Centum Electronics Limited — PPTs, 23-05-2025: Investor Presentation

1. Financial Highlights:

Centum Electronics reported standalone Q4 revenue of INR 2695 Mn, up ~60% YoY and ~49% QoQ, with EBITDA margin rising to 17.37%. Net profit doubled to INR 296 Mn, lifting margin to 11%. FY25 standalone revenue grew 18.5% to INR 7,498 Mn; EBITDA margin improved 116 bps to 13.6%, and PAT jumped 45.5% to INR 528 Mn. Consolidated Q4 revenue increased 24% YoY to INR 3,687 Mn with EBITDA margin at 11.31% and profit of INR 215 Mn. FY25 consolidated revenue rose 6% to INR 11,554 Mn, EBITDA margin at 8.37%, though PAT was slightly negative at INR (19) Mn due to subsidiary challenges. Working capital days increased reflecting higher billing. A INR 210 Cr QIP strengthened the balance sheet, aiding debt reduction and capex.

2. Strategic Initiatives & Growth Drivers:

Growth was powered by high-margin Build-to-Spec (BTS) projects targeting domestic Defence and Space, pushing standalone order book 19% higher to INR 13,297 Mn. The EMS segment progressed by moving new clients into qualification phases for FY26 expansion. Cost optimization and a strategic shift of European engineering services toward Defence & Aerospace aim to boost margins. Recent capital raise supports ongoing technology and capacity investments.

3. Business Developments:

Focus remains on scaling BTS contracts in Defence and Space and qualifying EMS clients to drive revenue. European subsidiaries are undergoing disciplined cost control to reduce losses, particularly in Canada. No acquisitions announced.

4. Market Position & Competitive Advantage:

Centum serves as a single-source supplier for ~80% of its output, supported by 600+ suppliers and designers. With 75% revenue from advanced economies and over 30 years of experience, it operates in high-entry-barrier sectors—Defence, Space, Aerospace, and Industrial—leveraging strong design-to-delivery capabilities and marquee clients to maintain a defensible competitive edge.

5. Investor Implications:

Strong earnings and order book growth show positive growth potential, led by margin-accretive BTS Defence & Space verticals. Investors should monitor margin sustainability, working capital trends, and execution risks from European restructuring and subsidiary challenges. A bolstered balance sheet and recent capital raise provide flexibility to fund growth and innovation, positioning Centum attractively for retail investors focused on India’s high-tech manufacturing segment.