Is this India’s bet on defense?
A niche play of capital goods + defense + Railways
An electronics and designing and manufacturing company all set to ride the wave of the India’s growth story and be a part of it, being founded in 1993 caters special sectors such as Defense, Space, Aerospace,
Industrial, Transportation and Medical sectors.
Global scenario
The global electrical and electronic market is estimated to be US$3.7 Trillion in 2023. According to Economic survey 2023, the Indian electronics industry was valued at US$118 billion as of FY20. India aims to reach US$300 billion worth of electronics manufacturing and US$120 billion in exports by FY26.3
The major drivers of growth of the electronics industry are mobile phones, consumer electronics, and industrial electronics. The share of Indian Electronics production accounts for ~3% of the global production. Further, the domestic demand for electronic products is catered by significant imports account for more than 40% of domestic demand. Several macro trends indicate very positive outlook for the Indian Electronics industry.
Company working – centum electronics
IT’s major business comes from USA, CANADA, UK, BELGIUM, FRANCE, INDIA
Engineering Services involve conceptualizing, designing and certifying of Electronic Hardware,
Embedded Software, FPGA, Analog, Radio Frequency products, Power Electronics, etc.
Centum Group has a global design strength of over 650 design engineers and for the last 25 years,
the company has been helping customers turn their ideas into products.
The company’s design centers are located in Europe, North America and India, which enable the company
to work closely with international customers while bringing together the best talent from around the
world to work on complex problems and provide a competitive solution by managing the optimal onshore/ offshore mix for the projects.
The company’s EMS Services include manufacturing solutions focused on a High reliability, High Complexity products in the high technology segment
Offers a wide range of manufacturing solutions from Printed Circuit Board assemblies
to Complex box builds, Line Replaceable Units (LRU) and full system integration
By providing scalable manufacturing solutions and a flexible, proactive approach to managing the
supply chain and lifecycle related challenges, Centum helps customers
achieve their goals of lower Total Cost of Ownership and reduced time to-market among others.
The Built to Specification services include taking a project from conceptualization to mass production quickly and efficiently.
Financial condition :
1.Share capital- The share capital of the Company stands at 129 million.
2. Borrowings- The Loans have been reduced by 98 million from H 2,726
millions
3. Fixed Assets- The Capital expenditure in relation to Property, Plant &
Equipment for 2022-23 is 122 million.
4. Working Capital- Inventories has increased by 363 million from 2,248 million to 2,611 million.
Receivables have increased by1,329 million from 2,499 million as on March 31, 2022 to 3,828 million.
Current liabilities have increased by1,649 million from 5,792 million as on March 31, 2022 to 7,441 million.
At standalone level, total income was 5,052 million compared to previous financial year total income of 3,538 million. Further, your Company has earned a net profit before tax of 264 million.
Strong Order book growth continues and stands at INR. 15,380 million on 31st Mar 23 as compared to
INR 14,400 million end of Q3 and INR 10900 million end of FY22 largely driven by new business from new
and existing customers in EMS.
space and defense sector
- The Aerospace industry has several ongoing technological initiatives to make aircrafts more fuel-efficient, environmentally friendly and safer, which involves incorporating more electronics on board, making avionics platforms more configurable,
and of course factoring in environmental issues and reducing human error to improve safety. - Alongside products for command & control, power electronics and energy storage applications, Centum is also developing activities in ground and flight testing — using its own test benches and simulators.
- Centum plays a key role in the global aerospace supply chain delivering critical electronics for cockpit computers, Air Traffic Management and also works closely with OEMs to design next-generation flight controls, Power solutions among various other technologies.
- Space technology is progressing at a rapid pace driven by commercial applications such as satellite broadcasting,
communication, Earth observation, geo-location, and global navigation equipment and services. - Centum has established a credible track record since 2002 in this segment delivering complex products that address applications in launch vehicles, satellite payloads, satellite bus systems as well as ground equipment.
- The company is also a leading electronics industry partner and one of the largest private contractors for ISRO, involved in its various stages of design, development, qualification and production of electronic modules, subsystems and systems for
multiple applications in satellites and launch vehicles. Keeping in mind the growing number of missions of ISRO. - Centum has made significant investments to ensure that they can deliver products with the right quality, technology and in required quantities to be a trusted partner. It has delivered mission-critical electronics on almost all satellite programs of ISRO
including the ambitious Chandrayaan and Mangalyaan projects, and also delivered 300 to 500 components for almost every Indian space mission. - Defence it is today the largest industry vertical for the company. Over the years the company has been successful in developing and manufacturing critical systems for major Defense programs that span across the land, air and naval systems with applications in Missiles, Electronic Warfare, Radar, Military Communications, and
fire control amongst many. - For the past two decades, Centum has also been engaged in the development and manufacture of modules, subsystems for missiles, radars and military electronic warfare communication applications for DRDO laboratories, Ordnance Factories and other domestic defence PSUs, and over the past decade, Centum has become one of the select few Indian partners to international defence OEMs as well.
OUR OUTLOOK
The company has strong management and background with ground breaking research and development and that too brining in the market and serving for long run as this is very well poised for growth in coming years.
