Q1FY24 Quarterly Result Announced for DCX Systems Ltd.
Defence company DCX Systems announced Q1FY24 results: Revenue stood at Rs 170.10 crore in Q1FY24, as compared to Rs 213.25 crore in Q1FY23, a dip of 20.24% on a YoY basis, as prioritized by project-specific demand from our customers. EBIT stood at Rs 18.71 crore in Q1FY24, vis-à-vis Rs 11.64 crore in Q1FY23, registering an improvement of 60.74% YoY. EBIT margin for Q1FY24 increased 555 bps to 11.00% as compared to 5.45% in Q1FY23. A higher share of system integration projects executed during Q1FY24 had a bearing on the overall blended margins, which was offset by the risk mitigation measures undertaken by the company eliminating forex loss and improving operational efficiency and supply chain measures. Profit After Tax (PAT) for Q1FY24 is Rs 9.85 crore compared to Rs 5.76 crore in Q1FY23, with YoY growth of 71.01% and margins improving by 309 bps. Focus and theme of FY24 would be on improvement in margins at EBIT and PAT levels. Commenting on the company’s performance, Dr. H.S. Raghavendra Rao, Chairman & Managing Director, DCX Systems, said, “Our Q1FY24 performance has been in line with the policy of improvement of margins at various levels of operating efficiency and strong supply chain management. On a quarter comparative analysis despite a revenue dip of 20.24%, the company has shown strong PAT from Rs 5.77 crore in Q1FY23 to Rs 9.85 crore in Q1FY24, improving margins at a PAT level by 309 bps and registering a percentage growth of 71.01%. The historical data would suggest that the major portion of business targets are achieved in the 3rd and 4th quarter of the financial year and FY24 first quarter has been no exception to this. The first quarter witnessed business stability, stabilized supply chain management, and results of the risk management strategy fully executed. In Q1FY24, our revenues stood at Rs 170.10 crore, while EBIT was Rs 18.71 crore, significantly improving the margins by 60.74% whereas PAT grew 71.01% YoY to Rs 9.85 crore. Top line growth witnessed a dip of 20.24% specifically based on priority being accorded to selective projects by our customers. However, the order book position continues to be strong at Rs 1,535 crore as of June 30, 2023, which is considered healthy. Our ongoing backward integration through our Wholly owned subsidiary Raneal Advanced Systems Private Limited (EMS) facility has been completed during the first quarter of this fiscal year and the company is on the verge of completing all the licensing formalities to commence commercial operations soon. On the System Integration front, our relationship with existing foreign OEMs continues to grow stronger with incremental orders in the pipeline. Based on the positive feedback, we are also executing non-offset-based projects in this line of business. The company is further focused to make geographical penetration into larger markets in the world in the space of aerospace and defence. While the company is in an advanced stage of discussions with foreign OEMs to acquire product technology in Aerospace and Defence, Civil Applications, and MRO (Maintenance, Repairs, and Overhauling), potential inorganic growth opportunities under Make-In-India and Aatmanirbhar Bharat programs would fuel future growth plans of the company. We have a healthy pipeline of orders, based on which we are optimistic for the near and medium-term future, while consistently striving to maintain and improve operational efficiencies and thereby margins in operations. I thank the entire team of DCX and all our stakeholders for your continued faith and support which helps us set and achieve new benchmarks.” Result PDF04-08-2023