Astra Microwave Products Limited — Q4 FY26

Astra Microwave Products Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=znObycuXW7g Published: 3 weeks ago

0:00 Ladies and gentlemen, good day and welcome to the Astra Microwave Products Limited Q4 FY26 earnings conference 0:09 9 seconds call. This conference call may contain forward-looking statements about the company which are based on the beliefs, 0:16 16 seconds opinions, and expectations of the company as on date of this call. These statements do not guarantee the future 0:23 23 seconds performance of the company and it may involve risks and uncertaintities that are difficult to predict. 0:30 30 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:38 38 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:44 44 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. SG Ready, managing director. 0:55 55 seconds Thank you and over to you, sir. 0:59 59 seconds Thank you and good morning to everyone and a warm welcome to all the participants for the 1:07 1 minute, 7 seconds postal of our company. I'm joined today by my colleagues uh Mr. Miri and Akin 1:14 1 minute, 14 seconds Kavra and AGA our investor relations advisors. 1:20 1 minute, 20 seconds The financial results and investors presentation for Q4 and FI26 have already been uploaded on the company's 1:26 1 minute, 26 seconds website and the stock exchanges. I hope you had an opportunity to review them. 1:34 1 minute, 34 seconds Let me begin with an overview of the industry outlook. The environment for the defense industry continues to remain highly supportive for the domestic players. 1:44 1 minute, 44 seconds The government's strong focus on indigenization is creating significant opportunities for private sector participation 1:51 1 minute, 51 seconds with nearly 75% of India's defense capital acquisition budget now allocated towards domestic companies. 2:01 2 minutes, 1 second The long-term defense manufacturing cycle also remains robust supported by accelerating government procurement momentum and increasing localization across critical defense programs. 2:13 2 minutes, 13 seconds Indigenization is creating a structural opportunity for Indian companies particularly in defense electronics, 2:20 2 minutes, 20 seconds drones and aerospace which continues to be among the fastest growing segments within the industry. 2:27 2 minutes, 27 seconds India's defense exports have also gained strong momentum exceeding approximately 38,000 crores in FI26 2:36 2 minutes, 36 seconds and continuing to grow steadily. At the same time, global supply chain diversification and raising defense spending across 2:44 2 minutes, 44 seconds various regions are generating additional opportunities for Indian defense electronics and subsystem manufacturers like Astro. 2:53 2 minutes, 53 seconds Order book across the industry remains at historical high levels providing strong long-term visibility. We expect 3:00 3 minutes FI27 and FI28 to witness stronger execution and improved revenue conversion across the sector. 3:11 3 minutes, 11 seconds Overall, the defense sector is steadily transitioning into a sustained execution and manufacturing scale of storage. 3:20 3 minutes, 20 seconds We believe the company is well positioned to benefit from these industry trends. To sum up, FI26 has 3:27 3 minutes, 27 seconds been a year of study, delivery, strong execution, and important strategic initiatives aimed at building long-term growth for the company. 3:37 3 minutes, 37 seconds Some of the financial performance highlights for the year. I would like to announce here. So FI26 has been another strong year for the company 3:46 3 minutes, 46 seconds characterized by consistent growth, effective execution, margin expansion driven by favorable revenue mix and 3:54 3 minutes, 54 seconds improved working capital cycle resulting in operating cash flow of 370 crores 4:02 4 minutes, 2 seconds compared to - 99 crores of as of last year. This is a very significant improvement and we expect to maintain 4:09 4 minutes, 9 seconds the trend on a both standalone and consolidated basis. We have delivered strong growth across all key financial parameters. 4:18 4 minutes, 18 seconds Detailed information including growth percentages and uh few on few or yearon-year comparisons have already 4:26 4 minutes, 26 seconds been shared through our stock exchange filings and investor presentation and I request you to kindly refer to these documents for more information. 4:36 4 minutes, 36 seconds The board has recommended a dividend of rupees 2.40 40 rupees per equity share that is about 120% of face value for the 4:45 4 minutes, 45 seconds year 2526 subject to approval of shareholders at the ensuring annual general meeting 4:52 4 minutes, 52 seconds we also witnessed steady progress in our joint venture company Aster Rafel consists the JV closed the financial year of 26 5:01 5 minutes, 1 second with an order book of about 625 cr and continue to receive significant orders from PSUs and the ministry of defense 5:10 5 minutes, 10 seconds It is expected to deliver a top line of over 600 crores in FI27. 5:16 5 minutes, 16 seconds Although the profitability during the year was impacted due to forex related provisions, we expect improved profitability in the coming year. 5:25 5 minutes, 25 seconds Our other one subsidies have also performed well while continuing to support captive business requirements. 5:34 5 minutes, 34 seconds Further, we continue to see robust opportunities across all three product segments in the defense market and 5:41 5 minutes, 41 seconds therefore reaffirm our FI27 topline growth at 15 to 20% uh rate with the 5:49 5 minutes, 49 seconds potential for much stronger growth over the coming years. 5:54 5 minutes, 54 seconds We continue to proactively invest in the development of products and solutions for various defense applications which is reflected in our increased R&D 6:03 6 minutes, 3 seconds expenditure on year-on-year basis. These investments are expected to translate into significant business opportunities 6:11 6 minutes, 11 seconds over the medium to long term and help us to achieve important milestones in revenue and profitability as we move 6:18 6 minutes, 18 seconds forward. Other key business development happened during the year. On a strategic front, the board of directors have in 6:26 6 minutes, 26 seconds principle approved de merger of our space metrology and hydraology business. 6:31 6 minutes, 31 seconds The object of this move is to create sharper strategic and operational focus for business segments. 6:39 6 minutes, 39 seconds The proposed structure will enable dedicated management teams to pursue sector specific growth opportunities, enhance governance and accountability, 6:48 6 minutes, 48 seconds simplify the corporate structure and create clearer investments requisitions to the shareholders. 6:55 6 minutes, 55 seconds Furthermore, this restructuring will position us to capitalize on emerging opportunities both in India and globally 7:02 7 minutes, 2 seconds over the medium to long term. We believe this initiative will support focused growth, better capital allocation and improved operational efficiency. 7:12 7 minutes, 12 seconds We'll share the detailed scheme of demar once it is formally approved by board which is expected over the next few 7:18 7 minutes, 18 seconds weeks. I will now hand over to call to Mr. Ready and I think Kabra who will 7:25 7 minutes, 25 seconds provide more further insights into the new product developments business outlook across near and long-term and 7:33 7 minutes, 33 seconds the strategies being adopted to take the company to its next phase of growth. Thank you for now. 7:41 7 minutes, 41 seconds [clears throat] 7:42 7 minutes, 42 seconds Good morning everyone. Uh this is Miri joint managing director and thank you for uh joining us today. I'm pleased to 7:52 7 minutes, 52 seconds share that April 26 has been another strong year for our company. As mentioned, we achieved turnover of 1,157 8:00 8 minutes crores delivering a part with the guidance in the given in the beginning of the year. That shows the the strength of the technology portfolio and execution capabilities. 8:10 8 minutes, 10 seconds Our radar business continued to be a primary uh growth driver contributing nearly 60% of our revenue while space 8:19 8 minutes, 19 seconds and metrology segment contributed around 16%. Demonstrating our expanding footprint in strategic and high technology domains. 8:28 8 minutes, 28 seconds In Q4 alone, we secured fresh orders worth of approximately 530 crores, taking our total order book to robust 8:35 8 minutes, 35 seconds 2141 crores as on 31st March and concluded PNC of 300 crores more orders 8:42 8 minutes, 42 seconds which are expected to be uh received in next couple of months. 8:47 8 minutes, 47 seconds key orders received in the during the quarter uh which is in Q4 including SBR programs subsystems of various data 8:54 8 minutes, 54 seconds projects from BEL and the check out hardware for prestigious Ghanaian mission from ISRO 9:02 9 minutes, 2 seconds I'm also proud to share that we have successfully completed all our related uh works in shone radar uh which we took 9:09 9 minutes, 9 seconds about couple of years back and handed over the systems to DRO for final testing. 9:14 9 minutes, 14 seconds This marks the successful delivery of one of the nation's most strategic and technologically advanced defense program during this financial year. Further 9:23 9 minutes, 23 seconds reinforcing our capabilities in complex mission critical systems. 9:28 9 minutes, 28 seconds Additionally, we have successfully delivered critical subsystems for one of the nation unique and strategic defense space program showcasing our growing 9:37 9 minutes, 37 seconds technological strength and contribution towards the Indian strategic space capabilities. 9:42 9 minutes, 42 seconds We also continue to strengthen our future growth pipeline through proprietary products particularly in MMIC technologies. 9:50 9 minutes, 50 seconds On the execution front, we have achieved a Q4 billing of 490 crores reflecting strong 16% year-on-year growth. Major 9:59 9 minutes, 59 seconds programs executed during the quarter included subsystems of radar, EW and satellite programs and Doppler weather radar for IMD. 10:08 10 minutes, 8 seconds Going forward uh we have a clear visibility of approximately 1,600 course plus uh orders uh which can be booked in 10:15 10 minutes, 15 seconds the current year that is FI27 around 25% of this expected to come from R&D programs while balance are basically 10:24 10 minutes, 24 seconds driven by the production orders. Segment wise uh radar is again rad segment is expected to contribute around 45% 10:33 10 minutes, 33 seconds electronic warfare and missile uh put together around 25% space and methology is around 25%. 10:40 10 minutes, 40 seconds And the remaining other strategic business areas. 10:44 10 minutes, 44 seconds So this provides us a strong confidence in sustaining our growth momentum and improving scale in the coming years. 10:51 10 minutes, 51 seconds Regarding execution front, we have planned to book sales of 1300 to 1400 crores that is around 15 to 20% growth 10:59 10 minutes, 59 seconds as compared to FI26 covering 40% of R&D and 60% from the production area. 11:06 11 minutes, 6 seconds As far as JVC concerned, uh it was a fabulous year for ARC. 11:11 11 minutes, 11 seconds It surpassed the guidance. uh we booked orders worth of 5446 crores in the last year that is FI26 and sales of 360 11:20 11 minutes, 20 seconds crores going forward in FI27 we expect AR to outperform and we expect the 11:29 11 minutes, 29 seconds minimum growth of 50% both in terms of order booking and as well as sales as and yet we have visibility of 1200 11:36 11 minutes, 36 seconds crores order book in FI27 for ARC and also expected to cross 600 crores 11:43 11 minutes, 43 seconds uh says looking ahead uh the outlook in Indian defense and strategic electronic sector 11:50 11 minutes, 50 seconds remains highly promising with the government strong push towards indigenous defense manufacturing and self-reliance. We are confident that 11:58 11 minutes, 58 seconds company is well positioned to sustain its growth trajectory and create long-term value for the stakeholders. 12:04 12 minutes, 4 seconds That's all from my side. I would be happy to answer your questions. Now I'll hand over to Mr. Atin Kobra is director uh business development strategy over to you. 12:15 12 minutes, 15 seconds Hi good morning everybody and uh first and foremost my gratitude to SGR MVR and 12:24 12 minutes, 24 seconds the entire Astra team for delivering a strong set of numbers. 12:29 12 minutes, 29 seconds Performance is never accidental. It is an outcome of discipline, persistence and clarity of purpose. And I think that 12:38 12 minutes, 38 seconds is what is visible here. At ASA, we have always believed in a simple maxim. Speak less, think long term, and deliver on 12:47 12 minutes, 47 seconds what we promise. We are trying every single day to live up to that philosophy. 12:53 12 minutes, 53 seconds There are two other principles which guide us deeply. The first, the only constant in life is change. in 13:03 13 minutes, 3 seconds technology and defense. Standing still is equivalent to moving backwards. You 13:10 13 minutes, 10 seconds have to keep running simply to retain your position. 13:14 13 minutes, 14 seconds The second principle comes from Andy Grove uh Intel. Only the paranoid survives and we take that quite 13:22 13 minutes, 22 seconds seriously. Healthy paranoia keeps organizations humble, agile and hungry. 13:30 13 minutes, 30 seconds It prevents complacency and it forces reinvention. And these principles combined with our long-term orientation define Astra's strategic DNA. 13:43 13 minutes, 43 seconds Over the last few years, we have consistently spoken about three priorities. 13:49 13 minutes, 49 seconds Enhancement of or enhancement on our return on equity. 13:55 13 minutes, 55 seconds Second, relentless focus on achieving a positive operating cash flow generation. 14:00 14 minutes capability and third creation of operating leverage and I'm happy to say that our SAR team has delivered 14:08 14 minutes, 8 seconds meaningfully on all three fronts and we think this is only the beginning of good 14:15 14 minutes, 15 seconds things as operating leverage kicks in increasingly we believe that Astro story 14:22 14 minutes, 22 seconds will become significantly stronger over the next five years which is outlook which we had presented to 14:30 14 minutes, 30 seconds uh last quarter whether it takes 5 years, 4 and 1/2 or 5 and 1/2 years is less important than the direction of 14:37 14 minutes, 37 seconds travel. Our trajectory is clear and our intent unwavering. 14:43 14 minutes, 43 seconds We believe that Astra is structurally positioned to nearly triple its turnover over this period while simultaneously 14:52 14 minutes, 52 seconds improving the quality of earnings, cash generation and long-term shareholder value creation. 15:00 15 minutes Importantly, I think uh we've discussed this multiple times that we that we do not run this company for quarterly 15:06 15 minutes, 6 seconds applause. Quarterly numbers are outcomes but not our identity. Because we see ourselves as custodians of long-term 15:16 15 minutes, 16 seconds interests of more than 100,000 shareholders who have placed their trust in us with our objective being to build 15:23 15 minutes, 23 seconds a sustainable technologically relevant cash flow focused enterprise that can compound value predictably over decades. 15:33 15 minutes, 33 seconds So today while we are on track on these parameters I also want to redefine how Astra should be viewed. 15:44 15 minutes, 44 seconds Surprisingly our website still describes us as a tier 2 subsystem supplier but I'm glad to 15:53 15 minutes, 53 seconds tell you that that description is now outdated. 15:58 15 minutes, 58 seconds We have in reality evolved from a component manufacturer to a deeply 16:05 16 minutes, 5 seconds integrated IPdriven systems manufacturer to now becoming a development come 16:12 16 minutes, 12 seconds production partner for strategic national programs. I'll repeat, we are now a deeply integrated IPdriven systems 16:21 16 minutes, 21 seconds manufacturer and a DCPP for a critical national program. And beyond that lies what I 16:31 16 minutes, 31 seconds would call the holy grail where Astraowned intellectual property, Astra branded products and Astralled solutions 16:39 16 minutes, 39 seconds for India and the global markets are going to be created and sold. And that future I'm glad to say is visible now. 16:48 16 minutes, 48 seconds This financial itself year itself hopefully before Diwali you will have multiple Astra products which are where 16:56 16 minutes, 56 seconds we own the complete IP. They are our branded products and solutions for global markets. India first global markets. 17:06 17 minutes, 6 seconds So our roots as many of you know were in telecom especially antenna design and manufacturing and because of the 17:14 17 minutes, 14 seconds heritage and technical depth of our founders we gradually became trusted partners to India's defense labs over 17:22 17 minutes, 22 seconds three decades we built extraordinary horizontally technological depth across multiple domains. 17:31 17 minutes, 31 seconds In fact, one of our ongoing internal exercises is to catalog the sheer number of indigenous programs and products 17:39 17 minutes, 39 seconds whose development journey Astra has contributed to over the years and the breadth is so extensive that even today we are still uncovering the full extent of our own technological footprint. 17:50 17 minutes, 50 seconds Ironically, it sounds stupid that we can't do that. But this very well may be 17:57 17 minutes, 57 seconds Astra's greatest hidden strength in a world where technologies, threads and platforms evolve rapidly. This 18:04 18 minutes, 4 seconds horizontal capability stack creates resilience, adaptability and staying power and more importantly it forms a moat which is difficult to replicate. 18:16 18 minutes, 16 seconds So we are not building merely for the next quarter or the next order cycle but for the next 3 to five decades. We've 18:23 18 minutes, 23 seconds been around for three decades and that is the length through which we allocate capital build capabilities and take strategic bets. 18:32 18 minutes, 32 seconds You are very well aware we have touched upon this that MMIC was create MMIC division itself was created in 2005 18:41 18 minutes, 41 seconds and that chip design capability has become one of ASA's most important competitive advantages which strengthens 18:48 18 minutes, 48 seconds our technological independence and complements the horizontal breadth which we have built over decades. So where do we stand in the defense value chain? 18:58 18 minutes, 58 seconds Yes, we manufacture components. Yes, we build subsystems ranging from advanced 19:04 19 minutes, 4 seconds multi-layer PCBs to MMIC chips and highly sophisticated RF building blocks. 19:11 19 minutes, 11 seconds But equally important is the fact that we design, integrate and deliver 19:18 19 minutes, 18 seconds complete systems. We are very much a tier one systems company. I don't say this lightly because I'm going to rattle 19:27 19 minutes, 27 seconds off a few complete systems which Astra has delivered mobile multiobject tracking radar to SH 19:36 19 minutes, 36 seconds and ISO complete stage array telemetry that's PATM system to ITR and DRDO fix 19:44 19 minutes, 44 seconds Doppler radars to ITR DRDO radiation mode TN facility to same to DLR and DRDO 19:52 19 minutes, 52 seconds we have delivered PPTR radar which is so important to PXC and DRDO multifunctional pulse compression radar for sharp and ISRO. 20:04 20 minutes, 4 seconds We have delivered FMCW and MFCW based short range and medium range tracking 20:11 20 minutes, 11 seconds complete radars to ITRBOS. These are systems complete systems which have been delivered military radars. We have 20:19 20 minutes, 19 seconds delivered groundbased surveillance radar systems. We have delivered active antenna array units for long range 20:27 20 minutes, 27 seconds multi-function radars and I still don't call this a system but a subsystem probably but 20:34 20 minutes, 34 seconds drifty counter drone radar we call it D4 radar we are developing and in the next few months you will hear much more about 20:43 20 minutes, 43 seconds it low-level lightweight radar and bird detection and monitoring radar complete 20:49 20 minutes, 49 seconds system on weather radars as MVR header united. We have you know delivered satellite earth stations. We have 20:57 20 minutes, 57 seconds delivered complete XC and Sband Doppler level radars L and US UHF based pin 21:04 21 minutes, 4 seconds profiler. I can go on but I think these are endclient delivery of complete 21:11 21 minutes, 11 seconds systems which have been done by Astra tier one and systems manufacturing. 21:19 21 minutes, 19 seconds So this is not aspirational anymore but it is based on execution. 21:26 21 minutes, 26 seconds We do not hesitate to share design parameters and technical details with our customers because we stand behind 21:33 21 minutes, 33 seconds our engineering capabilities with confidence and transparency. 21:38 21 minutes, 38 seconds But this is what establishes not merely as a supplier but as a trusted engine 21:44 21 minutes, 44 seconds indigenous technology partner. If you speak to our customers, you will hear the same sentiment that we feel internally. A quite sense of pride, but 21:54 21 minutes, 54 seconds pride tempered with humility in what persistent engineering effort and long-term commitment have enabled the 22:01 22 minutes, 1 second SAR team to deliver. So this evolution continues. Having established ourselves as a systems manufacturer, we are now 22:10 22 minutes, 10 seconds proud to participate in the next phase of value addition as a DCP for a major SU30 electronics warfare upgrade program 22:19 22 minutes, 19 seconds which is aut strategic transition upward in the value chain from participation to ownership 22:28 22 minutes, 28 seconds from execution to influence and then the final frontier the holy grail Astra own Astra branded IPled products and 22:37 22 minutes, 37 seconds solutions before Diwali there will be multiple Astra products Astra branded where complete IP is with 22:44 22 minutes, 44 seconds Astra and we can compete in the rest of the world which will be hitting the market. These are solutions which we 22:52 22 minutes, 52 seconds intend to offer not only to Indian armed forces but eventually to the global markets and our first NC demo is planned 23:01 23 minutes, 1 second within this quarter and God willing that will mark the beginning of an entirely new chapter in Astra's history. So let 23:09 23 minutes, 9 seconds me make one point very very clear. The work underway today has the potential to position Azure 23:17 23 minutes, 17 seconds in the immediate coming decade to more than half a billion dollar revenue enterprise and potentially much larger thereafter. And we do not make such statements lightly. 23:28 23 minutes, 28 seconds You know what we have said we deliver. 23:32 23 minutes, 32 seconds In fact, the entire tripling of our turnover that we spoke about in the 4 and 1/2 5 and 1/2 year time frame is based on just 23:41 23 minutes, 41 seconds five to six programs and the rest is not even included in the numbers. So what I would tell 23:49 23 minutes, 49 seconds our long-term investors even more is this that not a single rupee from these future proprietary IPled opportunities 23:57 23 minutes, 57 seconds has been factored into our near three-fold growth aspiration over the next 5 years everything beyond remains 24:04 24 minutes, 4 seconds potential upside contingent of course on successful execution and it means that our stated growth path is grounded not 24:13 24 minutes, 13 seconds in optimis optimism but invisible execution pipelines and existing business momentum and that distinction is extremely important. 24:24 24 minutes, 24 seconds We want you to focus not only on our narrative but also on delivery. So 24:32 24 minutes, 32 seconds therefore our focus is unchanged technology depth capital discipline cash flow generation customer trust and long-term value creation. 24:44 24 minutes, 44 seconds With this, I'm sure many of you have questions for SGR, particularly around sustainability of margins, cash flows, and scalability. So, let's open the door for discussion. 24:55 24 minutes, 55 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 25:06 25 minutes, 6 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 25:15 25 minutes, 15 seconds and gentlemen, we will wait for a moment while the question Q assembles. 25:25 25 minutes, 25 seconds The first question comes from the line of Amit Pigshit with Goldman Sachs. Please go ahead. 25:32 25 minutes, 32 seconds Uh yeah, hi good morning everyone and thanks for the opportunity. uh congratulations for a very strong set of numbers uh uh operating cash flow as 25:41 25 minutes, 41 seconds well as uh very nice deck that you have put uh highlighting quite a few details. 25:47 25 minutes, 47 seconds Uh I have couple of questions. The first one is essentially if I look at EITA margin for the quarter again I mean not 25:55 25 minutes, 55 seconds looking at the quarter per se but if I look at the overall trajectory of ETA margin particularly uh uh I mean it is 26:02 26 minutes, 2 seconds like almost 33 uh.3 for this uh for this quarter and uh space uh revenue has 26:09 26 minutes, 9 seconds increased I understand uh I mean margins in space can be quite high uh exports has also gone up and uh so just want to 26:17 26 minutes, 17 seconds understand two points over here since we are focusing a bit more on export on space and uh in export as well if I look 26:25 26 minutes, 25 seconds at the order inflow it has remained quite strong. So uh considering that the space proportion would go grow. So do we 26:34 26 minutes, 34 seconds can we expect margin trajectory to strengthen further and secondly what are these exports? I mean traditionally we had deemed exports which used to give us 26:42 26 minutes, 42 seconds lower margin but I think these are more IPdriven exports or you know subsystemdriven exports actually. So 26:49 26 minutes, 49 seconds just wanted to get your thought on uh on these parameters. This is the first question. 27:00 27 minutes Hi. Uh Amit. Yeah. 27:04 27 minutes, 4 seconds Yeah. So, regarding exports, uh these are the exports made over our uh holy one subset arc. As we mentioned in the 27:12 27 minutes, 12 seconds previous calls, uh these exports are different from the earlier offset based exports where we are paid only for the conversion cost. here actually these are 27:21 27 minutes, 21 seconds the things where the RF portion of the SDRs are being uh co-developed between 27:28 27 minutes, 28 seconds uh Rafel and Astra. So because of that the value add is much higher than the regular exports that were recorded in 27:36 27 minutes, 36 seconds the previous periods. Therefore generally these carry a good amount of value add I would say the gross margin 27:43 27 minutes, 43 seconds will be close to about uh 40% kind of thing in these exports. So that is the reason why there is an 27:51 27 minutes, 51 seconds include uh margin from the export business as such. 27:55 27 minutes, 55 seconds Uh I think I have answered your first question. What is the next one? 28:00 28 minutes Uh sir this another part was space because space is going up sign. 28:06 28 minutes, 6 seconds [clears throat] 28:06 28 minutes, 6 seconds You have another question. Um, Amit is as far as space is concerned, we have delivered uh the subsystems for uh 28:14 28 minutes, 14 seconds defense satellite program. uh which is a very mean like complex subsystems which 28:20 28 minutes, 20 seconds we uh uh made in over a period of one year that completed in last quarter and 28:27 28 minutes, 27 seconds that has a decent uh contribution and we are expecting a similar uh subsystems going forward as the uh user is planning 28:36 28 minutes, 36 seconds to go for constellation of those satellites. So this will continue uh as for the orders what we are expecting from both ISRO and as well as from the 28:45 28 minutes, 45 seconds defense uh side as far as the space business is concerned. And uh the other question on the deemed export. Yes, we 28:53 28 minutes, 53 seconds we year on year we are increasing our value addition uh in the overall 29:00 29 minutes contribution like uh whatever we've been contributing to our JB as well as uh the company um we are increasing that 29:08 29 minutes, 8 seconds valuation in Astra and uh both in the testing front and also in the qualification front hence the margins are also been increasing. 29:19 29 minutes, 19 seconds Yeah. So just as a followup sir I mean since you arc uh outlook is expected to be quite strong uh and space as you 29:28 29 minutes, 28 seconds highlighted that you know we will be continuing the value addition so the trajectory of margins I mean I'm not asking for a quarter or something I'm 29:36 29 minutes, 36 seconds asking a yearon-year kind of trend would continue to strengthen or at least remain at this particular level. 29:43 29 minutes, 43 seconds Yes. Yeah. 29:45 29 minutes, 45 seconds Yes. Yes. Uh as far as the AS is concerned uh we have a order book uh in last quarter we booked uh some quad 29:53 29 minutes, 53 seconds orders and this year also we are expecting close to 150 crores kind of orders from the JBC and the value addition will remain same. So uh going 30:02 30 minutes, 2 seconds forward for next two 2 3 years we have a clear visibility to have a good growth. 30:10 30 minutes, 10 seconds Okay. Second question, number will be a function of uh the order mix which has been delivered right. So there may be some variations 30:19 30 minutes, 19 seconds you have to be uh acceptable and ready for that. 30:23 30 minutes, 23 seconds No no that's fine that's fine quite mindful of that factor. Uh the second question is on Sukoi and you highlighted in your uh prepared remarks that uh on 30:32 30 minutes, 32 seconds this DCPP role. So just there are two parts to it. Sukoi upgrade. One is the radar the Biru pakshaw which we are of 30:40 30 minutes, 40 seconds course uh the partner wanted to understand a bit more on ASPJ ports. Are we doing something over there as well? 30:48 30 minutes, 48 seconds And is it possible for you to highlight the I mean broadly a range of business size that we can expect from uh these upgrades. 30:58 30 minutes, 58 seconds Yeah. Uh [clears throat] I mean uh two things. One is on the radar front. Uh as we mentioned in our uh last couple of 31:06 31 minutes, 6 seconds calls, we have been developing uh triple AU with the DRDO and uh we are the part of the Viru Pakia program and uh that 31:15 31 minutes, 15 seconds development is going on. We are expecting that uh our portion to get completed in next few months and uh 31:22 31 minutes, 22 seconds hopefully uh the entire radar will be also be completed soon in this year or maybe uh as far as the uh EW is 31:31 31 minutes, 31 seconds concerned the part we are part of that ang program again it's DRDO program and we are the DCPP one of the DCPPP uh as 31:40 31 minutes, 40 seconds you are aware that they selected two DCPP we are one among them and the development program is is going on uh with the DRDO dead lab. 31:52 31 minutes, 52 seconds Okay, great. That's very helpful, sir. Thank you and all the best. Thank you. 31:59 31 minutes, 59 seconds The next question comes from the line of Vikas Singh from ICICI Securities. Please go ahead. 32:06 32 minutes, 6 seconds Good morning sir and thank you for the opportunity and lastly congratulations on very good set of number. So just 32:13 32 minutes, 13 seconds wanted to understand this revenue triple guidance which we are giving. So do we expect what kind of capex we need to 32:22 32 minutes, 22 seconds spend further in order to achieve that or majority of the capex are already in place and we just need to invest working capital going forward. 32:32 32 minutes, 32 seconds Yeah. In terms of the capex uh as you know every year know we are augmenting the existing uh requirements by spending 32:40 32 minutes, 40 seconds close to about 40 50 crores. So that will continue. Therefore uh there won't be any additional capex beyond this uh 32:49 32 minutes, 49 seconds what we are doing normally. Working capital yes depending on uh how the things are going to pan out uh there 32:57 32 minutes, 57 seconds will be working capital requirements. As I mentioned in my call, there is significant improvement happened in the 33:02 33 minutes, 2 seconds working capital cycle in the last year uh by releasing a significant amount of 33:10 33 minutes, 10 seconds data through which are being held up for various technical reasons. I would say that the 33:18 33 minutes, 18 seconds improvement in terms of realization of the receivables will continue. Therefore uh though the increased volumes call for 33:26 33 minutes, 26 seconds higher working capital utilization uh we should be able to manage within the sanction limits as of today. Thereby 33:35 33 minutes, 35 seconds the finance cost and other things are going to be more or less similar to what has been incurred by the company in the current year. 33:44 33 minutes, 44 seconds Okay. So the working capital situation would improve further going forward. Yes. 33:50 33 minutes, 50 seconds Can you take that as a My second question pertains to our mix 33:57 33 minutes, 57 seconds of the order book. Given that the space segment order book as a percentage yes start order book as a percentage has 34:06 34 minutes, 6 seconds shrunk. How should we look at the overall margin mix basically because I I understand that probably space is number 34:14 34 minutes, 14 seconds one or number two in terms of our margin profile. 34:20 34 minutes, 20 seconds Definitely the space margins are better compared to even defense also. But when you look at the overall space sales contribution in the overall sales of the 34:29 34 minutes, 29 seconds company uh it is just around 10 to 15% kind of thing. Therefore the reduction in the space order book or overall space 34:39 34 minutes, 39 seconds contribution to the sales of the company should not have any negative impact in terms of the overall margins. 34:48 34 minutes, 48 seconds Not. So can we can just uh correct me if I'm wrong. Can we assume that given we 34:54 34 minutes, 54 seconds are transitioning into a better product category going forward, our margins at least should be higher than what we have seen in the historical levels. 35:06 35 minutes, 6 seconds See the margins delivered by the company in the current year is about 55%. 35:12 35 minutes, 12 seconds Okay. So you are still expecting an improvement over 50 55%. Look at the industry standards. 35:21 35 minutes, 21 seconds Yes. Uh as we move forward definitely there will be a change in the product mix of the company. But again it is subjected to various other variables. 35:29 35 minutes, 29 seconds Uh we feel that uh we should be doing very well by sustaining the current margins achieved by the company not only 35:37 35 minutes, 37 seconds in terms of the gross margin but also in terms of various profit margins. 35:41 35 minutes, 41 seconds And uh added to that uh we uh in as mentioned we our business model towards that exports also has changed in if you 35:50 35 minutes, 50 seconds look at the historical data till FI24 or so we largely depend on that uh DTP business where our value 35:59 35 minutes, 59 seconds addition was less and margins were very less and uh we came out of that and we are accepting orders only if the value 36:06 36 minutes, 6 seconds addition is more. uh we are focusing in that and also we are focusing on IPdriven products for the export market 36:14 36 minutes, 14 seconds that is the reason our margins have been uh increased in in last couple of years. 36:20 36 minutes, 20 seconds Notice sir and lastly if I may ask but I mean from a guidance perspective I think we should very clearly say this 36:28 36 minutes, 28 seconds probably is the top end you can actually you should factor in slightly lower numbers only on the margin fronts you 36:36 36 minutes, 36 seconds know uh so that there is no uh you know uh disappointment coming in at a later date you know uh this is probably as 36:44 36 minutes, 44 seconds best as it gets if I may say thank you so much sir just lastly if I I 36:50 36 minutes, 50 seconds squeeze in one last question in terms of our overall dependency on MMIC. Uh so if 36:58 36 minutes, 58 seconds you could explain that have we seen any problem so far or what is the percentage we are able to source in house uh or 37:06 37 minutes, 6 seconds domestically versus the import dependency that if you look at the uh overall MMA uh 37:13 37 minutes, 13 seconds thing as of now we have not encountered any issue and uh that production and as well as development is going very smooth 37:22 37 minutes, 22 seconds and uh second thing is uh as well as the dependency like yes in all our subsystems we are most of the active 37:31 37 minutes, 31 seconds devices we are sourcing out from our in-house MMIC division and u also we are 37:38 37 minutes, 38 seconds started uh promoting these MMICs uh to the domestic players and uh international players also so we are uh 37:46 37 minutes, 46 seconds strategically you know looking at that particular business segment uh to enhance the product range and also to 37:53 37 minutes, 53 seconds meet the captive consumption and as well as to generate more revenue from the external market. 38:02 38 minutes, 2 seconds No, sir. Thank you and all the best for you. Thank you. 38:07 38 minutes, 7 seconds The next question comes from the line of Sanjie Zaberti with Antique Stock Broking. Please go ahead. 38:16 38 minutes, 16 seconds Yeah, [clears throat] sir. Uh, congratulations on a good set of numbers. Um, sir, I'm sorry to interrupt Sanjep. I would request you to be a little louder, please. Thank you. 38:25 38 minutes, 25 seconds Yeah sir in our presentation we have a slide which you know gives us total addressable opportunity of around 28,000 38:34 38 minutes, 34 seconds cr uh within FI 26 to 28. Now since FI 26 has been passed uh what kind of uh would you want to change this number in 38:42 38 minutes, 42 seconds terms of addressable market for us for the next two years? 38:48 38 minutes, 48 seconds Uh well Sanjiv uh the total accessible market is remain same but only there is a shift in the uh year as you know there 38:56 38 minutes, 56 seconds was many programs got uh delayed for various reasons as these are all government-driven programs depend on the 39:03 39 minutes, 3 seconds budget and also the depend on the priority uh this gets shifted and uh also few development uh you know 39:11 39 minutes, 11 seconds activities got delayed at various levels. So the overall accessible market remains uh but only thing is we instead 39:19 39 minutes, 19 seconds of fi 28 29 may go up to 3031. So that's that's the one thing and we are always uh you know uh focusing on that 39:28 39 minutes, 28 seconds particular market uh to you know maximize our share of the business. 39:33 39 minutes, 33 seconds Uh yeah sir and my next question is on the new initiative uh like uh in terms of ground penetrating radars and uh the 39:42 39 minutes, 42 seconds other uh developments that we are in the process making uh how are we positioned there? 39:50 39 minutes, 50 seconds Yeah. Uh ground penetrating radar and all we have uh uh developed it uh with collaboration with some startup company. 39:58 39 minutes, 58 seconds uh we have worked for some trials and there were few observations we have been addressing that and we soon we launched 40:05 40 minutes, 5 seconds that product uh time to come and to meet the customer requirement but we started participating in few tenders. 40:15 40 minutes, 15 seconds Okay sir that's it from my side and all the best. Thank you. 40:20 40 minutes, 20 seconds A reminder to all participants you may press star and one to ask a question. 40:28 40 minutes, 28 seconds The next question comes from the line of W Modi with Swan Investments. Please go ahead. 40:35 40 minutes, 35 seconds Hi. Am I audible? Yeah. Hello. Yeah. 40:40 40 minutes, 40 seconds I just need to p your guidance on revenue. I heard you say that you expect to triple your revenue. Just wanted to know what the timeline would look like 40:48 40 minutes, 48 seconds and what would be the drivers for this. 40:53 40 minutes, 53 seconds uh we are expecting uh at least next you know down the line 3 to four years uh to 41:00 41 minutes triple the uh revenue or maybe you can say up to FI 30 to 31 uh so that is 41:08 41 minutes, 8 seconds something which we are looking uh based on the orders timing of the orders and finalization of the contracts and all so 41:18 41 minutes, 18 seconds uh that's the one and uh second question uh what was your question. 41:24 41 minutes, 24 seconds What would be uh the growth drivers for this? Uh is there any? 41:28 41 minutes, 28 seconds Yeah, there growth drivers there are many programs are there uh both you know especially in the radar segment. We have 41:35 41 minutes, 35 seconds seen clear visibility in uh to grow in airborne radar, fire control radar and uh you know surveillance and tracking 41:42 41 minutes, 42 seconds radars uh and uh medium range and long range radars. So likewise in radar segment we have a huge opportunities in 41:51 41 minutes, 51 seconds the industry. Similarly in electronic warfare segment also uh as I explained just now and we have we are there in the 41:59 41 minutes, 59 seconds DRDO programs uh for some few of the airborne platforms which we are DCP in that. So we are developing that and once 42:08 42 minutes, 8 seconds the uh development and qualification gets completed we expect uh production orders to come from the services. uh and 42:15 42 minutes, 15 seconds also apart from that we are uh part of part and parcel of be major programs like uh nayan shaky himaki shhatruad 42:25 42 minutes, 25 seconds there are so many programs which be is integrating so we are the qualified subsystem suppliers for these system so 42:33 42 minutes, 33 seconds that business will continue uh for next four to five 3 to four years and uh in other segment like in the missile and uh 42:42 42 minutes, 42 seconds telemetry also we are there in the seekers some of the active uh seekers we have developed for couple of missiles we 42:49 42 minutes, 49 seconds are expecting few orders in next two to three years and uh in space segment we are expecting repeat orders for the some 42:57 42 minutes, 57 seconds of the satellite programs from ISRO and also from the defense satellites so these are all our goal drivers going forward and apart from that uh as Mr. 43:07 43 minutes, 7 seconds Ratim had mentioned that in methology business also we have developed uh Doppler weather profile radars which are 43:14 43 minutes, 14 seconds uh you know the productions are yet to come. So we are we already booked few orders more orders we're expecting next 2 to 3 years. 43:25 43 minutes, 25 seconds Okay thank you sir. Just one last question. What is the current order book right now? As you said you are planning to execute around 1,600 kores in FI27. 43:34 43 minutes, 34 seconds Just wanted to know what the current order book is right now. That's it. Thank you. As yeah, we have order book of 2141. 43:41 43 minutes, 41 seconds Uh this is the order book. Uh standalone order book Astra. 43:48 43 minutes, 48 seconds Okay then. Thank you. Consolidated goes up to I mean consolidated is 2,600. 43:55 43 minutes, 55 seconds Yeah, consolidated is 2,600 but standalone is 2141. 43:59 43 minutes, 59 seconds Yeah, thank you sir. Thank you for the detailed answers. Thank you. 44:05 44 minutes, 5 seconds The next question comes from the line of Jatin Chadav with Sahas Raj Capital. 44:11 44 minutes, 11 seconds Please go ahead. Uh hello am I? Yes please. 44:16 44 minutes, 16 seconds Uh thank you so much for the opportunity. Most of my questions have been answered. Uh but uh on a technological fund just to get gain a 44:24 44 minutes, 24 seconds better understanding. I wanted to understand where does Astra Microwave essentially sit in the entire radar ecosystem relative to other similar 44:33 44 minutes, 33 seconds companies specifically like which uh layer of the radar architecture does do we participate the uh RF electronics TR 44:41 44 minutes, 41 seconds beam farming anti so on so forth so that's my yeah uh when we compare with the other 44:49 44 minutes, 49 seconds industries working in the radar domain the uh differentiating factor here is we have grown from components of systems to 44:56 44 minutes, 56 seconds the systems. So whatever systems we have taken it up to uh participate in the MOD program or in services. So we have been 45:05 45 minutes, 5 seconds developing inhouse uh the total with the complete IP with Astra. uh it takes some 45:12 45 minutes, 12 seconds time for us uh to come to this standard of you know global uh you know make but uh you know finally the contribution 45:20 45 minutes, 20 seconds will be better and also we can be more competitive as compared to uh other players and as far as the overall 45:27 45 minutes, 27 seconds business in the radar is concerned as I said we are continuing our participation in the DRDO programs for all the 45:35 45 minutes, 35 seconds development in the ground and uh airborne programs and also we are part uh we are uh partnered with BEL for the 45:43 45 minutes, 43 seconds production programs as we are the qualified uh supplier for the during the development phase. So that uh while continuing that business in subsystems 45:52 45 minutes, 52 seconds and components we are focusing in the systems uh for the MOD as Mr. Ratim had mentioned we have taken up few projects uh to address uh directly to the MOD. 46:04 46 minutes, 4 seconds Those projects are in development phase. 46:07 46 minutes, 7 seconds Most likely in next few months uh by the month by this year end I think we should be in a position to demonstrate uh to 46:15 46 minutes, 15 seconds the user and to become a qualified supplier for this. So the these we are growing in both uh you know uh the 46:22 46 minutes, 22 seconds system wise and as well as on the systems front and apart from that uh we are also working out on the uh to 46:29 46 minutes, 29 seconds provide overall solutions. It is uh it is not only a system it is a complete solution to the end user including 46:37 46 minutes, 37 seconds couple of systems mounted in the one platform that we more details will be shared to you in a uh time to come but 46:44 46 minutes, 44 seconds we are focusing on that and that uh those programs are also in very active stage of uh you know completion. So by 46:52 46 minutes, 52 seconds November I think we should be in position to roll out at least one or two systems. 46:59 46 minutes, 59 seconds Sorry sir. Uh my second question is kind of like a follow up on this only. So over the time yeah over over 30 years so 47:06 47 minutes, 6 seconds you've developed in-house IPs and technological capabilities and so they you position yourself very strongly in 47:13 47 minutes, 13 seconds the radar ecosystem. So uh based on that I wanted to understand for example is it possible for us or let's say a similar 47:22 47 minutes, 22 seconds company to diverge into different types of radars. Let's say right now if we can cater to a radar then can we shift to 47:30 47 minutes, 30 seconds let's say a perance radar based on the car control radar probably a small speaker also is possible based on our capability. 47:40 47 minutes, 40 seconds Got your question. Uh see uh apart from the uh the current business uh of the radar uh we are also we are working in 47:48 47 minutes, 48 seconds the futuristic technologies like we have recently uh de developed and delivered uh major subsystems for the digital 47:56 47 minutes, 56 seconds array radar uh for DRDO and uh that is giving us edge to get more orders in the digital array radar and similarly we 48:05 48 minutes, 5 seconds have uh developed uh photonix radar which is working in the optical domain. 48:10 48 minutes, 10 seconds And that also with collaboration with one startup company we have developed this is overall solutions with for the DRDO and we have successfully delivered. 48:19 48 minutes, 19 seconds So these are the few uh technologies which are new uh futuristic you know the technologies for the radar domain which 48:27 48 minutes, 27 seconds are we've been working. So we are continuously working on this domain and also the for existing uh radar we are optimizing the technology for example to 48:36 48 minutes, 36 seconds uh you know minimize the size of the array and all like you know since we have the components within the company. 48:44 48 minutes, 44 seconds So we are in in position to scale down uh the overall size and form factor so that you know to offer miniaturized size 48:51 48 minutes, 51 seconds uh radars for the future. So these are all we have been working continuously to make sure that we should be in a better position as compared to the competitors. 49:01 49 minutes, 1 second Uh go ahead sir. Got it. Thank you so much. I'll get back into the queue for further question. 49:08 49 minutes, 8 seconds Thank you. The next question comes from the line of prayer chain with Motil Oswald. Please go ahead. 49:15 49 minutes, 15 seconds Yes. Thank you for the opportunity. Uh sir, I only have one question. Uh can you please give us an update on the QRM 49:23 49 minutes, 23 seconds and Utamar radar orders like you earlier mentioned that there have been some delays in some of the orders from DRDO 49:30 49 minutes, 30 seconds site itself. So can you give us an update on that and whether these orders will come all together and the execution will be panned out uh in subsequent 49:39 49 minutes, 39 seconds years or even the orders will come in batches. 49:43 49 minutes, 43 seconds Yeah. As far [clears throat] as Utamar is concerned, we negotiations have been started uh uh with the HA as as you know 49:51 49 minutes, 51 seconds they have been negotiating is it because of the big size in contract. So we have already uh uh you know started I think 50:00 50 minutes it is almost reaching a final stage. I think uh we are expecting uh you know this particular order uh sometime in the 50:08 50 minutes, 8 seconds Q2 or Q3 and um as the process is more like you know to place the order so but as far as uh today's position as today 50:17 50 minutes, 17 seconds negotiations are on uh for UTM rather with H that that much I can tell you and uh second is on the QSM front uh as 50:26 50 minutes, 26 seconds probably you're all aware that they know BL stated that you know they're expecting contact by June or so. So we 50:33 50 minutes, 33 seconds also expect orders uh beyond you know once up they get the orders but before that we we are expecting the FOPM 50:41 50 minutes, 41 seconds version that is the first of production model which they got uh clearance from internally the board they're placing orders on uh vendors uh all vendors so 50:50 50 minutes, 50 seconds we have started receiving uh small quantity for that PM model and uh once after they get the main contract we 50:58 50 minutes, 58 seconds expect the orders in next you know 3 to four months from the uh their order. 51:08 51 minutes, 8 seconds Got it sir. Yeah, that is automatic. Thank you. 51:11 51 minutes, 11 seconds Yeah, thank you. The next question comes from the line of Sahil Karia with White Pine Investment Management. Please go ahead. 51:20 51 minutes, 20 seconds Yeah, thank you for the opportunity. I just wanted to ask on the time like what are the timelines for this 230 application program for both radar and 51:28 51 minutes, 28 seconds the ASPG pods by when can we expect the production orders to come in? 51:36 51 minutes, 36 seconds Yeah, I think I've answered this question just while some time back but anyway uh again repeat uh for the radar uh the Wu which we have taken up 51:45 51 minutes, 45 seconds development that is on I think uh next 2 to 3 months uh we should be in a position to complete the development and 51:52 51 minutes, 52 seconds hand over to DRDO and uh in all provability I think in maybe FI28 uh 51:59 51 minutes, 59 seconds DRDO will be ready to qualify the overall radar but we cannot comment on behalf of DRDO we expecting that this 52:07 52 minutes, 7 seconds will be completed in next year financial year and uh similarly in the EW front also we are uh taken up as a DCPP for 52:15 52 minutes, 15 seconds that uh overall program and it is in the development and come uh development phase and we are expecting next one year 52:23 52 minutes, 23 seconds uh that also should be completed and gets qualified. So soon after qualification uh we hope uh to get production order from the services. 52:32 52 minutes, 32 seconds So the reason behind this was uh on bar electronics call they had mentioned that the suit program is still in the 52:39 52 minutes, 39 seconds development stage and it would be uh in the same stage for the next 5 years. Uh so just wanted your a color from your 52:46 52 minutes, 46 seconds side that uh like do we shift the production orders after 5 years or like how it will be? 52:53 52 minutes, 53 seconds So as I said you know the next year uh probably next FI 28 I think you know RAD 53:00 53 minutes will get qualified uh but you know the uh user qualification and all may take another one more year and so thereafter 53:08 53 minutes, 8 seconds I think you know uh maybe next 2 to 3 years uh we'll take time to uh get the production orders. This is what our 53:17 53 minutes, 17 seconds expectations uh as far as the progress is concerned. Okay. Thank you. Thank you so much. 53:23 53 minutes, 23 seconds That's it from Thank you. 53:27 53 minutes, 27 seconds participants, you may press star and one to ask a question. 53:34 53 minutes, 34 seconds The next question comes from the line of Balas Subramanim from Aryand Capital Markets. Please go ahead. 53:42 53 minutes, 42 seconds Good morning sir. Thank you so much for the opportunities. Sir, our exports has been declined uh because we are moving away from a low margin uh build uh 53:51 53 minutes, 51 seconds business. I just want to understand uh what is our uh uh current margin uh in this bit to print and uh uh other uh design lead export uh uh uh orders. 54:05 54 minutes, 5 seconds I just want to know the difference between both s margins. See as I mentioned like you 54:12 54 minutes, 12 seconds know the low margin BTP business we have left it out and we are not addressing that particular market. we are only 54:20 54 minutes, 20 seconds addressing market in exports where our value addition is more and margins are much better than uh the BTP market. So 54:29 54 minutes, 29 seconds uh here uh although it is BTP but our uh value addition is more and the margins as Mr. Aier had already mentioned it is 54:38 54 minutes, 38 seconds around 45 uh% uh as compared to the uh singledigit figure in the BTP business. 54:48 54 minutes, 48 seconds Yes sir sir. Uh my second question uh on that JV we have seen uh just 1 cr uh uh 54:55 54 minutes, 55 seconds share share of profit from JV in FI26 but in earlier con call we have mentioned around ARC revenue of 350 cr 55:02 55 minutes, 2 seconds with uh 10 to 12% PPT margin just want to understand is there any significant cost in terms of technology transfer 55:10 55 minutes, 10 seconds fees royalties or any uh pre-operational expenses on the GV level I think 1 cr profit you are referring to 55:18 55 minutes, 18 seconds the quarter whether Wells for the year now it is around uh close to about 8 crores that is a share of profit after 55:25 55 minutes, 25 seconds tax that is from the JV. Yes. Uh during the current year uh of course expenditure is always there. In addition 55:34 55 minutes, 34 seconds to that uh there is a foreign exchange provision which the company has to make. 55:38 55 minutes, 38 seconds So because of that close to about $2 million of provision was made in the books of accounts. As a result the overall profitability has come down. But 55:47 55 minutes, 47 seconds otherwise the share of profit from the JV for the entire year is closed about 8 crores after tax. Uh got it sir. Thank you. 55:56 55 minutes, 56 seconds Yeah. 55:58 55 minutes, 58 seconds The next question comes from the line of Daril Javiri with Crown Capital. Please go ahead. 56:06 56 minutes, 6 seconds Hello. Uh good morning sir. Thank you so much for taking my question. So a lot of my questions have been already answered but just a few regarding the 3x target. 56:15 56 minutes, 15 seconds So number one uh it would be kind of like a asymmetrical growth right like that we would be having like it would because of our product approval so a lot 56:24 56 minutes, 24 seconds of this growth would come towards the end like fi 2938 is that a fair assumption sir and are we including the 56:32 56 minutes, 32 seconds JV's revenue our share of JV's revenue in this or what the or this is a standalone sir let me answer this yeah you're right 56:41 56 minutes, 41 seconds absolutely uh it is going to be rearended there are uh basically five or six major programs which are driving 56:50 56 minutes, 50 seconds this uh as I think a couple of times now we have QAM we have utamas 56:59 56 minutes, 59 seconds we have uh 30 vir and we have uh a regular business which 57:08 57 minutes, 8 seconds we do for JB and also maybe uh you know uh electronic minds for example is a big 57:17 57 minutes, 17 seconds area for us. Okay. So these so it is only just these five or six programs 57:24 57 minutes, 24 seconds that we're talking about which will lead us to uh the kind of numbers which we have indicated uh the uh we are not 57:34 57 minutes, 34 seconds factoring in our export potential out there. We are not factoring in a whole lot of other programs which we are a part of and I think MB alluded to a lot 57:43 57 minutes, 43 seconds of the programs you know that's all gravy on the top as in when it comes in it keeps adding to our bottom line and 57:50 57 minutes, 50 seconds makes up for some delay or some mishap which happens which can pull back this number. So there's enough flexibility 57:57 57 minutes, 57 seconds and depth built into these numbers to achieve uh achieve them in four and a half to 5 and a half uh year time frame. 58:07 58 minutes, 7 seconds Oh okay fair enough sir I just wanted to understand for the JV we are kind of I think targeting around 600 crores 58:14 58 minutes, 14 seconds revenue this year so what would be the margins in this like business what can we expect to hit RPN also rough range 58:23 58 minutes, 23 seconds would also be fair enough sir is it yeah uh 58:31 58 minutes, 31 seconds definitely it is going to be an improvement over the current year uh I beta I think uh around 18 to 20% is what 58:38 58 minutes, 38 seconds is being projected by the company. So basing on that on a 600 uh cr top line 58:45 58 minutes, 45 seconds at least about uh 20 plus cr of will be our share of profit for the entire year. 58:51 58 minutes, 51 seconds That is what I'm expecting as of now. 58:54 58 minutes, 54 seconds Okay. Okay. Okay. Fair. So we I think in the past had said around uh you know 10% PBT. So 20 kores would be a se kind of a 59:04 59 minutes, 4 seconds lower PBT. So what would we so is there a higher depreciation or interest cost that you know something that's eating up 59:10 59 minutes, 10 seconds or how how would you say uh see I have given the number at the lower end uh let us wait for the year to 59:18 59 minutes, 18 seconds proceed uh when I said 20 crores that is a minimum let us see how the things proceed 59:26 59 minutes, 26 seconds okay okay uh yeah yeah yeah fair enough that's it from my side thank you so much all the best thank you ladies and gentlemen that was 59:34 59 minutes, 34 seconds the last question for today. I would now like to hand the conference over to the management for their closing remarks. 59:41 59 minutes, 41 seconds Thank you and uh thank you for your presence. Uh uh I guess we had a good discussion and I wish to meet you again 59:48 59 minutes, 48 seconds at the end of uh Q1. Thank you very much. Thank you. Thank you. Thank you guys. Thank you. 59:54 59 minutes, 54 seconds Thank you sir. Ladies and gentlemen, on behalf of Astra Microwave Products, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.