Data Patterns Ltd has a strong bidding pipeline and is targeting at ₹2,000-3, 000 crore orders in the next 18 to 24 months, said S Rangarajan, Chairman and Managing Director. The current order book for the Chennai-based company stands at ₹1,281 crore, including orders negotiated.
“Our strength is in radars, electronic warfare and avionics. Since we have done a fair amount of development across the radar platform or airborne radars, we expect some additional contracts and airborne radars to happen,” he told analysts while discussing the company’s second quarter financial results.
In electronic warfare, the company has done some developments and these are all critically required for the Services and development organisations, added Rangarajan.
The company is using QIB funds, and also developing large products. These are coming into some maturity now. In the next three to four months, the first of the products will be announced and find a fair amount of interest in the Army, Air Force and Navy, he said.
The company reported a 12 per cent decline in net profit to ₹30 crore in Q2FY25, as against ₹34 crore for the same period last year. Total revenue decreased 13 per cent to ₹103 crore (₹119 crore). Revenue for the quarter was impacted due to deferment of delivery schedule by the customer of completed products, Rangarajan said.
Upward growth on anvil
The order inflow was slower than anticipated in the first half and is expected to pick up during the second half. “We are committed to a continued growth trajectory while maintaining healthy revenue growth and profitability,” he added.
The company works closely with defence PSUs such as Hindustan Aeronautics and Bharat Electronics, and government organisations involved in defence and space research like DRDO and ISRO.
Focus on new tech
The company plans to spend around ₹200 crore on new technology and product development. It had spent ₹124 on capex in the last five years.
“We want to focus on fire control radars, X-band radars and smaller radars for UAVs, ensuring cost competitors with in-house IP’s in radars. We want to develop electronic warfare products and meet the requirements of the Armed forces, and provide military radars, radio relays and other equipment,” said Rangarajan.
The company said it wants to make the complete system from building blocks, designed in-house with IP and not dependent on any transfer of technology.
The company’s share price on the NSE closed at ₹2,166, down ₹6.15 or 0.28 per cent.