Astra Microwave Products : Investor & Analyst Meet Transcript Q3 FY23

"Astra Microwave Products Limited Q3 FY23 Earnings

Conference Call"

February 10, 2023

Disclaimer: E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on 10th February 2023 will prevail

MANAGEMENT: MR. S.G. REDDY - MANAGING DIRECTOR, ASTRA

MICROWAVE PRODUCTS LIMITED

MR. M.V. REDDY- JOINT MANAGING DIRECTOR,

ASTRA MICROWAVE PRODUCTS LIMITED

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Astra Microwave Products Limited

February 10, 2023

MR. ATIM KABRA - DIRECTOR (STRATEGY &

BUSINESS DEVELOPMENT), ASTRA MICROWAVE

PRODUCTS LIMITED

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	Astra Microwave Products Limited
	February 10, 2023
Moderator:	Ladies and gentlemen, good day, and welcome to the Astra Microwave Products Limited Q3 FY
	'23 Earnings Conference Call.
	This conference call may contain forward-looking statements about the Company, which are
	based on the beliefs, opinions and expectations of the company as on the date of this call. These
	statements are not the guarantees of future performance and involve risks and uncertainties that
	are difficult to predict.
	As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity
	for you to ask questions after the presentation concludes. Should you need assistance during the
	conference call, please signal an operator by pressing '*' then '0' on your touchtone phone.
	Please note that this conference is being recorded.
	I now hand the conference over to Mr. S. G. Reddy - Managing Director. Thank you, and over
	to you, sir.
S. G. Reddy:	Thank you, Vikram, and good afternoon to everyone. A warm welcome to all the participants to
	the fourth earnings call of our Company.
	I am with my colleague, Mr. M.V. Reddy - Joint Managing Director; and Mr. Atim Kabra -
	Director (Strategy & Business Development); and SGA, our Investor Relations advisers.
	The results and Investor Presentation for the 3rd Quarter ended are uploaded on our website and
	the stock exchanges. I hope you have an opportunity to look at it.
	I am happy to inform you that we have reported another quarter of stellar performance and
	recorded our highest ever quarterly profitability. We achieved a record EBITDA and PAT of
	453 crores and 30 crores, respectively, for the quarter ended December. For 9 months period,
	we have delivered 86 crores of PBT, which is our guidance for the entire year.
	This quarter is a good quarter, not only in terms of sales and profitability, but also in terms of
	products delivered by the company. We have delivered the following systems to our customers
	during the quarter. Radiation mode test and evaluation facility, 7.3-meter antenna system for
	ITR, ST Radar for Calcutta University and PATM 2 for ITR.
	We expect to deliver about 270 crores of sales during quarter four and reach an overall top line
	of about 825 crores. Bottom line at the PBT level will be about 110 crores. We expect to end the
	year with an open order book of about 1,750 crores. For the next financial year, we are confident
	to book about 900 plus crores orders and deliver top line of about 950 crores and the bottom line
	at PBT level of about 135 crores.
	Long-term view for the next 5 years ending 2028, we are confident to deliver accumulative top
	line of about 8,000 crores and carry over order book of 6,000 crores at the end of 2028. During
	these years, we are confident to deliver bottom line at PBT level of 15% to 18% of revenue.

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	Astra Microwave Products Limited
	February 10, 2023
	Before I open this discussion for question and answers, I introduce my new colleague, Mr. Atim
	Kabra, who joined our Board as a whole-time director taking off looking after business and
	strategy development from 1st January 2023. Atim, I warmly welcome you.
Atim Kabra:	Thank you, S. G. And hello, everybody. As a fellow shareholder in my mind, I represent all
	shareholders. And I am very excited by what I see in potential business at Astra. My desire is
	that we delight Astra with radars, that we know that our company is a key enabler in electronic
	warfare, and a key enabler of missile subsystems.
	We know Astra as being a key player in satellite space. And lastly, its products in meteorology
	and weather segments are important for the nation. We are looking at a significant growth phase
	for the company, which has delivered a very healthy return to its shareholders with a 5, and we
	are looking at a 5-year cumulative sales execution for cost of close to $1 billion in gross sales.
	To put it in perspective, that's nearly 10 times our current sales trajectory cumulatively. And we
	hope to grow our order book alongside to a very, very healthy number at the closing of year 5.
	Even better is that we expect this rear-ended sales growth to be with improving margins and
	rising return ratios.
	Kudos to our R&D team, which is developing multiple exciting products under the leadership
	of our Founder, Director, Mr. Chitrakar. And as Astra continues to go up the value chain, we are
	right up there in systems and solutions already.
	We are proud to be a part of Aatma Nirbhar Bharat. While we continue to work with our valued
	partners from overseas and progress in our ARC JV with Rafael, Israel is a proof of this besides
	our esteemed export partners. That's our vision. That's our very simple story. And we will explain
	as we go along in the question-and-answer session. S.G., M.V.?
S. G. Reddy:	Yes. Now this forum is open for question and answer.
Moderator:	Ladies and gentlemen, we will now begin the question-and-answer session. We have our first
	question from the line of Hitanshu Bhatia from Gandhi Securities. Please go ahead.
Hitanshu Bhatia:	Congratulations on a great set of numbers Sir, I have two questions. One is on the 31st page of
	the investor presentation, you mentioned NavIC and GPS receivers. So, could you throw some
	more light on the prospects of it?
	And the second would be that we have bid for the tender alongside some private players like
	Alpha Design, Elena Geosystems and also Manjeera Digital Systems. So, what was the outcome
	of that tender with regards to the NavIC and GPS I am talking about? Has it been awarded to
	us?
	And I mean also, I believe we have a customer relationship with the company Manjeera Digital
	Systems. So, could you also elaborate on our relationship with Manjeera as well?

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