Defence company Astra Microwave Products announced Q1FY24 results:
- The Revenue stood at Rs 132.9 crore for Q1FY24 as against Rs 161.2 crore for Q1FY23
- Gross margins were down to 27.5% for Q1FY24 as against 35.1% in Q1FY23; the decline in gross margins is mainly due to higher contributions from the exports business
- EBIDTA was Rs 4.6 crore for Q1FY24 in contrast to the EBIDTA of Rs 24.9 crore in Q1FY23
- Geographical spread of total revenue for Q1FY24 stands as follows: India – 40% and Exports – 60% which was completely the other way around in FY23, i.e., India - 60% and Exports - 40%
- Order book of Rs 1,580 crore as on June 30, 2023, which is executable in the next 12 to 36 months period
- Orders booked during Q1FY24 are worth Rs 191 crore
Commenting on the performance S G Reddy, Managing Director, Astra Microwave Products said,
"The quarter gone by was a relatively soft quarter, topline performance was close to the guidance given during the last quarter. The decline in the bottom line was mainly due to higher export sales (about 60%) which is high volume and low margin, coupled with this even the domestic business carried out during the quarter has a lower margin as compared with general margins earned by the company.
Additionally, interest provision on customer advances has contributed to more than Rs 3 crore which is not the actual cost and will get adjusted as the company delivers goods to the customer.
Having said that this soft performance does not give a complete picture of where we stand as a company. The road ahead is promising as we continue to have a robust order book of Rs 1,580 crore, which is almost double FY23 Revenue. This orderbook consists of 19% of export orders and the rest 81% are domestic. This order book is a good representation of our long-term prospects. Despite low performance during Q1, we continue to maintain our earlier given year-end guidance of Rs 900 crore of sales and profit before tax(PBT) of Rs 140 crore to Rs 150 crore. Major domestic orders are expected to get executed in the coming quarters specially in Q3 and Q4 which will help us to achieve the year-end targets mentioned above."