set and achieve new benchmarks.” Result PDF