ASTRA MICROWAVE PRODUCTS LIMITED "Astra Microwave Products Limited Q4 FY-16 Results Conference Call"
April 30, 2016 MANAGEMENT: MR. B MALLA REDDY - MD, ASTRA MICROWAVE PRODUCTS LIMITED MR. S. GURUNATHA REDDY - WHOLE TIME DIRECTOR AND CFO, ASTRA MICROWAVE PRODUCTS LIMITED MR. M.V. REDDY - DIRECTOR (OPERATIONS & BUSINESS DEVELOPMENT), ASTRA MICROWAVE PRODUCTS LIMITED Moderator: Ladies and gentlemen good day and welcome to the Astra Microwave Products Limited Q4 FY16 Results Conference Call. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference, please signal an operator by pressing '*' and then '0' on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. S. Gurunatha Reddy - CFO and Executive Director at Astra Microwave Products Limited. Thank you and over to you sir.S. Gurunatha Reddy: Thank you and good morning ladies and gentlemen and welcome you all to this 4th Quarter and Yearend Conference Call. Yesterday, we have taken the results on record, at the Board of Directors meeting and I hope you might have seen the results in today's newspapers,.However for the information of all concerned, I read out some of the bullet points:
For the 4th Quarter we have done about Rs. 124 crores and for the year ended we have done about Rs. 418 crores of net sales with operating profit of around Rs. 22 crores for the quarter and for the year about Rs. 71 crores with a net profit of about Rs. 19 crores for this quarter and for the year ended is about Rs. 56 crores.
In terms of the order book, at the year end we have about Rs. 538 crores with exports being about Rs. 45 crores and the cumulative order book; that is orders booked in the current year is about Rs. 404 crores.
With this brief introduction, I will open this discussion for questions and answers.
Moderator: Thank you very much. We have the first question from the line of Ranjeet Shivram of Antique Stock Broking. Please go ahead. Ranjeet Shivram: Just wanted to know, what is your order intake for the full year, sir I just missed on that? S. Gurunatha Reddy: Full year it is about Rs. 404 crores. B Malla Reddy: Actually we have another LOI of Rs. 140 crores which we have not included. Ranjeet Shivram: Okay, so this will get added into our order book in first quarter. B Malla Reddy: Yes. Ranjeet Shivram: So this is Rs. 105 crores? S. Gurunatha Reddy: Rs. 140 crores. Ranjeet Shivram: And next year I think we have an order intake target of around Rs. 550 crores. Is there any change in that order intake target for FY17? S. Gurunatha Reddy: No, we are in the same line. We are expecting about Rs. 550 crores. Apart from this Rs. 140 crores, whatever we have mentioned, another Rs. 550 crores of orders we are expecting in this year. Ranjeet Shivram: So that will be in addition to those Rs. 140 crores. And we had initially given a revenue target of Rs. 500 crores for FY17 and Rs. 650 crores for FY18, so that stands the same? M.V. Reddy: No, actually this year we are basically we are restricting to Rs. 450 crores the reason being the export order which impact I was mentioning we were hopeful of getting in the last quarter itself. So we had planned some sales in this year but because of the delay in the order that business what we have expected in this year, we will be shifting to the next year. So this year we will have only Rs. 450 crores in sales. Ranjeet Shivram: And in terms of PAT? B Malla Reddy: PAT roughly about Rs. 65 crores we are expecting. Ranjeet Shivram: And for FY18? S. Gurunatha Reddy: FY18 sales will be about Rs. 550 crores. B Malla Reddy: PAT could be Rs. (+80) crores. Ranjeet Shivram: And Sir, just on your balance sheet, when I look here that over this short term loans and advances have sharply come down from Rs. 65 crores to Rs. 20 crores, so what was the reason for that? S. Gurunatha Reddy: You mean in comparison with last year? Ranjeet Shivram: Yes, last year it was Rs. 65 crores. S. Gurunatha Reddy: See, largely the short term loans is the working capital drawings that is open cash credit drawals will be shown under that account. As of current year end, the drawals were almost zero. Ranjeet Shivram: So, and your debtors had gone up by Rs. 65 crores. S. Gurunatha Reddy: See in the last quarter we did about Rs. 125 crores of billing. At least I would say about 90% of that will be shown as outstanding in the books of accounts. So that itself will be close to aboutRs. 90 crores or Rs. 100 crores kind of thing and the remaining thing is for whatever billing we have done in the current year.
Ranjeet Shivram: Okay, so there is no major risk because of these debtors? S. Gurunatha Reddy: No. Ranjeet Shivram: Like we get to hear that for this 'Light combat aircraft' project, the DRDO is planning an AESA radar and we hear that Astra and BEL will be the production agency for that; so can you throw some light on that? How big that opportunity and when can that happen? M.V. Reddy: Well, it is a basically the total requirement would be around 400 numbers LCA production. So, in that the first phase probably they are planning around close to 100 numbers, so initially we will be doing some 2-2 numbers each; BEL and ASTRA. This is something which is in the discussion stage, it is not finalized yet. So, once we take up this pilot development activity then probably… B Malla Reddy: Once completing the pilot development, then the production order started to come. Ranjeet Shivram: So, per aircraft how large this can be? B Malla Reddy: Well, at this moment we wanted to keep that figure confidential. Moderator: We have the next question from the line of Pooja Swami of Pan Capital. Please go ahead. Pooja Swami: Firstly, sir I wanted to know about your R&D expenses in this year. S. Gurunatha Reddy: R&D expenses, revenue is close to about Rs. 28 crores and the capital expenditure is about Rs. 2 crores. Pooja Swami: Secondly, sir you were supposed to do some investments in your Radar Testing at Bangalore and some other investments in JV. Have you done with those investments or you are supposed to do those? S. Gurunatha Reddy: JV investments are yet to happen; whereas R&D facility construction activity that is what is proposed, they have just started and we have already placed contract on test range required for the R&D facility. Pooja Swami: But the investment from your side is done for this facility? S. Gurunatha Reddy: No, not yet. The activities have started, just our investments have begun. B Malla Reddy: Some monies are going.AMP - Astra Microwave Products Limited published this content on 03 May 2016 and is solely responsible for the information contained herein.
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