Data Patterns Shares Fall 4% as Q4 Net Profit Falls

Data Patterns' fourth-quarter net profit fell 10% to Rs 55.3 crore.

Shares of Data Patterns (India) Ltd fell 4% on May 15 after the company reported its financial results for the fourth quarter ending March 31, 2023. The company’s net profit fell 10% to Rs 55 crore, compared with a reported net profit of Rs 62 crore a year ago, and revenue rose 9% to Rs 189 crore, compared with Rs 173 crore a year earlier.

EBITDA fell 16% year-on-year to Rs 73 crore, and staff costs rose 41% to Rs 24 crore. Operating margin fell to 39.5% from 51.1% a year earlier.

For FY22-23, the company’s revenue rose 46% to Rs 453 crore, beating management’s guidance of 40% to 45%. EBITDA also rose 21% year-on-year to Rs 171 crore. However, staff costs increased by 27%, and raw material consumption costs doubled to Rs 194 crore during the year.

As a result, the operating margin fell to 37.8% from 45.5% in FY21-22 despite management’s margin of 40%. Net profit for the year rose 32% to Rs 124 crore.

The company’s board has proposed a final dividend of Rs 4.5 per share (225% dividend of Rs 2 per share) for FY22-23.

The market capitalisation of the Chennai-based electronics solutions provider has grown by more than 115% in the past year but has fallen by 8.46% in the past month. The stock was trading 4.27% lower at Rs 1,521.75 on the NSE at 10:25 am on May 15, while the benchmark Nifty was trading 0.36% higher at 18,381.45.

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