Gentlemen, good day and welcome to Astra Microwave Products Limited Q1 FY2023 earnings conference call. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. If you need assistance during the conference call, please signal an operator by pressing star then zero on your telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. S. Gurunatha Reddy, Managing Director, Astra Microwave Products Limited. Thank you, and over to you, sir.
Thank you, Aman, and good afternoon, everyone. I welcome you to this post results earnings call of our company. I'm with my colleague, Mr. M.V. Reddy, Joint Managing Director, and GA, our investor relations advisors. The results are taken on the call as per board of directors meeting. The results in the investors presentation are uploaded on our company website and stock exchange. I hope you had a chance to look at it. As you are aware, we are in this business for the last 30 years, supplying RF and microwave components, subsystems, and systems for defense and communication metrology technology. We have always tried to and with steady progress to end up the value chain from subsystems to a high value-added system as of today. On this call, we would like to outline some of our product lines for greater understanding of our capabilities and expertise.
We begin with our core area that is the radars. We have the capability to provide TRMs for active phased array radar. We are adept at designing and developing all kinds of radar systems like power amplifiers, receivers and exciters, filters, synthesizers, converters. In the area of signal processing and the radar data processing, we are in concurrent IP with other companies. You would be delighted to know that your company is developing radars like shipborne radar, coastal surveillance radars, anti-drone radars, ground penetration radars, elementary radars, instrumentation radars, etc. We enjoy joint IP rights with DRDO labs for MMIC products for radars and other communication systems. The other area for expertise in different segment is electronic warfare. We have been supplying various kinds of EW subsystems and components such as direction finding receivers, active homing heads for RF seekers used in MGA-RM, jammers, filters, amplifiers, receivers, etc.
We have delivered EW systems and components to branches of Indian Air Force, Navy and Army. Another area in defense is the telemetry. Astra has been supplying various systems for telemetry applications such as S-band FM transmitter, airborne RF transceiver, ground/up-down converters, C and S-band switch antenna systems, telemetry tracking systems, etc. Astra has been supplying various key microwave components and subsystems for ground and space-based payload applications. In addition to the above, we have the capability to provide required microwave electronics for launch vehicle systems, for private sector players. We are also present in Satcom and MSS terminals for communication during disasters. In the guided weapons segment we have taken up the development of terahertz proximity sensor with DRDO, which is an advanced version of proximity sensor for guided weapons.
Our expertise and capabilities in this area, in these areas which I have spoken about, puts us in an envious position to partake a major stake in upcoming different programs like Light Combat Aircraft, AAAU for APS-BJ, PPIU for Uttam AESA radar, PPIU for AWACS and many more. We take pride in being one of the few companies in India except the defense PSU, which has the capability of designing, developing airborne radars for fighter jet platforms. We expect to be the beneficiary for Uttam airborne radar for LCA Mark one, which is currently being tested. We have been supplying wind profile radars, Doppler radars, automatic weather stations to IMD, and we are one of the few companies in India which has the capability of designing and developing these radars. Our persistent efforts for business mix is also evolving.
Space and metrology, which combinedly contributed about 7% of our total revenues in financial year 2022, will constitute about 16% of the order book as of January this year 2022. In the last three years, Astra has grown at a CAGR of 20%, and we are confident that in the coming years we'll continue this stride as macro environment for the defence sector is very positive. On the back of our deep domain expertise, we are able to create a solidly diversified order book of about INR 1,663 crores, which is executable in the next 12-13 months period. During Q1 FY 2023, we have received orders for about INR 253 crores.
Now, coming specifically to the standalone financial performance for the company for Q1 FY 2023. Our revenues are about INR 161 crores, which is a growth of about 34% year-on-year. Gross margin saw a small reduction from 39% to 38% due to increase in material costs. EBITDA stood at about INR 55 crores, which is a growth of about 15.4%. Our company reported profit after tax of about INR 11.4 crores, which is a growth of about 18% year-on-year. In terms of geographies, Indian market is about 61%, whereas exports is about 39%. With this, I open the floor for questions and answers. Thank you.
Thank you very much. Ladies and gentlemen, we are now in the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. 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 will wait for a moment while the question queue assembles. Anyone who wishes to ask a question may please press star and one. Thank you. The first question is from the line of Rahul Jain from HNI Invest. Please go ahead.
Good afternoon. Firstly, I would like to thank you for an excellent presentation. Now, I would particularly want you to clarify some numbers you've mentioned on slide 30 of your presentation. You've mentioned that the business potential of Astra Microwave is around INR 14,500 crores till FY 2023. I just wanted to check how certain are we of the execution and excess business potential over and above the existing order book of INR 1,600 crores.
Yeah, Rahul, this will be taken by Mr. Murugavel.
Yeah, Rahul. As we mentioned earlier, you know, we talked about for the three years. Now, next 5-6 years, the total outlook, business outlook, it appears to be that we, you know, we have a very good potential of, you know, close to INR 15,000-18,000 crore of orders, which are, you know, likely to come in our domain expertise. In that, I would say, close to INR 8,000 crore, we can say with 100% probability we can receive orders. In that, the major chunk of business will come from the radar, about INR 5,000 crore. Then electronic warfare, about INR 1,000 crore. Missile and telemetry put together around INR 1,000 crore. The space and meteorology are put together around INR 1,000 crore.
This is what the potential emerges for us in next 5-6 years.
This is in addition to the existing order book. I think that is another clarification you have sought.
Yes. Thank you so much, sir. Thank you.
Thank you. Anyone who wish to ask a question at this time, you may please press star and one. The next question is from the line of Amit Shah from ACE Securities. Please go ahead.
Hi, sir. Sir, gross margins have fallen from 39%- 38% year-on-year. What are the major reasons behind the fall, and how do you see this trend going forward?
I guess the gross margin. No. We have to get into very micro details to explain in detail. In general, the fluctuation in gross margin is largely related to the product mix that is being executed on quarter-on-quarter. Okay. Therefore, it is not something which we have to really worry about. There is a small effect of the FX changes which has happened in the first quarter, maybe about 2% that contributes to that. Otherwise, it is not a trend we have to really worry about.
Okay, sir. Sir, could you please elaborate on the order book within this quarter? How does the pipeline look like for the remaining course of the year?
Yeah. For the first quarter, we have booked orders close to INR 280 crores. In that, the defense segment is around INR 128 crores. To be precise, INR 77 crores from radar and INR 54 crores from EW and INR 70 crores from missile and telemetry. INR 12 crores from the meteorology, INR 5 crores from the space system. All put together, it is around INR 282 crores. It's our order book for the first quarter. Going forward, from Q2 to Q2, we are expecting close to INR 400 crores. In this domestic, close to about INR 380 crores and rest is export. In that, again, like from radar segment, we are expecting to book INR 175 crores. EW about INR 85 crores. Missile and telemetry around INR 10 crores.
This is a broad classification of order book for Q2, Q3 and Q4, as of now, close to INR 250 crores are the orders in place, which probably we can between Q3 and Q4.
Sir, these orders will get executed in how much period?
Usually we have a delivery schedules of 12-34 months. All these orders you know can be executed starting from Q2 of next financial year.
Okay, sir. Sir, lastly, sir, I had a quick look on the presentation and we see some interesting additions to the project, products. Usually, when you talk about the order book, you give some color on the final project that you are working on. Could you be able to give some details on this aspect?
Yeah. We are working on many projects. Like, say, we like, you know, like, last call where we did mention that we are going to execute this for the outcome. That has been completed, and we have delivered successfully, so we are in the race for production. Similarly, for ITR, we said we will be delivering that, PhD and telemetry radar. That also has been delivered. Few radars like PCTR and BX are in advanced stage of completion. These are all above systems that have been okay. The Doppler weather radar for IMD, we have completed the first contract of 10 members, and we have participated for tenders for the next requirement for the C and X band.
we placed the order for anti-drone radar that is under execution now. these are all our systems. As far as the subsystems are concerned, we have been working in various programs. few of them are in development stage and few are in the production. all those together, I think, like, you know, whatever we have been mentioned in the last call. it is in line with our guidance.
Understood, sir. Thank you.
Thank you. A reminder for participants, please press star and one if you wish to ask a question. Next question is from the line of Priyanka Shah from KK Advisors. Please go ahead.
Hello. Thank you for the opportunity, sir. I have two questions. I was wondering if any further CapEx is planned or required at your end to meet the growing order book and what kind of capital utilization are we working on?
Yeah. We need a little bit of CapEx that was planned in the last year itself. It is continuing in the current year. In terms of the absolute number, in the present year we are spending about INR 12 crores of CapEx.
Thank you.
Thank you. Next question is from the line of Subrata Sarkar from Outlook Stock Trends. Please go ahead.
Yes, sir. Sir, this is regarding your business opportunity to which you have given. You have given, like, radar and counter-drone systems potential of INR 8,000 crore. Can you just give a ballpark breakup of that, like how much is the radar and how much is counter-drone or anti-drone system?
Yeah. See, that radar subsystems is about INR 2,500 crores. AAAU and systems put together, we have taken around INR 5,000 crores. This is the potential what we see in next five to six years. Counter-drone system, we have taken about INR 5,000 crores.
These are all major, you know, part of the radars. In this, as I said, you know, out of INR 12,000 crores opportunity, we are confident of getting INR 5,000 crores with a 100% probability. The rest, you know, we have a 30%-50% probability as we have competitors in this segment. In EW, we have close to INR 2,000 crores visibility for next five to six years.
In this, like, programs like Shakti, Dharashakti, Dolphin, Varuna, Lion, Himshakti, all put together is about INR 2,000 crores opportunity that is for next 5-6 years. In this INR 800 crores, we are confident of getting 100% probability. The rest, we have competition, so we can keep it 30%-50%. As far as the missile and telemetry, we have programs like Akash 1S, QRSAM, Astra, and Akash-NG. In all programs put together, the visibility of close to 3,000 crores. In this, we have taken about INR 1,000 crores with 100% probability, and the rest with 30%-50% probability. These are all in defense sector.
The rest are in space and astronomy, which will put together about close to INR 1,000 crore. We have a potential to book orders. I hope I answered your question.
Yes, sir. Sir, regarding counter-drone sales, I have two questions. Like, as of now, have you won any anti-drone or counter-drone order? Number one, sir. Second, sir, I would like you to like comment on this. Like, what is the competitive landscape in anti-drone? Like, how many players are there generally in terms of whenever there is a bidding and all those things? Can you throw some light on that part, sir?
Well, I don't go much details in that because the last time, as I said, you know, in this call, we have taken basic technology from DRDO, and we have optimizing the design to suit various applications. To that extent, I think, you know, we are progressing well. Probably, I think, next in 4-5 months, we should be in a position to demonstrate our model to various users.
As of now, sir, like, it will take another 5-6 months for the launch of our model, sir.
Yes.
One follow-up question on this. I can recall like few quarters back on the concall, we were contemplating the opportunity of, like, some fundraising for our new project with JV, basically. Is that plan still on or like we have no more require that?
Are you mentioning about any fund requirement for our JV?
Yes, yes. If you can recall, like, few quarters back, we were talking about the possibility of, like, if we get into, like a specific project or some other JV, then we may we were contemplating that we may raise fund at that point of time. What I mean to say, sir, still, we have, like through QIP or some other sources. Are we, like, is that still open or we currently do not need any fund?
If I recollect correctly, we mentioned about a new product line introduction in our JV.
Yes.
about electro-optics. This is a product line what we discussed about.
Yes.
In fact we are very happy to share with all of you that, a fortnight back, we have signed an agreement with our JV partner, and this product will be introduced into the JV in the near future. But as of today, immediately, no funds are required. Depending on how the project takes off, we have to take a call on that fund requirement at a later date.
Okay. Okay, sir. This is all for now, sir. I will be in-
Thank you.
Our next question is from the line of Dhavish Shah from MK Ventures. Please go ahead.
Okay. My first question is, are we still maintaining a guidance of 8%-10% PBT?
Yeah.
Okay. There's no change in, like, no upward or downward revision, right, sir?
No.
Okay. Sir, second question is on the consolidated financials. We have reported a loss of around INR 8 crores in the consolidated financials. Is this loss on account of the JV which had broke, like which was breakeven in the last quarter? Like, you were talking about JV being breakeven this year, right?
Oh, yeah. We mentioned that JV will break even in the current financial year, but in the first quarter, still it is in red only. Yeah.
Like, what's the outlook there? Like, are we expecting it to breakeven or the losses will continue?
It will break even at the end of the financial year. Current financial year, the JV will break even.
Like, are we witnessing any execution challenges? As, like, quarter-on-quarter revenue has declined. Is this due to some semiconductor shortages or, like, what?
No, this is not due to the semiconductor shortages. There are some technical issues faced by the JV in executing. All those issues have been resolved now, and they will be exporting their first consignment very soon.
No, sir. I'm, like, not only JV. On the main business, I'm seeing, like, our revenue has declined quarter-on-quarter. Are we witnessing some execution challenges or what, like?
No, revenues are not declined. In fact, whatever we have given guidelines in the beginning of year, we've been maintaining the same. Like, first quarter we said about INR 150 crores. We have executed INR 150 crores. Similarly, for Q2 we have given around INR 200 crores, so we are planning to that INR 200 crores. Q3 and Q4 put together it is around INR 500 crores. So, which are, like, you know, on pipeline for execution. I don't see any major challenges. Yeah, there are issues of semiconductors. That challenge is there. Global, you know, certain companies have been facing these prices, but we are somehow managing. For the current year, we don't see any major challenges as such, say, for component shortage for the revenue system side.
Right. Like, from this fixed asset, like what asset turn could we have? Like, what could be our maximum revenue potential from this, like the fixed assets we have? How much CapEx will be required to achieve the INR 2,000 crore order book?
No, I didn't get your question. I think your voice is little.
I just wanted to understand from the current fixed assets we have, what is the maximum revenue potential can we have? Like, how much is the maximum revenue potential from the current fixed assets we have?
Yeah. We actually, the infrastructure and the equipment what we have, we can comfortably book revenue worth of INR 2,000 crores. Going beyond INR 2,000 crores, yes, we need to add more capital equipment into the company. That we have already initiated the plan. Probably we will come out with the action plan in a couple of quarters. Otherwise, yes, we, whatever equipment infrastructure we have, we can comfortably book revenue of INR 2,000 crores.
Okay. This is just last question. What is the net, like, debt and cash figure as on June quarter?
Again, your voice is not clear, but I think that you're asking what is the cash position at the end of the quarter.
Cash and debt figure.
Yeah. Long-term debt is about INR 18 crore. Working capital is about INR 100 crore. The cash at bank includes of the margin money for the deposits is about INR 51 crore. Okay. Thank you, and all the best.
Thank you.
The next question is from the line of Rahul Jain from ICICI Securities. Please go ahead.
Yeah. Hi. I just had a couple follow-up questions based on your previous answers. My first question is, the INR 8,000 crore that you said is certain from Astra business potential, could you just shine some light on what is our potential margin profile on this and what can, you know, be our bottom line from that revenue? My second question is, we have a JV with Rafael. So could we just give a broad outlook on what can we expect from this JV, you know, 4-5 years down the line, and what progress should we expect?
Yeah. I think in terms of the margins, it is too early to really talk about it. Otherwise, you know, the general, standard margins, what we are enjoying for the defense and aerospace industry, that we should be able to have. I would say that in terms of the gross margin, the sales minus material cost should be anywhere between 35%-40%. That is how we look at it, when we look at the number of that INR 8,000 crore business potential. Coming to the JV, as you are aware, currently it is executing supply of SDRs. That is software-defined radios for one of the Indian Air Force programs with Rafael. Going forward, it is working on a similar software-defined radios for the Indian Army under the NCNC program.
That is No Cost No Commitment program. It is investing close to about $7 million or $8 million to come out with a product to demonstrate to the Indian Army, then get the product approved and compete for the business. That is a kind of cycle it is going through. This is likely to get the technical approvals or demonstration is likely to get completed by second half of next financial year. Basing on how successful the product is, the company is going to bid for that business. Thirdly, as we said a few minutes back, it has signed an agreement with its JV partner for the electro-optics business. This has a huge potential in the Indian market.
Currently it is being procured with a global market, but it is likely to be an Indian specific procurement going forward. Therefore, the JV is preparing for competing for this business in the Indian market in the years to come. Therefore, it has a very good product line on sale. Going forward, we have to see that how it's going to materialize the business.
Thank you, sir.
Thank you. Next question is from the line of Praveen Sekhri from Ratnawali Capital. Please go ahead.
Thank you, sir. First of all, thank you for providing this excellent presentation. I have two questions. First of all, out of this INR 253 crore order that you have bagged in this quarter, around INR 127 crore is from defense. Can you please tell us what kind of order is this?
You want the breakdown of the orders?
Yes.
See, in segment wise I have already given.
I just want to know that, the defense order, that 127 that you have bagged, from which program?
Yeah. Which program he's asking. Which program? See, in this, the major orders what we have bagged is, you know, EW subsystems, which is from Shakti and the navy program. That is about INR 70 crores plus. Then we have orders from DCX. That is basically for supply to E Delta in the vertical takeoff systems. Then we bag orders from Gaps. That is space for Netra Mk1A. That is a brand ERMN. It's about INR 7 crores. We bagged one development contract from NSTL. This is something which we'd like to highlight here. This is basically to provide communication from submarine to the sea surface and offshore.
Though the order value is small, it's about INR 8.7 crores, but this has a huge potential. Once it gets through, then we can provide this kind of a communication to all submarines. Also we have bagged orders from DRDO, from ARDE, about INR 6 crores. We bagged orders from, you know, metallurgy segment, close to about INR 15 crores. These are all break-up of various orders which we bagged in the first quarter.
Okay. My next question is, do you have an aspiration to be in the mini satellite market. My understanding is that SSLV is very much correlated with this mini satellite market. Recently SSLV has been launched by ISRO successfully. My question is, what kind of opportunity this SSLV program can bring to Astra? And is this over and above your existing system?
We don't have much contribution in the launch vehicles. We only supply some components to the launch vehicles. We have major contribution in payloads, satellite payloads. We have been working on that, our space group. We're working to get, you know, standards for the communication and also we are planning to get into remote sensing standards. That takes time, but we have already started working towards that.
Okay. Thank you, sir. Thank you.
Thank you. Next question is from the line of Akshata from Envision Capital. Please go ahead.
Sir, thanks for the opportunity, sir. In the defense segment, could you just elaborate what the order book is like in terms of whether it will be production or development?
We have both mix of development as well as production.
As a part of our current order book, how much would be production and how much would be development?
You mean to say total order what we have on hand?
Yeah, total order. What percentage would be production and what percentage would be development?
From different 30%. Maybe, like, from R&D, close to INR 300 crore in defense and rest all in production. Yeah. I think out of 16 lakh gross, 300 and close to 350 crore are for R&D. Rest all in production.
Should the new orders on the export side could be having gross margin of around 10%?
It's close to 8%-10%.
Okay. I could not understand. Is it because our capacities are unutilized that we are taking these orders because they are at significantly lower than the domestic margins that we are making?
Actually, we have taken this, we have booked these orders long time back, and of course, we are continuing the same projects. You know, this is something like, you know, where with the GTC, we do not have any risk in executing this contract. The customer is providing 100% cash flow, positive cash flow. And also with the infrastructure being provided by them, so we will continue to work on this, I think. Gradually we are coming out of this. Probably down the line, maybe after one or two years as offset business is getting changed because of low priority for global. We focus more on BTS. Even export market segment, we have been discussing with many OEMs for BTS opportunities.
We are likely to close one deal maybe in few months, one of the U.S. companies and also which are in the advanced stage of project discussions. Like that in future going forward, we are focusing more on BTS build-to-specifications. Okay. Margins would definitely be better. Yes, we are focusing more on indigenous, you know, development R&D programs. The offset business will go down in the next couple of years.
Okay. I would like to congratulate you on the good order wins. You know, could you give some order misses which happened during the quarter, if there are any?
I didn't get you. Come again.
The orders which we were projecting in our pipeline would come to us, but it has gone to someone else. Were there any orders of that sort?
No, actually, you see, I just said, you know, we have always we take, you know, few contracts which are in competition like with 30%-50% and which we are sure of getting like, you know, with a 100% probability. That always we project. Yes, this is 30%-50% where we have in competition, few orders we lose and few orders we get.
Okay. Sir, you talked about we have taken a technology for anti-drone from DRDO. How does it go? Do we make the payment to DRDO for the technology or we develop it together? What is the process actually?
This is agreement terms, so we don't want to discuss the agreement terms. You know, as I said, we have taken the technology from DRDO, and we are building the system. Okay? As I mentioned repeatedly, like, we are optimizing that design to suit wider applications. That is what actually we have been working on that. In few months time we will come out with our own product.
Okay. This technology.
There is no up-front payment for the technology transfer.
Okay. This has been exclusively provided to Astra?
No, no. The license was given to companies.
Okay. Thanks a lot, sir, and all the best.
Thank you.
Thank you. Next question is from the line of Abhijit Mitra from ICICI Securities. Please go ahead.
Hey. Thanks for taking my question. Just to understand, one of your competitors in a recent call, they mentioned about two radars, scaled-down version of, you know, space surveillance radar and ultra high-frequency bandwidth, you know, radars, you know, where the potential, you know, final products or projects can be each INR 1,000 crore. You know, did we participate? Were the margins, sort of, unfavorable, sort of, beat? What were your thoughts as to why we couldn't participate one day?
In a competitive environment, like every company will have some strategy to bid and to, you know, get into that. Yes, we did participate in those tenders which you are referring. We lost it and because the kind of margins where they bid for it is nowhere close to us. Maybe I think it's right strategy to bid for it, but for us it was not comfortable enough to bid for this particular margin.
Just to understand the margin profile here, what are or rather what is profitable margin profile for you for participating in tenders? Is it 10%, 20%?
It depends upon like, you know, what are the programs like, what are the future potential and, what kind of, you know, products it will have, like production quantity. It's all like, you know, we take all those, factors into mind when working out pricing. It is not a fixed margin level where we, operate and all. It depends upon case to case, project to project, application to application. We'll have our own strategy to bid for it.
Okay. There was recent news flow of again, project development and realization for mobile radar hardware. Essentially, there also we could see your name and some very, you know, immediate competitors. Would these dynamics be sort of similar or, you know, your bidding strategy are similar here and I mean, how to look at this? I mean, these tenders, you know, essentially this looks like big tenders, but.
See, we do have big tenders. As I said, you know, when I given this projected the numbers. These are all like, you know, high potential big tenders for various programs. Like that, you know, I have not gone to the specifics of each and every program when I mentioned about the radar domain. We have a clear visibility of INR 12,000 crore in next 5-6 years. In that, we are very confident of booking INR 5,000 crore with 100% probability with various programs. I'm not listing down all the programs where which we are currently developing or we have already developed, which have been product, few of them in production and all. This is certainly we can book INR 5,000 crore with 100% probability.
The rest ten thousand crores, what we see the visibility, but we may have to compete with one or two players. There we took 30%-50% the probability. Like that, you know, we've been worked out and I have given this numbers.
Got it. Just to understand this INR 12,000 crores which you have mentioned, this is, you know, how is it spread out? I mean, is it concentrated across, you know, say 6-10 projects or at least 20-50 projects across which this INR 5,000 crores will come through. How is the concentration, right? I mean, how is the concentration risk, right, is what I am going to understand.
The major chunk of business we are expecting in FY 2024, 2025. I think it should give us 60% at least. The other 50% maybe another 3-4 years. That is what actually as per today, because it all depends on the government. These are all government projects which depends on the expenditure funds availability, budget allocation and program outlay. All these factors also should consider. I think that is the reason why I said that 5-6 years we should take this timeframe. The large chunk of business we can expect in FY 2024 and FY 2025.
In terms of order inflows, I was more asking about the number of projects over which this INR 5,000 crore has distributed. Is it fairly concentrated, say 5-10 projects or is it like, you know, numerous number of projects of 20-50 over which this INR 5,000 crore.
I would say, 10-12 projects.
10-12 projects can give INR 5,000 crore of order inflow?
Yes. Yes.
Where you are 100% confident where there are no competitors essentially.
That's right.
Okay. Great. Thanks, sir. That's all from me.
Thank you.
Thank you. Before we take the next question, I'd like to remind the participants to limit your questions to one per participant. The line operator may challenge you for any follow-up. The next question is on the line of Ketan Gandhi from Gandhi Securities. Please go ahead.
Hi, sir. You mentioned about entry into auto electronics with the JV partner. Is it the existing JV partner or the new JV partner?
This is existing JV. We have added this product line into this JV, portfolio.
That's also an Astra JV, right?
Yeah, that's right.
Okay. Thank you.
Thank you. Next question is fromSubrata Sarkar from Mountain Trust Finance. Please go ahead.
Hello.
Yes.
Hello. Yeah. Just a follow-up on these counter drone systems, sir. I suppose, sir, apart from you, L&T, Adani, like, who are the other companies out of the six companies who have received this? And is this for soft kill only, sir? Is this for soft kill?
No. This is soft and hard kill both. This apart from three, I think actually we should not name other companies in this call. Later I think you'll get this information from DRDO. There are about six licenses have been given, and this is both hard kill and soft kill options are there.
Just one clarification. These licenses are like on test, or I mean to say, only these six persons will be eligible or you're like, this is open, anybody who can additionally apply and be like, can be evaluated, sir.
I'm not sure what DRDO policy, but that time it selected six companies to give this license that are going forward. We don't know. They may even consider if few companies can approach them and all. As of now, I think only six company got this license.
Thank you.
Thank you. Next question is from the line of Shreyas Shah, Azan Associate Investor. Please go ahead.
Good evening, sir. Can you throw some more light on the progress on the submarine antenna front? What can be the total potential in terms of its contribution to order book? If you can just let us know who all would be your competitors in this space, please.
Which project?
Submarine antenna.
Submarine. Okay, submarine. In this, it is a totally new development work we have taken with DRDO. This is in competition we won. This timeline is within 12, 14 months we should complete the development portion. Once we are through, I think, as of today, no one has this complete solution. I think, probably if we can complete successfully, we will be the first one to make this communication from submarine to the sea surface, as well as the Indian companies as I said.
Sir, what is the size of this order?
It is roughly about INR 9 crore for one system which we got in total. Yeah, this should be up to see.
Thank you. Next question is from the line of Praveen Sekhri from Ratnawali Capital. Please go ahead.
Thank you for the opportunity once again. I have two questions. I want to understand this structure of the system that you are developing, like from LR-MR part, where you are making system A, which is roughly 60%-70% of the entire system. For the remaining 30% will you outsource or will you integrate the entire system?
See, the AESA radar, the technology is given to HAL. HAL is going to integrate. Whereas our AAAU, we've been making some total AAAU, and we will be supplying to the consortium agencies like HAL. Otherwise, the radar technology as of today, it's being given to HAL. HAL is going to build the whole radar system.
My next question is, you are also making TRMs for the long-range radar. Are these related to the long-range tracking radars having 600-800 kilometers range, which is called the SHORAD III? If it is so, what kind of TRM is required for this?
I won't compare with that SHORAD III channel, but this is yes, the range is whatever you mentioned is correct. Around that range is being designed. This is a TR module L in L-band we have been supplied to DRDO.
How much TRM is expected?
How much?
How much TRM is expected in each radar?
Your voice is breaking, sir. Come again.
Is it possible to throw some light about the number of TRM is required for making?
Number of TRMs. Okay. Quantity you're asking about. I think the quantity is like, you know, each radar will have close to, I think, 600. I'm not sure exact number, but I think it's around 600 numbers.
Okay, great. No more questions. Thank you.
Thank you. Ladies and gentlemen, that's actually our last question for today. I now hand the conference back to the management for any closing remarks. Thank you, and over to you.
Thank you everyone for joining the call. We hope we have been able to answer your queries. For any further information, I request you to get in touch with your CA or investor relations advisors. Thank you very much, and see you again at the end of second quarter.
Thank you.
Thank you very much. Ladies and gentlemen, on behalf of Astra Microwave Products Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines. Thank you.