Astra Micro Wave Products Ltd
NSE:ASTRAMICRO
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Estee Lauder Companies Inc
NYSE:EL
|
Consumer products
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Church & Dwight Co Inc
NYSE:CHD
|
Consumer products
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
American Express Co
NYSE:AXP
|
Financial Services
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Target Corp
NYSE:TGT
|
Retail
|
| US |
|
Walt Disney Co
NYSE:DIS
|
Media
|
| US |
|
Mueller Industries Inc
NYSE:MLI
|
Machinery
|
| US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
521.65
1 021.75
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Estee Lauder Companies Inc
NYSE:EL
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Church & Dwight Co Inc
NYSE:CHD
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
American Express Co
NYSE:AXP
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Target Corp
NYSE:TGT
|
US |
|
|
Walt Disney Co
NYSE:DIS
|
US |
|
|
Mueller Industries Inc
NYSE:MLI
|
US |
|
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
Astra Micro Wave Products Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Astra Microwave Products Limited Q1 FY '23 Earnings Conference Call.[Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. S. 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 the post result earning call of our company. I'm with my colleague, Mr.M.V. Reddy, Joint Managing Director; and SGA, our Investor Relations advisers. The results are taken on record at today's Board of Directors meeting, and the results in the investor presentation are uploaded on our company website and stock exchange. I hope you have 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 of systems and systems for defense space and communication meteorology and technology. We have always tried to and make a study progress time of the value chain from subsystems to a high value-added systems company as of today. On this call, we would like to outline some of our product lines for a 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 phase array radar. We are adept at designing and developing all kinds of radar subsystems like our amplifiers, the receivers and exciters, filters, synthesizers, converters.
In the area of signal processing and radar data processing, we are in concurrent IP with other companies. You would be delighted to know that your company is developing radar systems like Ship Borne Radar, Coastal, Surveillance Radars, Anti Drone Radars, Ground Penetration Radars, Telemetry Radars, Instrumentation Radars, et cetera. We enjoy joint IP rights with the DRDO labs for MMIC products for radars and other communication systems.
The other area for expertise in defense segment is electronic warfare. We have been supplying various kinds of EW subsystems and components such as Direction-finding Receivers, Passive Homing Head for RF Seekers used in NGARM, Jammers, Filters, Amplifiers, Receivers, et cetera. And we have delivered EW systems and components to programs of Indian Air Force, Navy and Army. Another area in defense is Telemetry. Astra has been supplying various subsystems for Telemetry applications such as S- Band FM Transmitter, Airborne RF Trans receiver, Ground Up Down Converters, C & S band switch antenna systems, Telemetry Tracking Systems, et cetera. 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 subsystems for private sector players.
We are also present in SATCOM and MSS terminals for communication during disasters. In the Guided Weapon 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 these areas, which I have spoken about puts us in an envious position to partake a major stake in the upcoming Defense Programs like Light Combat Aircraft, AATRU FOR ASPJ, AAAU for Uttam AESA Radar, AAAU for AEW&CS and many more. We take pride in being one of the few companies in India, except the Defence 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 Mk1A, which is currently being tested.
We have been supplying Wind Profiler 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.
With our persistent efforts our business mix is also evolving,space and meteorology, which combined contributed about 7% of our total revenues in the financial year '22 will constitute about 16% of the order book as of January 2022. In the last 5 years, Astra has grown at a CAGR of 20%, and we are confident that in the coming years, we will continue this stride as macro environment for a defense sector is very positive.
On the back of our deep domain expertise, we are able to create a solid diversified order book of about INR 1,663 crores, which is executable in the next 12 to 30 months period. During Q1 FY '23, we have received orders worth about INR 253 crores.
Now coming specific to the stand-alone financial performance for the company for the Q1 FY '23. 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 35% due to increase in material costs. EBITDA stood at about INR 25 crores, which is a growth of about 15.4%. The 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 exports are about 61 -- Indian market is about 61%, whereas exports is about 39%. With this, I open this floor for questions and answers. Thank you.
[Operator Instructions] The first question is from the line for Rahul Jain from HNI Investment.
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 the presentation. So you mentioned that the business potential of Astra Micro is around INR 14,500 crores until FY '28. I just wanted to check how certain are we of the execution. And is this business potential over and above the existing order book of INR 1,600 crores?
Yes, Rahul, this will be taken by Mr. M. V. Reddy.
Yes, Mr. Rahul. As we mentioned earlier, like though we talked about for the 3 years, next 5 to 6 years, the total outlook -- business outlook, it appears to be that we have a fairly good potential of close to INR 15,000 crores, INR 18,000 crores of orders, which are likely to come in our domain expertise. So in that, I would say, close to INR 8,000 crores. We can say with 100% probability, we can increase orders in that the major chunk of business will come from the radar of about INR 5,000 crores. And then in Electronic Warfare, INR 1,000 crores. And Missile and Telemetry put together, around INR 1,000 crores. And space and meteorology put together, around INR 1,00 crores. So this is what the potential emerge for us in the next 5 to 6 years. This is in addition to the existing order book, yes I think that is one of the clarification.
[Operator Instructions] The next question is from the line of Amit Shah from [ A Securities ].
Sir, the gross margins have fallen from 39% to 35% year-on-year. Sir, what are the major reasons behind the fall? And how do you see this trend going forward?
See, basically, the gross margin, no, we have to get into very micro details to explain in detail. But in general, the fluctuation in gross margin is directly related to the product mix that is being excluded quarter-on-quarter, okay? Therefore, it is not something which we have to really worry about. But there is a small effect of the changes that has happened in the first quarter. Maybe about 1% to 2% has contributed to that. But otherwise, it is not a trend to really worry about.
Okay, sir. Sir, could you please elaborate on the order book within the quarter? And how does the pipeline look like for the remaining part of the year?
Yes. For the first quarter, we have booked orders close to INR 280 crores. And in that, the defense segment is around INR 128 crores, and to precise INR 77 crores from radar and INR 34 crores from EW and INR 17 crores from missile and Telemetry and INR 12 crores from the meteorology, INR 5 crores from the space sector. When put together, it is around INR 282 crores, in the order we have booked in the first quarter.
Going forward, from Q2 to Q2, we are expecting close to INR 400 crores in this from domestic close to about INR 380 crores and rest is export. And that, again, I guess from Radar segment, we are expecting to book INR 275 crores, EW, about INR 85 crores and missile and Telemetry, around INR 10 crores. So this is a broad classification of order book for the Q2. And Q3 and Q4, as of now, close to INR 250 crores or worth of orders are in pipeline, which probably we can book in Q3 and Q4.
And sir, these orders will get executed in how much period?
Usually, we have delivery schedules of 12 to 24 months. So all these orders can be executed starting from Q2 of next financial year.
Okay, sir. And sir, lastly, sir, I had a quick look on the presentation, and we see some interesting additions to the products. Sir, usually, we -- when you talk about the order book, you gave some color on the kind of projects that you are working on. So could you be able to give some details on this aspect?
Yes, we are working on many projects like certainly like last call, where we did mention that we are going to execute AAAU for uttam. So that has been completed, and we have delivered successfully. So we are in the race of production. And similarly, for AESA, we said we will be delivering that PATM Telemetry radars. So that also has been delivered. And a few radars like PPTR or again, [PESA] is in advanced stage of completion, and these are all about systems, what I've been talking. And the Doppler Radars for IMD. We have completed the first contract of 10 members, and we have participated for tenders of the next requirement for this year and expand.
And also, we backed the order for [aviation radar] that is under execution now, and see these are all our systems. And as far as the subsystems are concerned, we have been working in various programs. So few of them are in development stage and few are in the production. So all put together, I think like whatever we have been mentioned in the last call. So it is in line with our guidance.
[Operator Instructions] Next question is from the line of [ Priyank shah] from KK Advisers.
I have 2 questions. I'm 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?
Yes. 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.
The next question is from the line of Subrata Sarkar from Mount Intra Finance.
Sir, this is regarding your business potential 2028, which you have given, so you have given like radar and counter-drone systems potential of INR 8,000 crores. So can you just give a ballpark, breakup of that, like how much will be radar and how much is counter-drone systems?
Yes. See, that radar systems is about INR 2,500 crores. And AAAU and systems, put together, we have taken around INR 5,000 crores. This is a potential what we see in the next 5 to 6 years. And then counter-drone systems, we have taken about INR 5,000 crores. And these are all major part of radars.
So in this, as I said, out of INR 12,000 crores opportunity, we are confident of booking INR 5,000 crores with 100% probability. And the rest, we have with 30% to 50% probability as we have competitors in that segment.
And in EW, we have close to INR 2,000 crores visibility for the next 5 to 6 years. So in like programs like [ Shakti, Dara shakti,Dolphin, Varuna,Nayan,Hem Shruti and Hem Shakti] all put together, it's about INR 2,000 crores opportunities are there for the next 5 to 6 years.
In this INR 800 crores, we are confident of booking with 100% probability. And the rest, we have competition, so we can take it to 30% to 50%.
As far as the missile and Telemetry, we have programs like Akash-1S, [Chu-SAM], Akash NG. In our programs we take that with a visibility of close to INR 3,000 crores. In this, we have taken about INR 1,000 crores with 100% probability and the rest to this 30% to 50% probability. These are all in defense sector and the rest are in space and the meteorology, we put together about close to INR 1,000 crores. So we have a potential to book orders. I hope I answered your question.
Yes. Sir, regarding counter drone sir, I have 2 questions. And like as of now, have you owned any anti-drone or Counter-drone order? Number one.
And 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 beating, if you throw some light on that part?
We don't want go much details in that. But because last time, as I said, in the last ending call, we have taken basic technology from DRDO, and we are optimizing the design to suit various applications. To that extent, I think we are progressing well, probably, I think next 4 to 5 months, we should be in a position to demonstrate our model to the various users.
Okay, sir. So as of now, sir, like it will take another 5 to 6 months to demonstrate our model, sir?
Yes, yes.
Perfect. Sir, just one follow-up question on the like I can recall like a few quarters back on the con call, we were contemplating the opportunity of like some fundraising for our new project or JV basically. So is that plan still on? Or like we have -- no more require that?
Are you mentioning about any fund requirement for our JV?
Sir, if you can recall, like a few quarters back, you were talking about the possibility of like if we get into like specific project or some other JV. Then we made -- we were contemplating that we may raise fund at that point of time. So what I mean to say is still, we are like through QIP or some other sources. So are we like -- is that still open or we currently do not need any fund?
Yes. If I recollect correctly, we mentioned about a new product line introduction in [ Dowager ]. This is electronic electro-optics. This is the product line, what we see. And in fact, we are very happy to share with all of you that 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. And depending on how the projects takes off, we have to take a call on the fund requirement at a later date.
Our next question is from the line of Bhavik Shah from MK Ventures.
My first question is, like, are we still maintaining a guidance of INR 850 crores and 10% PBT?
Yes.
Okay. So there's no change in no upward or downward revision, right?
No.
And the second question is on the consolidated financials. So we have reported a PAT of around INR 8 crores in the consolidated financials. So is this loss on account of the JV which had -- which was breakeven in the last quarter if you were talking about JV being breakeven in this year, right?
Yes, we mentioned that the JV will breakeven in the current financial year. But in the first quarter, still it is in redone. Yes.
So like what's the outcome there? Like are we expecting it to break even on the losses will continue?
So it will break even at the end of the financial year. Current financial year, the JV will break even.
Okay, okay. And so like are we -- is it witnessing any execution challenges? I think quarter-on-quarter revenue has declined. So 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 the -- but all those issues have been resolved now, and they will be exporting their first consignment very soon.
I'm not on the JV. On the main business, I'm seeing like our revenue has declined quarter-on-quarter. So are we witnessing some execution challenges?
Revenues have not declined. In fact, whatever we have given guidance in the beginning of the year, we have been maintaining the same like first quarter, we said about INR 150 crores, we have executed INR 160 crores. Similarly, for Q2, we have given around INR 200 crores. So we are standing to that, INR 200 crores. And Q3 and Q4 put together, it is around INR 500 crores, so which are in like a pipeline for execution. So which are in like in pipeline for execution. So I don't see any major challenges. Yes, there are issues of semiconductors. The challenge is the growth all companies have been facing these prices, but we have some more we are managing. For the current year, we don't see any major challenges as far as the component shortage as the revenues are concerned.
And sir, like this fix ahead, like what asset term could we have like what could be your 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, please. I think your mic...
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?
Actually, the infrastructure and custom equipment, what we have, we can -- comfortably, we can book revenue worth of, INR 2,000 crores. Going in that 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' time. But otherwise, yes, we -- whatever infrastructure we have, we can comfortably can book revenue of INR 2,000 crores.
And just a last question. What is the net debt and cash figure as of June quarter end?
Again your voice is not clear. But as you said, you are asking what is the cash position at the end of the quarter?
Yes, cash and debt figure.
Yes. Long-term debt is about INR 18 crores. Working capital is INR 100 crores. The cash at bank includes of the margin money for the deposits is about INR 51 crores.
The next question is from the line of Rahul Jain from HNI Investments.
I just had a couple of follow-up questions based on your previous answer. My first question is the INR 8,000 crores that you said is certain from Astra's business potential. Could you just shine some light on what is our potential margin profile on this? And what can be a bottom line from that revenue? And my second question is we have a JV with a Rafael. So could you just give a broad outlook on what can we expect from this JV 4, 5 years down the line? And what progress should we expect?
Yes. I think in terms of the margins, it's too early to really talk about that. But otherwise, 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, that is sales minus material costs, should be anywhere between 35% to 40%. That is how we look at it when you look at the number of the INR 8,000 crores business potential.
Then 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 to Rafael. Going forward, it is working on a similar software, different 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, demonstrate to the Indian Army, then get the product approved, then compete for the business. So that is a kind of cycle it is going through. This is likely to get the technical approvals, or the demonstration is likely to get completed by second half of next financial year. Then basing on how successful the product is, the company is going to bid for their business.
Then 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 prepared in a global market, but it is likely to be in an Indian-specific procurement going forward. And 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 Sell. Going forward, we have to see that it is going to mature into the business.
The next question is from the line of Prabir Adhikary from Ratnabali.
Thank you, sir. And first of all, thank you for providing this excellent presentation. I have 2 questions. First of all, out of this INR 253 crores of orders that you are back within this quarter, around INR 127crores is from defense. So can you please tell us that what kind of order is this?
Do you want the details of the orders?
Yes.
See, segment wise, I have already given.
I just want to know the different orders that INR 127 crores that you bagged from which program?
Yes, which programs. See, in this, the major orders what we have bagged is -- when we know EW subsystems that is from Shakti and Nayan program which is about INR 70 crores plus. Then we have order from [DCX]. That is basically supply to [ELD]. It's about INR 75 crores. Then we back others from caps. This is a space for Mark 1 [indiscernible] , so that's about INR 7 crores. And we backed on a development contract from [indiscernible]. This is something which we'd like to highlight here. This is basically to provide communication from submitting to the subsystems. Though the other value is small, it's about INR 8.7 crores but has a rich potential. Once it gets through, then we can provide this kind of a communication to our submarine. Then also, we have that order for [indiscernible] about INR 6 crores. Then we back orders from meteorology segment, close to about INR 15 crores. So the real breakup of various products which we bagged in the first quarter.
Okay. Sir, my next question is you have an aspiration to be in the mini satellite market. And my understanding is saying that SSLV is very much correlated with this mini satellite market. And recently SSLV has been launched by ISRO successfully. So my question is, what kind of opportunity this SSLV program can bring to Astra? And is this over and above your existing sales program?
See, we don't have much contribution in the launch vehicles. We only supply some components to the launch vehicles, but we have major contribution in payloads, satellite payloads. So we have been working on that our space group. We're working to make payloads for the communication, and also they are planning to get into remote sensing payloads. That takes time, but we have already started working towards that.
Our next question is from the line of Akshay Kothari from Envision Capital.
In the Defense segment, could you just elaborate what sort of orders it would be in terms of whether it would be production or development?
We have both mix of development as well as production.
As a part of our current order book, how much will be production and how much would be development?
You mean to say in current order what we have on hand?
Yes. Total orders, what percentage would be production? And what percentage would be development?
Defense, 30% of that, I think? From R&D, close to INR 300 in defense. And we respect to production, yes. I think out of INR 1600 crores, close to INR 350 crores for R&D response in production.
Okay, okay. And sir, the new orders on the export side, would be having gross margins of around 10%?
It's close to 8% to 10% .
Okay. So I could not understand. So is it because our capacities are unutilized that we are taking these orders because we are at significantly lower than the domestic margins what we are making?
See, actually, we have taken this -- we have booked these orders a long time back. And of course, we are continuing the same projects. But this is something like where the BTP, we do not have any risk in executing this contract. And the customer is providing the 100% cash flow, positive cash flow. So -- and also with the infrastructure being provided by them. So we have been continuing to work on this, I think. But gradually, we are coming out of this.
So probably down the line, maybe after 1 or 2 years as of business is getting shrink because of no priority for by global. So we focus more on BTS now. Even in the export market segment, we have been discussing with many OEMs for BTS opportunities. And we are likely to close one deal maybe in a few months, one of the U.S. company and us, which are in the advanced stage of discussions. So like that in future going forward, we are focusing more on BTS specifications where margins would definitely will be better. And yes, we are focusing more on indigenous-developed R&D programs. The offset business will go down as the next couple of years.
Okay. And I would like to congratulate you on the good order wins. But could you give some order misses which happened during the quarter if there are any?
I didn't get you. Come again? .
So 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, see, as I said, we have always we take a few contracts which are in competition like with 30% to 50% and which we are sure of getting like with 100% probability so that we always be project. Yes, this is 30% to 50% where we have in compensation, a few orders we lose and a few order we had.
Okay, okay. And sir, you talked about we have taken a technology for anti-drone from DRDO. So how does it go? Do we make some payment to DRDO for the technology or we develop it together? What is the process actually?.
There is agreement terms. So we don't want to discuss the agreement terms. But as I said, we have taken the technology from DRDO, and we are building the system, okay? And as I mentioned repeatedly, like we are optimizing that design to suit to wider applications. So that is what actually we have been working on that. And in a few months time, we will come out with our own product.
Okay. So this technology.
There is a front payment, too, for the technology transfer.
Okay. And this has been exclusively provided to Astra?
No, no, no.
That license was given to, I think, 6 companies. .
Next question is from the line of Abhijit Mitra from ICICI Securities. .
So just to understand, one of your competitors in our recent calls, you mentioned about 2 radars, a scaled-down version of space surveillance data and ultra-high frequency bandwidth radars, where the potential final product projects can be each INR 1,000 crores. So did we participate what the margin sort of unfavorable to sort of compete? What were your thoughts as to why we couldn't be the end one there?
See, in a competitive environment, the -- like every company will have some strategy to bid and to 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, it is nowhere close to us. So maybe I think it did strategy to bid for it. But for us, it was not comfortable at all to bid for that particular margin.
So just to understand the margin profile here, what does -- what is comfortable margin profile for you for this kind of tender? Is it 10%, 20%?
It depends upon like what are the programs like what is the future potential and what kind of a products it will have like production quantity. Like we take all those factors into when banking was costing. It is not a fix the margin level where we operate. And so it depends upon case to case, project to project, application to application. We have our own strategy to bid for it.
Okay. And then there was a recent news flow again project for development and realization for mobile radar hardware, essentially there also we could see on them and some very familiar competitors. So would this dynamics be sort of similar? Or your bidding strategy are similar here? And I mean how to look at this? I mean the tenders, potentially this looks like big tenders. But...
So see, we do have big tenders. As I said, when even this projected numbers. So these are all like high potential big tenders for various programs. Like that, I'm not going to discuss specific of each and every program that I mentioned about in radar domain. We had a clear visibility of INR 12,000 crores in next 5 to 6 years. So in that, we are very confident of booking INR 5,000 crores with 100% probability with various programs. So I'm not listing down all the programs which we are currently developing or we have already developed which have been few of them and production and us. So -- but this is -- certainly, we can book INR 5,000 crores with 100% probability. And the rest, INR 7,000 crores what we see the visibility. In that, we may have to compete with 1 or 2 players. And there, we took 30% to 50% accountability. So like that, we've been worked out, and I have given these numbers.
All right. Got it. And just to understand this INR 5,000 crores, which you have mentioned. This is -- how is it spread out? I mean is it concentrated across, say, 6 to 10 projects? Or there will be, say, at least 20 to 50 projects across which this INR 5,000 crores will come? So how is the concentration risk? I mean how is the concentration risk is what we are going to understand.
A major chunk business, we are expecting in FY '24, '25. I think you should give us a 50% uprate, then balance 50%, maybe another 3, 4 years. What actually has per today because it all depends on the government. All government projects, it depends on the even funds availability, budget allocation and program of lay. So all these factors also should consider. So I think that is the reason why I said the 5 to 6 years, we should take this time frame, but the large chunk of business we can expect in FY '24 and '25.
In terms of order inflows. So I was more asking about the number of projects over which this INR 5,000 crores is distributed. Is it fairly concentrated, say, 5 to 10 projects? Or is it like a numerous number of projects that 20 to 50?
I would say 10 to 12 projects.
10 to 12 projects can give INR 5,000 crores of order inflow.
Yes, yes.
Where you are 100% confidence where there are no competitors essentially.
Yes, that's right. Okay.
[Operator Instructions] Next question is from the line of Ketan Gandhi from Gandhi Securities.
Sir, you mentioned about Astra entering into Optoelectronics with the JV partner. Is it the existing JV partner or the new JV partner?
This is an existing JV. We have added this product line into this JV portfolio.
That is Rafael. Is that right?
Yes, that's right.
Next question is from Subrata Sarkar from Mount Intra Finance.
Just a follow-up on these counter-drone systems there. So I suppose, sir, apart from you, L&T, Adani, like who are the other companies out of the 6 companies who have received this? And is this for soft kill only, sir? Is this a soft kill?
No. This is soft kill, hard kill. And this apart from 3, I think there's -- actually, we should not name other companies in this investor call, where I think you get this information from DRDO. But there were 6 licenses which have been given, and this is both hard kill and soft kill options in there.
Okay. Sir, just one clarity on these license are like on TAP, what I mean to say that only these 6 companies will be visible or like this is open, anybody who can additionally can apply? can we get evaluated, sir?
I'm not sure what the policy, but that time it's selected 6 companies to give this license. But going forward, we don't know. We may even consider a few companies can approach the vendor. But as of now, I think 6 companies got this license.
Next question is from the line of Chas Shah as an institute investor.
Can you throw some more light on the progress on the submarine antenna frame? And what can be the total potential in terms of its contribution to our order book? And if you can just let us know who all would be our competitors in the space, please?
Which project?
Submarine.
Submarine, okay. Okay, set in this, it is a totally new development work we have taken with the DRDO. And this is in competition, we won. And this time line is within 14 months, we should complete the development portion. And once we are through, I think -- as on 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 as far as the Indian companies are concerned.
And sir, what is the size of this order?
It is roughly about INR 9 crores for 1 system, which we got in total. And yes, future we have to see.
The next question is from the line of Prabir Adhikary from Ratnabali.
I have 2 questions. I want to understand this structure of the system that you're developing that like Uttam, LRMFR, while you are making AAA, which is roughly 60% to 70% of the entire system. So for the remaining 30% will you outsource? Or will you integrate the entire system?
See, the radar that the technology is given to HAL. So HAL is going to integrate whereas our AAAU. We've been making compare total AAAU, and we will be supplying to the production agencies like HAL. But otherwise, the radar technology as in today, it's been given to HAL so HAL is going to build a total radar system.
Okay. So my next question is you are also making TRM for the long range radar. Are these related to the long-run tracking radars that have been 600 to 800 kilometers range which is called the Swordfish. And if it is so, so what kind of TRM you got for this?
I won't compare with that Swordfish. But this is -- yes, the range is whatever you mentioned is correct, around that range is being designed, and this is a scale model where we supply to DRDO.
How much TRM is expected?
How much?
How much TRM is expected in each radar?
I think your mic is breaking. Can you come again?
Is it possible to throw some light about the number of TRM is record for making each radar.
Okay, okay. Quantity, you're asking about. So i think the quantities like each radar as close to, I think, 600. I'm not sure exact number, but I think it's around 600 numbers.
Thank you. Ladies and gentlemen, that would be our last question for today. I now hand the conference back to the management for their 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 will get in touch with SGA, our Investor Relations advisers. 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, and you may now disconnect your lines. Thank you.