In This Article:
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Revenue: INR 230 crores, a year-on-year growth of 21%.
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EBITDA Margin: Maintained at approximately 21%.
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Order Book: Consolidated level at INR 2,269 crores; stand-alone at INR 2,097 crores.
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New Orders in Q2 FY25: INR 230 crores, primarily from domestic defense and meteorology segments.
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Order Composition: 98% domestic orders, 2% export orders.
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Joint Venture Sales: ARC recorded INR 100 crores in sales for the quarter, INR 162 crores for the first half of the year.
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Joint Venture Order Book: INR 282 crores at the end of Q2, with expectations to book an additional INR 200 crores.
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Projected Annual Revenue: Targeting INR 1,000 crores to INR 1,100 crores for the fiscal year.
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Projected PBT Margin: 17% to 18% for the fiscal year.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Astra Microwave Products Ltd (BOM:532493) reported a year-on-year revenue growth of 21% for Q2 FY25, reaching INR 230 crores.
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The company maintained a healthy EBITDA margin of approximately 21%, attributed to a favorable product mix skewed towards domestic markets.
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Astra Microwave Products Ltd (BOM:532493) signed an MOU with Premier Explosives Limited and a JV agreement with Manjeera Digital Systems, expanding its strategic alliances and product offerings.
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The order book remains robust at INR 2,269 crores at the consolidated level, with significant contributions from domestic defense and meteorology segments.
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The company is optimistic about booking additional orders worth INR 550 crores to INR 600 crores in the second half of FY25, indicating strong future growth prospects.
Negative Points
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The company's receivables have increased significantly, attributed to two major systems-related projects, which may impact cash flow until resolved.
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There is a delay in the completion of certain projects, such as the Manpack SDR, which may affect the timeline for revenue realization.
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The geopolitical situation has caused a slight dip in revenue for the joint venture ARC, although the company remains confident in meeting annual targets.
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The inventory levels have risen substantially, with 50% in work-in-progress, which could affect financial efficiency if not converted to sales promptly.
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The export guidance of 22% to 23% for FY25 may be challenging to achieve, as most exports are currently deemed exports to domestic EOUs.
Q & A Highlights
Q: Can you provide details on the MOU with Premier Explosives and the JV with Manjeera, and what opportunities do you see in anti-drone systems? A: The MOU with Premier Explosives is aimed at integrating explosives into our defense systems, such as guided rockets and anti-drone systems. The JV with Manjeera focuses on NavIC chips, which have massive potential in both military and civilian applications. Our anti-drone systems are differentiated by indigenous technology and cost optimization, with active tenders and upcoming demonstrations.