Centum Electronics Ltd — Regulatory Filings 2021

Feb 15, 2021

Ref: CEL/NSEBSE/EP/15022021 15th February, 2021

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 – 400 001
Mumbai – 400 051

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 9M/Q3‐FY21. Kindly take the same on your records.

Pursuant to Regulation 46(2)(o) of the Listing Regulations, the aforesaid Earnings Presentation is also uploaded on the website of the Company i.e. www.centumelectronics.com

Yours faithfully, For Centum Electronics Limited NAGARAJ K V Digitally signed by NAGARAJ K V Date: 2021.02.15 16:56:26 +05'30'

Nagaraj K V Company Secretary & Compliance Officer

Encl: as above

Snapshot

Company Overview

• Founded in 1993, Centum Electronics Limited (Centum) is one of the largest Electronics System Design and Manufacturing (ESDM) companies in India.
• 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.
• Offering entire spectrum of design services and manufacturing of systems, subsystems for mission critical products in Defence, Space, Aerospace, Industrial, Transportation and Medical sectors.
• World-class design & manufacturing facilities across North America, Europe and India, with cutting edge infrastructure as well as a global supply chain capable of delivering products with high quality and reliability anywhere in the world.

FY20 Key Business Segments:

• Engineering R&D (ER&D) Services (38%) – Involves conceptualizing and designing of Electronic Hardware, Embedded Software, FPGA, Analog, Radio Frequency products, etc.
• Electronic Manufacturing Services (EMS) (35%) – Services include manufacturing services solutions focused on a High Complexity products in high technology segment
• Build-To-Specification (27%) – Services include turnkey solutions to take project from conception to mass production quickly and efficiently.

Operational Income (In Mn) and EBITDA

9M/Q3-FY21 FINANCIAL OVERVIEW

9M/Q3-FY21 Financial Highlights

INR 1,052 Mn Operational Income 16.25% Operational EBITDA Margin INR 171 Mn Operational EBITDA INR 73 Mn Net Profit 6.94% PAT Margin INR 5.68 /share Diluted EPS Q3-FY21 Standalone Performance INR 2,162 Mn Operational Income 13.23% Operational EBITDA Margin INR 286 Mn Operational EBITDA INR 79 Mn Net Profit 3.65 % PAT Margin INR 5.93 /share Diluted EPS Q3-FY21 Consolidated Performance INR 3,290 Mn Operational Income 16.53% Operational EBITDA Margin INR 544 Mn Operational EBITDA INR 235 Mn Net Profit 7.14 % PAT Margin INR 18.21 /share Diluted EPS 9M-FY21 Standalone Performance INR 6,109 Mn Operational Income 11.23 % Operational EBITDA Margin INR 686 Mn Operational EBITDA INR 111 Mn Net Profit 1.82 % PAT Margin INR 12.82 /share Diluted EPS 9M-FY21 Consolidated Performance

Q3-FY21 Financial Performance & Highlights

9M/Q3-FY21 Operational Highlights

7

• Revenue and EBITDA improved Q-on-Q primarily with better utilization in ER&D services business. However, not yet back to pre-COVID levels due to impact of second lockdown in France.

• Some demand push outs on EMS and BTS business with international defence and industrial customers.

• Centum Electronics Limited received DRDO's Prestigious Defence Technology Award from Defence Minister Shri Rajnath Singh in recognition of Centum Electronics' outstanding contribution towards the critical technology in defence space systems. Centum was recognized for pioneering development of Electronic Warfare Payload for the Satellite Mission Kautilya.

• Cash flow improved from reduction of inventory and improvement in receivables from government customers.

• Significant New Business awards from new customers in EMS vertical.

Q3-FY21 – Standalone Income Statement

Particulars (INR Mn)	Q3-FY21	Q3-FY20	Y-o-Y	Q2-FY21	Q-o-Q
Operational Income	1,052	1,248	(15.7)%	1,186	(11.3)%
Total Expenses	881	1,031	(14.5)%	970	(9.2)%
EBITDA	171	217	(21.2)%	216	(20.8)%
EBITDA Margins (%)	16.25%	17.39%	(114) Bps	18.21%	(196) Bps
Other Income	9	10	(10.0)%	7	28.6%
Depreciation	39	35	11.4%	39	NA
Finance Cost	42	57	(26.3)%	41	2.4%
PBT	99	135	(26.7)%	143	(30.8)%
Tax	26	35	(25.7)%	36	(27.8)%
PAT	73	100	(27.0)%	107	(31.8)%
PAT Margins (%)	6.94%	8.01%	(107) Bps	9.02%	(208) Bps
Diluted EPS (INR)	5.68	7.76	(26.8)%	8.32	(31.7)%

9M-FY21 – Standalone Income Statement

Particulars (INR Mn)	9M-FY21	9M-FY20	Y-o-Y
Operational Income	3,290	3,591	(8.4)%
Total Expenses	2,746	3,056	(10.1)%
EBITDA	544	535	1.7%
EBITDA Margins (%)	16.53%	14.90%	163 Bps
Other Income	25	34	(27.2)%
Depreciation	116	94	23.4%
Finance Cost	138	184	(25.0)%
PBT	315	291	8.1%
Tax	80	85	(5.9)%
PAT	235	206	13.9%
PAT Margins (%)	7.14%	5.75%	139 Bps
Diluted EPS (INR)	18.21	15.95	14.2%

Standalone Balance Sheet

Particulars (INR Mn )	FY19	FY20	H1 -FY21
ASSETS
Non -Current Assets	2,039	2,098	2,082
(a) Property, Plant & Equipment	972	1,116	1,076
(b) Capital Work in progress	71	14	28
(c) Goodwill on Consolidation	36	36	36
(d) Other Intangible Assets	17	54	49
(e) Right of use asset	-	21	38
(f) Intangible assets under development	30	-	3
(g) Financial Assets			-
(i) Investments	489	489	583
(ii) Long -term Loans and Advances	20	21	21
(iii) Other financial assets	261	259	174
(h) Deferred tax assets (net)	51	28	17
(i) Non -current tax assets (net)	34	34	34
(j) Other non -current assets	59	26	23
Current Assets	4,556	4,264	4,090
(a)Inventories	2,251	2,204	2,056
(b) Financial Assets
(i)Investments	-	-	-
(ii)Trade Receivables	1,863	1,700	1,665
(iii)Cash and Cash Equivalents	45	55	38
(iv)Bank balances other than above	118	97	104
(v) Loans	-	-	-
(vi) Others current financial assets	125	77	74
(c) Other Current Assets	154	131	153
TOTAL ASSETS	6,595	6,362	6,172

Particulars (INR Mn)	FY19	FY20	H1 -FY21
EQUITY AND LIABILITIES
Equity	2,172	2,363	2,494
Share Capital	129	129	129
Other Equity	2,043	2,234	2,365
Non Current Liabilities	294	284	251
(a) Financial Liabilities			-
(i)Borrowings	238	197	155
(ii)Other Financial Liabilities	-	2	-
(iii) Lease Liabilities	-	24	33
Government Grants	20	16	15
Net non -current employee defined benefit liabilities	37	45	48
Current Liabilities	4,128	3,714	3,427
(a) Financial Liabilities
(i) Borrowings	1,626	1,494	1,570
(ii)Trade Payables	1,063	1,139	898
(iii)Other Financial Liabilities	313	271	249
(iv) Lease Liabilities	-	6	12
(b) Government Grants	5	4	4
(c) Other current Liabilities	959	683	534
(d) Net current employee defined benefit liabilities	6	6	6
Provisions	16	35	39
Liabilities for current tax (net)	142	77	115
TOTAL EQUITY AND LIABILITIES	6,595	6,362	6,172

Q3-FY21 – Consolidated Income Statement

Particulars (INR Mn)	Q3-FY21	Q3-FY20	Y-o-Y	Q2-FY21	Q-o-Q
Operational Revenue	2,162	2,274	(4.9)%	2,051	5.4%
Total Expenses	1,876	1,990	(5.7)%	1,833	2.3%
EBITDA	286	284	0.7%	218	31.2%
EBITDA Margin (%)	13.23%	12.49%	74 Bps	10.63%	260 Bps
Other Income	16	12	33.3%	10	60.0%
Depreciation	127	105	21.0%	103	23.3%
Finance Cost	76	79	(3.8)%	66	15.2%
Share of profit / (losses) of associates and JV from continuing operation	-	-	NA	(3)	NA
PBT	99	112	(11.6)%	56	76.8%
Tax	20	33	(39.4)%	14	42.9%
PAT from continuing operations	79	79	NA	42	88.1%
PAT Margin (%)	3.65%	3.47%	18 Bps	2.05%	160 Bps
Diluted EPS from continuing operations (INR)	5.93	7.08	(16.2)%	5.38	10.2%

9M-FY21 – Consolidated Income Statement

Particulars (INR Mn)	9M-FY21	9M-FY20	Y-o-Y
Operational Revenue	6,109	6,547	(6.7)%
Total Expenses	5,423	5,843	(7.2)%
EBITDA	686	704	(2.6)%
EBITDA Margin (%)	11.23%	10.76%	47 Bps
Other Income	53	111	(52.3)%
Depreciation	338	306	10.5%
Finance Cost	221	249	(11.2)%
Share of profit / (losses) of associates and JV from continuing operation	(3)	-	NA
PBT	177	260	(31.9)%
Tax	66	69	(4.3)%
PAT from continuing operations	111	191	(41.9)%
PAT Margin (%)	1.82%	2.91%	(109) Bps
Diluted EPS from continuing operations (INR)	12.82	15.40	(16.8)%

Consolidated Balance Sheet

Particulars (INR Mn)	FY19	FY20	H1-FY21
ASSETS
(1) Non-current assets	2,981	3,759	3,753
(a) Property, Plant and Equipment	1,130	1,253	1,200
(b) Capital work-in-progress	81	14	28
(c) Goodwill on consolidation	376	376	376
(d) Other Intangible assets	541	479	427
(e) Right of use asset	-	457	618
(f) Intangible assets under development	57	101	139
(g) Financial assets
(i) Investment in joint ventures and associates	100	387	401
(ii) Other Investments	21	14	17
(iii) Loans	50	61	45
(iv) Other non current financial assets	479	527	423
(g) Deferred tax assets (net)	51	30	19
(h) Non-current tax assets (net)	34	34	35
(i) Other non-current assets	60	27	25
(2) Current assets	7,980	7,013	7,235
Inventories	2,369	2,358	2,221
(b) Financial assets
(i) Trade receivables	2,743	2,489	2,757
(ii) Cash and cash equivalents	173	136	404
(iii) Bank balances other than cash and cash equivalents	119	97	105
(iv) Loans	-	0.3	0.4
(v) Other current financial assets	979	1,609	1,342
(c) Other current assets	335	323	406
(3) Assets classified as held for disposal	1,262	-	-
Total assets (1+2+3)	10,961	10,772	10,988

Particulars (INR Mn)	FY19	FY20	H1-FY21
EQUITY AND LIABILITIES
(1) Equity	2,437	2,300	2,302
(a) Equity share capital	129	129	129
(b) Other equity	2,061	1,923	1,984
Equity attributable to equity holders of the parent	2,190	2,051	2,113
Non-controlling interests	247	248	189
(2) Non-current liabilities	1,137	1,281	1,631
(a) Financial liabilities
(i) Borrowings	862	696	949
(ii) Other non-current financial liabilities	-	2	8
(iii) Lease Liabilities	-	374	499
(b) Deferred tax liabilities (net)	114	92	81
(c) Net non-current employee defined benefit liabilities	37	46	50
(d) Provisions	104	54	29
(e) Government Grants	20	16	15
(3) Current liabilities	7,387	7,191	7,055
(a) Financial liabilities
(i)Borrowings	2,285	2,025	2,079
(ii) Trade payables	1,447	1,783	1,455
(iii) Other current financial liabilities	1,153	1,666	1,860
(iv) Lease Liabilities	-	103	140
(b) Other current liabilities	1,676	1,468	1,320
(c) Government Grants	4	4	4
(c) Net employee defined benefit liabilities	6	6	6
(d) Provisions	16	58	73
(e) Liabilities for current tax (net)	142	77	118
(4) Liabilities directly associated with assets classified as held for disposal	658	-	-
Total equity and liabilities (1+2+3+4)	10,961	10,772	10,988

Historical Standalone Income Statement

Particulars (INR Mn)	FY18	FY19	FY20	9M-FY21
Operational Income	3,587	4,987	4,824	3,290
Total Expenses	3,585	4,290	4,111	2,746
EBITDA	2	697	713	544
EBITDA Margins (%)	0.06%	13.98%	14.78%	16.53%
Other Income	76	38	43	25
Depreciation	120	121	132	116
Finance Cost	150	268	277	138
Exceptional Items	-	329	-	-
PBT	(192)	675	347	315
Tax	26	95	97	80
PAT	(218)	580	250	235
PAT Margins (%)	NA	11.63%	5.18%	7.14%
Diluted EPS (INR)	(17.02)	45.00	19.42	18.21

Historical Consolidated Income Statement

Particulars (INR Mn)	FY18	FY19	FY20	9M-FY21
Operational Revenue	7,811	9,304	8,833	6,109
Total Expenses	7,412	8,267	7,852	5,423
EBITDA	399	1,037	981	686
EBITDA Margin (%)	5.11%	11.15%	11.11%	11.23%
Other Income	130	71	153	53
Depreciation	282	278	414	338
Finance Cost	218	349	368	221
Share of profit / (losses) of associates and JV from continuing operation	(10)	(13)	(5)	(3)
Exceptional Item	-	-	(105)	-
PBT	19	468	242	177
Tax	10	(3)	74	66
PAT from continuing operations	9	471	168	111
PAT Margin (%)	0.12%	5.06%	1.90%	1.82%
Diluted EPS from continuing operations (INR)	(7.32)	30.51	15.74	12.82

Consolidated Financial Highlights

Capital Market Data

Stock Market Performance (as on 31st December, 2020)

Price Data (As on 31st December 2020)
CMP	440.3
52 Week H/L	496.05/180.00
Avg Vol ('000)	17.88
Avg turnover (Mn)	6.25
Market Capital (INR Mn)	5673.2
Total outstanding shares (Mn)	12.88

Shareholding Pattern (as on 31st December, 2020)

Disclaimer

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.

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/