Centum Electronics Ltd — Earnings Release 2025

Aug 9, 2024

==> picture [272 x 97] intentionally omitted <==

Ref: CEL/NSEBSE/EP/09082024 09[th] August, 2024

To,

Listing Department, Department of Corporate Services – Listing, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, P. J. Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001

Re: Scrip Symbol: CENTUM/ Scrip Code: 517544

Dear Sir/ Madam,

Sub: Earnings Presentation

This is to inform you that pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations"), read with Part A of Schedule III of the Listing Regulations, we hereby enclose the Earnings Presentation for Q1 – FY 2024-25. Kindly take the same on your records.

Yours faithfully,

For Centum Electronics Limited

Digitally signed by INDU H S INDU H S Date: 2024.08.09 20:42:51 +05'30'

Indu H S

Company Secretary & Compliance Officer ICSI Membership No. F12285 Encl: as above

Centum Electronics Limited

44, KHB Industrial Area, Yelahanka New Town, Bangalore - 560 106, Karnataka, India Tel +91-(0)80-4143-6000 Fax +91-(0)80-4143-6005 Website www.centumelectronics.com E-mail info@centumelectronics.com CIN - L85110KA1993PLC013869

EARNINGS PRESENTATION

Q1-FY25

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Snapshot
25+ years of domain expertise in Global Operations with strong Concept to Commissioning 1,800 Employees
Electronics Design & Manufacturing presence in India, Europe and North capabilities 650 Designers
Solutions America
Flexible Engagement Models Strong Supply Chain Network Strong relationship with marquee Serving segments with Hi-Tech, High
global clients Entry Barriers
Healthy Order Book of Single Source Supplier for ~80% of 75% Revenues from Overseas Strong Corporate Governance
~INR 16,740 Mn manufactured products Customers in Advanced Economies
As on 30 [th] June 2024, Not including client forecasts of EMS division & signed LOIs for Transportation products
2
----- End of picture text -----

==> picture [60 x 13] intentionally omitted <==

==> picture [22 x 19] intentionally omitted <==

==> picture [60 x 13] intentionally omitted <==

==> picture [65 x 41] intentionally omitted <==

==> picture [110 x 64] intentionally omitted <==

Company Overview

==> picture [32 x 9] intentionally omitted <==

• Founded in 1993, Centum Electronics Limited (Centum) is one of the largest Electronics System Design and Manufacturing (ESDM) companies in India.

Q1-FY25 Key Business Segments:

• Engineering R&D (ER&D) Services (32%) – Involves Operational Income (In Mn) and EBITDA conceptualizing and designing of Electronic Margins (%) Hardware, Embedded Software, FPGA, Analog, Radio Frequency products, etc.

• Competencies across product design and manufacturing of complex and critical products and supplying to marquee customers in the most advanced economies as well as in India.a..

==> picture [960 x 390] intentionally omitted <==

----- Start of picture text -----

manufacturing of complex and critical products
•
and supplying to marquee customers in the most Electronic Manufacturing Services (EMS) (42%) – 9.52%
8.26% 7.87%
advanced economies as well as in India.a.. Services include manufacturing services solutions 6.34%
• Offering entire spectrum of design services and focused on a High Complexity products in high
technology segment
manufacturing of systems, subsystems for mission
critical products in Defence, Space, Aerospace, • Build-To-Specification (26%) – Services include turn-
Industrial, Transportation and Medical sectors.
key solutions to take project from conception to
•
World-class design & manufacturing facilities across mass production quickly and efficiently.
FY22 FY23 FY24 Q1-FY25
North America, Europe and India, with cutting edge
infrastructure as well as a global supply chain
Operational Revenue EBITDA EBITDA Margin
capable of delivering products with high quality
and reliability anywhere in the world.
Q1-FY25 Geographical Breakup
Q1-FY25 Industry Breakup North
America,
Defense, Space & Transport & 10%
Aerospace Automotive Industrial & Energy Healthcare India,
23%
Rest of
Asia, 10%
Europe
& UK,
57%
58% 17% 15% 10%
3
10,908
7,799
9,230
2 9 9
742 76 85
2,45 156
----- End of picture text -----

==> picture [63 x 60] intentionally omitted <==

Q1-FY25 FINANCIAL OVERVIEW

==> picture [60 x 13] intentionally omitted <==

Q1-FY25 Financial Highlights

==> picture [32 x 9] intentionally omitted <==

==> picture [58 x 58] intentionally omitted <==

==> picture [245 x 40] intentionally omitted <==

==> picture [59 x 59] intentionally omitted <==

Q1-FY25 Standalone Perfor ~~m~~ a ~~nc~~ e:

• Operational Income: INR 1,333 Mn

• Operational EBITDA: INR 128 Mn

• Operational EBITDA Margin %: 9.60%

• Net Profit: INR 45 Mn

==> picture [21 x 43] intentionally omitted <==

• PAT Margin %: 3.38%

• Diluted EPS: 3.45 INR

==> picture [141 x 191] intentionally omitted <==

==> picture [60 x 56] intentionally omitted <==

==> picture [22 x 19] intentionally omitted <==

==> picture [60 x 13] intentionally omitted <==

==> picture [65 x 41] intentionally omitted <==

==> picture [110 x 64] intentionally omitted <==

==> picture [58 x 58] intentionally omitted <==

==> picture [60 x 59] intentionally omitted <==

Q1-FY25 Consolidated Performance:

• Operational Income: INR 2,459 Mn

• Operational EBITDA: INR 156 Mn

• Operational EBITDA Margin %: 6.34%

==> picture [238 x 101] intentionally omitted <==

• Net Profit: INR (38) Mn

==> picture [21 x 43] intentionally omitted <==

• PAT Margin %: (1.55) %

• Diluted EPS: (2.45) INR

==> picture [136 x 162] intentionally omitted <==

==> picture [59 x 56] intentionally omitted <==

5

==> picture [60 x 13] intentionally omitted <==

==> picture [60 x 13] intentionally omitted <==

==> picture [356 x 147] intentionally omitted <==

----- Start of picture text -----

EBITDA (INR Mn)
4 0
3 50
3 0
----- End of picture text -----

Q1-FY25 Consolidated Financial Performance

==> picture [388 x 206] intentionally omitted <==

----- Start of picture text -----

Operational Revenue (INR Mn)
2,969
2,645
2,475 234
2,459
Q1-FY24 Q4-FY24 Q1-FY25
----- End of picture text -----

==> picture [60 x 59] intentionally omitted <==

==> picture [381 x 166] intentionally omitted <==

----- Start of picture text -----

3 0
2 50 211
2 0 180
156
1 50
1 0
5 0
0
Q1-FY24 Q4-FY24 Q1-FY25
----- End of picture text -----

• Revenue from operations includes INR 39.86 Mn which was accounted in respect of a particular contract with a certain customer on net basis in accordance with Ind AS 115. The Gross value of invoicing in respect of this contract was INR 234.71 Mn for the quarter ended June 30, 2024. The adjusted consolidated year on year revenue growth would have been 7% to ~ INR 2,645 Mn for Q1-FY25.

==> picture [449 x 258] intentionally omitted <==

----- Start of picture text -----

PAT (INR Mn)
2 0 14
1 0
0
-1 0
Q1-FY24 Q4-FY24 Q1-FY25
-2 0
-3 0
-4 0
-5 0 -38
-6 0
-7 0
-8 0 -69
6
----- End of picture text -----

==> picture [448 x 237] intentionally omitted <==

----- Start of picture text -----

EBITDA Margin (%) and PAT Margin (%)
8.53%
6.06% 6.34%
0.57%
Q1-FY24 Q4-FY24 Q1-FY25
-1.55%
-2.32%
EBITDA (%) PAT (%)
----- End of picture text -----

==> picture [60 x 13] intentionally omitted <==

==> picture [60 x 13] intentionally omitted <==

Q1-FY25 Operational Highlights

==> picture [32 x 9] intentionally omitted <==

==> picture [58 x 58] intentionally omitted <==

• Revenue from operations was flat Y-o-Y at a consolidated level primarily due to the following reasons:

==> picture [65 x 41] intentionally omitted <==

==> picture [110 x 64] intentionally omitted <==

• Revenue from operations includes INR 39.86 Mn which was accounted in respect of a particular contract with a certain customer on net basis in accordance with Ind AS 115. The Gross value of invoicing in respect of this contract was INR 234.71 Mn for the quarter ended June 30, 2024. The adjusted consolidated year on year revenue growth would have been 7% to ~ INR 2,645 Mn for Q1-FY25.

• Due to the lumpy nature of the BTS business some domestic contracts have been skewed towards H2-FY25

• Decline in EBITDA at the Standalone level was due to the adverse mix resulting in higher materials costs percentage, which is expected to recover in H2-FY25 with higher level of BTS deliveries to Defence & Space customers, thereby improving the margins.

• At the subsidiary level, EBITDA Margins improved to 3.0% as compared to (0.7)% in Q1-FY24.

• Orderbook stood at INR 16,740 Mn as on 30th Jun 24 and the pipeline remains strong.

• Centum received a supplier award from Baker Huges in the “Collaborate” category as a result of exceptional work done to increase capacity and manage supply chain volatility effectively.

==> picture [21 x 43] intentionally omitted <==

==> picture [21 x 43] intentionally omitted <==

==> picture [287 x 191] intentionally omitted <==

==> picture [141 x 191] intentionally omitted <==

==> picture [140 x 191] intentionally omitted <==

==> picture [59 x 56] intentionally omitted <==

7

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Quarterly Standalone Financial Performance
Particulars (INR Mn) Q1-FY25 Q1-FY24 Y-o-Y Q4-FY24 Q-o-Q
Operational Revenue 1,333 1,281 4.1% 1,685 (20.9)%
Total Expenses 1,205 1,106 9.0% 1,515 (20.5)%
EBITDA 128 175 (26.9)% 170 (24.7)%
EBITDA Margins (%) 9.60% 13.66% (406) Bps 10.09% (49) Bps
Other Income 17 9 88.9% 46 (63.0)%
Depreciation 48 45 6.7% 47 2.1%
Finance Cost 36 43 (16.3)% 50 (28.0)%
PBT 61 96 (36.5)% 119 (48.7)%
Tax 16 25 (36.0)% 32 (50.0)%
PAT 45 71 (36.6)% 87 (48.3)%
PAT Margins (%) 3.38% 5.54% (216) Bps 5.16% (178) Bps
Other Comprehensive Income 1 2 (50.0)% (1) NA
Total Comprehensive Income 46 73 (37.0)% 86 (46.5)%
Diluted EPS (INR) 3.45 5.47 (36.9)% 6.68 (48.4)%
8
----- End of picture text -----

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Quarterly Consolidated Financial Performance
Particulars (INR Mn) Q1-FY25 Q1-FY24 Y-o-Y Q4-FY24 Q-o-Q
Operational Revenue 2,459 2,475 (0.6)% 2,969 (17.2)%
Total Expenses 2,303 2,264 1.7% 2,789 (17.4)%
EBITDA 156 211 (26.1)% 180 (13.3)%
EBITDA Margins (%) 6.34% 8.53% (219) Bps 6.06% 28 Bps
Other Income 13 16 (18.8)% 38 (65.8)%
Depreciation 123 106 16.0% 120 2.5%
Finance Cost 76 81 (6.2)% 97 (21.6)%
Share of Profit / (losses) of associates from operations 0 0 NA 0 NA
PBT Before Exceptional Items (30) 40 NA 1 NA
Exceptional Items 0 0 NA (48) NA
PBT (30) 40 NA (47) (36.2)%
Tax 8 26 (69.2)% 22 (63.6)%
PAT (38) 14 -NA (69) (44.9)%
PAT Margins (%) (1.55)% 0.57% (212) Bps (2.32)% 77 Bps
Other Comprehensive Income 6 -1 NA 10 (40.0)%
Total Comprehensive Income (32) 13 NA (59) (45.8)%
Diluted EPS (INR) (2.45) 2.47 NA (4.18) (41.4)%
9
----- End of picture text -----

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Historical Standalone Income Statement
Particulars (INR Mn) FY22 FY23 FY24 Q1-FY25
Operational Revenue 3,480 5,006 6,328 1,333
Total Expenses 3,055 4,470 5,541 1,205
EBITDA 425 536 787 128
EBITDA Margins (%) 12.21% 10.71% 12.44% 9.60%
Other Income 58 47 67 17
Depreciation 165 162 184 48
Finance Cost 146 157 180 36
PBT Before Exceptional Items 172 264 490 61
Exceptional Items (18) - - -
PBT 154 264 490 61
Tax 36 70 127 16
PAT 118 194 363 45
PAT Margins (%) 3.39% 3.89% 5.74% 3.38%
Other Comprehensive Income 6 6 3 1
Total Comprehensive Income 124 200 366 46
Diluted EPS (INR) 9.12 14.91 27.82 3.45
10
----- End of picture text -----

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Historical Consolidated Income Statement
Particulars (INR Mn) FY22 FY23 FY24 Q1-FY25
Operational Revenue 7,799 9,230 10,908 2,459
Total Expenses 7,057 8,468 10,049 2,303
EBITDA 742 762 859 156
EBITDA Margins (%) 9.52% 8.26% 7.87% 6.34%
Other Income 80 59 68 13
Depreciation 432 438 453 123
Finance Cost 263 273 346 76
Share of profit / (losses) of associates and JV from continuing operation (46) 12 0 0
PBT Before Exceptional Items 82 121 128 (30)
-
Exceptional Item (604) (49) 0
PBT (522) 121 79 (30)
Tax 13 54 107 8
PAT (535) 67 (28) (38)
PAT Margins (%) NA 0.73% (0.26)% (1.55)%
Other Comprehensive Income 25 7 23 6
Total Comprehensive Income (510) 74 (5) (32)
Diluted EPS from continuing operations (INR) (23.70) 7.55 1.36 (2.45)
11
----- End of picture text -----

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Standalone Balance Sheet
Particulars (INR Mn) FY22 FY23 FY24 Particulars (INR Mn) FY22 FY23 FY24
ASSETS EQUITY AND LIABILITIES
Non-Current Assets 2,120 2,219 2,480 Equity 2, 645 2,826 3,124
(a) Property, Plant & Equipment 1,033 993 1,053 (a) Share Capital 129 129 129
(b) Capital Work in progress - 54 3 (b) Other Equity 2,516 2,697 2,995
(c) Goodwill on Consolidation 36 36 36 Non Current Liabilities 162 259 735
(d) Other Intangible Assets 42 29 18 (a) Financial Liabilities
(e) Right of use asset 29 35 23 (i)Borrowings - - 103
(f) Intangible assets under development - - - (ii)Other Financial Liabilities - - -
(g) Financial Assets (iii) Lease Liabilities 2 8 3
(i) Investments 628 763 1,081 (b) Government Grants 27 24 16
(ii) Loans 10 - (c) Net non-current employee
56 60 50
(iii) Other financial assets 269 205 158 defined benefit liabilities
(h) Deferred tax assets (net) 25 62 89 (d) Other Non-Current Liabilities 77 167 563
(i) Non-current tax assets (net) 49 10 9 Current Liabilities 2,653 3,969 4,369
(j) Other non-current assets 9 21 10 (a) Financial Liabilities
Current Assets 3,340 4,835 5,748 (i) Borrowings 980 1,059 912
(a)Inventories 1,986 2,316 2,874 (ii)Trade Payables 726 1,525 1,650
(b) Financial Assets (iii)Other Financial Liabilities 84 167 159
- -
(i)Investments (iv) Lease Liabilities 12 6 2
(ii)Trade Receivables 898 2,095 2,203 (b) Government Grants 8 8 8
(iii)Cash and Cash Equivalents 149 137 130 (c) Other current Liabilities 781 1,025 1,501
(iv)Bank balances other than above 94 69 235 (d) Net current employee defined
7 7 8
(iv)Loans 10 10 benefit liabilities
(v) Others current financial assets 52 6 19 (e) Provisions 25 62 81
161 202 277 (f) Liabilities for current tax (net) 30 110 48
(c) Other Current Assets
TOTAL ASSETS 5,460 7,054 8,228 TOTAL EQUITY AND LIABILITIES 5,460 7,054 8,228
12
----- End of picture text -----

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Consolidated Balance Sheet
Particulars (INR Mn) FY22 FY23 FY24 Particulars (INR Mn) FY22 FY23 FY24
ASSETS EQUITY AND LIABILITIES
(1) Non-current assets 3,356 3,360 3,038 (1) Equity 1,985 2,040 1,967
(a) Property, Plant and Equipment 1,120 1,071 1,126 (a) Equity share capital 129 129 129
(b) Capital work-in-progress - 54 3 (b) Other equity 1,911 1,978 1,904
(c) Goodwill on consolidation 376 376 376 Equity attributable to equity holders of the 2,040 2,107 2,033
parent (a+b)
(d) Other Intangible assets 416 286 351
-
(c) Non controlling interests (55) (67) (66)
(e) Right of use asset 481 465 530 (2) Non-current liabilities 1,453 1,246 1,616
(f) Intangible assets under development 120 228 101 (a) Financial liabilities
(i) Borrowings 816 580 447
(g) Financial assets
(iii) Lease Liabilities 356 362 408
(i) Investment in joint ventures and 59 82 84 (b) Deferred tax liabilities (net) 49 27 5
associates
(c) Net non-current employee defined
58 62 53
(ii) Other Investments 14 14 1 benefit liabilities
(iii) Other non current financial assets 378 363 276 (d) Other non-current liabilities 77 167 672
(h) Deferred tax assets (net) 32 70 102 (e) Provisions 70 24 15
(i) Non-current tax assets (net) 49 9 13 (f) Government Grants 27 24 16
(3) Current liabilities 5,792 7,441 7,055
(j) Other non-current assets 311 342 75
(a) Financial liabilities
(2) Current assets 5,874 7,367 7,600
(i)Borrowings 1,910 2,048 1,290
(a) Inventories 2,248 2,611 3,174 (ii) Trade payables 1,141 2,110 2,378
(b) Financial assets (iii) Other current financial liabilities 599 517 372
(i) Trade receivables 2,499 3,310 2,280 (iv) Lease Liabilities 120 92 118
(ii) Cash and cash equivalents 481 353 481 (b) Other current liabilities 1,701 2,255 2,517
(c) Government Grants 8 8 8
(iii) Bank balances other than cash and
94 69 235
cash equivalents (d) Net employee defined benefit 6 7 8
liabilities
(iv) Other current financial assets 226 121 441
(e) Provisions 275 287 313
(c) Other current assets 326 903 989 (f) Liabilities for current tax (net) 32 117 51
Total assets (1+2) 9,230 10,727 10,638 Total equity and liabilities (1+2+3) 9,230 10,727 10,638
13
----- End of picture text -----

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Consolidated Financial Highlights
Operational Revenue
PAT & PAT Margins (%)
EBITDA & EBITDA Margins (%)
2. 00%
10,908 1 50
15. 00% 1 0 0.73% 1. 00%
9,230 9 0 859 13. 00% 5 0
7,799 8 0 742 762 11. 00% - 67 (0.26)% (1.55)% 0. 00%
7 6 00 9. 00% - - 10500 FY22 FY23 FY24 Q1-FY25 - 1.00- 2.00 %%
5 4 00 9.52% 8.26% 7. 00% - - 1520 00 (28) (38) - 3.00 %
2,459 3 0 7.87% 6.34% 5. 00% - 25 0 - 4.00 %
3. 00% - 30 0
2 0 156 - 5.00 %
- 35 0
1 0 1. 00% - 40 0 - 6.00 %
- 0 - 1.00 % - 45 0
- 7.00 %
FY22 FY23 FY24 Q1-FY25 - 50 0 (535)
FY22 FY23 FY24 Q1-FY25
- 5 0 (6.86)% - 8.00 %
Net Working Capital Days Debt to Equity
ROCE(%)
1.43 16.45%
116 1.34
1.25
94
78 0.85 10.60% 10.20% 10.10%
61
FY21 FY22 FY23 FY24
FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24
14
----- End of picture text -----

==> picture [963 x 542] intentionally omitted <==

----- Start of picture text -----

Capital Market Data
1 Year Stock Performance upto 30 [th ] June,2024
60%
Centum Sensex
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24
Price Data (As on 30 [th] June, 2024) Shareholding Pattern (As on 30 [th ] June,2024)
CMP 1,643.55
52 Week H/L 2,097.15/1,248.00
Avg. Vol. ('000) 35.90 Public,
33.05%
Avg. turnover (Mn) 59.84
Promoter,
58.75%
Market Capital (INR Mn) 21,182.79
Total outstanding shares (Mn) 12.89 DIIs, 8.20%
15
----- End of picture text -----

Disclaimer

==> picture [32 x 9] intentionally omitted <==

==> picture [60 x 13] intentionally omitted <==

==> picture [22 x 19] intentionally omitted <==

==> picture [60 x 13] intentionally omitted <==

==> picture [65 x 41] intentionally omitted <==

==> picture [110 x 64] intentionally omitted <==

Centum Electronics Limited

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Centum Electronics Limited (“Company” or “Centum”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

==> picture [136 x 185] intentionally omitted <==

For further information please contact our Investor Relations Representative:

Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: centum@valoremadvisors.com Investor Kit Link: http://valoremadvisors.com/centum/

==> picture [59 x 56] intentionally omitted <==

16