Today, and welcome to the Q4 and FY 2025 earnings conference call of Astra Microwave Products Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. SG Reddy, the Managing Director. Thank you, and over to you, sir.
Thank you, Pooja. Good afternoon to everyone. A warm welcome to all the participants to the post-results earning call of our company. I am with my colleagues, Mr. MV Reddy and Mr. Atim Kabra, and SGA, our investor relations advisors. The results and investors' presentation for Q4 FY 2025 are uploaded on our company website and stock exchanges. I hope you have had a chance to look at it. I'm happy to report that Astra achieved excellent performance for the year FY 2025, with a 15% year-on-year growth in terms of revenue, which reached about INR 1,044 crore on a standalone basis. With this, we have once again successfully achieved our full-year revenue target given in the beginning of the year. We have witnessed significant growth in our gross profit margins, which stood at 43.9% for financial year 2025, as against 39% for financial year 2024.
We have also seen good expansion in our EBITDA and PAT margins. This improvement is directly related to the product mix, where we have continued to see healthy execution of domestic orders, with a tilt towards the defense segment. The revenue contribution from domestic business in this year is close to 90%, as against 68% in previous years. For FY 2025, our margin is about 25.5%, and the PAT stood at about INR 1,430,000,000, with a margin of about 13.7%. Based on our product mix for the current order book, we are confident to maintain margin profile around 18% on a PBT level for the coming year also. During the year, we received orders worth about INR 10,980,000,000 on a standalone basis.
These new orders are essentially from radar and other segments, where radars have contributed to about INR 556 crore, INR 226 crore coming from electronic counterintelligence, about INR 36 crore from telemetry, INR 60 crore from space, INR 79 crore from exports, and about INR 140 crore from metrology and hydrology sectors. Overall, our standalone order book of about INR 1,951 crore consists of 91% of domestic orders, primarily build-to-spec, and 9% export orders, which include both BTP and BTS business. Moreover, our consolidated order book includes service orders valued at about INR 150 crore, which are typically more accretive to margins. Apart from regular orders, during the quarter, we have received orders for AAAU for LCA Mark II and SU-30, which have significant business potential in the years to come. As of March 2025, our consolidated order book stood at about INR 2,304 crore.
Now, coming to some business updates for the quarter, earlier this week, the board has approved a fundraiser of about INR 174 crore by way of preferential issue. This raise will help us to strengthen our balance sheet as we look ahead. Also, I would like to update you that the board has approved dividend distribution of about INR 2.20 per share, up from INR 2 of last year. Both our wholly owned subsidiaries have done well, though they continue to serve the present parent company to a large extent on an exclusive basis. Our joint venture company, Astra Rafael Comsys, has done well again.
In terms of top line, though there is a dip in profitability due to low level of performance in Q4, it has huge potential to grow in the years to come, and in the immediate coming year, it is estimated to reach about INR 350 crore plus of sales, with a PBT of about 12%. In terms of capital expenditure, we have budgeted to spend about INR 45 crore for purchase of various test equipment to augment existing operations, and another INR 45 crore for building additional space at our production unit to take care of expected load in the coming years. These CapEx will be met out of internal accruals and term loans from the bankers. Over the years, Astra has grown strength by strength and invested significantly both in infrastructure and talent in view of enhancing capacity and capability and opportunities.
Our performance during the year and our order book mix are a clear sign of these strengths. Today, Astra stands as a tall as well as a diversified defense company that offers critical components, subsystems, high-end MMICs, and systems, especially in the radars for both defense and weather and anti-drones. In this world of heightened uncertainty, Astra is strategically well-positioned to serve both domestic and international markets with a diversified product portfolio catering to a wide spectrum of applications in defense, space, and metrology. In the end, I would like to share with you, we are aiming to grow our top line at around 20%, with a bottom line of about 18%, with an order book target of about INR 1,400 crore for the financial year 2026. Now, I hand it over to Mr. MV Reddy and Mr.
Atim Kabra, who will give more insight into new product developments, business outlook in the near and long term, and the strategies adopted by the company to take it to the next level of growth cycle. I request MV Reddy to take it.
Thank you, SG. Good afternoon, ladies and gentlemen. Thank you for joining us today. We, being one of the prominent players in defense and aerospace over the last three decades, first of all, we take this opportunity to congratulate the Government of India and our armed forces on the tremendous success of Operation Sindoor Mission. This landmark achievement stands as an instrument to India's growing strategic capabilities, and we at Astra Microwave Products Limited are proud to have a tiny contribution in the Aakash missile system and NITRA. Our technologies continue to play a critical role in strengthening national defense and security.
It is with immense pleasure we share that we have surpassed INR 1,000 crore in sales, a historic milestone in the history of Astra, and the highest ever in which company's turnover so far. This is not only a financial achievement but a reflection of the tireless efforts of our teams and the deep trust placed in us by our partners and stakeholders. What makes this milestone even more significant is our consistent track record of delivering on the annual guidance we set at the start of each financial year for the last few years. Our ability to align planning with performance reinforces the credibility of our strategic vision and execution.
We would like to highlight a few strategically important orders which we won in the last quarter, which is including technology demonstration version of the SU-30 AAAU Virupaksha, critical subsystems for next-generation electronic warfare suit, and technology demonstration version of the LCA Mark II program. These projects are not only technologically advanced but also strategically aligned with India's long-term defense requirements. We also would like to bring out a few key operational highlights from Q4, which also include other order wins like radar subsystems which we won for Aakash Prime, VLSFM, and a few radars, weather radars from the meteorology sector, and also the Agro AWS system from the Indian Meteorology Department in the excellent vehicle for a strategic missile program.
A few major programs which we have delivered in the last year, which includes Ashlesha Rohini modules, 3D core frame modules, and other subsystems for MPR, WLR likewise, and also EW subsystems like Himshakti modules, Nyan, etc. We have delivered subsystems for the Anvesha program of space programs. We have also delivered successfully precision approach radar to HAL, and its installation and integration is in progress. During the Euro India show, we have signed multiple MOUs with large defense and aerospace companies, including L&T, BDL, for expanding our collaborative ecosystem and market reach. In the next year, in FY 2025, we won orders 80% in defense, 20% in space, and metrology. Overall, radars contribute 50%, and 20% we backed it from the EW sector. Similarly, we have made sales in the same ratio, that is 80% in defense and 20% in space and metrology.
As we look forward, we see a strong order pipeline and robust demand for our indigenous defense technologies. We are cautiously optimistic keeping in view of process time-limit constraints, and we expect to achieve a top-line growth of 20% in the coming financial year, that is FY 2026 onwards, driven by a sustained government focus on self-reliance and strategic procurement. We target to book a revenue of INR 1,300-1,400 crore orders in FY 2026, including INR 1,000 plus from the domestic segment and INR 300 plus from the export. We also have a target to book revenues close to around INR 200 crore plus. Our JGC ARC is doing extremely well, although there is a slight dip in Q4 revenue due to some few technical constraints. We have strong visibility to book significant orders in the coming years.
The current year, that is in FY 2026, we have a good visibility to book orders worth of close to $100 million plus. As the revenue, we are expecting around INR 350 crore plus. In closing, I would like to reiterate that we are geared up in building a future-ready, resilient, and proud Indian defense enterprise. We would be happy to answer your questions. Now, let me hand over to Mr. Atim Kabra to share his thoughts. Thank you.
Thank you, MV . Good afternoon, everybody. Let me start by joining my colleagues in conveying our deepest gratitude to our armed forces. We are also proud of our defense establishment, our research labs, and the defense PSUs as Astra partners them all in this journey towards a self-reliant India.
Multiple armaments that performed with resounding success and precision and were used by our armed forces represented years of hard work, dedication, and a vindication of the R&D efforts within the country. As Astra and we have just mentioned, it was a very proud moment for us to see the successful deployment of Aakash missiles, where critical subsystems were contributed by us. We were proud to be a small part of the BrahMos missile program, also proud to be a part of the extensive network of radars deployed across our borders, where we have contributed components and subsystems, plus the layer of safety and comfort provided by advanced systems like NITRA, the airborne early warning system, where Astra has been a key contributor.
As the paradigm of warfare evolves into incorporating drones as essential components in warfare, Astra will be a key contributor going forward too in designing and producing anti-drone solutions in varying myriad configurations, along with surveillance systems that shall be the sentries at our borders. This is in addition to newer radar, deeper penetration into enemy territories that we are building, the solid-state seekers, and multiple other products coming to us. Stability. This entire spectrum that I speak about is in line with our stated journey into systems and products and solutions, which we have discussed with you over the last quite a few sessions. We are well on our way towards delivering what we promised.
Needless to say, our counter-UAV solutions will be made in India and will not only cover various use cases and ranges, but will also be targeted against high-altitude tactical drones at the higher end of our offering spectrum. Where do we position ourselves? As you very well know, Astra manufactures complete radars right from MMIC to TR modules upwards. We are strengthening that core capability continuously, bolstering it by a concerted move into smaller, lighter radars with a predominantly digital footprint. I also wish to share with you today the broad spectrum of our product range, which establishes Astra as a well-diversified defense sector key player with deep-rooted capabilities that extend much beyond our expertise in land and airborne radar platforms.
We are not only into high-end radars, but also significantly into electronic warfare systems, missile electronics, telemetry, space sector, and weather and hydrology segment, with exports contributing as the final niche. In a predominantly tender-driven procurement system, a diversified presence insulates us to a large extent from extreme strengths and brings about the predictability and sustainability to the unextreme which is our focus. More than 50% of our revenues are driven by the segments which I just described above, besides the radars. We make radars, but we are a key player in electronic warfare systems, missile electronics, space, and weather, and hydrology. This will give you a sense of the deep talent pool which is the backbone of Astra.
Now, as multiple airborne platforms get upgraded and ground-based radars cover larger swaths of our borders, they give us an ability to look deeper into hostile territory, and we expect our radar business to grow at a steady pace. The evolving sector of warfare will be predominantly based on electronics, in our opinion. Electronic warfare suites will gain an ever-increasing role. Precise, targeted strikes with minimum collateral damage will place importance on command-guidance units and missiles, fuses, and missiles, with AI-based data interpretation becoming the norm. Our solid-state seekers will propel safe-to-say new-generation missiles. There is a substantial potential market in both offensive as well as defensive missile capabilities, where we hope to continue playing a critical role, much like the success of Aakash missiles.
We also believe that space will be the next frontier in war, with space-based surveillance and spy satellites becoming the norm, high-speed data transfer, satellite-based communication links. They are eyes in the sky which never blink and penetrate through clouds and foliage. This will be, besides the multiple civilian applications that you will see for the space sector, you will be very happy to note that, barring launch capabilities, Astra has, over more than a decade, developed capabilities in the space sector that cover space-grade components, subsystems, significant payload contribution capabilities, satellite designing and assembly capabilities, ground stations. Now we are moving into solutions across sectors from the space sector. Further, I would say diversification is also provided by our weather business with Doppler weather radars, wind-profiler radars, automatic weather stations, which enable us to offer weather prediction solutions over time.
As we shift our focus on the solutions, I hope you are able to share our vision of being a deep-tech company providing solutions across a spectrum of needs for our defense forces and beyond in a focused, profitable manner. We together, I would say both you and us, too, are soldiers in our own ways, supporting the vision of our 10-plus tech-focused partners that can dominate over our inimitable interests. I'll close with Jehan, and we shall take a few questions now. Over to you.
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 on their touchstone telephone. 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 and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Dixit from ICICI Securities. Please go ahead.
Yeah, hi. Good afternoon, everyone, and congratulations for a good performance. I have a couple of questions. The first one is on the current geopolitical scenario, where we are hearing that Project Kushal is likely to be advanced. There is advancement in QRSAM as well. I just wanted to understand what kind of subsystems, modules we will be developing, and what could be our possible share in these platforms. Also, is it possible to highlight very broadly if any of our subsystems—we manufacture any subsystems for Akash? That is my first question.
Yeah, please go ahead.
The second question.
Yeah, the second question is on essentially what we see while the operating cash flow utilized has reduced by 50% this year. The working capital, we see that inventory has gone up, receivables have gone up. Is it because of certain specific contracts that we expect the payment to come in April or June, and inventories have gone up? Is it in the preparation of something and to be delivered in FY 2026?
Yeah. First, we'll take the question on Kushal project, then I'll— Yeah. Mr. Amit, we are the part of the Kushal development program, and we have been providing subsystems like TR modules and receiver equipment and products to radars being planned in the Kushal, which are in the development and supply phase. I'm sure, in fact, we and other companies are sharing the subsystems market in the Kushal.
As far as the QFM is concerned, yes, we have a significant portion in the subsystems area, like TR modules, and also we have subsystems in missile programs also. We have subsystems in both radar and as well as the missile of QFM. We are waiting for the orders. I think BEL is likely to get this contract by the Q4 of this financial year, and we may get the other order maybe post to that. If BEL takes any advanced action to go ahead on that, probably we may get our order much earlier. Yes. Regarding the working capital, in terms of the receivables, essentially, if you look at the balance sheet at the end of the financial year, the receivables outstanding appears really high. Again, you have to look at the delivery pattern.
In the last quarter of the financial year, we have delivered close to about INR 400-plus crore of business. Essentially, the entire business executed in the Q4 will be outstanding there, apart from the old receivables. As a result, the overall outstandings are at a higher side. To give an update about the receivables, aging, and other things, out of total receivables, about INR 55 crore receivables are the deferred receivables. We have explained in the previous calls what is this deferred receivables is. Again, for the benefit of all of you, I repeat, the deferred receivables run about INR 24 crore worth of material what we have supplied to our joint venture company as a part of the NCNC program, which the company is undertaking for development of backpack radios for the army. That was our contribution for this program.
The understanding is that this amount will be shown as deferred receivables till that final technical acceptance of that product gets completed. Once we have a result about it, if ARC becomes the winner, then in the normal course, they are going to repay that amount back. Suppose if for whatever reason, if it is not going to win the contract, then this amount we have to find out a way of getting it back. One option which is there in the discussion is to convert this as a loan, repayable over a period of time. We are going to take a call depending on when the final trial gets completed in terms of getting this INR 24 crores back from the joint venture company.
The other part of deferred receivables pertaining to the weather-related products what we have supplied to IMD, these supplies are made against an open tender, wherein we get about 40% of the amount, 40% of the value of the goods supplied on acceptance. Then the remaining 60% is paid over the warranty period, which stretches up to five years in equal installment. Therefore, that amount pertains to that part of the receivables which is going to be collected on a yearly basis over a period of five years. The other thing which I would like to share with you is about INR 140 crore worth of material what we have supplied is in the final stages of acceptance by the customer. Probably this entire amount is going to be realized by the company in the next six months. You have to take these three factors into account.
One is the deferred receivables. The other one is items which are waiting for acceptance at the customer end, which is about INR 145 crore, and the billing done by the company in the last quarter, which is about INR 400 crore. Once you factor all these three elements, then the receivables status is probably very clear to all of us. Yeah, Amit, is there anything else I want to clarify?
Yes, sir. Inventory part.
Yeah, inventory part, apart from one large program which we are executing to BEL Ghaziabad, which is NPR program, most of the other inventory pertains to what we are likely to deliver for the current year.
Okay, sir. Thank you so much. That's very detailed, and all the best.
Thank you.
Thank you.
Thank you. We'll take our next question from the line of Akshay Jay from Exponent Pride. Please go ahead.
Thank you for the opportunity. In the last few interviews on this channel and on this project, you've spoken about space as the potential to be as large as our current defense business. Can you spend a little bit more time understanding or explaining a little bit to us what the path looks like for the areas that you see as large opportunities in the near term and the medium term? If we had to imagine a business as large as defense in space, what would the journey look like from here to say three years or five years?
Yeah. In the space segment, we started our journey by supplying components and subsystems to all communication and remote radar imaging satellite programs to ISRO. These are mostly started from 2001 onwards.
With the transformation in the space sector and with the reforms being introduced in 2020, the government has given the opportunity for companies to build and launch satellites, and taking this opportunity, we decided to start our own space satellite division, and we formed ASRO Space Private Limited as a 100% subsidiary of Astra. Here, basically, we are planning to build our own satellite as a technology demonstrator for this, which is already in the advanced stage. Apart from that, we are also participating in a couple of RFPs being floated by IN-SPACe and DOT, wherein private companies have been allowed to build the satellite constellation and to operate and sell the data. This kind of RFPs, we started looking into this.
Going forward, while we continue to supply our subsystems to satellites made by ISRO and other key OEMs and international OEMs, we also are planning to build our own satellite for generating revenue from the data. This is what the mission may be—I think may add a few more points on this. Yeah. There is a lot of talk about the need to launch a lot of spy satellites. There is a need for application of satellite source data for agriculture, for fishery, for water management, you name it. Data is the key here. Data monetization abilities which exist in the West as now, the time has come for that to be implemented across the board in India. Now, as far as Jehan was asked, and we explained over a period of time, has been for more than a decade where we have space-grade facilities to manufacture components.
Components have to be tested, and they have to be forced, if I may say, to withstand high temperatures as we send them into the space. There are dedicated facilities and testing units which are within ISRO for space-grade components. In the last mission which went, I think it was Kumarayan, if I'm not wrong, MV, where we were 9% of the payload and 3% of the overall satellite in value terms. Okay? Once you supply components which are space-grade, you move into subsystems. We have been a very active part of the RESAC satellite program. Across multiple band frequencies, we are able to create these communication links which will come in very, very handy as we go forward. You have subsystems which are made, and then you have payloads.
Now, ISRO has, in certain segments, in certain kinds of payloads, very significant capabilities which have been built up over a period of time. There are a few gaps which we are hoping to fill in through JVs or alliances or through tech absorption from external sources. We have, in our Bangalore unit, satellite assembly cleanrooms which have already been set up and commissioned. We have designing capabilities, satellite designing capabilities which are being continuously improved. We are already there in the ground segment for satellites. The communication ground stations which need to be built as far as a part of that. Okay? This almost completes the hardware chain. There is a data monetization part which I mentioned to you, the various applications. ISRO will be a significant player over there also, is our effort.
I hope I'm able to explain the value spectrum where we are. I should remind that for the defense programs which have been, DRDO has made a few satellites like Kautilya, Anveshak, Samuha, wherein we are an active partner, and we have been supplying critical subsystems to those programs.
Yeah. Thank you. Sir, my second question is on LK-1A. The order book expectation that you have for the coming year, does it include the potential that comes from LK-1A Uttam Radar?
Yeah. We have taken a few numbers from that. Probably, since we are—although we were expecting that order in this quarter, I think it may get deferred by another one or two quarters. We have taken a few numbers from that program.
Sir, when will you start delivery of these data?
Execution will start mostly by the last quarter of this financial year.
Sure. That's helpful. Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Yash Bajaj from Lucky Investment. Please go ahead.
Yes. Thanks for the opportunity and good afternoon, team. Congratulations on a good set of numbers. Sir, I just wanted to understand the importance of antennas which are being used for our radar, electronic warfare, missiles, and counter drone. Do we make that in-house? That's my first question.
Yeah. Antenna is one of our core strengths in our product. Actually, we were one among the first set of companies who started antenna design and development and manufacturing.
Even in 1992, we have established the antenna design center and the open-air antenna test range with the capability to build the antenna for, to begin with, telecom, and then we entered into defense and space. We have supplied these antennas for many programs for ground-based, airborne-based, and shipborne-based programs in defense. We have also supplied these antenna panels to satellite programs. Today, we have a very strong antenna design, development, and manufacturing facility in-house. All the antennas whichever required for our radar systems and EW being built in-house.
Okay. Got it, sir. Just a follow-up on that, sir, can you help us understand the criticality of designing and developing these antennas in-house and not getting it made from someone outside the company?
Actually, this antenna is a specialized skill in this particular domain since we have this expertise built in a company right from inception of the organization. We have been going with the upgradation of this particular technology, and we have been using specialized tools and with the software designed by our own team. With that, we are able to turn out these antennas and to be supplied to the defense and space requirement. The software plays a very key role while designing these antennas. Our team has established capabilities, and they have been successful in developing these antennas by using those software.
Okay. Okay. Got it.
Also, added to that, we should have an infrastructure to test and measure the radiation and all. We have an open-air antenna test range, as I mentioned earlier in the beginning, we have established.
And then also, we have established a near-field test range in Bangalore to test all active phase array antennas, which is one of the, I would say, first in private sector to build this kind of a test range in India.
Okay. Okay. Got it, sir. Thank you so much. And all the best.
Thank you.
Thank you. The next question is from the line of Dipen Vakil from Philip Capital. Please go ahead.
Hi. Thank you for the opportunity, and congratulations on a great set of numbers. Sir, my first question is in the line of your margins, sir. You mentioned that your margins this year have been higher because of higher execution from domestic defense orders. If you look at it, even last year, the margins were closer to 21%, which was substantially higher with lesser contributions from domestic.
Can you give us a bit more commentary as to what is leading to such a great margin and how sustainable that is? Is the impact because of the change in the kind of contracts, like whether it is your DOT's licensing? Can you explain a bit more regarding the margins?
Yes. The increment, as I mentioned in my opening remarks, is the increment has happened mostly because of the change in the product mix. As we execute more and more domestic business, where most of the things are being done in-house, the value add is much higher compared to what we get in the update-related export business or some other export business, where generally we get paid only for the conversion cost. The main reason is only the product mix, where we are moving more towards the domestic kind of thing.
Apart from that, a couple of domestic programs which were in R&D earlier are moving into a production stage, where we are able to economize in terms of our material cost, etc., which are also contributing to the increment in the margins.
Got it, sir. Sir, thank you so much for this clarification. My second question is a little bit about the market scenario. There have been talks about the emergency program coming into place and a lot many orders. What is your sense in terms of the kind of requests that you're getting from the armed forces and the areas that are right now being discussed? Any light on that?
Yeah. For the last few days, in fact, we have been getting inquiries and RFPs for a few systems which we have and for which we have already supplied.
For example, counter drone radar system and jammer and detectors and all. We have a few RFPs, and we have submitted a response. Some trials are expected to be conducted very soon. Similarly, we have news from our customer that they may need more of Aakash missile systems. If that turns out to be business, then I think we may have a good contract from our customer. We have received inquiry for low-level lightweight radars. We are participating in that. Apart from that, yes, our customers, especially DPSUs, have been getting system inquiries and all. As and when those inquiries get materialized, since we are a qualified subsystem supplier to those systems, we will be getting orders thereafter.
Got it, sir. Sir, just a small follow-up. What is the timeline in the emergency procurement from RFP to tenders to trials and maybe contract finalization?
Sometimes they're talking from right from 8 months to 18 months. It depends upon the program, project, and requirement. It varies.
Do you say emergency procurement takes over time?
Yeah. Actually, a few systems, if they talk about, like some systems where we need to have we have to depend on some imported elements. I would say most of them are within one year, but very few cases probably they go beyond one year.
Got it, sir. Thank you so much for answering my questions, and all the best for FY26.
Thank you.
Thank you. The next question is from the line of Niraj Mansingka from White Pine Investment Management. Please go ahead.
Yes. Thank you for the opportunity to ask a few questions.
Sir, on the Gauravpaksha, you said in the initial that there have been some prototype or something. Can you elaborate on that, actually? Gauravpaksha, LCA, and K2?
Yeah. Actually, both these are technology demonstrated version of actual models. This is an extension of what we did for Uttam. That radar itself is configured to meet this particular requirement of these two platforms. This will be tested in these two platforms. For that, we got this kind of a repeat order. These two orders we have now received. We are trying to execute. Apart from that, for actual version of Gauravpaksha radar, we emerged as L1 in one of the centers afforded by DRDO. As and when we get the order, we will inform you.
Okay. What happens when you get an L1 in Gauravpaksha, does the government go and again give another supplier an opportunity, or you would be the one who would be having a higher chance to get the Gauravpaksha?
It will go for two vendors. In fact, the other vendor's name I won't mention here, but it will go for two vendors. Yeah. We are among them.
Sir, did Gauravpaksha for the entire 250 planned to be done over a period of 10 years or whatever number of years?
No, this is, I think, to the best of knowledge. I think it is initially for 100 numbers they are planning to go. The other 100 plus, I think they may take it up in parallel. This is what we understand from the discussions we have.
Sir, on the related thing, one of the players has shown a Hawkeye radar. Does it mean the government will, again, open up, change the specs and move to a potential another?
We do not want to comment on somebody's product and all.
Fine. Second thing is on the—
Sorry to interrupt you, sir, but the request—
Oh, I joined the queue.
We joined the queue for follow-up questions. Thank you. The next question is from the line of Bharat Sheth from Quest Investment Advisors. Please go ahead.
Hi, sir. Thank you for the opportunity. Initial remark, you spoke a lot about even drone side. Can you give some color what exactly and what stage we are in the drone space?
Let me answer that. Let me answer that. There are drones as well. Counter drone systems are a very, very wide range.
They range from simple stuff like drone guns to jammers which can be of varying distances, right? There are passive detectors and active radars which are included as a part of counter drone systems. On top of that, you have panels which decide the direction as well as the strength of the signal and the length to which you can jam the signals and the heights to which you can jam the signals, right? Whether you can do it in parallel, simultaneously, or in how many directions can you cover the jamming. These are for standardized drones. Then you have tactical drones which come in with their own built-in anti-jamming systems. There are different technologies which are deployed to counter them. Suffice to say that Astra has a presence across the entire spectrum of drones at this point in anti-drone systems.
They have been tested as we speak.
Yeah. How big is the opportunity we see in media? What is the current revenue contribution? How do we see over the next?
Very difficult to put in a number, but you be rest assured that drones are now a critical part of any offensive strategy. Any defensive strategy will need to deploy counter drone systems, and we have a very, very huge border.
Okay. My second question is on the balancing side. How do you think from medium-term perspective on working capital overall as a number of days? Of course, this is one of our—this will remain and sustain at this level only.
I think SG just answered this question. We are fairly—SG, you want to take this up, please? Again.
Yes. Okay. Yeah. As you rightly said, yes, this business is working capital intensive.
We continue to have higher working capital days. The best case is that whatever is there in our hand in terms of procurement cycle and addressing technical issues as and when they arise once you supply the product. These are the few things which are in our hand. We are focusing on that so that the working capital days can be optimized. Beyond that, there is very little that we can do about it. Of course, when it comes to the systems business, one representation from the industry to the government is that instead of keeping everything for after supply of the product and going through that fast and sad clearances, whether it can be facilitated in terms of the milestones. That representation is there from the industry to the government.
If they accept that, then probably there will be a little bit of relief to the industry in terms of the working capital management.
Thank you very much, sir.
Thank you. We'll take our next question from the line of Ketan Gandhi from Gandhi Securities. Please go ahead.
Hi, sir. It is indeed a very proud moment for all the stakeholders, and congratulations to all the operators and the team Astra for in Operation Sindhur, our products have been worked as per the expectation, like AVAX and guidance systems for Akash and RPF, that is, radio proximity fuse and various radars. One more thing to note is the commitment shown by the existing board members to subscribe to the warrant issue indeed gives quite comfort that there is a long way for Astra to go ahead.
My only one question is, in Project Guru Paksha, I believe a total 2,400 TRMs are being built in the AAAU. Is there any chance that Gallium, which is now banned by Chinese, can be a deterrent for us to go for TRM? Can we have any issues in procuring Gallium, or we have already tied up that?
Yeah. It's a good question, Ms. Ketan. The MMICs, which we have designed and developed for these TR modules being used both at Uttam and Guru Paksha, we have a standby foundry service in Europe. We already have a tie-up with them, and we are already given some kind of a development activity to build the wafers to get the standby in case if we have any issue with Taiwan, where we are depending on for the current production. We already taken action on this.
That's really very helpful.
And again, once again, sir, really, we feel so proud that we have invested in this company since long. All the best for the future. Thank you so much.
Thank you.
Thank you, Ketan. You're always kind.
Thank you. We'll take our next question from the line of Khush Nahar from Electrum Capital. Please go ahead.
Yeah. Hi, sir. Thank you for the opportunity. I have two questions. One, can you elaborate on the competitive landscape in terms of, since we have a wide product scale, who are our like-to-like competitors? Second, I think in the presentation, you have mentioned in terms of strategic alliance and SDR segment, which is the software-defined radios. In terms of opportunity, what kind of total TAM are we looking at, or what is the yearly requirement, and how are we going to develop these products?
Okay. Yeah. You have asked a few questions. One is the competitive landscape. Yes, we have competitors in various segments in these senses. We don't have any real competitor covering the entire product range from MMICs to the radar system or EW systems today and satellites. So our range is too large, and we have competitors in different segments. That is the first question. I don't want to name those competitors, but we do have competitors. The second question, you said the strategic alliance, what I have mentioned in my opening remarks, is not for the SDR. It is basically for the radars, one of the huge long-range radars. We have made alliance with another company as it is the investment to be made in huge. Also, the scope of work is apart from the electronics, we do have a lot of mechanical intensive portion.
For keeping that in mind, we have made an alliance in the long range, one of the long-range radars. That is a program-specific alliance, not a generic alliance. Also, we have made alliance. We have entered MOU with GSU to develop the RF seekers for the few strategic missile programs. These are the couple of alliances what we have made during Air India. As far as SDR is concerned, the entire SDR market is being addressed from our JV company, which is Astra Rafael Comsys. We have in-house design, development, manufacturing center in our JVC. Whatever the products which have gone for NCNC trial, as Mr. Reddy had mentioned in his opening remark, are designed and developed in our joint venture, which have been passed successfully. First two stages of trials, and the third final stage of trials are scheduled in July.
With this, we have built capability to develop the complete range of SDR in-house in our JVC. The third question you asked is the TAM. Yes, we are addressing close to INR 20,000-25,000 crore of market, as we mentioned in our previous earning call. We are still in that particular range. Probably it may increase, but as of now, that is the overall TAM. In the next four to five years, we should be in a position to capture the majority of that.
Just a clarification, the INR 25,000 crore TAM is only for the SDR segment?
No, no, no. It is overall in our product range, not SDR alone. It is, as I said, the overall product range of our Astra.
The next number on the SDR, what kind of opportunities are there?
For SDR, the total market size, it appears to be around INR 5,000-6,000 crore in the next five years.
Thank you. We'll take our next question from the line of Karthi Keyan from Suyash Advisors. Please go ahead.
Good afternoon, gentlemen. Many congratulations on the impressive performance. It's gratifying to see that the commentary two years ago and today is consistent. Good to see that you're on the same path and things are playing out. I had only one question regarding your potential issue. Three things. What determines the allottees' names? I understand Atim hasn't spent a lot of time in Atim's own zone, but I'm just trying to understand about the other allottees. B, could it be a raised money given that from the public debt issue, given that the markets are much more open today, I suppose? Some thoughts on this.
Of course, why is it structured as a warrant?
These are three parts to the question. Could I answer this, SG?
Yes.
Okay. The requirement for money is for NCNC demonstration of a product range. We do not want to stress the balance sheet unnecessarily beyond the point, as you have heard other participants also point out that this is a working capital intensive business. The requirement for money is not huge. It comes in as the products are manufactured over a period of time. The systems are delivered. They go in for testing, etc. The QI speed price was actually lower. If you add a 5% discount, which is customary, it actually was, if I am not wrong, working out to around INR 801. We decided to go in for a flat price, which was on the higher side.
On the participants which you're talking about, Suresh Somani is one of our most valued directors, deeply involved in guiding the company forward strategically, and he's a very valued board member. Sitrakar Sir is our original founder in the company. Mr. Arke Dumani's group not only has been a substantial holder, but we hold him in extremely high regard in terms of his being who he is and the value add which they can bring in. There was no need to dilute every shareholder beyond the point when it was not necessary. All these considerations played a significant role in deciding this.
Thank you.
Okay.
Thank you. The next question is from the line of Siddharth Purohit from Invescu Investment Advisors. Please go ahead. Mr. Siddharth, your line has been unmuted. Can you speak? Since Mr. Siddharth's line is not reachable, we'll take the next question.
The next question,
Sujya. We are crossing one hour. Can you limit the questions, please?
Sure. Participant, it is requested to limit your question to one per participant. The next question is from the line of Santanu Chatterjee from Mount Intra Finance. Please go ahead.
Thank you for this opportunity. And congratulations for a good set of numbers. My question is on Virupaksha Radar. Whatever information we have gathered, actually, from the public domain, that the Virupaksha Radar super Sukhoi upgrade program is estimated to cost approximately INR 65,000 crore for the fast-paced upgrading of 84 jets. If we calculate it, the per radar cost is coming at around INR 770 crore. Is it the right way of understanding the price of that radar? And if that is so, then what is our contribution towards Virupaksha Radar in percentage terms?
Yeah. First of all, I differ with your numbers as the information what we have is different, both in terms of quantity and also the value, number one. Number two, as today, whatever we have participated in DRDO development program for this mid-light upgrade project, which is being sanctioned by Indian Air Force to DRDO. In that, for the radar and EW suite, there were multiple tenders which have come from DRDO from different labs. In that, we won both AAAU, which is the major portion of radar as Uttam. We won from them. Also in EW, we won the critical subsystems to be supplied for the PAR Jamar. Likewise, we won subsystems from both radar and as well as EW segment for the Virupaksha.
Once this development phase is over, I think we will be getting a production order from HAL, who is a designated production agency, or any other production agency whichever takes over. Otherwise, these are in development phase. Today, we are developing these critical subsystems.
Thank you, sir. Ladies and gentlemen, in the interest of time, we'll take this as our last question. I now hand the conference over to the management for the closing comments.
Thank you, everyone, for being part of this call. I hope we are able to answer most of your questions. I look forward to talk to you again at the end of Q1.
Thank you. On behalf of Astra Microwave Products Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you.