- 13 May 2023
- ICICI Securities
Data Patterns Q4 Results 2023: Margins came lower than expectations
Data Patterns (India) Ltd | CMP: 3090 | Market Cap: 17,297.38
Q4FY23 Earnings Summary
Views: Though the overall numbers came higher than our estimates, sharp contraction in margins is a key negative surprise. Going ahead, the company’s revenue growth is expected to remain strong during FY24-25 led by healthy order backlog. However, sustainability of margins would be a key factor to watch-out for in the coming quarters. In terms of opportunity for the company in defence electronics space, we believe that the it remains huge considering the growing usage of electronics systems in defence platforms. There is an already strong orders pipeline for Data Patterns (worth | 2000-3000 crore) for next 3 years which includes fire control systems for BrahMos missiles, radars, avionics and radar warning receivers for fighter aircrafts and other electronic warfare sub-systems or components
Impact: Negative