Consolidated Orderbook Currently At ₹2,332 Cr, Maintain Guidance: Astra Microwave | CNBC TV18

Summary

In this interview, Mr. Aim Kabra, Director of Business Development and Strategy at Astro Microwave Products, discusses the company's current and future performance. Despite a 15% correction in stock this year, the company is on track to meet its guidance, with a projected revenue of ₹1,200-1,300 crores for the next fiscal year. Mr. Kabra highlights the growing defense sector, particularly Europe's rearmament, presenting significant opportunities for Indian companies. However, he notes that Astro currently has limited exposure to European markets but is preparing for the potential growth in defense contracts due to shifting global trends.

Takeaways

• 😀 The stock of Astro Microwave has faced a correction, down approximately 15% this year.
• 😀 The company's order book forecast for FY25 is around 1,200 crores, and they are confident in meeting it.
• 😀 For FY26, the company's new order inflow is expected to be between 1,250 to 1,300 crores.
• 😀 Astro Microwave has a consolidated order book of 2,332 crores, with a standalone order book of 1,960 crores.
• 😀 The company anticipates a 25% top-line growth for the next year, based on their guidance.
• 😀 There is a substantial business flow expected in the coming years due to the rearmament of Europe, creating new opportunities for Indian defense companies.
• 😀 Astro Microwave is focused on actual orders on hand, and they do not base their guidance on potential contracts or speculative deals.
• 😀 While they have multiple ongoing projects and discussions, Astro Microwave has yet to confirm any significant new contracts from European countries.
• 😀 Supply chain resilience in tech-based warfare is a critical aspect, and Indian companies, including Astro, are positioning themselves to leverage this opportunity.
• 😀 Astro currently does not have significant exports to Europe, but they are exploring future opportunities related to the growing defense demands in the region.

Q & A

What is the current state of Astro Microwave's order inflow for FY25?

Astro Microwave is maintaining its guidance and has indicated that their order book forecasts have largely been translated into actual orders. They are on track to cross 1,000 crores for FY25.

What is the current order book value of Astro Microwave?

The consolidated order book of Astro Microwave is around 2,332 crores, while the standalone order book stands at 1,960 crores.

What is Astro Microwave's order inflow target for FY26?

For FY26, Astro Microwave expects a new order inflow of 1,200 to 1,300 crores, with a target growth of approximately 25% in the top line.

What is the expected revenue for Astro Microwave by the end of FY25?

Astro Microwave is expected to close FY25 with a revenue close to 1,000 crores, as per their guidance.

What is the projected revenue for Astro Microwave for FY26?

For FY26, the revenue is expected to range between 1,200 and 1,300 crores, based on the order inflows and existing orders.

What key factor does Astro Microwave anticipate for the second half of FY27?

Astro Microwave is preparing for the second half of FY27 when a significant portion of their order book will start translating into regular production orders.

Is Astro Microwave factoring in any large overseas contracts in their FY26 guidance?

Astro Microwave has not factored in any specific large overseas contracts in their FY26 guidance. Their revenue projections are based on actual orders on hand.

What is the trend in the defense industry that could impact Astro Microwave?

The major trend in the defense industry is the rearmament of Europe, which could lead to significant business opportunities for Indian companies, including Astro Microwave, in the coming years.

Is Astro Microwave currently exporting to Europe?

Currently, Astro Microwave is not exporting significantly to Europe. However, they have ongoing relationships with European companies for various projects in India.

What is the potential opportunity for Astro Microwave in Europe due to the rearmament trend?

The rearmament trend in Europe could present substantial opportunities for Indian companies, including Astro Microwave, as European companies will likely face supply chain constraints, creating room for Indian suppliers to step in.