- 27 May 2024
- ICICI Securities
STRONG PERFORMANCE LED BY EXECUTION OF HIGHER-MARGIN DOMESTIC CONTRACTS
ASTRAMICRO - 767 Change: 20.45 (2.74 %)News: Revenue increased by 37% YoY (+53.2% QoQ) to Rs 354.0 crore. EBITDA margin expanded substantially by 954 bps YoY to Rs 22.8%. However, the margin was down by 583 bps QoQ. Subsequently, EBITDA was up 135.5% YoY (+22% QoQ) to Rs 80.7 crore. PAT stood at Rs 54.4 crore (vs Rs 13.5 crore in Q4FY24). For FY24, revenue is up 11.4% YoY to Rs 908.8 crore with EBITDA margin at 21.1% (vs 18.1% in FY23).
Views: Operational performance has improved significantly on YoY basis, primarily led by execution of higher-margin domestic contracts. Order backlog stands healthy at Rs 1956 crores (2.1x FY24 revenues) as orders inflow remained strong at Rs 1516 crore during FY24 (vs Rs 116 crore inflow during FY23). Going ahead, operational performance is expected to improve further, led by changing contract mix (~88% of order backlog is domestic with higher value addition). Moreover, increasing usage of indigenised electronics in defence & space presents a huge order pipeline for the company. Management sees opportunity worth Rs 24000-25000 crore for the company over FY25-28E.
Impact: Positive