Centum Electronics Ltd

Meeting Details

• Date: September 2, 2026.
• Event: Ashwamedh – Elara India Dialogue 2026.
• Type: One-to-One / Group.
• Location: Mumbai; Mode: Physical.

Participants

• Company management to participate (roles not specified).

Purpose

• Purpose: Investor/Analyst meeting for investor interaction.

Financial Performance

• Stand-alone revenue INR205 crores, up 11% YoY.
• Stand-alone EBITDA INR23 crores, margin 11.28%.
• Stand-alone PAT INR14 crores, margin 6.59%.
• Consolidated revenue INR204 crores, up 14% YoY.
• Consolidated EBITDA INR24 crores, margin 11.56%.
• Consolidated PAT INR106 crores, includes one-time deconsolidation gain.
• Continuing operations PAT INR11 crores.
• Stand-alone order book INR1,800 crores, up 31% YoY.
• Quarterly order inflow INR360 crores, up 70% YoY.
• BTS order inflow INR120 crores, up 150% YoY.
• Overseas subsidiaries deconsolidated effective 4 Jun 2026; wind-down ongoing.
• Advances outstanding INR210 crores; two-thirds from BTS.

Segment Update

• EMS revenue grew 20% YoY; EMS order book up 23% YoY.
• BTS order book growth ~40% YoY.
• BTS quarterly order inflow led by INR120 crores; 150% YoY growth.
• EMS ramp-up aided by semiconductor equipment customer; solid demand.

Balance Sheet and Cash Flow

• One-time deconsolidation gain improves reported consolidated PAT for the quarter.

Projects and Capex

• Land for new plant belongs to a group company; Centum invests nothing this year.
• Next year, shell ready; factory construction and MEP/HVAC to start thereafter.

Outlook and Guidance

• FY27 revenue growth guidance ~25%; visibility for FY28 as of now.
• Margins: last year ~12.5%; targeting above ~13%, stable or modestly higher next year.
• Export component expected to remain ~50%–55% of revenue, possibly higher.

Q&A Highlights

• BTS revenue growth likely to be healthy this year; quarterly variability remains.
• Semiconductor EMS revenue seen at USD 25–30 million in 1–2 years; 0 in FY25.
• EMS EBITDA margin guidance around 10%–11%; mix-dependent.
• Export BTS margins targeted around 20%+; not purely tender-based.
• SBS program expected to deliver strong order intake this year; related payload/ EW growth with repeat requirements.
• Direct engagements with armed forces progressing; discussions with PSUs/DRDO/ISRO ongoing.

ECMS approval and investment

• ECMS approval received on August 17, 2026 for Centum Electronics.
• Proposed investment of approximately Rs 106 crores over five years for Transducers and Filters.
• Aims to expand manufacturing capacity in the Transducers and Filters categories.

ESG rating update

• Crisil ESG Ratings assigned Centum a score of 60 (Adequate), up from 52.
• Rating was independently assigned; Centum did not engage Crisil ESG Ratings.
• Report prepared by Centum based on FY2026 disclosures and public information.
• Intimation made under SEBI Listing Regulations to exchanges.

Meeting Details

• Date and time: 14 August 2026 at 12:00 IST.
• Type and mode: group conference call (virtual).
• Event/organiser: conference call organized by Centum Electronics Limited.
• Key participants: Company Secretary & Compliance Officer.
• Purpose: audio recording of Analysts/Investors conference call.
• Recording availability: Audio recording uploaded on company website.

AGM details

• AGM held on 13 August 2026 at 10:30 AM via Video Conferencing.

Resolutions put to vote

• Resolution 1 (Ordinary): Adoption of standalone financial statements for year ended 31 Mar 2026.
• Resolution 2 (Ordinary): Adoption of consolidated financial statements for year ended 31 Mar 2026.
• Resolution 3 (Ordinary): Declaration of final dividend of Rs 5 per equity share.
• Resolution 4 (Ordinary): Re-appointment of Ms. Tanya Mallavarapu by rotation.
• Resolution 5 (Ordinary): Remuneration payable to Cost Auditors for 2026-27.

Voting results

• All resolutions passed with requisite majority; minor opposition observed across some items.

Dividend

• Final dividend of Rs 5 per equity share approved.

Director changes

• Ms. Tanya Mallavarapu re-appointed by rotation (retire by rotation).

Auditors

• Remuneration to Cost Auditors approved: Rs 1.5 lakh per annum plus taxes and out-of-pocket expenses.

Material related party transactions

• No material related party transactions approved.

Other material approvals

• No ESOPs or other significant actions reported.

Business overview

• Centum provides EMS and Build-To-Spec electronics for defence, aerospace, and mission-critical sectors.
• Two segments: BTS for defence/space; EMS for high-reliability manufacturing.
• Strong design engineering DNA enabling end-to-end product realization.
• Exports contribute about 53% of revenue.

Operational highlights

• Q1-FY27 standalone revenue INR 2,048 Mn; EBITDA INR 231 Mn.
• PAT standalone INR 135 Mn; margin 6.6%.
• Order book Standalone INR 17,972 Mn; up 31% YoY.
• BTS order book up 40% YoY; new complex test systems win.
• EMS revenue up 20% YoY; order book +23% YoY.
• New wins include complex test systems for aerospace and defence.

Financial performance

• Consolidated revenue INR 2,041 Mn; YoY growth 14.3%.
• Consolidated EBITDA INR 236 Mn; margin 11.56%.
• Consolidated PAT INR 1,055 Mn; margin 51.69%.
• Discontinued operations contributed PAT INR 943 Mn.
• Standalone EBITDA margin 11.28%; PAT margin 6.59%.
• Diluted EPS (Standalone) INR 9.17.

Strategic priorities & outlook

• Future Growth Outlook: profitable growth with a richer mix; exit from loss-making subsidiaries.
• Make in India push; AI-led manufacturing and Industry 4.0 initiatives.

Risks & mitigation

• Redressement Judiciaire wind-down for Centum T&S Group S.A.; multiple bids received.
• Transfer approved 4 June 2026; deconsolidation effective; liquidation started 2 July 2026.

Governance & leadership

• No significant governance changes reported in the quarter.
• Company Secretary & Compliance Officer: Indu H S.

AGM Details

• 13 August 2026, 10:30 AM to 11:45 AM (IST).
• VC/OAVM mode of meeting.
• 55 shareholders attended.
• Results to be announced within two working days.

Key Resolutions

• Adoption of standalone financial statements for year ended 31 March 2026; ordinary resolution passed.
• Adoption of consolidated financial statements for year ended 31 March 2026; ordinary resolution passed.
• Final dividend of Rs 5 per share approved.
• Re-appointment of director retiring by rotation approved.
• Remuneration payable to Cost Auditors for 2026-27 approved.

Director Changes

• Director Tanya Mallavarapu retires by rotation; re-appointment approved.

Auditor Appointments

• Cost Auditors remuneration for 2026-27 approved.

Deviation and utilisation summary

• Purpose: Statement of deviation/variation for QIP funds.
• Mode of fund raising: Qualified Institutional Placement (QIP).
• Date raised & amount: 13 March 2025; ₹2,100 million.
• Monitoring agency: Crisil Ratings Limited.
• Deviation/variation: No.
• Audit committee comments: Nil.
• Auditors' comments: Nil.
• Utilisation status: Partly utilised; partially used across three objects.
• Original allocations: Borrowings ₹1,149.92m; Capex ₹349.68m; General ₹507.20m.
• Funds utilised: ₹1,149.92m; ₹256.78m; ₹0.00m.