Ladies, and gentlemen, good day, and welcome to Astra Microwave Products Limited Q2 FY 2024 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. S.G. Reddy, Managing Director. Thank you, and over to you, sir.
Thank you. Good afternoon to everyone. A warm welcome to all the participants to the post results earnings call of our company. I am with my colleague, Mr. M.V. Reddy and Mr. Atim Kabra, and SGA, our Investor Relations advisors. The results and investors presentation for the half year ended 2024 are already loaded on our company website and stock exchange. I hope you had a chance to look at it. I'm pleased to share with you that we have reported a healthy set of numbers for the quarter, with the top line registering about 10.6% year-on-year growth. Our top line performance was in line with the previously indicated quarterly guidance. EBITDA margins also came in at a healthy 22%. Our order wins continue to be healthy.
We have booked about INR 405 crore worth of orders in this quarter, which comprise of about INR 115 crore from radars, INR 233 crore from EW segment, INR 9 crore from telemetry, INR 19 crore from space, INR 26 crore from exports and rest from meteorology and hydrology sectors. Overall, order book at the end of half year stands at INR 1,867 crore, with the majority being domestic orders. At the organizational side, I wish to inform you that we have strengthened our board with the induction of Mr. Suresh Somani as a Non-Executive Director and Mr. S. Varadarajan as an Independent Director. Mr. Somani has a wide experience in the capital market and management areas. Apart from this, his associates hold good stake in the company.
Mr. Varadarajan is a retired Director of LRDE, and he has a distinguished experience in radar domain, which we hope is going to help us also in a bigger way. Coming to the specific numbers of standalone performance in Q2. As mentioned earlier, year-on-year growth, we have recorded about 10.6%. The revenues stood at INR 189 crore, as against INR 171 crore. Sequentially, we had an even better performance, recording 42% growth in our plans. There are other various indicators which I have already presented in the investors presentation, which I request you to go through. One important information which I want to share with you is the improvement in the margins is largely because of the change in the product mix totally during the quarter, as is skewed more towards the domestic.
We continue to have similar kind of performance in the coming two quarters. We also would like to reaffirm our guidance of year-end guidance of INR 900 crores-INR 950 crores, with an EBITDA of about INR 140 crores-INR 150 crores. To achieve these numbers, so we are planning to execute about INR 200 crores-INR 300 crores in Q3, and the rest will come in Q4, so that the annual guidance can be met. As I mentioned, since the major sales in the next two quarters will be from the domestic, we are confident to deliver a reasonably good margin in the coming quarters. As stated earlier, our Government of India's initiatives to foster local manufacturing as well as raise in the transfer of technology activities by DRDO and ISRO would benefit companies like Astra.
Further, we have been taking steps to move up in the value chain, moving from subsystem to a systems vendor, the opportunities are fairly large. We have identified specific growth areas for future expansion, such as SATCOM systems, wind profile radars, ground surveillance radars, Doppler weather radars, and anti-drone, and so on. Apart from these, specific business-related updates, which I would like to share with you, apart from bagging about INR 405 crores of orders during the quarter, we were able to close PNCs worth about INR 11 crores and waiting to receive orders for the same very soon. Company has signed a ToT with NewSpace India Limited for X-band MiniSAR, which we hope will help us in terms of getting into the defense radars, apart from the space-related radars in a bigger way.
Anti-drone radar, which we kept on sharing with you the developments in the last two quarters, which is being developed with LRDE technology, is in the final stage of testing. We expect to start field trials by the end of this year. NavIC chip approval form, approval is still waiting. Unfortunately, there are some technical issues to be resolved, which is taking time, and we keep you informed the developments on this front. The joint venture company has done very well. The pending export licenses were issued by the company in the last quarter. It was able to ship about INR 50 crores of goods in the last quarter, and as a result, the company has been profitable.
It is expected to INR 110 crores-INR 150 crores of business for the whole year, with a good amount of profits. Again, relating to the joint venture company, the Manpack SDR, which we are developing under the NCNC program, has successfully completed the first trials of NCNC, and it is waiting for the final trials by Q1 of the year. With this, I'll hand over to Mr. M.V. Reddy and later on to Mr. Atim Kabra, to share with you the further developments in the company. Thank you.
Thank you, S.G. Good afternoon, everyone. As it was stated in our last earnings call, we have made a good beginning with the performance of Q2, both in terms of order book as well as sales. We would like to reiterate that, we have good visibility to meet our guidance for the rest of the two quarters also. Out of INR 409 crores back in Q2, INR 383 crores were booked from domestic market, and majority comes from the, core sector, that is, radar and electronic warfare segment. So S.G. had already given you a breakup of, the domestic sector order book.
We are also pleased to inform that we bagged a few strategically important R&D projects, like development of Imaging Radar for DRDO, and also supply of Satellite EW Payload subsystem for the DRDO-based satellite system, and those are all in production in nature. We also have been awarded with project sanction orders for development of radars under Make-II category for military and meteorology applications. Also we have participated in a few RFPs and responded to RFIs to supply CDS and other systems. With regard to sales, we have ramped up our domestic sales in Q2, and will further get improved in coming quarters.
Our JV, Astra Rafael Comsys, has bagged few strategically important contracts in last quarter, worth almost $45 million, to deliver software-defined radios for the Indian Army and also for the Indian Air Force through a DPSU HAL in the current year. Actively pursuing more opportunities in the domain of tactical communications and electro-optics. That's all from my side. I would be happy to answer your questions. Now, I hand over to Mr. Atim Kabra to share his thoughts. Thank you.
Hi, good afternoon. This is Atim. A happy Diwali to all of you. Since we last spoke, the world is further in turmoil. October seventh saw the Israel-Hamas conflict shake the world, and further shatter the illusion of relative peace and calm, which had come to define the second half of previous century. My idea here is to give you a direction on where we are going and what is our thought process, and how it is being defined in the current context. Because the asymmetrical nature of warfare and the blurring of lines between civilians and professional combatants has further marred the landscape, which had already seen drone-based warfare and its derivatives profoundly changed the entire history of warfare tactics.
I mention this in the context of electronics-based warfare emerging as a central pillar around which the theater of war will converge, and we are a player in this area. I saw the results of BAE Systems a few days back, and it was interesting to see that defensive sectors are emerging as growth drivers in the economy, even in the U.S. I'm sure you are equally impressed as most of us by the significant increase in our order book this year. We have an order book in excess of, I think, INR 2,300 crores, driven by significant changes in the defense acquisition policy that we are all conversant with. I'm very hopeful that we will continue to see positive numbers coming in from our traditional tender-based businesses as we detailed in our presentations during our QIP.
As we go along, SGR and MGR will be adding more color to this. In my previous analyst meet update, we had spoken about us exploring various adjacencies to our core businesses, for we wish to diversify our order book mainly from a tender-based approach. Towards that, as I detailed earlier, we have been working on a few solutions which could be branded as Astra solutions. Although I must admit that the search for defining such solutions often takes a backseat to the business exigencies at hand, wherein our current order book being translated into sales has to be clearly prioritized.
However, we hope to have one of our solutions ready before the end of the year, which will not only have a domestic order base, but also will put us on the international map with a semi-off-the-shelf product which can be marketed to the rest of the world. It is equally critical to put concepts being explored on the slow burner if margins and suitability to the market is hazy, while we delve deeper into specific opportunities. As we have gone about defining our solutions, we have slowed a few of our initial concepts being explored, where we found significant competition and non-existence of a deep moat for our products.... So our focus has been on margin-enhancing businesses rather than low margin, high volume businesses.
So one of the skill sets we explored was our MMIC chip design, chip design division, which you are very well aware has been one of the core strengths of Astra. We have been at it since 2005 and have built in a deep expertise in MMIC chip designs. So our learning was that MMIC is best suited for defense applications, and regular commercial chip design is a completely different ballgame, a different skill set where we would have to deploy a significant amount of capital and resources. So we explored and delved deeper into our MMIC strengths. We have tried to explore how we can build our capabilities in our, already existent, in our 100% owned Singapore subsidiary, as well as work on a larger format with our clients, both existing and potential future clients.
I'm glad to report that at this juncture, we have significant interest from a few select clients towards enhancing significantly their offtake from us and jointly developing some more capabilities. The key is here to achieve this profitably and optimally without stretching our working capital, while we would love to partake in the proceeds of the jointly developed and marketed products for the long term through royalties. And this concept is quite appealing as it gives us both scalability as well as profitability in a deep-rooted business. So if this joint venture or, if this... Not a joint venture, actually, if this association comes about, it will be a very significant achievement for our MMIC division, and we hope to keep you posted on this. Likewise, as was just mentioned, our Rafael JV, ARC, is doing quite well, and we will be profitable this year.
As the order books and execution capabilities pick up there, we should see significant flow of business to the parent comp to us. Lastly, I need to highlight the induction of the three new directors on our board, as S.G. has mentioned. Mr. Varadarajan is a very well-respected scientist with multiple accomplishments to his credit, while Suresh further strengthens the equity owner's presence on the board of the company and with its multiple attendant benefits. With this, I will hand you over to my colleagues to talk you and walk you further. Thanks. Guys, over to you.
Yeah. Let us start the question- and- answers.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies, and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Amit Dixit from ICICI Securities. Please go ahead. Mr. Dixit, your line is unmuted. Please go ahead.
Hello, we are not able to hear Amit.
Mr. Amit, your voice is not audible. As there is no response from the current questioner, we will move to our next question from the line of Venkatesh Subramaniam from LogicTree Consultants Private Limited. Please go ahead.
Yes, good morning to all of you. Season's greetings. Happy Deepavali, and congratulations on a very good set of numbers. I have basically three questions, you know, taking off from what you said. One is, in terms of what we are pursuing and in the past transcripts, you've been talking about, broadly looking at a top-line revenue in excess of INR 8,000-odd crores over a period of time at a run rate of approximately INR 2,000 crores. That is one. But to achieve that kind of numbers, you would need to have an order buildup over the next 18 months to have a visibility for, say, four to five years. Do we have some sort of a blueprint to get there? That's one question.
Second question is, sir, which is with respect to NavIC, I was reading the one of the recent interviews of Rajeev Chandrasekhar, the minister, honorable minister, saying NavIC could be mandatory in a lot of devices. In NavIC, are we a pure play, or do you think we have competition out there, and we will only get a piece of the pie? That's second. And third question is MMIC, how big can this opportunity be in terms of, say, over a five to six year period of time, if things work out for you? And you said you are uniquely positioned in the defense application side. And one suggestion on the fourth one is, sir, if we are doing a little bit of crystal ball gazing over the next five to seven years, where would our revenue set broadly come from?
In whether it would be in terms of domestic tenders, would it, would it be other, services and activities, as, Atim mentioned, or would it be exports? Would it be MMIC? Some sort of crystal ball gazing or a five-year period, give us an idea of where the company is headed to in various strategic segments. And also would be helpful because the Indian elections are coming up, and, if defense tendering, Atmanirbhar, all that takes a backseat for some reason, then we will have a plan B in executing revenues over a period of time. That's it from my side, sir. Yeah.
Yeah, I think, you take a couple of questions on NavIC and MMIC, then we will take the rest.
Sure. Then there are two ways to look at NavIC, right? You can be the basic chip supplier, or you can look at being a value-added supplier. NavIC is still some time away, just to be very upfront about this, number one. Number two, there are, you know, MeitY had given the contract to two entities on this to develop the chip within the country. One was us, and the other is an entity called Accord. You know, so we did it in a joint effort, along with another partner, where we own 50% of the IP. So it's not exclusive to us, number one. We believe there's another entity by the name of Elena Geo Systems, which has made some claims about this.
We don't know much about this for you guys to explore. So our strategy would hinge around the having the processor combined with the RF front-end, and then creating some modules around it, so we can be a value-added supplier in the NavIC space. So that would be the broad strategy. And I'm reiterating, this is still a few years away to the bare minimum. We recently met somebody senior government official, ex-government official, and it was reiterated that the intention is there to completely support the ecosystem, but it will take some more time for the product to be developed. The good thing is we are soft-coded, which means our products can actually be multiple positioning systems.
So we can do GPS, some NavIC, NavIC and GPS, or for that matter, we can code in BeiDou also, you know, et cetera, et cetera. I hope that answers the question on NavIC. The MMIC part, which I would like to address here, is guys, we are looking at creating a portfolio of MMIC products, wherein a few chips or a few products from our existing sales portfolio can be picked up by our marketing partners, while we develop mid-term, quick reaction products for them jointly. And at the same time, in parallel, we beef up our capabilities in MMIC to create products over the long term, which could be one to two years, right? I would, you know...
Let's say, you know, we are looking at at least 7x-10x of, maybe that's aggressive, okay, over the five years that you spoke about, okay? But we definitely are looking at about, you know, 3x-4x of the current MMIC portfolio in a few years' time. Now, that, interestingly enough, that would imply creating a long tail of royalties, which should come in, if our success—if our current efforts are successful and translate into a business opportunity, and that's dedicated to dotting the i's and crossing the t's in our final agreements, which are gonna be done. So, it's, you know, we'll keep you posted as it happens, but this is a long, the long vision which you guys are looking for.
Okay.
Yeah. So the other part, in terms of, the visibility for the company for the next, three to five years. As we have mentioned in, multiple interactions, with, many of you, basically, we are looking at, the overall pie that is available in the areas where we are there, in terms of the radar, CWs, missiles and telemetry, space, exports and turnkey projects and special projects. We see a visibility of, in excess of about, INR 39,000 crore up to year 2030. So this visibility, we have split up into three parts, where we see a definite opportunity for Astra, maybe on a single tender or a preferred tender basis, about INR 5,000 crore of opportunity.
There are other two segments where there is a limited competition and a severe competition, where the success rate we are assuming at about 30%-40%, where there is a medium competition, and about 10%-15%, where it's severe competition. If you take all these three parameters and looking at the products, what I have indicated, we see a visibility of business in excess of, of course, INR 8,000 crores-INR 10,000 crores. That is what we can say as of today.
So that would be translating broadly to a run rate of about INR 2,000 crore approximately per annum, sir, going forward, broadly?
Yeah, that is how we see it. And basing on that one, we have projected a cumulative turnover of about INR 8,000 crore by the year 2027-2028. Yeah, as of today, that is how, that is the visibility what we have, internally.
Got it, sir. Got it. Thank you so much, sir. And my last question was that the, in terms of the various segments that we have, exports, NMIC, NAVIC, domestic tenders, other, like you said, limited competition and serious competition, if is it possible, I don't need an answer right now, sir, but in the future, is it possible that we can say that to achieve that, if I do a crystal ball gaze five years down the line, what would the company look like in terms of various segments based on your internal workings?
Yeah, probably we can exchange the information offline, but immediately, whatever I can share with you, this is what I can talk to you right now.
Perfectly, sir. This is very good enough, sir. Thank you so much. I appreciate it. Thank you.
Thank you. Before we move to the next question, a reminder to the participant, anyone who wishes to ask a question may press star and one. Next question is from the line of Hitanshu Bhatia from Gandhi Securities & Investment Pvt Ltd. Please go ahead.
Hi, sir. I just needed a few updates. So the delay in the approval for NavIC chip, is it because we have some new observations that we've been facing, or is it a delay from the regulatory side? And, roughly, I mean, by when can we expect progress on that front?
No, there is no regulatory access. Ultimately, whatever chip is designed, it is to be approved by SAC. So there are certain observations given by them. The Manjeera, which is our partner who is working on that, is trying to address those issues, and that is where the delay is happening.
In the last quarter, we would have, we were expecting to address those observations by within a week or so in the first week of September. So-
Yeah, that is what, that is the reason why I used the word unfortunately. Okay? So somehow or not, it is going in cycles. And that is the reason why now in this call, I don't want to commit any date, but the only hitch is, some of the observations, the technical side, it is taking time to address.
So roughly, can we expect within the next quarter or so?
Hopefully, that is what our partner has given to us. So we are hopeful that it will be done.
Sir, with regards to the NCNC trials, which were scheduled in October, November, and which we were preparing for, for the SDR manufacturing, so any updates on that, sir?
Yeah, as I mentioned in my opening remarks, it has gone through successfully in the first trial, which is called the UTRR. Okay, so only three companies have gone through that successfully. ARC is one, one, one company. Now, the final trials are awaited. It is scheduled as of today in the first quarter of next year.
Okay. Okay. Thanks a lot.
Yeah. Yeah.
Thank you. Next question is from the line of Sarjeet Yadav from Mount Intra Finance Limited. Please go ahead.
Good afternoon, sir. Congratulations for the good numbers, and Happy Diwali to all of you. I also congratulate Mr. Somani and all the directors. So my question is, firstly, about the order book. In the presentation, you mentioned about INR 1,867 crore of order, but I just heard some time back about INR 200 crore-INR 300 crore of orders. So is the difference because of the consolidated order book, or have you received anything after 30 September that there's an increase of about INR 40 crore-INR 50 crore? This is first question. Second is about the AESA radar. Can you give an update, when we expect an order, especially in view of the upgradation of Su-30, which has now been approved? Do we see AESA radar being employed there or any other traction we have for the AESA radar, sir?
Yeah, the order book number mentioned by Atim is inclusive of the joint ventures company. It is a consolidated order book, whereas whatever numbers I spoke about is the standalone. The other part, now, AESA radar, I request M.V. to share the ideas and an update.
You're talking about AESA radar, that is Uttam radar. It is, that is the radar we are talking about. We are expecting soon, you know, production order from HAL, for the, you know, first series of limited production. And another question you asked about the Su-30. We are waiting for the, you know, RFPs to be out from the DRDO, and we are actively working on that particular opportunity also.
Just a follow-up question. Do we see any competition in this Uttam Radar or AESA Radar on the same upgradation, or it's more like a confirmed sort of product?
Yeah, for Uttam and its variants, as of today, we are the only player, but in future, we never know that some companies may come out in competition. But as of today, we are the major supplier of the radar portion in that segment.
Okay. Thank you, sir. Thank you. That's all from my side.
Thank you.
Thank you. Ladies and gentlemen, to ask a question, you may press star and one. Next question is from the line of Amit Dixit from ICICI Securities. Please go ahead.
Yeah, thanks a lot for taking my question. I have two questions, actually. The first one is on slide number 32, where you have indicated the opportunity size of Uttam radars for various platforms... Now, is it possible to let us know that, you know, a lot of, I mean, the media articles suggest that Tejas Mk1A, for instance, there could be additional order of 97 numbers, and so on. So this opportunity size that you have mentioned for Tejas Mk1A, for how many numbers it is? For Tejas MkII, how many numbers, if you can just let us know, so that we are at least abreast of, you know, if any future orders come, then we can have it in our estimate.
Yeah. We have considered the existing lot of LCA-1 production. We are expecting at least 440+ numbers for the indigenous Uttam radar, and that is a figure we have considered. And apart from that, the additional sanction of 197 numbers also we have taken into. For LCA Mark 2, as of today, we have not considered any figure because we are waiting for the final configuration to be decided for that platform.
Okay. So we have considered 440 numbers of Uttam radars, including 97 numbers.
It is Mark 1, and also there are other variants, like LCA.
Yes.
Version is there. So there are many variants out there.
Okay. Okay. The second question is essentially, I think you covered it in the answer to earlier participant. For the MKI upgrade, there is this Virupaksha Radar that is being talked about.
Yes.
Now, what components are we supplying in that, and what is the value per radar be very different from Tejas Mk1A?
Discussions are going on in DRDO. As of today, they have not finalized the configuration yet, but, yes, there will be likely, you know, Uttam variant maybe be going, but I just, as of today, the configuration is still, you know, the, not being finalized. I think discussions are going on. Maybe I think in couple of months' time, we will come to know about that.
We are the only player there, or discussions are going on with several players at this point?
No. If it is the configuration, you know, if it is different from Uttam, then we'll have a competition from other players also. But if it is the similar to Uttam, then I think we are the only one as of now.
Okay. The last one from my side. Are we affected in any way by this Israeli-Palestinian conflict, either in terms of supply chain or in terms of our exports?
As of now, we don't see any major issues in supply chain. But yes, going forward, it all depends on how far this war goes on and how the local industry gets affected. But as of today, when we discuss with our partners, they say things are in control. So with that figures only, we are moving ahead.
Okay, that's very helpful. Thank you, and all the best.
Thank you.
Thank you. Before we move to the next question, a reminder to the participant, anyone who wishes to ask a question may press star and one. Next question is from the line of Yug Mehta from AP Capital. Please go ahead.
Yeah, thank you for the opportunity. Sir, our margins are looking good despite a 48% export contribution to the top line. I understand that this is because of two different types of export orders. One is a direct export order, order with low margin profile and other one is, has a better margin. Would it be possible for you to give further bifurcation of both of these export orders individually?
You, you have both question- and- answers in your question anyway. Out of INR 72 crores, what we booked in sales in Q2, close to INR 65 crores are the deemed exports, which is being supplied to a joint venture, and the INR 5 crores are direct exports to our partner.
Okay. My next question: Can you throw some color where we are on our various projects that we wanted to pursue with QIP proceeds?
I didn't get you. Come again?
Yeah, can you throw some colors on where are we now with our various projects that we wanted to pursue with QIP proceeds?
Yeah, we have taken up multiple projects, you know, development to address the requirement for military application and as well as for the meteorology application. And, we, we have started some development of few critical, you know, MMIC chipsets also, as Mr. Atim had mentioned in the opening remarks. So all these development has been started, and, it is actually pursuing. Right now, today, we don't have a clear, you know, breakup of what exactly the project, how much we have invested in that particular amount.
Okay, good. Thank you. That's all from my side.
Yeah.
Thank you. A reminder to the participant, anyone who wishes to ask a question may press star and one. Next question is from the line of Ketan Gandhi from Gandhi Securities. Please proceed.
Yeah, hi. Sir, in Project Kusha and Project Virupaksha, basically, we are into GaN-based radar. And I believe, nobody in India has the capability as do we have. So what is your thought on that?
Yeah, I would say we have capability, but I can't say others' capability, unless, you know, this is a war, like, you know, the tender and, you know, participation. Until we get the contract on hand, we cannot comment on somebody's capability. But as of today. Again, I reiterate, we have capability of building the GaN-based DR module as well as the radar.
Excellent, sir. Sir, I just couldn't understand what you said about the SDR manpack for Army. Are we in or, I mean, where do we stay? I just missed that. Sorry to repeat, but-
Yeah, we are very much in. As Mr. S.G. has mentioned, we have completed that UTRR trials successfully. Only three companies out of eight got, you know, got through in that trials. We are among one of them. So final trials are being scheduled sometime in January and February. So I think once it gets through, probably we will be knowing the state of the particular tender.
Sir, is it possible to share the other two competitors' names?
No, no, we can't do.
Thank you, sir. Thank you so much.
Thank you.
Thank you. Next question is from the line of Santanu Chatterjee from Mount Intra Finance Private Limited. Please proceed.
Thank you very much for this opportunity, sir, and congratulations for great set of numbers. My question is on your CapEx cycle, sir. Can you share that what kind of CapEx that will happen in the next couple of years? And second one is on the working capital days. Your working capital days is hovering around 250 days. So what is your guidance going forward in the next one year or the next couple of years, sir?
In terms of the CapEx, as mentioned in our annual report, we are spending about INR 45 crores in the next 12 months. Mostly this is all to augment the existing operations, to a large extent. In terms of the working capital, see, working capital is going to be intense, and probably the number, whatever you have stated, it may be around 250-270 days. I don't see any other way of reducing that number. So it continues to be very working capital intensive.
Okay. And sir, on your margin front, can you maintain this, your guidance that it will remain in the vicinity of 20%, or it will increase from here onwards as your product mix will change going forward?
There will be some improvement, but I don't see significant improvement from Q2 numbers, whatever we have achieved. But it is going to be improvement from this one, but it is not going to be very significant. Maybe, see the PBT level, I think we are around INR 17.5 crore kind of thing. Probably it can go up to INR 18 crore-INR 18.5 crore, by the end of the year. That is how I look at the numbers.
Thank you, sir. Thank you very much.
Thank you. Participant, to ask a question, you may press star and one. Ladies and gentlemen, anyone who wishes to ask a question, may press star and one. Next question is from the line of Aarti from Suyash Advisors. Please go ahead.
Yeah, good afternoon, sir. On the SDR part, Army SDRs will be in the joint venture or will be in the parent entity, sir?
It will be in a joint venture.
So, one question, sir. You know, last we spoke, you were talking about slightly higher dispatch numbers for the joint ventures, but now you are guiding for a lower number. So if I may ask you, what is the biggest constraint in terms of getting export licenses?
Export licenses have been received. That is what I mentioned.
Yes.
Okay. Now, like any other product, here also there are some technical issues are there.
Mm-hmm.
So probably the deliveries may be a little slow in the next up to the end of the financial year.
Mm.
Opportunity is there to improve on those numbers, but as of today, the indication is that, probably it can be a total of about INR 110 crores-INR 150 crores.
Right. Right. Because originally you were planning to ship more than INR 200 crore, if I remember correctly.
Yeah, internally, even today, that is the target, but we see some technical challenges apart from that, you know, because of this war in Israel, there is a problem in terms of the people traveling.
Oh, okay.
They have to come in, and that is the technical issues. That is another uncertainty which has come in.
Okay.
Because of that, there is some delay. Otherwise, there are no issues.
Fair. Fair. Sure. So thanks very much, sir, and extremely inspiring commentary, so best wishes, sir.
Yes.
Thank you. Participant, to ask a question, you may press star and one. As there are no further questions from the participant, I would now like to hand the conference over to the management for the closing comments.
Yeah, thank you everyone for participating and having a good conversation, and look forward to talk to you again at the end of third quarter. Thank you very much.
Thank you.
Thank you. Thanks, everybody.
On behalf of Astra Microwave Products Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.