Astra Microwave Products (532493) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 began positively, with strong order inflows and a robust order book exceeding INR 2,099 crore as of June 2024, more than twice FY24 revenue.

• Defence contributed 65% of revenue, exports 21%, and space 11.5%, with the remainder from metrology and other sectors.

• Standalone and consolidated unaudited financial results for Q1 FY25 were approved by the Board on August 13, 2024, with no material misstatements identified.

• Strategic focus remains on high-margin, complex system projects, expanding IP-driven product offerings, and R&D investment.

• Participation in government MAKE-II programs and joint ventures, including with Rafael (Israel), support sectoral growth.

Financial highlights

• Standalone Q1 FY25 revenue grew 16% year-over-year to Rs. 15,394.88 lakhs, with net profit of Rs. 522.90 lakhs, reversing a loss last year.

• Consolidated Q1 FY25 revenue rose 11% year-over-year to Rs. 15,517.78 lakhs, with net profit of Rs. 720.43 lakhs.

• Gross margin improved to 41.8% in Q1 FY25, with EBITDA at INR 23 crore (15% margin) versus INR 5 crore (3.5% margin) last year.

• Q1 FY25 consolidated EBITDA margin was 21.1%, and PAT margin rose to 4.6% from -5.0% in Q1 FY24.

• Basic and diluted EPS for Q1 FY25: Standalone Rs. 0.55; Consolidated Rs. 0.76.

Outlook and guidance

• FY25 order intake guidance is INR 1,200–1,300 crore, with revenue expected at INR 1,000–1,100 crore and profit margins of 16–18% on a standalone basis.

• Organic growth guidance remains at 18–22%, with additional upside from the LEAP strategy and collaborative IP initiatives.

• Order book visibility supports revenue growth, with a target of 70% domestic and 30% export revenue mix in the next 2-3 years.

• Standalone order book as of June 30, 2024: Rs. 2,099.32 crores, including Rs. 121.67 crores in service orders; consolidated and JV order book: Rs. 2,364.59 crores.