Dynamatic Technologies Limited designs and builds highly engineered products for the Automotive, Aeronautic and Hydraulic industries with manufacturing facilities located in Europe and India . The company’s facilities are located in India (Bangalore, Chennai, Coimbatore), United Kingdom (Swindon, Bristol) and Germany (Schwarzenberg) delivering complex technological solutions at economically viable price levels.
Dynamatic Technologies has three design laboratories in India and Europe and it employs around 60 scientists and 600 expert engineers worldwide . It is the first Indian company to establish a global manufacturing supply chain for leading international aerospace companies and a pioneer in the private sector for the manufacture of complex aero structures . It is the single source manufacturer of Flap Tack Beam assemblies for Airbus single aisle aircraft and the Airbus wide bodied aircraft . Flap Tack Beam is the flap on the wings instrumental in controlling the speed , direction and balance of the aircraft moving along high tech guide rails . Dynamatic manufactures complex parts in facilities in the UK and subsequently completes the final assembly in India providing Airbus with global best value aero structures . The company is also Boeing’s sole global supplier of Power and Mission Cabinets for its P8 Poseidon Maritime reconnaissance aircraft . It also manufactures the Aft Pylon assembly and Cargo Ramp assembly for the Boeing Chinook Helicopter at its facility in Bengaluru. Dynamatic Technologies has also been awarded a contract for the manufacture and supply of assembly for Boeing’s tactical fighter , F15 EX Eagle II.
These aerostructure assemblies are manufactured in Bengaluru giving a tremendous boost to the Atmanirbhar Bharat programme of the government of India and also testimony to the world class capability of Dynamatic Technologies.
It is also a manufacturer partner with Bell Textron Inc. as well as with Dassault Rafale under the Make in India initiative .
Dynamatic has a long standing work share partnership with Hindustan Aeronautics Ltd on the Sukhoi 30MKI , India’s largest Aerospace Defence Program at Nashik along with being a Front Fuselage assembly supplier for the Tejas Light Combat Aircraft . Dynamatic posted reasonable Q1FY24 financial highlights with overall revenue increasing by 16.6% on a yoy basis despite continued supply chain disruptions and non availability of certain input raw materials . The Hydraulic segment revenue increased by 4.6% , the Aerospace segment revenue went up by 7.6% while the Metallurgy division shot up by 37% for Q1FY24 . Profit after Tax was Rs 41.4 crores as against Rs 8.2 crores for the same quarter of the last fiscal .
The company had shifted its Aerospace manufacturing facility from a 40 year old location to a new state of art facility located next to the Bengaluru International Airport . Delay in getting customer qualification for the new facility has impacted both revenue and profit margin during Q1FY24 . The future outlook of the aerospace division of the company is extremely bright with commercial and spare part deliveries expected to start in the next few quarters . A strong order book from major aircraft producers should drive the demand for both commercial and defence segments . The company is focusing on increasing the market share of the Hydraulics division and improving efficiencies and developing new products . Dynamatic is planning to focus on high margin product mix in the Metallurgy segment . It has undertaken a significant task to build an organisation for the future and is implementing a transition plan to diversify . The Dynamatic Technologies stock currently quoting at Rs 3900 can be purchased by portfolio investors for an expected 20% price appreciation over the next 3-4 quarters on the back of receipt of customer qualifications for its new facility at Bengaluru and improvement in the supply chain situation. The writer has taken due care in researching the company but errors could have crept in and hence investors could take their own due diligence and advice before
buying the stock