Data Patterns posts strong Q2 results; stock rises over 5%

Data Patterns (India) shares jumped in the morning trade on Monday, November 6. The stock surged as much as 5.4 per cent to touch the day's high of Rs 2,030.75 apiece. The buying interest in the stock was witnessed after the aerospace and defence solution provider posted its July to September (Q2FY24) quarter numbers.

At around 10:27 a.m., shares of Data Patterns (India) traded 3.93 per cent or Rs 75.4, higher at Rs 1,996.05 apiece on the BSE. The market capitalisation of the mid-cap company at around the same time stood at Rs 11,174.68 crore. The stock pared gains later and ended 1.13 per cent or Rs 21.75 higher at Rs 1,942.4 apiece.

On November 4, Data Patterns India reported a 61 per cent rise in profit at Rs 33.79 crore for the July–September quarter as against Rs 21 crore profit logged in the year-ago period, on the back of creating an additional world-class infrastructure to deliver complete systems, government policies for 'Make in India' and investment in complete products through qualified institutional placement (QIP) proceeds.

The company's revenue stood at Rs 108 crore for the quarter under review as against Rs 88 crore YoY, which implies an increase of 22.7 per cent. 

The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 41 crore as against Rs 30 crore, up 35 per cent. The margin, a key to measuring profitability, was logged at 37.6 per cent, which is a rise of 350 basis points (bps) as against 34.1 per cent YoY.

As per the regulatory filing, the order book as of September 1, 2023, stood at Rs 10 billion.

Data Patterns (India) Management Commentary

In the next two years, the company aims to have strong topline growth with more than 25 per cent compound annual growth rate (CAGR) and sustainable high margins of 35 per cent to 40 per cent. 

Data Patterns (India) share price performance 

Since January, Data Patterns shares have gained over 78 per cent against Nifty50's rise of over 6 per cent.

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