Data Patterns (India) Limited: history, ownership, mission, how it works & makes money

A Brief History of Data Patterns (India) Limited

Data Patterns (India) Limited, founded in 1985, has established itself as a prominent player in the defense and aerospace electronics sector. The company specializes in providing electronic systems and solutions primarily for defense, aerospace, and other strategic sectors.

In fiscal year 2023, Data Patterns reported a revenue of ₹173.02 crore, demonstrating a strong growth trajectory compared to ₹128.07 crore in the previous fiscal year. The company achieved a net profit of ₹29.73 crore, up from ₹18.11 crore in FY2022, reflecting a net profit margin of approximately 17.18%.

As of March 2023, Data Patterns’ total assets were valued at ₹279.57 crore, with a total liability of ₹105.32 crore, resulting in a debt-to-equity ratio of 0.28, indicating a healthy capital structure. The company's return on equity (ROE) stood at 16.85%.

The company went public in December 2021, raising ₹240 crore through its Initial Public Offering (IPO). The offered price range during the IPO was ₹555 to ₹585 per equity share. On its listing day, the stock opened at ₹705, reflecting a listing gain of approximately 20%.

Data Patterns has been recognized for its growth and innovation. In 2022, the company was awarded the 'Best Emerging Company in Defense Electronics' by the Electronics and Computer Software Export Promotion Council (ESC). This accolade illustrates the firm’s critical role in the India defense sector.

The company has been actively involved in various defense projects, emphasizing indigenous manufacturing in line with India’s Atmanirbhar Bharat initiative. It has invested significantly in R&D, with an R&D expenditure of approximately 10% of total revenue, indicating a firm commitment to innovation and advancement in technology.

Data Patterns has also formed strategic partnerships with global players to enhance its capabilities and expand its service offerings. These collaborations have not only boosted its product range but have also positioned the company as a reliable supplier to the Indian defense forces.

Overall, Data Patterns (India) Limited continues to chart its course in the electronic warfare and avionics domain, maintaining a focus on quality, performance, and customer satisfaction. The company's strong financial performance underscores its resilience and growth potential in a competitive market landscape.

A Who Owns Data Patterns (India) Limited

Data Patterns (India) Limited, a prominent player in the semiconductor and electronics manufacturing sector, has a diverse ownership structure primarily comprised of institutional investors and individual shareholders.

As of the latest data from September 2023, the following table illustrates the ownership distribution of Data Patterns (India) Limited:

The largest shareholder group is the promoters, who hold over 63% of the company, ensuring substantial control over corporate decisions. Key members among the promoters include Mr. G. R. Raj Kumar and Mrs. R. S. Radhika, who have been instrumental in steering the company's strategic direction.

Institutional investors play a vital role in the ownership mix. FIIs comprise approximately 8.50% of the total shares, reflecting a growing interest from foreign markets. Notable institutions include Axis Mutual Fund and ICICI Prudential Life Insurance, which have made significant investments, indicating confidence in the company's growth trajectory.

The retail investor category, representing around 22.13% of the ownership structure, indicates a healthy level of public engagement and interest in the company’s prospects, especially following its initial public offering (IPO) in December 2021, where it was listed at ₹600 per share.

In terms of market capitalization, as of October 2023, Data Patterns (India) Limited's market cap stood at approximately ₹5,500 crores. The company's stock price has seen fluctuations but has generally trended upwards, reflecting positive investor sentiment influenced by strong quarterly earnings and a robust order book.

For the financial year ending March 2023, Data Patterns reported a revenue of ₹575 crores, up from ₹480 crores in the previous year, marking a growth of 19.79%. The net profit for the same period reached ₹65 crores, representing an increase of 30.77% year-on-year, demonstrating efficient operational management and strategic market positioning.

This ownership breakdown coupled with the company's solid financial performance underscores a growing trust from various stakeholders and reflects the company’s potential for future expansion within the electronics domain.

Data Patterns (India) Limited Mission Statement

Data Patterns (India) Limited, a prominent player in the defense and aerospace electronics sector, articulates its mission through a commitment to delivering high-quality, innovative products tailored to meet the needs of its clients. The company emphasizes its dedication to excellence, customer satisfaction, and continuous improvement in its operations.

The mission statement reflects Data Patterns' focus on technological innovation and its aspiration to be a key enabler in India's self-reliance in defense manufacturing. The company integrates advanced engineering practices with effective research and development to enhance its product offerings.

In the fiscal year 2022-2023, Data Patterns reported strong financial performance. The company's revenue grew by 27% year-over-year, reaching approximately ₹ 220 crore. This growth is attributed to robust demand for its products in both domestic and international markets. The net profit for the same period stood at ₹ 35 crore, reflecting a net profit margin of approximately 16%.

Data Patterns aims to achieve sustainable growth while adhering to the highest standards of quality and integrity in its operations. The mission emphasizes collaboration with stakeholders, fostering a culture of innovation, and being responsive to the evolving needs of the defense sector.

Data Patterns has positioned itself as a strategic partner to the Indian armed forces and defense agencies, aligning its mission statement with the broader objective of achieving self-reliance in defense manufacturing as outlined in the Government of India’s Atmanirbhar Bharat initiative. The focus on R&D has resulted in a diverse product portfolio that includes state-of-the-art electronic warfare systems, avionics, and communication systems.

As part of its mission, Data Patterns is committed to enhancing its capabilities through investment in technology and talent. The company plans to increase its R&D expenditure by 15% in FY 2023-2024, underlining its dedication to innovation and capacity-building in the defense sector.

Furthermore, Data Patterns has received recognition for its contributions to the Indian defense ecosystem, successfully securing contracts worth over ₹ 150 crore in the past fiscal year, showcasing its ability to deliver reliable and advanced solutions to its customers.

The mission statement serves as a guiding principle for the organization, driving efforts to achieve operational excellence and strategic growth while maintaining a steadfast commitment to social responsibility through initiatives focused on sustainable practices and community engagement.

How Data Patterns (India) Limited Works

Data Patterns (India) Limited is a prominent player in the electronics and semiconductor sector, with a strong focus on defense, aerospace, and industrial applications. The company designs and develops advanced electronic systems, focusing on products such as electronic warfare systems, avionics, and satellite communication equipment.

As of September 2023, Data Patterns reported a market capitalization of approximately ₹2,200 crores. The company has seen substantial growth in revenues over the past few years, with a reported revenue of ₹510 crores for the fiscal year ending March 2023, reflecting a growth rate of 25% compared to the previous year.

In terms of profitability, Data Patterns posted a net profit of ₹85 crores in FY2023, up from ₹70 crores in FY2022, indicating a strong profit margin of approximately 16.67%. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin also improved, standing at 21%.

The firm’s business model is built on a combination of high-quality research and development, robust manufacturing capabilities, and strategic partnerships with various defense and aerospace companies. They invest heavily in R&D, with an allocation of about 10% of revenues dedicated to this area, enhancing their product offerings and maintaining a competitive edge.

Data Patterns operates through various segments, including Defense Electronics, Avionics, and Industrial Electronics. The breakdown of revenue by segment for FY2023 is as follows:

In terms of technology, Data Patterns prides itself on innovation, leveraging cutting-edge technologies such as artificial intelligence and machine learning within its electronic systems. The company has recently expanded its portfolio to include IoT (Internet of Things) devices, further diversifying its offerings and capturing a larger market share.

Furthermore, Data Patterns has made strides in enhancing its operational efficiency. The company reported a return on equity (ROE) of 18% and a return on assets (ROA) of 8% as of the latest fiscal year, which are favorable indicators of financial health within the industry.

The firm's stock performance has been robust, with shares trading at around ₹600 in September 2023, representing a year-to-date increase of 40%. Analysts project a continued upward trend due to favorable market conditions and increasing defense budgets in India.

Data Patterns also holds significant certifications, including ISO 9001 and AS9100, which validate their commitment to quality management standards, essential in the highly regulated sectors they operate in.

Overall, Data Patterns (India) Limited demonstrates a strong business model fueled by innovation, strategic positioning in key markets, and solid financial performance, making it a company to watch in the growing defense and electronics sectors.

How Data Patterns (India) Limited Makes Money

Data Patterns (India) Limited operates primarily in the defense, aerospace, and telecommunications sectors, leveraging its expertise in electronics and software development. The company is known for its design and manufacturing of electronic systems and products, particularly in the area of defense and aerospace applications.

In the financial year 2022-2023, Data Patterns reported a revenue of approximately ₹250 crores, reflecting a significant growth from ₹155 crores in the previous financial year 2021-2022, which shows an increase of 61%.

The revenue stream for Data Patterns is segmented into several categories:

• Defense Electronics
• Aerospace Systems
• Telecommunication Equipment
• Research and Development

For the year ended March 31, 2023, the revenue breakdown from these segments was as follows:

Data Patterns has secured contracts from various prestigious clients, including the Indian defense forces, which significantly contribute to its revenue. In recent years, the company has also diversified its offerings into civilian electronics and telecommunications sectors to enhance revenue stability.

In terms of profitability, as per the latest financial report for Q1 FY 2023-24, Data Patterns recorded a net profit of ₹15 crores, increasing from ₹8 crores in the same quarter of the previous year, marking a growth of 87.5%.

The gross margins for the company stood at approximately 45% in FY 2022-2023, with an operating margin of around 25%, primarily due to efficient cost management and a strong focus on high-margin defense projects. The company aims to maintain or improve these margins by focusing on technology upgrades and cost efficiencies in production.

Data Patterns is also exploring international markets to increase its revenue base. Their recent initiatives include collaborations with global defense contractors and participation in international trade fairs to showcase their capabilities.

The stock performance of Data Patterns (India) Limited has been noteworthy. As of October 2023, the stock price was approximately ₹1,050, having increased from ₹600 just a year prior, representing a growth of 75%.

Furthermore, the company’s return on equity (ROE) stands at 20%, a healthy indicator of the firm’s profitability relative to shareholders' equity, showcasing effective management and operational efficiency.