Q3 FY 2022 Review

Dynamics Technologies Limited reported net revenue of ₹30,770 lakhs for the quarter ended December 31, 2021, compared to ₹34,035 lakhs for the quarter ended December 31, 2020. EBIT and Profit After Tax were ₹2,367 lakhs and ₹802 lakhs for the quarter ended, 31, 2021, as compared to ₹1,866 lakhs and ₹114 lakhs, during the corresponding quarter of the previous year.

Dynamics Technologies Limited - Investment Summary

Overview

• Dynamatic Technologies Limited got an order from Boeing for manufacturing assemblies for their tactical fighter, the F-15 EX Eagle II.

• The expansion of the Aerospace facility at Dynamatic Aerotropolis near Bangalore Airport is well underway and is expected to be completed in mid-FY-2023. Technological advancements at the new plant are expected to improve the company’s operational efficiency and meet customer expectations more effectively.

• The company has been rated BBB+ for the banking facilities by Indian Ratings & Research (credit rating agency).

Dynamics Technologies Limited - Quarterly Summary

• The board of directors of JKM Ferrotech Limited, a wholly subsidiary of Dynamatic technologies, vide its meeting on February 01, 2021, had approved the term sheet and plan for its foundry business to Danblock Brakes India Private Limited. All the conditions have been met, and Dynamatic Technologies received a net consideration of ₹7041 lakhs on July 22, 2021.

Business

• Incorporated in 1973, Dynamatic Technologies Limited (DTL) is into the manufacturing of Hydraulic Gear Pumps and Automotive Turbochargers.

• It also serves clients across Aerospace, automotive and Hydraulic Industries

• DTL has manufacturing facilities in Europe and India, serving customers across six continents

• DTL has diversified business segments, and they are as follows:

  • Hydraulics

    • The company is one of the world's largest manufacturers of hydraulic gear pumps and geared motors.

    • The company can build customized solutions for any application, from farm mechanization to agricultural tractors and harvesters, off-highway vehicles, construction equipment, metal cutting metal forms, material handling, and mining equipment.

    • The company has over 75% market share of pumps on agriculture tractors produced in India and 34% shares in agriculture tractors produced globally.

  • Aerospace and Defense:

    • The company is a leading player in the Indian private sectors and the UK to manufacture Flight Critical Airframe Structures and High Precision Class 1 parts.

    • The company has an extensive infrastructure to cater to the needs of OEMs like Airbus, Boeing, Bell, and Hindustan Aeronautics Limited as Tier-1 suppliers.

  • Automotive and Metallurgy:

    • The company is a leading player in the Indian private sectors and the UK to manufacture Flight Critical Airframe Structures and High Precision Class 1 parts.

• Out of the total revenue, 39.52% of revenue have generated from Automotive and Metallurgy, 26.62% from Hydraulics, 33.44% from Aerospace & Defence, and 0.42% from others % in FY 2021, compared to 35.38%, 23.99%, 40.42% and 0.20% in FY 2020.

• Out of the total revenue, 39% of revenue have generated from Europe, 25% from India, 17% from the United States, 13% from the UK and 4% from Canada, and 1% from the Rest of the countries in FY 2021, compared to 35%, 27%, 14%, 17%, 6% and 1% in FY 2020.

Revenue Trend

Topline and Bottomline trend (lakhs)

Ratio Analysis