- 03 Aug 2022
- ICICIdirect Research
Data Patterns posts robust Q1FY23 numbersDATAPATTNS - 1355 Change: -16.55 (-1.21 %)
News: The company reported ~84% YoY growth in revenues to Rs 68.3 crore on the back of strong execution in development contracts. Revenue from development contracts witnessed strong growth on YoY basis (45% of revenue in Q1FY23 vs negligible in Q1FY22). However, EBITDA margin contracted 1394 bps to 31.1% (vs. 45% in Q1FY22). PAT increased 39.1% YoY to Rs 14.2 crore. The order book of the company was at Rs 663.55 crore as on date (~2x TTM revenues) and Rs 453.4 crore as of June 2022 end. Order inflow during Q1FY23 was at Rs 45.6 crore.
Views: Revenue growth of 84% YoY was better than our expectation primarily because of strong execution in development contracts. The company’s share of development contracts increased substantially in FY22 (25% of total vs. 5-7% during FY19-21) which may have witnessed better execution during the quarter. Margin contraction on YoY basis seems on account of higher share of revenue from development orders which typically have lower margins as compared to production orders. Order book of Rs 663.55 crore as on date and Rs 342.19 crore more contracts are under negotiation process gives strong earnings visibility.