C2C ADVANCED SYSTEMS LTD. #C2C

One of the most action pack ipo that finally listed today.

Following are some of the highlights from management interview, investor Presentation & DRHP.

● COMBAT MANAGEMENT SYSTEM

Company Offers SixCI System

It Analyse data & Create scenario & able to give warfare picture. Driving Data from sensors ( Approx 20 Sensors ) in NAVY/ ARMY/ AIR DEFENCE.

5000 Cr CMS Market in India to be completed by 2030. ( 130 New Ships + 130 Legacy Ships to be digitized ). Global Market is 5x of India in this period.

Big players like BEL/TATA DEFENCE too use C2C product portfolio for completion of the project. 

First CMS order was from Malaysia - Delivered in 12-18 months.

Big benificiary of AtmaNirbhar Bharat movement in Defence industry. 

After Installation of CMS, company gets revenue from upgradation as well.

● Anti Drone Technology

Company is one of the first in Anti Drone tech in India

Their Counter UAV has both Hard & Soft kill switch. Other players have Jammers & don't have Hard/Soft kill options.

Company has tendered for major contract recently in Anti Drone ( Counter UAV ). It will be used in 200-300 Systems initially & has very big market in India.

Israel sell at about 1.5 - 2 Million USD - where as Company sell at much cheaper cost.

● Company also makes Integrated Bridge Systems, Warship Electronics chart display Systems, Integrated platform Management systems. - For Naval

Remote optical surveillance system. - For Army & AirForce   

● Employee Strength

Current count: 230
To reach around 300-325 by FY 25

● Financials

FY 24 Financials: 43 Cr topline/ 12.27 Cr PAT
H1 FY 25: 43 Cr topline/ 9.72 Cr PAT

● Orderbook
Current Orderbook: 65 Cr
Additional order booked in H1: 50 Cr 
L1 in many more orders 
Atleasy 6 Big contracts where company is sole bidder/ bidder with just one other player.

● Guidance

Company has plans to grow at about 200% CAGR. ( This looks tall task to be fair ) 
 
25-30% ROC Guidance.

FY 26 Guidance of 400 Cr topline.

Plans to have 50% revenue from Globally 

Company is raising 99 Cr for - Will be utilised in Expanding operations, opening new Experience centre in Dubai & Setting up new office in Bengaluru.

● Drawback

High Receivables of 74 Cr 

CFO is Negative: 

FY 24: Negative 35.22 Cr
H1 FY 25: Negative 27 Cr 

200% CAGR Growth target looks very tall task and also it will require Growth Capital ( & may be dilution as well ) - due to long working capital cycle.

Disc: Invested, Not a recommendation. Sharing Notes just for your study. DYODD
#C2C