DCX Systems On Track To Bag Bigger Orders Soon, Says Chairman Rao

DCX Systems Ltd. is expecting a robust order pipeline in the current fiscal, according to Chairman and Managing Director HS Raghavendra Rao, as the company is on track to secure bigger orders soon. The order book of the manufacturer of electronic sub-systems and cable harnesses currently stands at Rs 2,200 crore.

Without giving numbers, Rao told NDTV Profit that DCX Systems is in line to win much bigger orders.

“At present, the order book is about Rs 2,200 crore and it is quite good. We are expecting a very good order pipeline and we are working on it. Normally, in our company, Q2 is the season for getting orders. We are getting much bigger orders,” Rao said.

The current order book of Rs 2,200 crore will be executed in more than two years, he said. “Of the Rs 2,200 crore order book, L&T takes Rs 1,250 crore of it. We need to complete that within three years and the rest will be completed within one and a half years. Overall, we will complete all orders in 2–2.5 years.”

The two new orders that DCX Systems won recently, worth Rs 107 crore and Rs 187 crore, need to be completed within 12 months but the company wants to close them by the end of fiscal ending March 2025.

“The order we bagged recently of Rs 107 crore is a mix of domestic and international, which has to be completed within 12 months. We would like to close this order by this financial year and we will have more visibility once we speak to the suppliers," Rao said.

Earlier this week, the company had bagged an order of about Rs 187.3 crore from an international entity to supply electronic kits.

Rao said that it is completely an export order. "This also has a deadline of 12 months. We are confident that we will execute them as per the customer requirement,” he added.

DCX Systems is looking at a 40% increase in revenue from its cable and wire harness business, targeting to generate Rs 110 crore this fiscal. “Cable business is highly profitable but our revenue from it was very small. Last year, we did about Rs 50–60 crore and this year we want to achieve about Rs 110 crore. This is about a 40% increase in the cable and wire harness business,” he said.

“For PCBs, we are working with four international companies that have approved our facility. We are expecting a very good order pipeline from there shortly. All the approvals and commercials have closed,” Rao elaborated.

The orders with respect to cable and wire harnesses as well as printed circuit boards will boost the overall margins and net profit of the company.

“Our target is to improve margins and we are working on that. Revenue and PAT will also grow this year. The target to achieve double digits will be achieved soon and the team is working on it,” the top executive said.