Data Patterns (India) Limited — Investor Presentation 2023

Aug 8, 2023

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SEC/SE/044/2023-24 Date: August 08, 2023

	To National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra(E), Mumbai -400051 NSE Symbol- DATAPATTNS	To BSE Limited 25thFloor, P.J. Towers, Dalal Street, Mumbai- 400 001 Company Code: 543428

Sub: Submission of Investor Presentation Q1 FY 2023-24

Dear Sir/Madam,

This is further to our letter no. SEC/SE/037/2023-24 dated August 04, 2023 intimating the schedule of earnings conference call with Analysts/Investors to be held on Wednesday, August 09, 2023. In this regard, please find attached the Investor presentation towards the same.

You are requested to take the above on record and oblige.

Thanking you

For Data Patterns (India) Limited R Digitally signed by PRAKA R SH PRAKASH

Prakash R

Company Secretary and Compliance Officer Membership No. A34652

Encl as above

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Data Patterns ( India ) Limited Investor Presentation Q1FY24 August 2023

Q4 and FY23 Earnings Presentation

Disclaimer

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Data Patterns (India) Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever.

Certain statements in this presentation concerning our future growth prospects are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The Risk and uncertainties relating to the statements include, but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures and general economic conditions affecting demand / supply and price conditions in domestic and international markets. The company does not undertake to update any forward –looking statement that may be made from time to time by or on behalf of the company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable. 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. The Company does not make any promise to update/provide such presentation along with results to be declared in the coming years.

Q1FY24 Earnings Presentation

2

CMD’s Comment on Q1FY24 Performance

Mr. Srinivasagopalan Rangarajan Promoter, Chairman & Managing Director

“We are pleased to announce another strong quarter with impressive results. Our Revenue stood at Rs. 896.9 million, up 31% YoY, while our PAT for the quarter increased by 82% to Rs. 258.6 million. The order book also saw a significant growth, reaching Rs. 9,671.1 million whereas the order inflow stood at Rs.1,327 million up 2.9x YoY. I'm also happy to share that, out of Rs.500cr raised in QIP, we have started our product development endeavours in line with the offer document, for Radars, Communication Systems, Electronic Warfare and Satellite. The focus on product development will allow Data Patterns to address the growing ‘Made in India’ Defence opportunities”

4

Q1FY24 Earnings Presentation

Q1FY24 Highlights:

Strong order book as on 30[th] June 2023 at Rs 9,671.1 mn Revenue grew 31% YoY to Rs 896.9 mn Order inflow in Q1FY24 of Rs 1,327 mn, grew 2.9x YoY EBITDA showed 31% growth at Rs 278.3 mn Gross Margins at 62% and EBITDA Margins at 31% PAT at Rs 258.2 mn, 82% increase YoY Strong Balance Sheet; Net Debt Free Company Revenue CAGR: 36%; EBITDA CAGR: 61% over FY19-FY23 Return Ratios - RoE and RoCE at 19% and 21% TTM respectively without QIP funds Cash, Bank and Investments– Rs 5603 mn Started using QIP funds for new product developments in Radar, EW, Communication and satellite

Growth Drivers:

• Created additional world class infrastructure to deliver complete systems

• Government policies for Make in India

• Investment in complete products through QIP Proceeds

5

Q1FY24 Earnings Presentation

What We Look to Achieve in Next Two Years

• Targeting larger opportunities in Radar, EW, Communication Systems and Satellite business

• Expects to be a major participant for Rs20-30 bn worth of contracts in the next 3-4 years

• Efficient execution to promote operating leverage; Should drive strong EBITDA and PAT margins

o Exploring further opportunities in export market; Working in collaboration with domestic players

Strong Topline Growth: 25%+ CAGR

Sustainable High Margins: ~40%

Maintain Net Debt Free Status

Maintain Strong Order Pipeline

High Returns to Shareholders: ROE and RoCE - 20%+

6

Q1FY24 Earnings Presentation

Strategy for next phase of growth

Model to Proprietary Product Development

Key Differentiators for Data Patterns

Leveraging existing competencies

MOD Business

Capabilities Proprietary Leverage existing competencies to Products mitigate product development risk Compete in areas with Complete Foreign OEM presence systems Larger TAM for Data Patterns 1 MOD tenders open to industry GOI committed to buy from Indian companies Increasing Indigenization Make in India Advantage Revenue Scalability and Sustainability 2 Potential to bid for larger full systems contracts Re-use developed products for global expansion/ multiple programmes

• Leveraging existing competencies across target product categories with significant lead and vendor credentials

• Building Blocks in place for reuse across products and to crunch timelines and costs

• Focus on Key product categories with significant presence i.e Nano/Micro Satellites Radars, ESM and Communication systems

Alternative to foreign OEM products

• Cost advantage compared to players who may have to collaborate with foreign OEMs

• Better pricing can lead to better win rates

• Products developed in India - better PWIN

3

Better Margins

Cost advantage given products developed in India

7

Q1FY24 Earnings Presentation

Focus on Key Product verticals

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1
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Product Satellite

• Demonstrated Capabilities

• • Designed and launched compete satellite in India • Capabilities to design payloads like ESM, Imaging (RF and ESM), other remote sensing, others

• Comprehensive exposure to Ground stations including Radars and Command control, high speed communication links, etc

• • Implemented capabilities for large satellites

Potential Opportunity

• Large market for Defence and LEO satellites (Domestic as well as International)

• • Focus on Micro Satellites • Being Made in India – its cost effective

Existing Successful development

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2
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Radars

Existing Successful development

Nano Satellite

Satellite Integrated Testing

Antenna Tower

• Designed building blocks to complete radars systems in India

• • Re-use already developed building blocks to meet timelines • Building Blocks in Signal Processing, Antenna, Transmit/Receive modules, etc.

• VHF, S, C and X Band, Gimbal, algorithms, Radar display, consoles, etc

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Single Board Wide Band Digital DTRM
Computer-Next Gen Receiver
Q1FY24 Earnings Presentation
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Satellite Internal View

Thapsat Satellite

• Focus on Fire Control Radars, X-Band Radars and smaller Radars for UAVs

• Cost competitive with in-house IP

• • Export Potential

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Antenna Assembly
fixture
8
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Antenna PCB

Focus on Key Product verticals

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Product Demonstrated Capabilities Potential Opportunity
• Developed state of the art ESM Receivers from 1MHz to 40GHz
Surveillance & Electronic • Both COMINT and ELINT including DF can be used in •• Truck Mounted Systems / UAV Based ESM SystemsPOD based jammers / Comm Jammers / Stand Off Jammers •• Potential large market with future tendersRequirement across Army, Air Force and Navy
Monitoring
Existing
Successful
development
Radar Warning Receiver ELINT DF System V/U/SHF Monitoring VHF/UHF/SHF Receiver 5 Channel Search
Receiver Processor Exciter Receiver
• Developed SDR Platform for • Military Radars, Radio Relays, etc. are being
Communication • Fighter Aircrafts procured under emergency Fast Track
Systems •• Radio Relay for Airborne Platforms/UAVsRadio Relays •• procurementLarge volume requirementsRequirement across Army, Navy and Air Force
Existing
Successful
development
Communication / Data Link Programmable Radio Hardware Platform Type I & II Radio Relay
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Q1FY24 Earnings Presentation
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3
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• Developed SDR Platform for

• 4 Communication • Fighter Aircrafts Systems ••

Order Book Buildup in Q1FY24

Order Book as on date is Rs 9,671 mn

Orders as on 31[st] March, 2023 Rs 9,241 mn

New Orders in Q1FY24 Rs 1,327 mn

Orders Executed Rs 897 mn

Order Book as on 30[th] June 2023 Rs 9,671 mn

Current order book Rs. 10,657 mn including the orders finalised in Q2FY24

We are participating in large value tenders with MoD under Make 1 and 2 categories.

10

Q1FY24 Earnings Presentation

Q1FY24: Financial Performance

Particulars (Rs. Mn)	Q1FY24	Q1FY23	Q4FY23	FY23	FY22
Revenue from Operations	897	684	1,851	4,534	3,108
Gross Profit	558	442	1,070	2,825	2,247
Gross Profit Margin(%)	62.2%	65%	58.0%	62%	72.3%
EBITDA	278	213	733	1,718	1,409
EBITDA Margin (%)	31.0%	31.1%	40%	38%	45.3%
Depreciation/Amortization	28	20	22	84	66
EBIT	250	193	711	1,634	1,343
EBIT Margin(%)	28%	28.2%	38%	36%	43.2%
Other Income	116	17	38	92	40
Finance Cost	17	16	28	77	110
PBT	349	194	721	1,648	1,273
Tax expense	91	52	168	408	334
Profit(Loss)for the period	258	142	554	1,240	939
PAT Margin (%)	28.8%	20.8%	30%	27%	30.2%
EPS(Rs)	4.6	2.7	10.49	23.80	19.5

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Q1FY24 Earnings Presentation

Revenue: Increased 31% in Q1FY24

Revenue – Q1FY24 and FY23

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Rs 684 mn
Rs 3,108 mn
Rs 897 mn
Rs 4,534mn
Q1FY23 Q1FY24
FY22 FY23
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11

Q1FY24 Earnings Presentation

Diversified Revenue Profile

Revenue growth across all the three categories

Revenue in INR mn

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Service Development Production
Rs 897 mn Rs 4,534 mn
Rs 684 mn
5%
9% 7%
29%
Rs 3,108 mn
39%
45% 7%
25%
66%
54%
46% 68%
Q1FY23 Q1FY24 FY22 FY23
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Q1FY24 Earnings Presentation

Order Book grew Exponentially

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Production Development Service
7% Rs 9,241mn
Rs 9,671 mn
Rs 4,534 mn 5%
7%
5%
13%
62%
26%
Rs.4,760mn 64%
13%
25%
61%
33% 62%
31%
Q1FY23 Q1FY24 FY22 FY23
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14

Q1FY24 Earnings Presentation

Q1FY24: Revenue Breakup

Product	Rs mn
ATE	169
AVIONICS	49
EW	71
Radar	547
AMC/Service	60
Total	897

Customer	Rs mn
BEL	3
Brahmos	105
DoS	68
DRDO	305
Export	124
HAL	7
MoD	282
Others	2
Total	897

15

Q1FY24 Earnings Presentation

Strong Order Inflow

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Order Inflows – Q1FY24 and FY23
Rs. 9,014 mn
Service Development Production Rs 1,327 mn
1%
Rs 456 mn 1% 7%
2%
38%
66%
98% Rs 2,890 mn
3%
61% 49%
33%
48%
FY22 FY23
Q1FY23 Q1FY24
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Major order received in Q1FY24

Major order received in FY23

Product	Customer	Order Type	Value (Rs mn)	nings Presentation 16 Product Customer Order Type Value (Rs mn) Radar DRDO Development 4,489 Avionics HAL Production 737 EW DRDO Development 530 Tank DRDO Development 345 FCS Brahmos Production 400	Product	Customer	Order Type	Value (Rs mn)
EW	DRDO	Development	362		Radar	DRDO	Development	4,489
RADAR	Private customer	Production	357
					Avionics	HAL	Production	737
					EW	DRDO	Development	530
RADAR	Export	Production	327
EW	DRDO	Development	137		Tank	DRDO	Development	345
Under water	DRDO	Production	8		FCS	Brahmos	Production	400
Service	DoS	Service	Q1FY24 Ear 7

Robust Performance : Supported by Strong Financials

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Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%)
65% 65% 66% 58% 62%
1851 897
1070
1118 742
882 572 558
684 442
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn) and Margins (%)
21% 24% 30% 30% 29%
31% 34% 42% 40% 31%
554
733
333
470
258
213 302 278 142 211
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
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17

Q1FY24 Earnings Presentation

Investment in Business

Investment in Our People Investment in Facility

• Spent Rs 44 Cr on new facility

• We hired 124+ staff in Q1FY24

• The facility is operational from March 2023 onwards

• Plans to hire 100 more engineers in the next year

Investment in Technology

• Successfully completed site acceptance test of 5 Precision Approach Radar.

• Nominated as Development and Production Partner for Dornier upgrade

• Actively pursuing new technology development with QIP Proceeds

18

Q1FY24 Earnings Presentation

Data Patterns – One of the fastest growing companies in the Defence and Aerospace Electronics sector in India…

Among the few vertically integrated defence and aerospace electronics solutions providers catering to the indigenously developed defence products industry

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1 Vertically integrated defence and aerospace electronics solutions Defence Aerospace 35+ Years of experience
with end to end capabilities and a large addressable market
P roducts supplied for
Focused on in-house development and manufacturing facilities programmes LCA-Tejas, Light
2 Design to Delivery
led by innovation and design and development efforts Utility Helicopter, BrahMos
missile
Beneficiary of shifting procurement trends in Defence – Aatma
Increasing indigenization,
3 TAM of USD 4.65 bn by 2030
Nirbhar Bharat , Make in India, new defence acquisition policies among Domestic defence procurement, Higher
growing at CAGR – 9% from 2020
others share of electronics in warfare
Diversified order book with marquee customers along with state of the Rs. 9,241 mn
4 Rs. 1,787 mn
art manufacturing facilities Order book as on March’23
Order book as of Apr’18
Many senior personnel
5 Experienced management team and skilled workforce associated with Company for 1,184 750 employees with more than qualified engineers
more than 2 decades
Excellent Revenue growth in FY23 with margins at normal expected 36% 62% Gross 38% 22% ** 17%
6 level, EBIDTA margin, ROCE and ROE (FY23) amongst key Indian Revenue CAGR Margin% EBITDA%
defence and aerospace companies (FY23) (FY23) RoCE (FY23) RoE (FY23)
(FY19-FY23)
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One of the fastest growing companies in the Defence and Aerospace Electronics sector in India

*addition of market size of specific industries from the DRHP

** Without considering QIP funds raised in March, 2023

20

Q1FY24 Earnings Presentation

Evolving as a product company with a strong lineage

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3
5
Investment in infrastructure and Way Forward
people to scale up Product portfolio
2 • Rs 450 Mn spent on the new facility; Fully expansion leveraging
operational existing building blocks
Leading to development of multiple products
in-house over the years • To double manufacturing space and
infrastructure • Build on current product portfolio in
Developed a Fire Control System for Brahmos • Hired 250+ employees in FY23 areas such as
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• in-house over the years • To double manufacturing space and infrastructure

• • Developed a Fire Control System for Brahmos • Hired 250+ employees in FY23 • Developed Glass Cockpit Displays / Avionics • Designed & developed the launch pad countdown y system

• • Designed and developed Primary Surveillance Radar • Developed ESM[1] receivers, Satellite and Ground 4 Station

• 3 Decades of

• experience in defence IPO: Various product wins and healthy build up & aerospace industry Dec 2021 of order book 1 • Breakthrough in end to end radar integration – Rs 3.6 bn order to develop space surveillance radar for DRDO

• Focused on in-house development with • Tender wins competing against large public as well as private end to end design capabilities Indian defence and industrial conglomerates

• • L1 in Dornier Upgrade program in Radar and ESM

• • Producing 1,000+ building blocks that can be • Order book of Rs 8,880 Mn as of Dec-22 used on multiple end systems

   - **Radar**
  
   - **Satellites**
  
   - **Electronic Surveillance & Monitoring (ESM)**
  
   - **Communication**
  

  • Develop capabilities for large order sizes

• Tender wins competing against large public as well as private Indian defence and industrial conglomerates

• Development of complete systems / sub-systems across platforms - space, air, land and sea

• Electronic Surveillance & Monitoring

21

Q1FY24 Earnings Presentation

Competencies built over the past 30+ years

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Reusable building blocks End-to-end capabilities
Produces 1,000+ building blocks that can be used on multiple end Among the few Indian company having design capabilities across the entire
systems in defence and aerospace spectrum of strategic aerospace and defence electronics solutions [1]
In-house Complete
Across platforms
Building blocks have laid the Design to systems / sub-
– space, air, land
foundation of own products Delivery systems and sea
Setup the complete system from
building blocks, designed in-house with
Capabilities Mech. Engg. Processers
IP built over 3
decades
Capabilities across
Spreading out the development costs spectrum of
over multiple programmes Embedded electronic solutions RF and
Software Microwave
COTS Components are fast becoming the
Firmware
building blocks of defence equipment
1.. Basis F&S report on “Defence and Space Market” dated 29 November 2021 as included in the RHP
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Q1FY24 Earnings Presentation

22

With a Consistent Track Record of Profitable Growth

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39%+~ % growth CAGR FY19-FY23
Order Book
9,241
5,855
4,980 4,760
1,815
FY19 FY20 FY21 FY22 FY23
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~ 36% Revenue CAGR from FY19-FY23
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Revenue from operations
4,535
3,108
2,239
1,561
1,311
FY19 FY20 FY21 FY22 FY23
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High Profitability
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~ 61% EBITDA CAGR from FY19-FY22
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Gross Profit EBITDA
120% 2,825 1,718
100% 2,247 1,410
80% 1,535 432 919
60% 1,041
836 257
40%
20%
0% FY19 FY20 FY21 FY22 FY23
FY19 FY20 FY21 FY22 FY23
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Q1FY24 Earnings Presentation

23

Growing Profitability

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Improving PAT Lower debt levels/ leverage Improving ROE and ROCE
Rs mn
Debt-Equity ratio
ROE ROCE
0.45 38%
0.39
33%
1,240 31%
939
24%
23% 22%
556
17%
0.16 15%
12%
77 210
6%
0.01
0
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Without considering QIP funds raised in March, 2023
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24

Q1FY24 Earnings Presentation

Well Managed Working Capital

Debtor Days and T/O Ratio

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Debtor Days and T/O Ratio Creditor Days and T/O Ratio
1.3 1.3 1.4 1.6 1.2 8.3 9.0 18.6 8.1 10.5
308 44 45
286 270 40
254 233 35
20
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Inventory Days and T/O Ratio Cash Conversion Cycle*
1.5 2.0 3.0 2.6 2.4
362
339
241
278 286 275
186
155
141
120
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
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*Cash conversion days is after adjusting advance received from customers

**Company has realized Rs. 1,126 Mn in Q1FY24 out of March receivables

25

Q1FY24 Earnings Presentation

Through Well-Invested and State of the Art Manufacturing Facilities

• Key features of manufacturing facility Manufacturing facility at Chennai, India

• ~ 5.75 Acres  100,000 class clean room

• Of land in Chennai, SIPCOT  Electronic assembly facility area  BGA repair work station with display  Manual soldering certified to Space grade standards

• ~ 200,000 sq. ft  EMS assembly capacity of 600 boards per day

• Aggregate of built up area  Capability to handle complex boards with 22 layer, of manufacturing facility 6k components and 21k solder points  Dedicated 70 work stations for testing modules and small systems Existing Facility Expansion

• ~2.81 acres  Harness preparation of 2k points per day Enhancement

• Land for proposed  20 Dedicated Mechanical assembly stations to expansion assemble small and large systems • Large Systems Integration Hangar • Augmented Design & Development Facility

• and various others… • Complete Radar Integration • Additional Space For Design and

• Our systems and processes are subject • Electronic Warfare Vehicle Integration Development Resources

• to periodic audit by customer such as • Additional Test Facility • Clean Room for Satellite Integration

• Environmental  Indian Government Space Organization • Augmented Environmental Test • Additional EMS Line  Hindustan Aeronautics Limited (HAL)

• Certification Infrastructure • Multi Ton material handling  Other Government departments

• • JSS55555
• • MIL-STD-461
• • MIL-STD-810 including for

• Highly Accelerated Life Test / Highly accelerated stress screening. EMS Line Multizone Reflow Oven X ray inspection system

26

Q1FY24 Earnings Presentation

Diverse Product Offering

Category	Select Product offerings	Category	Category	Select Product offerings
Commercial off the shelf (COTS)	COTS modules designed in context of reusable building blocks for building Military Electronics systems with a quick turnaround time VPX Multi core SBC VPX Zynq MPSoC based Quad Core High Density DIU	BrahMos Programme		• Fire control systems • Mobile autonomous launcher • Airborne launcher and • Other electronic systems Air Version Launcher for Brahmos Sukhoi-30 Missile Checkout System
Avionics	Avionics displays used on : • Light Combat Aircraft (“LCA”), • Intermediate Jet Trainers • Light Utility Helicopters (“LUH”) Light Utility Helicopter Cockpit display		Electronic Warfare	• Surveillance and intelligence gathering (“SIGINT”) • Further divided into COMINT and ELINT Digital Direction Finder Radar Warning Receiver Airborne Radar Warning Receiver
Communicati ons, ATEs and Satellites	• Underwater electronics / Communications / Other Systems • Automated Test Equipment (ATE) • Small and Nano Satellites Automated Test equipment for INS Shikra Oceanography Product		Radars To help protect your privacy, PowerPoint has blocked automatic download of this picture.	Surveillance radars Weather radars Coastal Surveillance Radar

27

Q1FY24 Earnings Presentation

Over Last Three Decades

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TERLS Tracking Radar Wind Profile 2021
Radar Micro Satellite Designed wide open RWR and
ELINT for airborne platforms • Initiated expansion of
Launch pad manufacturing facility with
countdown doubling of available floor
system C-Band Tracking Radar
Fixed Wing Cockpit Displays area
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• Building of capacity to handle large and heavy equipment and integration of large radars and mobile EW systems, satellite integration facility

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Designed and developed
complete Radar Capability
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• Data Patterns has a long history of association with India Space Organization. Data Patterns built a Nano Satellite which was deployed in 2017.

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Developed Glass Cockpit
Displays / Avionics
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2001

• Upgradation of Tracking Radars

• Developed a Fire Control System for Brahmos

  • Developed EW receivers, Satellite and Ground Station

• Developed RF and Microwave capabilities allow entry to building complete systems

• Designed & developed the launch pad countdown system

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Expanding capacity
countdown system
Wideband Fast Real Time
Scan receiver Monitoring Receiver
Exciter
Fire control Coastal V/UHF V/UHF Search Precision
RF & Microwave
system for the Products Surveillance Radar Monitoring Receiver Approach Radar
BrahMos (Dept. of Space) Receiver
28
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Q1FY24 Earnings Presentation
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A De-Risked Business Model

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1 Developmental Contracts
DRDO Defence PSU
Projects leads to Production / Repeat requirements
Programs leads to Annuity requirements
5 Exports / Offsets 2 MoD Tenders
Available Radars, Electronic Warfare, Fire Available Products / Requirements is
control systems, Avionics,
Products / Systems for large
Missile Seekers,
Systems Partnership with numbers and
Communications, Small satellites 01
OEM longer timeframe
05 02
4
Civilian Requirements 3
Indian Defence Eco-system
04 03
•
Ability to build nano satellites •
Satellites and Develop Sensors,
• Platform /
Wind profile radar similar to the Electronics, Avionics
Wind profile
Weapon System
radar developed by our company  In-house
radars
Development
is now required by government  In partnership
meteorological department in with OEM
the civilian space
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29

Q1FY24 Earnings Presentation

Progress around Defence modernization programmes

Dharashakti programme

• Received single vendor orders from DLRL for development and supply of all of the COMINT / ELINT search receivers, Direction Finder & Monitoring / Search receivers.

Radar Warning Receivers / ESM

• Part of the Radar Warning Receivers / ESM for the Airborne Early Warning System (“AEW &C”) to DLRL which has been fitted on the Embraer early warning radar developed by Centre for Air Borne System (“CABS”)

• In a position to be an OEM for the entire receiver systems

MI 17 Upgrades, Dornier Upgrades, Aerostat upgrades,

• Expertise gained in the Dharashakti project would also position to cater for airborne COMINT and ELINT equipment for various upgrades of any new rotary wing programmes

Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms

• Likely to deliver Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms subject to flight testing.

• After flight testing, these can be fitted on the LCA MK IA on order as well as the Sukhoi 30 upgrades, attack helicopters, etc.

Airborne surveillance radar

• Has delivered an airborne surveillance radar (all of the hardware) to LRDE (Testing completed) and will be likely inducted in Navy’s Dornier upgrade and new helicopter programmes

Arudhra Radar

• Expected to supply multiple units of AGRU/ Arudhra radar

• Likely to generate revenues in the next few years based on the requirement projection of IAF

Ashwini LLTR

• Partner in development of these radars as a single vendor incl. TR modules, AGRU, signal processor, etc

• Expected to realise revenue in the next few years.

Light weight ESM requirements

• ESM capability will help in supplying products for Light weight ESM products which have a heavy requirement in mountainous borders as they are not adequately covered

Q1FY24 Earnings Presentation

30

Well-Positioned to benefit from Make in India Opportunity

Focused on designing & developing indigenized products making it a beneficiary of India’s “AtmaNirbhar” defence structural reforms

Defence Modernization Program across the manufacturing value chain to Arudhra Radar scale-up a number of existing products or Light weight ESM requirements Using the experience of working with DRDO Ashwini LLTR and development of wind profile radar, the company successfully bid and won a contract of Rs 380Cr from Ministry of Defence for nine precision approach radars for Navy and Airforce which are Airborne surveillance radar currently at delivery stage Subsequently received contracts to build 2 more Nano Satellites Dharashakti programme Subsequently redeployed for other projects by various DRDO laboratories including in Radar Warning Receivers naval applications in ships & helicopters

Focused on designing and building own products across the manufacturing value chain to developing products and sub-systems

Well positioned to rapidly commercialise or scale-up a number of existing products or building blocks to end systems or complete solutions

Concentrate on building complete systems from the building blocks and sub-systems already developed, provides a higher value addition while distributing development costs

Examples:

Wind profile radar built for Cochin University of Science and Technology is the world’s first 205MHz radar – complete in house development

Developed and deployed our first Nano Satellite in 2017

Developed and supplied Military COTS type processor for DRDO

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Q1FY24 Earnings Presentation

Driven by Innovation Focused Business Model

Focused on in-house development led by innovation and design and development efforts

Building complete systems from the building blocks and sub-systems already developed

Partner with customers through the life cycle of a product , from conception till deployment and thereafter

450+ engineers , most of whom have served in design and development departments

Track record of utilizing pre-developed building blocks and sub-systems in the development of complete systems

Present programmes with building blocks Designed & Developed by Data Patterns…

… along with “Future Ready” products already designed and developed by the company

Key Products manufactured and delivered by Data Patterns

• Military grade processor modules,  Airborne phased array radar

• Cockpit displays,  Frequency hopping radio relays

• Actuator controllers for missiles  Next generation EW products

• and torpedoes,

• Flight control computers,  Integrated EW solution for national security

• Digital receivers and  Up/Down converters for radars

S.No Product(s) Details	S.No Product(s) Details	S.No Product(s) Details
1	Monopulse RF Seeker	Deliveredprototypes to DRDO
2	X-Band Doppler Weather Radar	Prototype installed in Chennai for meteorologydepartment
3	205MHz Wind Profile Radar for CUSAT	Installed at Cochin for a government owned university
4	Radar for Naval UtilityHelicopter	Prototype delivered to LRDE
5	A Next-Generation Software Defined Radio for fighter aircrafts	Prototype developed for DEAL
6	A Next-Generation Radar Warning Receiver for fighter aircrafts	Prototype developed for DLRL
7	A Next-Generation COMINT	Prototype developed for DLRL
8	Precision Approach Radar	Delivered to AF
9	Nano Satellite	Beingdelivered to industry
10	Power PC Card	190 nos delivered to HAL
11	WBLRU	Delivered to DRDO

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Q1FY24 Earnings Presentation

Servicing Marquee Clients

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Marquee customers in the Indian defence & aerospace ecosystem
Government Departments Indian DPSU Others
Ministry of
Defence
Indian
government
space
organisation
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History of business continuity & reliable product service for marquee customers

History of reliable product service for several customers

Supplying products to Indian govt. space org. for 20+ years; which continue to be under AMC Products supplied to BrahMos operational from 2006

Invest in product development ensuring continuity of business

Developed cockpit displays for LUH, which has potential to generate additional annuity revenues from the new units

Products form critical components

Launch systems for ground based BrahMos missile launcher, “take me home” displays for the Tejas

Supply of products to prestigious defence projects in India

Like LCA, the HAL Dhruv, LUH and the BrahMos missile programme

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Q1FY24 Earnings Presentation

Led by a Highly Reputed and an Experienced Management Team

Mr. Srinivasagopalan Rangarajan

Promoter, Chairman & Managing Director

• Over 3 decades of experience in business development, corporate affairs, finance and marketing

• B.Tech in Chemical Engineering from University of Madras, M.S from IIT, Madras

Ms. Rekha Murthy Rangarajan

Promoter, Whole Time Director

• Over 2 decades of experience in administration, facility maintenance, HRD, process engineering and special projects

• B.A from Bangalore University, M.A in applied Psychology from Madras University

Mr. Vijay Ananth K

Whole Time Director, COO and Chief Information Security Officer

• Over 2 decades of experience in software engineering and product management

• BCS from Manomanian Sundaranar

• University and Masters degree in computer applications from the University of Madras

Mr. Venkata Subramanian Venkatachalam Chief Financial Officer

• Over 2 decades of experience in finance sector

• B.Com from Madurai Kamaraj University, Member of ICAI

• Associated with Data Patterns – 20+ years

Mr. Desinguraja Parthasarathy Chief Technology Officer

• 32 years experience in product development

• B.E from University of Madras

• Associated with Data Patterns – 30+ years

• Associated with Data Patterns – 20+ years

Mr. Thomas Mathuram Susikaran

SVP – Business Development

• 21 years of experience in Business Development and marketing

• B.E from Madurai Kamaraj University and a Masters’ degree of tech in electrical engineering, IIT – Madras

Ms. Prakash R Mr.

Company Secretary and Compliance Officer

• 10 years of secretarial and legal expertise in listed entities

• Post Graduate Law Professional and Member of ICSI

• • Joined Data Patterns in 2023

• Associated with Data Patterns – 20+ years

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Q1FY24 Earnings Presentation

Well Rounded and Diverse Board

Mr. Prasad Raghava Menon

Non-executive, Independent Director

• Served as Managing Director of Tata Chemicals Ltd and Ex-Tata Power Company Ltd.

• Bachelor’s degree from IIT, Kharagpur

Mr. Vadlamani Venkata Rama Sastry

Ms. Anuradha Sharma

Non-executive, Independent Director

Non-executive, Independent Director

• Founder of H.R. Practice Private Limited.

• Retired Chairman and M.D of Bharat Electronics Limited and ex-Executive Director of Centre for Development of Telematics

• Directorship in Gokaldas Exports Limited and Peopable Advisory Services Private Limited

• B.Sc and B.E in electronics and communication from Andhra University

• Graduate from Xavier School of Management

Mr. Sowmyan Ramakrishnan

Non-executive, Independent Director

• Ex-Executive Director and CFO of Tata Power.

• Bachelor’s degree in technology

• (mechanical engineering) from IIT-M and a PG Diploma in Business Administration from IIM-A and M.A from Department of Oriental Studies and Research

Mr. Mathew Cyriac Nominee Director

• 23 years of experience in investment banking and private equity.

• Previously associated with Blackstone Advisors, Bank of America, DLJ Merchant Banking Partners and Credit Suisse

• Bachelor’s degree in technology (mechanical engineering) from Anna University and Post graduate diploma in management from IIM-B (gold medalist)

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Q1FY24 Earnings Presentation

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Q4 and FY23 Earnings Presentation
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Appendix

Historical Statement of Profit and Loss

Particulars(Rs. Mn)	FY21	FY22	FY 23
Revenue from Contract with Customers	2,239.5	3,108.5	4,534.5
Other Income	26	39.6	92.2
Total Revenue	2,265.5	3,148.1	4,626.7
Expenses:
a)Cost of materials consumed	629.78	915.9	1,941.4
b)Changes in inventories of FG, WIP and SIT	74.25	-55.2	-232.3
c)Employee benefits expenses	484.21	623.5	794.9
d)Finance cost	145.02	109.9	77.4
e)Depreciation/Amortization	55.52	66.3	84.5
f)Other expenses	131.38	213.9	312.4
Total Expenses	1,520.2	1,874.3	2,978.3
Profit before tax	745.34	1,273.8	1,648.4
Tax expense	189.63	334.1	408.4
Profit(Loss)for theperiod	555.71	939.7	1,240.0
Other Comprehensive Income	-9.56	-11.5	-10.2
Total Comprehensive Income for theyear	546.15	928.2	1,229.8
PAT Margin %	24.53%	30.23%	27.35%
EBITDA	919.4	1,409.9	1,718.1
EBITDA margin%	41.10%	45.33%	37.89%
Return on Net Worth	30.70%	24.01%	14.24%
Total Debt	332.21	67.7	7
Debt to Equity	0.16	0.01	0.00

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Q1FY24 Earnings Presentation

Historical Balance Sheet

Particulars (Rs. Mn)	Mar-20	Mar-21	Mar-22	Mar-23
ASSETS
Non-current assets
(a) Property, Plant and Equipment	278.2	292.1	441.6	912.5
(b) Capital Work in Progress			173.0	13.5
(c) Intangible Assets	1.6	5.6	13.5	20.0
(d) Right of Use Assets	53.7	34.4	19.7	187.9
(e) Other Financial Assets	464.8	340.7	1,220.4	838.7
Total non-current assets	798.2	672.8	1,868.2	1,997.7
Current assets
(a) Inventories	794.1	737.5	1,197.7	1,929.5
(b) Financial Assets
(i) Investment				556.8
(ii) Trade receivables	1,156.3	1,559.4	1,983.1	3,824.8
(iii) Cash and cash equivalents	15.1	88.1	1,770.8	2,147.8
(iv) Other Bank Balances				3,297.5
(iv) Other Financial Assets	37.2	51.0	88.6	211.5
(c) Other current assets	152.6	177.3	158.3	379.7
Total current assets	2,155.4	2,613.2	5,198.5	12,351.7
TOTAL ASSETS	2,953.6	3,283.7	7,066.7	14,349.4

Particulars(Rs. Mn)	Mar-20	Mar-21	Mar-22	Mar-23
EQUITY AND LIABILITIES
Equity
(a)Share capital	17.0	17.0	103.8	112.0
(b)Other Equity	1,518.0	2,060.7	5,641.3	11,558.8
Total equity and liabilities	1,535.0	2,077.7	5,745.1	11,670.8
Liabilities
Non-currentliabilities
(a)Financial Liabilities
(i)Borrowings	5.5	97.7	7.3	2.6
(ii)Lease Liabilities	38.5	24.4	11.1	4.3
(b)Provisions	56.4	85.2	111.6	102.5
(c)Deferred Tax Liability (Net)	7.6	8.1	-
(d)Other Non Current liabilities	143.2	273.7	157.0	1,306.8
Total non-current liabilities	251.2	489.0	287.0	1,416.2
Currentliabilities
(a)Financial Liabilities
(i)Borrowings	600.1	234.5	60.4	4.6
(ii)Tradepayables	172.6	120.0	381.5	430.6
(iii)Other Financial Liabilities	79.2	40.1	220.7	118.0
(iv)Lease Liabilities	20.8	15.2	13.2	13.4
(b)Other current liabilities	224.7	246.4	226.8	664.4
(c)Provisions	14.9	9.6	7.2	31.4
(d)Current tax Liabilities	55.2	51.3	124.8
Total current liabilities	1,167.5	717.0	1,034.6	1,262.4
TOTAL EQUITY AND LIABILITIES	2,953.6	3,283.7	7,066.7	14,349.4

Q1FY24 Earnings Presentation

38

Historical Cash Flow

Particulars(Rs. Mn)	FY20	FY21	FY22	FY23
Net Profit before tax	284.7	745.2	1,273.8	1,648.4
Adjustments for :
Add : Depreciation	54.6	55.7	66.3	84.5
Add : Interest And Finance Charges	133.4	145.0	109.9	77.4
Add : Liquidated Damages(LD)Written Off	-	-	12.8	44.6
Add : Unrealised Forex Gain/Loss	-	-	3.9	11.3
Less: Profit on sale of assets	-1.8	-1.2	-	-
Less: Profit/Loss on sale of Mutual Funds	-	-	-	-8.0
Less: Interest Income	-25.6	-22.2	-39.8	-84.2
Operating Profit Before Working Capital Changes	445.3	922.5	1,426.9	1,774.0
Adjustments For Working Capital Movements :	-282.4	-183.7	-621.4	-1,412.2
Cash Generated From Operations	162.9	738.8	805.5	361.8
Direct Taxes (Paid) /adjusted	-28.4	-189.8	-283.6	-534.2
Net Cash flow From Operating Activities (A)	134.5	549.0	521.9	-172.4
Cash Flow From Investing Activities (B)	14.0	-27.5	-1,197.7	-3,831.6
Cash Flow From Financing Activities (C)	-136.5	-448.6	2,358.6	4,381.0
Net Increase in Cash & Cash Equivalents (A+B+C)	12.0	72.9	1,682.8	377.0
Cash & Cash Equivalent At The Beginning Of The Year	3.1	15.1	88.0	1,770.8
Cash & Cash Equivalent At The End Of The Year	15.1	88.0	1,770.8	2,147.8

39

Q1FY24 Earnings Presentation

Core groups or departments for design and development of products

ducts	ducts	ducts
Total Employee Strength Department Design & Engineering (D&E) Manufacturing Support Marketing & Customer support Total In Q1FY24			# of Employees 609 395 116 64 1184 750+ qualified Engineers out of 1184 Our senior members in hardware, design and development have been with us for more than15 years
Group/Department	Responsibility / Scope		Group/Department	Responsibility / Scope
Hardware Development Department	Design and development of all types of high-end and complex electronics modules and building blocks. Includes Single board computers, Field Interface modules, Communication Modules, Custom I/O Modules, Mezzanine modules, Signal conditioning modules etc.		DOMAIN Systems Groups	Design and Development of product verticals as a system. Including RADAR, EW, Communication, ATEs, Fire-control systems, Satellite, Avionics etc.
			Production Department	All the products are functionally and environmentally tested by this department. Includes testing of modules and sub-systems, wiring, mechanical assembly, and integration etc.
Software Development Department	Design and development all types of embedded, real-time and application software. Includes devices drivers, Operating system porting, real-time data transfer, GUI application for various Operating systems and hardware.
			Electronics Manufacturing Services (EMS)	Fabrication of all electronics modules. Including automated pick- n-place, manual soldering, conformal coating etc.
Mechanical Engineering Department	Design and development of all types of mechanical packaging, big structure systems and jigs and fixtures. Incudes standard ATR chassis, heat spreaders, structural and thermal analysis etc.
			Harnessing Group	Fabrication of all types of cable harness including internal wiring, external interface wiring, testing of cables for continuity, impedance etc.
CAD / CAM Group	PCB schematics, Artwork, signal analysis, power analysis, electrical wiring, all modules/systems performance, and maintenance statistics like MTBF etc. Includes up to 26 Layer PCB design, hybrid electrical interface design etc
			Mechanical Integration Group	Assembly and integration of all types of mechanical parts. Including various types like LRU assembly, board assembly, system assembly, system integration etc.
Algorithm Development Group	Design and development of various domain algorithms for RADAR, Electronic Warfare, Communication waveform etc. Uses all types of algorithm development including mathematical modelling, statistical modelling, feedback modelling etc.
			Project Management Group	Responsible for Delivering all the orders both internal and external. Vertical integration of groups and product development responsibilities. Includes all types of projects from simple module delivery to full system delivery. Utilizes, project plan, metrics, GANNT charts, budgeting and control, optimal execution methods etc
Radio Frequency Modules Group	Design and development of all types of RF modules and sub-systems. Includes simple RF receiver/exciter, filters, upconverters/downconverters, synthesizers etc.

40

Q1FY24 Earnings Presentation

Defence modernization programmes

Arudhra Radar

• Expected to supply ~55 units of AGRU/ Arudhra radar

• Likely to generate revenues in the next 3-4 years based on the requirement projection of IAF

Ashwini LLTR

• Partner in development of these radars as a single vendor incl. TR modules, AGRU, signal processor, etc

• Expected to realise revenue between $10-30 million in the next few years.

Dharashakti programme

• Has received single vendor orders from DLRL for development and supply of all of the COMINT search receivers, Direction Finder & Monitoring receivers.

Light weight EW requirements

• EW capability will help in supplying products for Light weight EW products which have a heavy requirement in mountainous borders as they are not adequately covered, and the same has been prioritised due to the increased geo-political tension

Airborne surveillance radar

• Has delivered an airborne surveillance radar (all of the hardware) to LRDE which is expected to be flight tested in the next few months and will be likely inducted in Navy’s Dornier upgrade and new helicopter programmes

Radar Warning Receivers

• Also a part of the Radar Warning Receivers for the Airborne Early Warning System (“AEW &C”) to DLRL which has been fitted on the Embraer early warning radar developed by Centre for Air Borne System (“CABS”)

• In a position to be an OEM for the entire receiver systems with likely revenues of $ 50 million on complete execution

MI 17 Upgrades, Dornier Upgrades, Aerostat upgrades,

• Expertise gained in the Dharashakti project would also position to cater for airborne COMINT and ELINT equipment for various upgrades of any new rotary wing programmes

Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms

• Likely to deliver Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms subject to flight testing.

• After flight testing, these can be fitted on the 83 LCA MK IA on order as well as the Sukhoi 30 upgrades (approximately 270 numbers), attack helicopters, etc.

41

Q1FY24 Earnings Presentation

Indian defence and aerospace industry is rapidly evolving into a self-sustaining one

Competition at two levels for Data Patterns

Indian defence suppliers – Anticipated Future Positioning

We are poised to take up emerging opportunities

During development stage in DRDO requirements from small and medium size companies building custom solutions and/or integrating solutions around imported COTS products

From large corporates offering complete systems, often under a partnership with International OEMs, for products and programmes directly procured by the Indian government space organization

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Platform/ Solution Sub-system (end to
Focused end)/ Integration
Tonbo Imaging focused
L&T
HAL
Mahindra Defence
Godrej and Boyce
OFB
Reliance Defence
BEL
BDL
5 Tata Advanced Systems
Kalyani Strategic
Systems Ltd
Data
Adani Aerospace
Patterns
Paras Defence
Alpha Design Technologies
Astra Microwave Centum Electronics
Mistral CoreEL Technologies
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Our products are developed to compete with international and domestic equivalents . Further, we offer end to end solutions to the customer

Ability to offer wide range of products . We also have strong and balanced capabilities across 12 defence and aerospace segments

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Subcomponents focused
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Q1FY24 Earnings Presentation

Thank You

For further information, please get in touch with:

Sheetal Khanduja sheetal@GoIndiaadvisors.com M:+91 9769364166

Q1FY24 Earnings Presentation