DCX Systems Ltd.
Q3FY23 Quarterly Result Announced for DCX Systems Ltd.
Defence firm DCX Systems announced Q3FY23 results:
- Q3FY23 vs Q3FY22:
- Revenue for the quarter was Rs 355.95 crore in Q3FY23, compared to Rs 417.18 crore in the previous corresponding period
- EBITDA (excluding other income & forex loss) stood at Rs 27.94 crore in Q3FY23, up from Rs 23.70 crore in Q2FY22; YoY growth of 17.89%
- EBITDA margin for the quarter stood at 7.85%, an increase of 217 bps as compared to 5.68% in Q2FY22. Rise in share of high-margin projects executed during this quarter helped reduce raw material expenses, benefiting overall EBITDA margins
- Profit after tax (PAT) for the quarter is Rs 17.29 crore, compared to Rs 18.21 crore in the same period of past financial year.
- 9MFY23 vs 9MFY22:
- 9MFY23 revenue stood at Rs 743.08 crore, compared to Rs 728.24 crore in the previous corresponding period
- 9MFY23 EBIDTA at Rs 63.21 crore, YoY growth of 63.04%
- EBIDTA margin at 8.51% YoY improvement of 319 bps
- PAT stood at Rs 30.92 crore in 9MFY23, compared to Rs 33.20 crore in 9MFY22. The decrease in PAT was due to an increase in finance costs and the depreciation of the rupee against USD.
Commenting on the company’s performance, H.S. Raghavendra Rao, Chairman & Managing Director, DCX Systems, said, “Our Q3 & 9MFY23 performance has been largely in line with the expectations. Despite supply chain constraints in the global eco-system, hardening interest rate regime in USD borrowings, sudden eruption of COVID-19 fears and steep depreciation of INR v/s USD between July 2022 and Dec 2022, the company has been able to sustain stability in revenue and execute projects of high EBIDTA margin bringing value to the company and its stakeholders.
Q3 has witnessed stability in business, signs of improvement in supply chain, massive increase in net worth, sharp reduction in borrowings, very comfortable cash flow positions and efficiency in operating ratios like EBIDTA margins.
In Q3FY23, our revenues stood at Rs 355.95 crore, while EBITDA and PAT were at Rs 27.94 crore and Rs 17.29 crore respectively.
We have a healthy and strong order book which gives an optimistic outlook for the near future. Our focus remains on securing raw materials to support the anticipated growth and rationalizing expenses to improve operational efficiencies. Also through our recent successful IPO, we have been able to raise funds worth Rs 400 crore.
We are implementing the forward and backward integration plans, which would include setting up of Electronic Manufacturing Services (EMS) plant in our wholly owned subsidiary Raneal Advanced Systems Pvt. Ltd. Additionally, we are scouting to acquire product technology in the area of Aerospace and Defence and Civil Applications. This would also be supported by potential inorganic growth opportunities under Make-In-India and Aatmanirbhar Bharat programs.
Overall, we strive to emerge as a one-stop-service provider for global and domestic customers, encompassing multiple verticals including Cable & Wire Harness, System Integration, EMS, Maintenance Repair and Overhauling (MRO) and Product segment through the acquisition of Technology.
I thank the entire team of DCX and all our stakeholders for your faith and support which helps us set and achieve new benchmarks.”