Data Patterns declared a weak set of fourth quarter earnings on Saturday, May 13. The $1 billion market capitalization player in the thriving aerospace and defense industry in the March ended quarter witnessed revenue rising 8 percent to Rs 185 crore versus Rs 171 crore in same quarter of last year.

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Earnings before interest, tax, depreciation, and amortization declined 16 percent year on year to Rs 73 crore as employee costs jumped 41 percent to Rs 24 crore. Hence, operating profit margins fell to 39.5 percent versus 51.1 percent in the corresponding quarter of last year. Net profits at Rs 55 crore is also lower by 11 percent in the fourth quarter.

However, for the full year 2022-23, the revenues grew 46 percent to Rs 453 crore, better than the management guidance of 40 to 45 percent. Earnings before interest, tax, depreciation, and amortization jumped 21 percent year on year to Rs 171 crore. Employee costs are higher by 27 percent, while cost of raw materials consumed have doubled during the year to Rs 194 crore. Operating profit margins declined to 37.8 percent versus 45.5 percent in the financial year 2021-22. The management had earlier guided for 40 percent margins.

Net profits jumped 32 percent to 124 crore during the financial year 2022-23. In an interaction with CNBC-TV18 in January 2023, the management has guided for 25 to 30 percent growth in financial year 2023-24, while maintaining operating profit margins at 40 percent.

In early March, the company successfully raised funds via qualified institutional placement (QIP). Data Patterns raised Rs 500 crore by issuing 4.1 million shares to eligible qualified institutional buyers. This was for funding working capital requirements of Rs 168 crore, investment in product development of Rs 167 crore. Remaining funds were raised for debt repayment, funding capex for setting up an EMI-EMC Testing Facility and land purchase.

Also read: Data Patterns says Nippon and Axis were the large participants in the Rs 500 crore QIP

The board has recommended payment of Rs 4.5 per equity share (@ 225 percent per equity share of Rs.2/- each) as the final dividend of the company for the financial year 2022-23. The Annual General Meeting is to be held on Wednesday, August 09, 2023 and dividend will be paid on or before Friday, September 08, 2023.

The stock declined 6 percent in the past week, but rose 43 percent since the start of calendar year 2023.