Ladies and gentlemen, good day, and welcome to Astra Microwave Products Limited Q4 FY 2024E arnings Conference Call. This Conference Call may contain forward-looking statements about the company, which are based on belief, opinion, and expectation of the company as on the date of this call. These statements are not the guarantees of future performance and involve risk 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 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, and good evening, everyone. A warm welcome to all the participants to the post-schedule earning call of our company. I'm with my colleagues, Mr. M.V. Reddy and Mr. Atim Kabra, and SGA, our investor relations associates. The results and investors presentation for Q4 and FY 2024 are uploaded on our company website and stock exchanges. I hope you had a chance to look at it. I'm delighted to share with you that FY 2024 has been an excellent year for our company, as we have grown exponentially in multiple parameters, including financial performance, developing capabilities, and improving quality of our product mix. We have registered our highest year of commercial performance across all metrics, revenue, EBITDA, cash. We have also witnessed good margin expansion driven by improvement in the product mix. This performance is in line with our expectations and guidance. Recently, we also entered into a cooperative agreement with Teledyne e2v HiRel Electronics, in order to provide semiconductor services to support the aerospace, defense, and reliable electronics market. This agreement will pave the way for numerous new possibilities for us in the future. Coming to our order book, as on 31/03/ 2024, at the standalone level, we have about INR 1,956 crores of orders on hand, and our order win continues to be healthy. We have booked about INR 472 crores of orders in Q4, out of which close to INR 446 crores of orders are from defense. Within the defense segment, good number of orders are booked in radars, EW segments, followed by meteorology and hydrology, and a little bit from exports. Subsystems for Aarudra radar and homodyne receivers being significant products for which above different products are received. Overall, our order book comprise of 88% of defense market, which are largely BTS, which command higher margins, and 12% of exports, which is largely supplies to Indian EOUs, which carry reasonably good margin, unlike our offset-based export orders. In terms of various parameters, which are already shared, through website and all, we have recorded a good improvement in percentage terms across all parameters. I request all of you to go to the website, to know more details about that. You know, R&D is our cornerstone of our growth, and this year we have spent close to about INR 38 crore on R&D, which was focused mainly on radar systems, critical subsystems for radar, seekers, SSPA, and EW subsystems. As you are aware, Astra has incorporated a subsidiary company to undertake space-related business. This company has started recruiting personnel and setting up basic infrastructure for satellite integration at its Bengaluru facility. Its objective is to get qualified for satellite integration and launch, launching business. In this endeavor, it is preparing itself to launch its own basic satellite in the next two-three years. It will be making use of star sensor technology, which was taken under ToT. For JV company, ARC, it was a breakout year, which was in waiting for a long time, and it is—its bottom line has improved in a big way. For the last year, it has bagged and closed about INR 386 crores of orders and has a healthy order book of about INR 456 crores as of the year. There's potential to bag big orders in the coming year to the extent of about INR 900 crores, and will record at least about 10%-15% year-on-year growth in the next three years, with an EBITDA of around 10, 10%-15%. As we are aware, Astra owns 50% of this JV company and has earned about INR 12 crores of profit as its share from the JV company for the year gone by. SDR manpack radio, which is under development, as a JVC on the NCNC basis, is due for final technical trials in the next couple of months, and the company is gearing up for the same. Lastly, for the coming year, we are targeting order book in the range of INR 1,200-1,300 crores and a top line in the range of about INR 1,000-1,100 crores, while maintaining the existing profit margins. We'll continue to grow our capabilities strategically and achieve our targets step by step. Major business updates, potential business opportunities, and the strategies to be followed to achieve the same will be shared by my colleagues. Now, I will hand over to Mr. M.V. Reddy, then later on to Mr. Atim Kabra. Thank you. Thank you. Good evening, everyone. As Mr. Reddy has mentioned, last quarter performance was remarkably well, and surpassed the guidance given in both order book as well as sales. The overall performance in the year FY 2024 was at par with the guidance given in the beginning of the year. We have booked INR 472 crores in Q4, which constitutes almost 95% from the different sectors of the domestic market. We have added INR 350 crores from the radar segment, which is our prime focus area for the last few years. INR 84 crores from EW, and INR 18 crores from the defense communication segment. We have also booked INR 26 crores from the space and meteorology sector. In the last quarter, we have booked INR 27 crores development order from DRDO labs, and results from the production in nature. Overall, we have booked INR 1,325 crores in FY 2024, resulting in standalone order book of INR 1,966 crores, dropped out for the financial year FY 2025. Ladies and gentlemen, it gives me immense pleasure to inform you all that with few orders which we booked in April 2024, that is in the current financial year, we have reached landmark of INR 2,000 crore order book for the first time, and we have a bright visibility to book INR 1,200-INR 1,300 crore for FY 2025. Majority of them are production in nature from the domestic segment. In the first quarter itself, we have a plan to book INR 300 crore. With regard to sales, we have referred figures mentioned in the last quarter earnings call, and we could successfully execute development contracts which we missed out in Q3. Going forward, we have geared up to reach INR 1,000 crore plus milestone in FY 2025. First quarter, we have planned to book sales of INR 100 crore. With strong R&D capabilities built over three decades, we have delivered products with cutting-edge technology and more are in pipeline. To name a few, we are the first company to deliver AA U for Uttam, AESA seeker heads, high power SSBA in high frequency bands, digital active phased array systems, digital multi-channel transceiver for microwave applications, etc. We have also successfully executed AA U of Uttam, which is one of the major order which we booked last fiscal year, and also DWRs in various frequency bands in FY 2024. Other developments of critical new technologies like photonics, radar subsystems, and subsystems for submarine communication, and systems like APS radar are in advanced stage of completion. As Mr. S.G. Reddy has mentioned, our JV company, ARC, demonstrated stronger performance in FY 2024. I'll not repeat with the figures what we did in the FY 2024, but even FY 2025 looks more promising. We have INR 900 crores plus orders which are in pipeline, and hopefully these are contracts which materialize in next two quarters of FY 2025. And as in terms of sales, we have a plan to book sales of $40 million, that is about INR 330 crores in FY 2025. Going forward, we have a very good visibility to maintain sustainable growth with the opportunities emerging in the domain of our operations. With this brief note, now I hand over to Mr. Atim Kabra to share his thoughts. He would be happy to answer your questions. Thank you. Good evening, and thanks everyone for the opportunity to speak to you again, and convey and share with you our vision at Astra. But before I start, I wish to thank our entire team under the able guidance of S.G. Reddy and M.V. Reddy for their hard work. And yes, we are indeed excited by the set of opportunities that we see, and excited to partner with the defense labs and the defense PSUs, under whose tutelage we have blossomed and have reached a stage where we are developing new, exciting products, and have emerged as a systems-level entity with systems integration capability. And we just spoke about a few of our products which we have developed in-house, and they form the cornerstone around which we are delivering our margins and our growth story. Numbers are numbers, but I think what is being conveyed across is that the opportunity set is huge, and companies like Astra, and it's not limited to Astra, but the defense sector itself, are fairly well placed to capitalize on this extremely large opportunity. I read a report recently where it speaks about the share of defense capital outlay is expected to increase to 37% of the total defense budget in FY 2030, as compared to 26% in FY 2024. That is a cumulative capital outlay of $186 billion over FY 2024 to 2030. And think this is a large opportunity space that we need to attack and are operating in. But suffice to say that over the next two years, based on the orders in hand and the visibility thereof-... We are fairly confident of delivering CAGR growth in sales of around 18%-22%, with a better CAGR growth in our profitability numbers as higher sales slow down disproportionately to the bottom line in case of limited increase in fixed cost base. So I'm fairly confident that SG and MB will meet these forecasts quite handily. But I want to talk to you more about our broader vision, which will position us firmly on a path towards sustainable and predictable growth over the next decade, and Astra will become a much, much larger entity than what it is today. So what we have tried to do is put a framework around our various growth initiatives, some of which I have touched upon in my earlier conversations with you, and which encapsulate our various efforts, which are targeted towards building a much larger and much more capable Astra. The framework also puts our various initiatives in a structured format. We call this our LEAP strategy, L-E-A-P, Astra's LEAP strategy. To reiterate, the LEAP framework is in addition to our 20% on an average targeted organic growth strategy. This is in addition to this. It seeks to capitalize on the significant IP which has been created in the company over the last three decades. It acknowledges the tremendous contribution by various defense labs and defense PSUs in helping us help create and imbibe various technologies. And it seeks to build on our vision to create high-tech products which are made in India, but for a global market, not only for a domestic market. We seek to capitalize on the reusable building blocks and the library of products and technologies which have been created over time in-house. The framework, if I may say, seeks to capitalize on our sustained investment in R&D over decades and products. Astra, if you see, is in the IP enhancement and IP encashment business. With tailwinds in our favor, we have grappled with putting together various pieces of growth for a sustainable growth path. As and when these initiatives bear fruits, they will add to our organic growth, leading to enhanced sales and margins. In the LEAP framework, L stands for lean and learn. Lean and learn implies we are looking at Astra as a collaborative platform. We collaborate with different labs, with different PSUs, startups, early-stage companies, and various academic institutions to increase our IP base in the shortest possible time, while adding to our IP-driven product capabilities, acknowledging the fact that IP is built across companies, institutions, labs, educational institutions. We seek to synthesize the various elements of these IPs and put them together for more relevant products in the shortest period of time. It is tied around our capabilities to deliver, our proven capabilities to deliver, and our technological base, which can imbibe the new tech, provide them a framework to create newer sales products, newer sales, and newer sales channels. E in the LEAP framework denotes our commitment to adjacencies and expansion. E is expansion. Expansion into areas which can be significant inventors, and where the future lies in our assessment, and where our current set of capabilities can be deployed to make a meaningful impact going forward. Of course, Astra, you know, is already a significant player in the space sector, and we see immense opportunities for expansion in the space sector. We will be one of the major companies, major players out there, ranging from space-grade components, subsystems, to designing satellites, to satellite bus, as well as payloads. I think we will be able to deliver our first satellite, a sizable-size satellite, you know, maybe in the next 12-15 months. This activity is being coordinated by both our Bengaluru as well as Hyderabad facilities, and a lot of folks with significant experience have been onboarded for this initiative. Similarly, we have spoken about our MMIC capabilities being one of our core strengths, and after looking around, we have zeroed in on MMIC expansion. S.G. Reddy just spoke to you about the Teledyne e2v HiRel collaboration, wherein we are seeking to provide semiconductor services which will support various domains like aerospace, defense, and high-reliability electronics markets. Over the next few years, as the collaboration unfolds, it will provide Astra a capability to market its product globally while developing its MMIC portfolio. Similar such initiatives are being thought about as we speak. Another pillar of our LEAP strategy, A, revolves around accretiveness, where we have a clear focus on ROE enhancement and sales, profitability and margin enhancement. You have already seen a very steady uptick in our return on equity, and... You know, this is something which is one of the key parameters which we focus on. Working capital efficiency, accretiveness is something on which S.G Reddy spends a lot of its time on, as ours is a receivables-heavy business. We are well aware that the holy grail lies in free cash flow generation significantly, and we are working towards that. Lastly, the P in the LEAP strategy signifies our vision of delivering high-tech products to the market, which blend our core capabilities with a systems integration approach. These products will be IP-driven and provide solutions to address various market needs. Glad to report that we have recently bagged orders for precision approach radars also, and we are super excited about our anti-drone capability set, which is being introduced in a product format. We are working on multiple other products which will be addressed towards the global market, and I have referred to a few of them in our earlier conversations. So as mentioned earlier, these initiatives are centered around the framework, which will add to our 20% odd average organic growth rate. And we put them separately, as the framework spells a vision that we stand for, for an overarching umbrella that we operate in. Lastly, I need to emphasize that we are constantly reevaluating and reassessing our various initiatives and trying to propel them in a direction which makes us cost competitive and geared towards timely delivery of products. We will not hesitate to axe projects or products or put them on a back burner if they are not delivering or where we will not be cost competitive with finished products. On a positive note, as shareholders of Astra, we not only have ownership interest in Astra, but also another profitable company with a marquee partner, namely ARC, where Astra owns 50% equity interest, and it is sitting on a nice, significant order book, which can be readily alluded to, is profitable and has a product range which has the potential to even hopefully overshadow Astra over a period of time. So we will have ownership interest in Astra and ownership interest in ARC. Combined, it's a very interesting combination. We are very, very thankful for our JV partners for reposing faith in us. Our, our shareholders are already seeing a positive impact on the consolidated bottom line through this initiative. We'll touch upon the order books, which MB has actually already mentioned, earlier. So lots to do, and a lot of exploratory initiatives are underway in multiple areas, ranging from AI, machine learning, GPS capability enhancements, et cetera, to better our products and meet the requirement clearly brought out between the conflict evident, you know, because of the conflicts which are raging around the world. I can go on, but I've already taken a lot of your time, and if you have questions, let's address them in the Q&A session to the best of our abilities. Thank 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 touchtone 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'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. Yeah, hi, good evening and, congratulations for a good set of numbers. I have a couple of questions. The first one is actually around working capital. So this year, if we see, there is a significant buildup of receivables as well as inventory. So, is it one-off factor or is it due to some development work that we are taking for? And, what will be the guidance for working capital days going ahead? Yeah, Amit, complete your question. You said couple of questions. Yeah, and the second question is on this, Teledyne, collaboration. If it is possible to provide some more details at this stage, while you have mentioned it will provide semiconductor services, and I hope it will dovetail into MMIC, but for which platforms specifically, and you know, how much incremental revenue stroke profitability it can generate? Okay. I'll take the first question. Probably second question, Mr. Atim can take it. Regarding the receivables shooting up, it is largely because of the bunching of the sales towards end of the year. Q4, we did close about INR 270 crore of business, or in excess of that, I think 300 and... How much? Yeah. So the entire sales of Q4 essentially will be sitting in the balance sheet, which is close to about INR 354 crore. That is one of the big factors for the higher receivables appearing in the balance sheet. Working capital days, you know very well, we keep discussing about this almost every day. We are trying our best. We would like to bring it down to around 240 days kind of thing, but unfortunately, as of today, it is slightly on higher side. ... In addition to that, as the nature of industry is such that, the company will be forced to maintain inventories for the project duration cycle, and not only because of, a niche nature of the semiconductor devices which are required, and also because of the project duration itself, which runs close to about two-three years kind of thing. So these are the cumulative factors, which are making us to have higher inventories. And the receivables, I already explained to you why it is there. So Amit, Teledyne is more a testament to our MMIC capabilities, which you are very well aware, is one of the cornerstone pillars around which, Astra has developed its capability set. You know, we started our MMIC initiative in 2005, 2006, and, various developments and abilities which we have generated through that have brought us onto a very strong platform. We are actually governed by a fairly tight confidentiality agreement, so we will not be able to talk specifics about the Teledyne deal, but I can tell you that from a MMIC division's perspective, the whole idea of entering into such a collaboration is to scale up our business in a meaningful manner over the next two-three years, so that it moves the needle for everybody, for us also, and for Teledyne also. I don't think a large company such as Teledyne would enter into a formal agreement unless they can see that there is potential to move the needle dramatically. We are undertaking specific initiatives to get this going, which have already started. But I think we would like to let the numbers speak to themselves over a period of time on how the collaboration pans out. But it's gonna be... It is, I hope, that it will be a really long-term collaboration, which will put us on a global map. Okay, that, that is helpful. One more last question, if I can squeeze one, is that we have kept our guidance for cumulative revenue at INR 7,000 crore, you know, till FY 2028 intact, despite, despite a good, performance this year, and the next year guidance is also quite good, and we expect a growth in revenue. And of course, you know, with the, with the Aegis Mark I project gathering momentum beyond 40th, 41st, we will have Uttam Radar also coming in. So do you think the INR 7,000 crore is a tad conservative at this stage? But will we rather not be conservative? Well, you know us, we, we like to be conservative. If I... Actually, I can put it this way, that the opportunity set is really huge, right? But we are still, you know, we are comfortable giving you guidance for a year or two as the story unfolds, right? In the long term, you know, we, we have already mentioned the multiple initiatives which we are working on, which hopefully will lead to expansion in the TAM itself. And TAM, SAM, you know, everything should increase significantly. But as and when visibility comes in very clearly, we'll, we will love to increase the numbers. Our idea is what we tell you, we'd like to achieve that. Okay. Thank you so much, and all the best. Thank you. Thank you. Before we move to the next question, a reminder to the participants, anyone who wishes to ask a question, may press star and one. Next question is from the line of Bhavik Shah from MK Ventures. Please go ahead. Yes, sir. Congratulations on a good set of numbers. So my first thing is, can you just reiterate the guidance which you gave? Because there was some disturbance. What is the revenue PBT order book and order inflow guidance we are seeing for FY 2025? You mean, you missed our introductory thing? No, sir, I was there. I, and I did hear INR 1,000 crore-INR 1,100 crore revenue. I'm just, there was some disturbance. Also, the order book, the guidance is, INR 1,200 crore-INR 1,300 crore. That is a standalone order book. In terms of the- Inflow guidance, is the INR 1,000 crore-INR 100 crore is the inflow guidance? Sorry? Is the order inflow we're expecting in FY 25, right? Yeah. Yes, yes. Yeah. Yeah. Okay. The order inflow. In terms of the revenue guidance, it is INR 1,000-INR 1,100 crore. Okay. And in terms of PBT order? We should be able to maintain the current PBT levels with a slight positive side. Okay, so current PBT levels. So but, when we say... We are saying about 18%-22% CAGR growth on revenue over next years. So, so if I calculate, like, my revenue guidance is, like, should be around INR 1,100 crore only. Like, are we seeing any one-offs happening so that we are giving a INR 1,000 crore range also? Sometimes numbers don't pan out. You know, the order products, product delivery gets delayed, client picks up the products, little bit late. So we wanna make sure that there is enough flexibility in the system. But as I said, 18%-22% growth rate is the targeted number. ... Okay, sir. Okay, sir, Astra Rafael JV was supposed to turn positive by this year, if I recall it. So we have actually, in the cash flow statement, I can see an INR 12 crore loss. So what is that? So it's the operating loss or it's a one-off loss? Can you please repeat? No, again, Bhavik, I didn't get your question. In Astra Rafael JV, in the cash flow statement, we can see an INR 12 crore share of loss from there. So, like, is it a normal operational loss or have you written off something, so that's a one-off loss? 10 crore loss? In the cash flow statement, we can see share of loss from joint ventures. Yes, share of profit from the joint venture. We got INR 10 crore of share of profit from the joint venture. Profit, right? I just wanted to confirm with, yeah, so our project previous term profitable, right? It is share of profit. Yes, it's not a one-off, right? It's a profitable, because previous term profitable, right? Yes, yes, yes. Previous term profitable, it has delivered pre-tax profit of about close to INR 30 crores and post-tax, post-tax profit of about INR 24 crores. Okay, sir. Also, we can see some borrowings have shot up during the long term, and short-term borrowings have shot up during the March balance sheet. And so similar side, we can see CapEx, some kind, see it there in the balance sheet. So can you throw some light what CapEx are we doing and that CapEx, and for that CapEx, have we taken loan? The CapEx, it is a normal, testing equipment and other, things which are required to support our existing activities. Okay. Basically about, close to about INR 40 crore is a CapEx incurred by the company in terms of these test equipments. Short-term borrowings are largely for the working capital. Instead of borrowing a cash credit, we go for a working capital demand loan, which is classified as a short-term borrowings in the balance sheet. Our term loan, just to clarify, is less than INR 15 crore, if I'm not wrong. Right. Yeah. Long-term loan is about INR 15 crore. Right. Okay, sir. Thank you so much, and congratulations. Thank you. Thank you. Next question is from the line of Ketan Gandhi from Gandhi Securities. Please go ahead. Hi. Congratulations, team Astra. I think you achieved what you said in the past. Hearty congratulations. I have just one question, on upgrade of Sukhoi radar. It's supposed to be again based. And recently some article says they have floated a tender for EW for the Sukhoi. Are we taking any role there? And if yes, can you share, I mean, share some update on that? Yeah, Ketan, the first thing is, on the radar front, the DRDO is yet to come out with the final configuration of the radar for the Sukhoi upgrade. As far as EW, you are right, there was a Eol has been floated by DRDO for the DCPP, and we are examining that, and we will take a decision very soon, as we just floated only a couple of days back. Do you find any competition there? I mean, is there any player other than us for EW? Yeah, why not? I mean, there are a few companies who are working in the EW, so obviously they... we will have competition there. Okay. And, any, any, any feeler from the DRDO or, government side regarding gain-based radar for Sukhoi? Whether they are going for it or it will take some time? No, they're discussing, and I think, as I said, you know, the final configuration is yet to be decided. Once they finalize that, I think only we will come to know about that. Once again, thank you so much and all the best. Thank you. Thank you. Participants, to ask a question, you may press star and one on your touchtone phone. Next question is from the line of Kuljit Singh from Mount Intra Finance Private Limited. Please go ahead. Good evening, sir. I'm audible? Yeah. Yes, please. Congratulations on a very good set of numbers, sir. Sir, I just want to know the guidance you have given. Can you just give us some color on what are the products we are looking for, the 3-5, for the INR 900-INR 1,200 revenue order books we are expecting? In terms of order book, we have many, production, orders, like, in radar segment, the Aarudra, through a major contract we have received in last year, but, some October contracts we just received only last month. And, then we are also expecting orders for, a car plane, that is a advanced version of our control acquisition radar for Air Force. This is again, we are expecting, from BA. Then, the program D-118, which we, we have, we put L1 in, you know, in that RWR. So there, that also we are expecting. And Mr. Atin had mentioned, we have just received one contract for the precision approach radar. Apart from that, we are expecting a few orders from production, you know, nature, that is TRMs, that is from TASL, LCA Mk1A, and also DWR from IMD and other users. We have orders which are in pipeline for the EW production from them. That is for the programs called Himshakti and Indra, and Varuna. Yeah, these are a few, you know, orders which we are in, you know, they are in pipeline. There are many other tenders which in fact are coming out, and which we'll be competing with others. What are the programs I mentioned, that these are all, we have been single tender, and one or two are which we won, win this tender. In all this, I think we are confident of booking orders of close to 200-300 base. Okay, sir. So one more question, in space segment, I saw a revenue of about INR 15 crore. So can you give an idea on what kind of products are we supplying in the space segment? Yeah, we have orders from ISRO for subsystems of radar imaging satellite. Some of them have been supplied last year, and the leftover, we are going to complete it in next two quarters. Okay, sir. Thank you. This is so helpful. Thank you. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Meena Benson, who is an individual investor. Please go ahead. Thank you, and congratulations for a good set of numbers. I have one question, that your raw material cost in Q3 was 53.48%, which has now increased to 62.6%. So any particular reason for that? And if I go back to September quarter and December quarter, there it was 57% and 53%. Raw material cost for this quarter is about, 62.0%. Yeah, I cannot get into the specifics, but in general, you know, the raw material consumption depends on the product mix. It is quite possible that some of the products what we have executed in Q4 has higher raw material cost, and that is the only reason why it would have gone up. Beyond that, there is no specific reason. Okay. Okay. Thank you. Thank you. Thank you. Next question is from the line of Yukt Mody from AB Capital. Please go ahead. Yeah, thank you for the opportunity. Sir, I just had one question. My question was on the export side. Can you please elaborate on what are you doing on export side that will improve our margins on orders sides? Exports. So, on the export front, we have been discussing with couple of OEMs for supplying of BTS products and a few products which we have taken up development, which are in almost advanced stage of completion. I think, next two quarters, probably we'll be in a position to demonstrate these prototypes to those OEMs. Once we have success in this, then I think probably we can expect good number of orders. I do not want to reveal more details about that, as this is in a very initial stage. Apart from that, the offset business, we are likely to get a couple of more contracts, but not in the same scale like we used to get. Maybe in a small, small country, but otherwise, small value. Rest are like, you know, we are trying to participate in few tenders for the systems what we developed, like Doppler Weather Radar and all. We have participated in some expression of interest as well as in RFIs. So probably, in a year or two, I think, we, we will be in a position to supply these systems to the global markets. Okay, sir. Thank you. you. That's all from my side. Thank you. Thank you. Next question is from the line of Manoj from Keva Advisors. Please go ahead. Hi, sir, thanks for the chance. Just a qualitative question. There was one of the companies in defense was saying that the government is taking a lot of interest for exports and one of the, so the government called one of the companies saying that, "Do you need any help from us, or you've gotten the numbers and exports is XYZ. Can you grow faster or you need help from us or something?" Can you share any kind of change in government interaction feeling in the last one or two years? Yeah, you are right. Government is encouraging the companies to export, but as you know, I mean, you basically systems with end app- which can meet end application will have a lot of potential to export to begin with. And yes, companies who have built the systems, they have, they'll have opportunity to export to the Southeast Asian as well as the African market. We also gone through, you know, we have seen a good number of opportunities are coming, you know, for us also. But takes time, as you know, export market is not so easy to tap it, and we need to establish ourselves, and then we need to sell. So it may take few years' time, but yes, this is a good beginning. And government, you know, they are encouraging in the sense, participating, you know, they are taking industry together to the many forums and all, like, being, being introduced by the government to all the industries. And then I think, indirectly it is supporting, companies like us to get to be directly to the OEMs. Right. So for the Indian procurement, have things substantially changed in the last year or so, like the speed of approvals, et cetera? Sorry, we didn't get your question. Can you repeat, please? So I think for the Indian defense procurement, have things changed substantially in the last six months or a year or so, from the government? Yeah. See, as you know, we like, you know, we have been seeing many opportunities for the companies like us to participate directly in the MoD business. If you look at the history of, you know, our company, many years, you know, we have been supplying, you know, subsystems to DRDO and ISRO. And then we were getting these production orders, you know, from the PSUs and all. MoD has given opportunity to companies like us to build the system and to participate directly the category of Make-I and Make-II. And we can build a system, and then we can supply directly to the armed forces. So this is what the change happened in the last, you know, two years, and that is really giving us the motivation and also to strengthen the companies who have the core technology. They can build a complete system and be in the market. Okay. Versus we had to go via the DRDO, et cetera, or the government companies, now we can do it on our own, faster? Yeah. Yes. So So towards that, we are building few systems, and we are planning to supply directly to the services. Like, I stated in last earnings call, we have received a year ago for couple of radar systems which are in development phase. And so once we complete, we can be, you know, in competition with the other major players. Okay. Versus earlier, it used to take a few years. Now, that will be shorter and faster? Yeah, to some extent, yes. But anyways, this is development of system takes time, but, today, having got the technology available in the companies, we can build up, you know, in a much faster, pace. All right, sir. Thank you so much. All the best. Thank you. Thank you. Before we move to the next question, a reminder to the participants, to ask a question, you may press Star and One. Next question is from the line of Jasmin Kaur from Fortuna Investment Advisors. Please go ahead. Yeah. Can you hear me? Yes, please go ahead. Yeah. Yes. So my question is actually on the receivables again. There was an earlier participant who did ask, but I want to understand this a little better. I think even if you are saying that because of Q4, I mean, probably that you know entire additional would probably be sitting in receivables. But still, despite that, the receivables increase seems to be quite high. So, sir, if you can just give us a little bit more detail on the nature of these receivables and when do you expect them to be realized, and whether this is a sustained kind of a thing or you know we will see better receivable days going forward? Also, if you can also tell us a little bit on the aging of these receivables, how old are... You know, what percentage of it are, like, in the 30-day bucket or 30- to 60-day bucket? Or, you know, so in that manner, we will be able to understand better. Yeah, the aging may be a problem. I don't have the data, but, I'll, I will throw some more light on, why the receivables are fairly high. Apart from whatever I said earlier, the other reason could be like, we have delivered two major projects, in the last year. Cumulatively, those two orders, will come to close about, INR 170 crores-INR 180 crores. Both these programs, are under the final approval. It is called, site approval, that is, SAT, SAT approval. So, so this is sitting there in the balance sheet for the last, eight months or so. Probably these are the two factors, which is, delivering of the receivables. We are sure that, and the third factor is the deferred receivables. There are two categories of deferred receivables. One, what we have supplied to the India Meteorological Department as a part of the tender, sales upfront. Remaining 60% is received over a period of five years, which covers the receivables. So these are the other two elements which we have to consider for proper analysis of the receivables. Okay. Okay. So, do you see your short-term borrowings increasing further in the current quarter, if you know, these are probably the receivables that did not realize, then can we see an increase in the borrowings in this quarter? Yeah, I think so. Maybe, up to INR 40 crores-50 crores, we may have to go for additional borrowing. But as of today, it is around, just around INR 200 crores, whatever you are seeing in the balance sheet, the same number is there. Right. Maybe in the next one or two months, it may slightly go up. Okay. Yeah. Sure. Thank you. Thank you. Thank you. Next question is from the line of Jyoti Gupta from Federal Bank. Please go ahead. Hello? Yes, madam. Good evening, sir. Great set of numbers. I have two, three questions. One is what is the variation in margins in the products sold in the export market versus domestic? Of course, the contribution of domestic market would almost be twice than what you were exporting to other countries. Second is, the key projects which is outlined on your presentation on page 15, one is the line replaceable units which is being supplied to DRDO, Ashlesha, and Aarudra Radars, are these recurring, which means there will be some projects which will be on a recurring basis, and some which would be, you know, come after a certain gestation. So one is the LRUs, which are there, is this a recurring would-be recurring nature? Second is the array antenna, the AAU for Uttam AESA and LCA Mk1A for aircraft. Will the revenues start coming from FY 2026? Because that's when, that's what HAL said, that there will be, you know, the first lot of, I think, 8 units will be commissioned or will be out of delivery in FY 2026. So, how should we look at these orders in terms of... Because let's say you're making 10 projects, not, not all 10 projects will start giving you revenue. They would all have certain timelines. How should we look at these projects over a period of time? Yeah. Ms. Jyoti Gupta, the second part of the question I'll answer. Regarding this recurring business, yes, the programs what are being given in that sheet, like, CAR systems and as well as Ashlesha, we do get repeat orders, but it takes some time. The gestation period is a bit longer. Maybe after a few years, we will get the repeat orders. And as well as the Uttam AESA, you know, for LCA Mk1A is concerned, yes, we are expecting limited series production in next two quarters. And probably the revenue starts flowing from FY 2026 onwards. Okay. Great. And what about the other one, the sub-modules for Himshakti project? Yeah, these are all production orders. And we have already supplied, we have been supplying radar for last few years. And we likely to get more orders in future based on the, you know, orders which Bell receives. Okay. Okay. All right. My next, the other, the first question was in terms of the margins. Of course, I think it will be difficult to answer, but could we see some sort of a, percentage variation in the domestic, from domestic, and foreign? Because my understanding is your margins from domestic, sales would be higher than what you would be actually getting from foreign, from supplying, abroad. Yeah, definitely the margins for the products which we have been supplying to the foreign OEMs all these years were basically, we were focusing on offset business, where margins were very low as compared to the domestic, which we supply against the build-to-spec, which where we build our own IP. In those products, the margins are significantly high as compared to the exports. But, as just now I mentioned that, you know, we are focusing to develop a few products and as well as systems for the global market with our own IP. So which definitely will have better margins as compared to what we got in recent times. Okay. Currently, how many IPs do we have? Because last time when I visited your Hyderabad plant, I liked two products immensely because it had a lot of meaning in terms of civil infrastructure. One was a product which was replaceable to a bird hit, and the other one was a clutter in this, yeah, orbit. What is the progress in those two projects? You are talking about the Wind Profile Radar? Yes. Yeah. So that is in development. As you said, we are developing that radar. We have already supplied a few wind profile radars to various users like ATM and also a few universities. And from the services, we got PSO for development of this, and we are in competition, and we are actively developing this particular radar. Okay. That will be all. Thank you so much. Thank you. Ladies and gentlemen, we'll take this as the last question for the day. I would now like to hand the conference over to the management for the closing comments. Yeah, thank you very much for your time and speaking to us. I look forward to meet you, talk to you again at the end of Q1. Thank you very much. Thank you. Thank you. Thank you. On behalf of Astra Microwave Products Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.