Astra Micro Wave Products Ltd
NSE:ASTRAMICRO
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
Financial Services
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Mastercard Inc
NYSE:MA
|
Technology
|
| US |
|
UnitedHealth Group Inc
NYSE:UNH
|
Health Care
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| 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 |
|
Walmart Inc
NYSE:WMT
|
Retail
|
| US |
|
Verizon Communications Inc
NYSE:VZ
|
Telecommunication
|
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 |
|
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Mastercard Inc
NYSE:MA
|
US |
|
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
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 |
|
|
Walmart Inc
NYSE:WMT
|
US |
|
|
Verizon Communications Inc
NYSE:VZ
|
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 '24 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.[Operator Instructions] I now hand the conference over to Mr. S.G. Reddy, Managing Director. Thank you, and over to you, sir.
Thank you. A warm welcome to all the participants to the post results calls of our company. I am with my colleague, Mr. M.V. Reddy; and Mr. Atim Kabra; and our SGA, our Investor Relations advisers.The results and investor presentation for the Q1 FY '24 are uploaded on our company website and stock exchange. I hope you had a chance to look at it.The quarter gone by was a relatively tough quarter. Our top line performance was in line with quarterly guidance that we have given in the previous quarter. Having said this, this out performance does not give a complete picture of where we stand as a company. The road ahead is very promising as we continue to have a robust order book of close to about INR 1,580 crores. This order book is a good indication of our long-term prospects.During the quarter, we have booked about INR 191 crores of orders, which compares to about INR 176 crores of domestic and INR 15 crores of exports.Coming to our stand-alone performance for this quarter. Our business, which is lumpy in nature, we recorded a decline of about 17% in our top end on a year-on-year basis, which has resulted in a revenue of about INR 133 crores for this quarter as against INR 161 crores for the corresponding quarter of last year. The mix of top line is about 60% of exports and 40% of domestic, which was entirely reversal of our last Q1 performance. But this is the reason why there is a negative impact on the [ quarterly amounts ] of the company.Domestic sales, which has a higher margin as compared to export sales in Q1 of FY '23, since the -- close to about 60%, there was a clearly visible improvement in margin. However, this quarter gone by has a lower amount of domestic business, coupled with lower margin product mix, which has led to the overall lower margins. As a result, we've had a decline of about 7.6% in our gross margin as compared with 24.5% of last year Q1.On the expenditure side, provision or advances as per the accounting standards has contributed an amount of INR 3 crores. I'd like to clarify, this is not an actual cost to the company, and it will get adjusted as we deliver the goods to the customers.The company reported loss of tax of about INR 4.3 crores for this quarter, which was about INR 11.4 crores of profit in the corresponding quarter of last year. We expect to turn back positive in the coming quarters as major domestic business is scheduled to be delivered in the coming quarters, especially in Q3 and Q4.We maintain our overall guidance of about INR 900 crores to INR 950 crores for the entire year with INR 300 crores of exports and the rest from the domestic segment. With this revenue mix panning out, we are targeting a business profit of about INR 140 crores to INR 150 crores. We maintain our guidance as given in the last quarter.Government of India's initiatives to foster local manufacturing as well as driving the transfer of technology from DRDO and ISRO, would benefit firms like Astra. Further, we have been taking steps to move up the value chain from the subsystem vendor to a system vendor, where opportunity size is huge. We have identified specific growth areas for the future expansion, satellite SATCOM systems, thin profile radars, ground surveillance radars, Doppler Weather Radar, anti-done systems and so on.Now I would like to share with you some business updates, which has happened in the quarter. Astra has signed a tripartite agreement with LRDE, HAL for supply of critical subsystems for AESA RADAR. As you know, Astra has manufactured/expand AAAU for AESA radar, and we'll be supplying -- we'll be the industry partner for HAL for supply of these critical subsystems.On NavIC front, we should have clearance for commercial production by end of September 2023. In meantime, we have developed a proto vehicle tracking unit by making use of the baseband chips and have completed the internal trials. We have also executed IFR orders for COTS and timing receiver. In future, we are planning to develop these modules using our own chipsets. Our corporate owned radar based on DRDO technology is undergoing integrated testing and validation at LRDE. We will be able to commence internal field trials by mid-September.In the last 1 month, we have concluded negotiations for a few contracts of INR 160 crores from DRDO and DPSUs, including satellite modules, airborne EW modules, development of airborne radars and production of radar modules. Recently raised funds are put to use, as declared in the offer document.With this, I will hand over to Mr. M.V. Reddy and later on to Mr. Atim Kabra to share their views and facts. Thank you.
Thank you. Good evening, ladies and gentlemen. I first thank you all joining in Q1 earning call that too late in the evening hours. Although last quarter was a soft one, as Mr. S.G. mentioned, in terms of P&L. But on the positive front, we made a good beginning by bagging reasonably good orders in the line of -- with line with our plans.Out of INR 191 crores, which was booked in the Q1, INR 176 crores from domestic market was from DRDO and DPSUs. 80% of them are production in nature with reasonably good gross margins.We're also delighted to inform that we have concluded contracts worth of INR 160 crores and approximately INR 140 crores worth of contracts are in the final stage of negotiations. We are seeing a good visibility to meet our order book plan in Q2 and for the rest of FY '24 as per guidance given in the beginning of the year.To share fee business highlights of the last quarter, apart from what Mr. S.G. Reddy had mentioned, we secured a few strategically important development contracts in ERA and EW segment from DRDO. We further strengthened our footprint in Doppler Weather Radar segment by bagging more contracts from IMD and ISRO.We are actively participating in many domestic and global opportunities in the domain of radars, EW and communication segments. We have successfully developed AESA seeker head and TeraHertz Proximity Sensor, as we mentioned in the last business call.We have also delivered digital active based models to DRDO. We have initiated development of high frequency micro chipsets and a few radar system to meet MoD's future requirement.With this initial remarks, I hand over to Mr. Atim Kabra to share his thoughts.
Thanks M.V. Thanks, S.G., and hello, everybody. As you know, our business mix comprises of low-margin exports, high-margin domestic business, which is born out of our R&D capabilities. And it has been our attempt to change the lopsided nature of business, wherein revenue gets bunched up in the third and the fourth quarter primarily. And I must admit that we have not been very successful as yet in achieving the optimal mix as of now. Even though we have managed to spread out the export orders over quarters, almost evenly.The efforts made over the first couple of quarters lays the groundwork every year for the surge we normally see in the third and the fourth quarter. So while expenses have been more or less normalized, we are expecting a surge again, as mentioned by S.G. on the revenue side in the third and fourth quarter.We are reiterating, S.G. has just reiterated that we are on course to achieve our stated guidance of INR 140 crores to INR 150 crores of PBT in the current year, which would be a substantial jump over the last year on a year-on-year basis. S.G. and M.V. will discuss in further details the specific programs that we can talk about. But I wish to talk about our prospects and how we are shaping the company for a very sizable spurt in the size and profitability over the next 3 to 5 years.As long-term shareholders, we have all seen substantial value accruing to the shareholders and rest assured that we are laser focused on the continued growth of the company.I had touched upon Astra moving into solutions and systems in the last conference call. A lot of after efforts have been concentrated towards the same direction. As a systems entity and as a system integrator, the company needs to take a hard look -- relook at actually at our organizational structure to ensure there's a focused attention on the various growth strategies, which have been debated and deployed as we speak towards our real assets, which is our employees and our talent pool are functioning optimally in an SBU kind of a concept. We are exploring adjacencies with our current businesses, which I shall briefly explain in detail, M.V. has alluded to it, S.G. has alluded to it. And as we finalize and get the Board approvals for these initiatives, I'm sure you'll be equally excited as what we are.We believe that our core defense and aerospace business is very well poised to deliver growth on a consistent basis over the next few years. But we want to push the envelope on the growth numbers and expect the capability to create solutions will help us augment what hitherto was a tender-based approach towards business renovation. We expect solutions to play an important role across both domestic as well as international markets, but we want to keep our focus on defense business and partner with companies in a possible B2B2B format for our solutions business.The first solutions, which has been almost ready for a deep evaluation by our Board uses our core products to deliver a very comprehensive surveillance capability. We intend providing military-grade solution in a very cost-effective format centered around multiple techs within Astra, while partnering with multiple industry players to augment our capabilities to create an end-to-end solution, which will find a very receptive market, both domestically as well as international markets. We will share more on this post the final approval by our Board, but we expect revenues from this to start from next year onwards and where we will be offering this solution as a systems integrator. And the key change happening in the company is evident from the next solution which we are working on. While under wraps, I can share with you the broad contours where earlier we would have supplied our core products as hardware to solve testing problems for somebody else to build a solution around our core products. The change happening now based on the hardware as an input for a complete solution, which we shall be creating with applications, both again on the military as well as civil industrial side.These ready-made products in our opinion will allow us also to diversify from our dependence on government spending. And possible, as I had, will serve as a hedge against possible lean periods in government spending and thereby deliver consistent superior growth.As S.G. alluded just now, India has emerged as a key player in China Plus One strategy. And we have been debating internally whether we should build up our capabilities to provide low-cost, scalable production capacities, which we have, to -- which we have owned in our export businesses and work on producing electronics in a large volume, though low margin. But internally, our belief is that we wish we have the capability to focus on higher value add and higher margins, which is where we should be focusing on. And we should not be moving into low-value large -- no large scale business.So these substantial value-added divisions which exists within our company, be it space, where we will come to you with some very exciting news as well as around chip design, which is one of our core capabilities, which has helped us tremendously to create products, right? We are exploring with new seriousness, multiple options, and we'll revert back to you as soon as strategies are finalized.To sum up, we are looking at comfortably meeting our year-end guidance and are considering multiple strategies for augmenting growth through adjacent businesses for significant and consistent growth with high profitability going forward.With this, I'll hand it over back to the floor for questions.
[Operator Instructions] The first question is from the line of Amit Dixit from ICICI Securities.
I have a couple of questions. The first one is essentially no the exports. So why you have indicated in the press release that export component was higher. Is it possible to get that what was the execution of export order in this quarter? And the remaining export order book that we have, that is 19%, over how many quarters it is executed?
Yes, Amit, that is the only question. You said you have a couple of questions, right?
Yes, sorry. The second question is that while in long term we are conversant of the potential of abstract. But in more near term, and in -- since last 2 quarters, we have seen actually margins are dependent, especially in this quarter. My question is on the near-term opportunities that we have, such as if you could quantify, that would be great, such as Akash or the naval ship orders that are coming up. So what kind of opportunities do you have in these spaces? Also, in your annual report, you alluded to radar or -- for Indian Navy. So if you could throw some light on that, that would be very helpful. That's it from my side.
Yes. The first question is, as far as the export of the execution plan for exports for the current quarter and the next 2 quarters, Q3 and Q4. The export front, the second quarter, we have a sales plan of INR 80 crores and third quarter, INR 73 crores. And the Q4, we have a plan of INR 70 crores. This is our execution plan for exports in 3 quarters. That's the first question.The second question is, as far as the flagship or the contracts like you mentioned about the naval SDR system and all, so that we are planning to book sales in Q3. As we mentioned in our opening remarks, the maximum domestic, whatever we have planned in the current financial year will happen in Q3 and Q4. So we are planning execution of almost INR 338 crores in Q3 and 300 crores in Q4. So in Q3 and Q4 put together, we are expecting about INR 625 crores execution. And in that, the maximum like the majority share will come from the domestic sector. And with that too, the main programs production segment, like only the TR modules from the gas and also we have a few contracts from Akash, which we had in the Q1, we are planning to execute in Q4. So this is a product mix as far as the Q4 is concerned. So that should give us a reasonably good margins in the last 2 quarters.
Great, sir. That was a very elaborate answer. One follow-up, if I may. In these export orders that we executed in this quarter, did we make EBITDA level loss in any of them?
No, we have not made any loss as such. And the -- actually, the export we have again 2 categories where in one category, we have a very low margin. And the other category is we have a reasonably good margin sense around 10%. So whatever orders we have executed in Q1, all belongs to the lower margin category. Hence, we couldn't make overall good margin, if you see the overall sales as compared to the expenses.
And going ahead, you expect the --
The other thing I'd add also, whatever the projects we have executed in Q1, most of them are development in nature, and we had the competitive scenario. Hence, these orders doesn't carry much margin. So overall, we can't show profits when you see the -- when compared with the last year Q1.
So sir, is it able to expect that as we go from Q2 to Q3 and Q4, the margins are going to improve from year end, it would be an upward trajectory?
Yes, Amit. That is what we are stating especially in Q3 and Q4, were out of -- in Q3 out of INR 340 crores, the exports are going to be around INR 70 crores, similarly in Q4, which is around INR 300 crores, again, exports are going to around INR 70 crores. Therefore, the majority revenues in Q3 and Q4 are coming from domestic. Apart from that, there are 1 or 2 production orders in domestic business, which have a fairly higher margin. And hence, our statements that we'll be turning profitable and we will be able to meet the guided number of about INR 140 crores is coming in because of this confidence what we have.
The next question is from the line of Hitanshu Bhatia from Gandhi Securities and Investments Private Limited.
Sir, if you could just repeat the time line, which you said that we'll be getting the commercial get away from ISRO for our NavIC chip. And I also assume that we would be having -- we would have received the qualification for our basic chip that was supposed to come, I think, in the last quarter. And sir, I also had a question with regards to SDR Manpack for the army, if you could provide any updates on that front as well?
On the NavIC front, yes, you are right, we are supposed to get qualification in the last quarter. But in the last final testing, there were a few observations and that we have addressed that, and we are going to test again in the next week. Probably by September first week, we should have approval. And also, we should have the production clearance by mid-September.And as far as the SDR Manpack is concerned, we -- as we mentioned, the NCNC trials being scheduled sometime in October, November, and we're geared up for the trials. We are fully ready with that.
Okay. And I think Accord also previously in this year after Elena has also launched its chip right for NavIC?
Yes. Accord and Elena, we are aware of that and the product which we are going to launch will have a more -- few additional features. So any way, that we will disclose once we have -- our product gets approved.
The next question comes from the line of Colonel Sarjeet Yadav from Mount Intra Finance Private Limited.
Sir, I would like to know there are some orders which are pending about the anti-drone and MPR Arudhra. Have you received these orders? Or are you still awaiting these 2 orders?
Arudhra, we got RFP, and we have responded. Negotiations have just begun. We are expecting this contract only in Q3. It's a huge contract, big contract. So we expect negotiations may carry -- may go on for another 2 months. So probably in October, we should be in a position to close the contract. And as far as the contract drone is concerned, as we mentioned, our -- the radar is ready, internal field testing is going on, and we should be in a position to deploy from September last week onwards.
Okay. Sir, can you just also throw some light, what are the projects from which you are expecting this entire order book of about INR 900 crores, INR 950 crores?
We cannot disclose all the projects, but major programs like one is AWC Mark I engine. And then we have defense satellite subsystems, we have recently closed the negotiations. And also we have close negotiations for a few development contracts from DRDO. There is one airborne radar. The other one is ground-based data subsystems. And also, we have declared in one recently, and we have closed negotiations for one more contract from ITR, about SRTR, Short Range Tracking Radar, about INR 10 core. Again, going forward, in EW, we are expecting some orders from safety, DR-118, that is RWR of Su-30 and also [Indiscernible]. These are all programs which we have already products qualified, and we are expecting production orders from DPSUs.
Just a follow-up question. Can you -- SDR will give INR 150 crores worth of order for the JV. Is it included as part of the order book of Astra? Or is part of the JV order book, stand-alone or consolidated? Can you just clarify that?
No, it is not included in stand-alone. In fact, it is a JV order. So we expect orders for our last trial, maybe soon.
[Operator Instructions] The next question is from the line of Vipul Kumar Shah from Sumangal Investments.
So can you break your turnover between components of systems and systems for the last financial year?
For the last financial year?
Yes.
We don't have that breakup for the last financial year.
Okay. So -- but the systems must have a higher margin naturally, right? But if you can give us some rough breakup, that will also be very helpful.
So approximately, we can consider 20% on systems and 80% in components and subsystems.
So systems carry much higher margin, sir?
Yes. I mean, both subsystems and systems more or less carry the same margins. And unless we get large production quantity in systems, this will remain like on whatever we are executing on development contracts, which that we are bagging from in a competitive mode. So the margins are less, but in case we get production orders, obviously, the margins will be higher.
The next question is from the line of Siddharth Purohit from InvesQ Investment Advisors Private Limited.
Sir, sorry, I missed out the earlier point. You highlighted certain reasons for the fall in gross margin. And was there any onetime cost probably you mentioned? Sorry for repeating. I missed out those points.
No, there is no onetime cost as such. What we have stated is in Q1, the exports is close to about 60%. The rest is the domestic. Exports carry a lower margin, very low margin, I would say, around 5% to 7% kind of thing, whereas the domestic has the better margin. Since the mix is skewed towards exports, so the overall margins have come down. That is what we have stated. That is number one point. Number two, given I think the domestic also, the product mix what we executed in Q1 has a lower margin compared to the general higher margins, what we enjoy. So these 2 things have contributed to the overall lower margins in the company.
Okay. So in the subsequent quarter, we expect that the domestic business will pick up. Probably at the beginning of the year, we are expecting 65% to 70% probably from the domestic side for this year. So are we likely to achieve those all sort of numbers based on the pipeline that you have?
Yes, especially in the current financial year, we are expecting major deliveries to have been increase in Q4. It is very high domestic deliveries. And hence, we are expecting the recovery of the profits, everything to happen towards the end of those Q3 and Q4.
Okay. So one more clarification, is there any substantial change in the inventory levels? You have mentioned that probably it is likely to remain on a higher side because of the global supply chain issues. So -- for the first quarter?
No, inventory levels, they are more or less like what was there in the previous year. But since 2 or 3 domestic programs, which are scheduled to deliver in Q1 are being pushed to Q2 and Q3, the work in progress is at higher side compared to normal [ WAC ] standards.
[Operator Instructions] The next question is from the line of [ Palak Shah from Billion Securities ].
I just have one question. Like could you please elaborate on your plan to expand into anti-drone solutions? Like where are we on that? And what is the potential from this segment going forward?
Yes.
We have built the anti-drone radar with the technology know-how from DRDO. And we have a collaboration with one other company for the jammer. So with the integrated mode, an integration mode, we have been testing for the last few weeks, and we should be in a position to complete in the next couple of weeks. As I mentioned, we will be in a position to fill the system with the soft kill version of the drone radar system. This will be fielded some time in September last week onwards. We have few customers who have been requesting us to arrange demonstrations and that we are planning to demonstration in the next 4 to 5 months. We expect a few contracts by year-end or the first quarter of the next year.
The next question is from the line of Abhishek Poddar from HDFC Mutual Fund.
Sir, could you give some understanding regarding the order inflows that you're expecting this year, what could be the quantum of order inflows? And also if you could highlight which are the key programs that you're looking at?
Order inflow this quarter, we are expecting around INR 330 crores. The Q3 and Q4 put together, we should be in a position to back INR 550 crores. So overall, as I mentioned, whatever the guidance was given in the beginning of year, INR 1,000-plus crores we've been in a position to comfortably achieve that target. And as far as the major programs, I think I have already mentioned a few programs that I have given like the current quarter, the orders which are -- for which we have already closed the negotiations only will be able to mention that. One is the defense satellite subsystem contract. And the other one is a few airborne radars of DRDO and also the subsystems for drone-based radar from DRDO and EW subsystems for DR-118 program of BEL. And there are a few EW programs for which BEL has received orders, and we are expecting subsystem orders like [Indiscernible]. These are all orders which we are expecting from BEL.Yes. These are all likely to receive in next few months. Apart from that, we do have a few more contracts, which I don't want to disclose at the moment. But we are very comfortable as we have a clear visibility to book 1,000 plus orders in this financial year.
Understood, sir. And Arudhra is not part of the list that you have given?
Arudhra is also there. Sorry, I forgot that. Arudhra is there in this. Actually it is there in Q3, we have taken that.
Understood. Because Arudhra in the presentation, you have given INR 400 crore opportunity. So that is the similar number.
It's INR 300 crores plus, and we will expect some stay also, the states have to finalize. So minimum INR 300 crores plus we are expecting from Arudhra.
And sir, what will be the export mix in the order expectation now? And how would the revenue from exports shape up in the next 2 years? Would it be like 35%, 40% as you have done in the past? Or should we think it will be 19% or lower in the future?
See, exports for the current year, that is '23, '24, on the INR 900-plus crore top line, we are expecting around INR 300 crores of exports. Going forward, '24, '25 the exports should be at a much lower level. But again, as Mr. M.V. Reddy said sometime back, our exports again has 2 elements. One is what we actually export outside India. The other one is what we deliver to export-oriented units within India, which carries fairly good margin. In fact, the margins -- gross margins were about 15% to 18%. So that business will be higher in the next year exports, whatever we are projecting. Therefore, that export mix may not be a bad thing from the next year onwards.
Okay. So there will be a defocus from the direct outside India exports for next year?
Yes.
[Operator Instructions] The next question is from the line of Karthi with Suyash Advisors.
Just wanted to understand the delivery status of the SDR orders from the joint venture, and any pipeline orders there?
Come again?
The SDI orders, sir, Software-Defined Radio orders?
Yes. Software-Defined Radio, we have orders for the air force version, but is under execution. I think we'll be in a position to complete that. And if you're asking for the made to army that, as I said, we are ready for the trials, should be scheduled in sometime in October, November.
No, I was -- you were mentioning that you will be shipping it out in the first quarter or second quarter. So I was just wondering whether those -- the pending orders have been delivered or not?
Yes. I think I got your question. We mentioned to you last time, there was some export license issue is not resolved. We are expecting that the resolution to happen by the end of this month. The products are ready. The moment the clearance comes in, the shipment will happen. And the joint venture company is expected to close to about INR 200 crores for the year. Assuming that no, this export license issue is going to be resolved.
[Operator Instructions] The next question is from the line of Santanu Chatterjee from Mount Intra Finance Private Limited.
My question is on your order book position, sir. On the stand-alone and consolidated unaudited financial result, you have shown that on a group basis, we have already booked INR 342.85 crore order. I suppose that joint venture order that we have procured during the quarter, that is INR 150.44 crore, is that included in this?
Yes. In the consolidated, it has been included. It has got an order from HAL, Hindustan Aeronautics Limited for supply of [Indiscernible] so that was included in the consolidated order book.
Okay, sir. And if that's so, then on a group basis, we have got order book of INR 1,942 crores, sir. And under joint venture, we have got order book of INR 422 crore. Then if we deduct that this joint venture order from this INR 1,942 crore, we are getting more or less INR 1,520 crore order book. But in our presentation, you have sound INR 1,580 crore order book. So why this mismatch, INR 60 crores mismatch?
Yes, we should be able to give the clarification for you. Any next question is there? We'll get back the clarification to you. You want to have a reconciliation between the consolidated and stand-alone?
Yes.
Yes, we'll give you that.
[Operator Instructions] The next question is from the line of Ketan Gandhi from Gandhi Securities and Investments Private Limited.
Yes, sir. Recently, [ Meteor ] has delivered to [ RF seeker ]. What is the size for the seeker? I believe we are the supplier.
Your voice is not clear. Can you just repeat your question?
Yes. Meteor has recently supplied seeker, and I believe we are the sub system provider for RF Seeker. So what is the opportunity size here? And when serial production will start for this?
Production may start soon, like in a year time frame. So this subsystem what we have supplied has already been qualified. And with that subsystem, we are being tested. So production, we are expecting a good number of orders for this. I think we should start in a year time frame.
Any ballpark figure, sir, what is the total opportunity size in the next 5 years?
Next 5 years, I think the subsystem what we have developed, I think probably we should be in a position to get INR 120 crores to INR 150 crores.
Okay. And sir, as far as the presentation, we have a vision target of INR 10,000 crores turnover in the next 5 years. So if I just average it out, so it comes to around INR 2,000 crores run rate per year. So when can we see INR 2,000 crores run rate from each year?
In fact, we are expecting FY '26 onwards, I thin there should be, we are planning around INR 300 crores. And FY '28, we should have been positioned to touch somewhere around INR 2,500 crores, INR 2,800 crores. This is what we have planned.
So we are geared up in all infra and manpower and everything?
Yes, actually we are geared up with infrastructure, and we have initiated the development of major systems. We are also participating in many tenders actively in domestic as well as in the international market. So towards that, we are traveling.
Ketan, if I may add, as we have discussed earlier also, the company will move into a different orbit in our opinion, in FY '26. And we are working backwards as we speak to get to reorganize the company from the -- to cater to this new orbit where we would be operating. So our resources are human resources. And we are actually very actively working on ensuring that the org structure is optimum for the enhanced level of activities.
Yes. That's very helpful. And I have one last question. There was some newspaper article that China is not supplying gallium to the world. And we do a lot of work of gallium arsenide and gallium nitride. Are we -- I mean, do we find any issues acquiring gallium, or is it just hullabulla from China?
Atim, will you answer that?
I don't believe we are impacted in our -- we don't buy gallium as such. Where we are using gallium, I don't think we are --
I'll answer the question. See, actually, what we are using the foundry is basically from Taiwan. And we also have a plan B, in that we have recently qualified for all our designs for years in France and also a few designs. Now we are making it qualified from U.S. also in the near future. So in case if China invades Taiwan, also we had a backup plan for all our designs. That's the one. And alternatively, GAETEC, which is a DRDO foundry, they have also upgraded their both GaAs and GaN services also will be operational. So we started loading designs in the GAETEC foundry also, so that we can even think of getting in the indigenous wafers. So these are all our plans. So we will have a really short term, some issues, but otherwise we have a plan for a long term to see that our chips will not get affected even in case if Taiwan is not cooperating with India.
[Operator Instructions] The next question is from the line of Abhijit Mitra from Aionios Alpha Investment Management.
Most of my questions have been answered. Just to understand, in your press release, you have highlighted around INR 60 crores worth of service orders. So if you can just give some more color on what's the nature of these orders? And yes, I mean, some more light on them would be very helpful.
Yes. The service orders mostly pertains to our weather-related business. We have installation commissioning and AMC contracts, which are deferred in nature to the extent of about 5 years. So in the overall order book, we have indicated what is the services order element, whose execution is going to spread over a period of time compared to the normal orders.
These orders you have not included in that INR 191 crores, so you have included?
No, it is there. It is a part of that. In the overall order book also, it is part of that. Since we are giving you a time line of about 24 months to 30 months for completion of orders in hand, the service orders, which are different from the 24 to 30-month period, it is from separately.
Got it. And in the presentation, the breakup of order that has been booked in the quarter that you have shown, where is the service order residing? Is it residing under defense?
Probably in this quarter, I think we have not received any service orders.
Thank you. I now hand the conference over to Mr. S.G. Reddy, Managing Director, for closing comments. Over to you, sir.
Thank you, gentlemen, for your presence and interactions. We look forward to talk to you again at the end of Q2. Thank you very much.
Thank you.
Thank you. On behalf of Astra Microwave Products Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.