Overview:
Astra is engaged in design, development, manufacture and supply of high
value added RF and microwave super components, sub-systems and systems finding for
Defense, Space, Telecom, Meteorology and Civil communication applications.
A. Financial Analysis:
The financial statements have been prepared in accordance with the
guideline as laid out in the Companies Act, 2013 and Indian Accounting Standard-(Ind-AS)
in India. The management of Astra accepts responsibility for the integrity and objectivity
of these financial statements. The financial statements reflect in a true and fair manner,
the form and substance of transactions and reasonably present the company?s state of
affairs and profits for the year.
a) Operational Performance and Outlook for the future:
This has been a milestone year for us as we have successfully completed
our QIP and registered our best financial performance across all metrices. We closed the
year with a top line of Rs. 807 Cr and EBITDA of 18.5%. Our order book position is also
very healthy at Rs. 1,544 Cr. We are also very happy at the note of confidence expressed
in our abilities by the leading institutional investors in India and outside-in our
capabilities and growth prospects.
Overall there are various tailwinds in the defence space for players
like us. Globally, the countries are increasing their military budgets. Our government
which spends roughly 3% of GDP on defence every year is highly focused on increasing
self-reliance. This mission is driven by an increase in the R&D spends by DRDO and by
encouraging private sector to invest in developing on NCNC model. With our longstanding
relationships with our customers and several years of experience in high tech-oriented
products, Astra stands to benefit immensely from this boost.
With a strong order book and inflow, for FY24 we maintain our top line
target of Rs. 900 to 950 crores and the bottom line at PBT level of about 140 to 150
crores. We have improved our profitability compared to the last financial year, mainly due
to the change in sales mix. We will further improve our profitability and efficiency as we
utilize our QIP proceeds. Funds raised through the QIP to the tune of Rs. 225 cr will give
a strong boost to our future growth by investing in newer technologies and develop newer
products. Company has identified about 10 projects/products which are part of government
negative list to invest proactively and expect to come-out successfully in the next 3 to 4
years. This proactive investment should present a gamut of opportunities and help the
Company to sustain and improve its top and bottom line in the long run. The Company is
also in discussions with start-ups and small size companies with unique expertise to
jointly development newer products with joint ownership and sharing of profits. The idea
is to have larger pool of products to target wider market space within Defence and
Aerospace.
At this point in time we also wish to focus on creating multiple
solutions, Astra branded solutions around our core competencies in RF and microwave
domains. We want to transition from merely supplying radar subsystems and systems to
possibly supplying complete solutions, which will encompass radars, subsystems and
components as their core and around which solutions will be built, leveraging our
extensive R&D capabilities as well as in-house expertise supplemented by externally
sourced capabilities through collaborations. An exercise is on within the company to
identify strategic growth areas with large total addressable markets where we can identify
specific market opportunities and issues where specific solutions can be offered.
Work has commented on this and this transition from almost exclusively
-- being a tender-based business to on-demand ready solutions company comes at a very
opportune time where we have the required skill set and the technology within the company
to achieve higher margins and an extended product range, which will give a further
significant boost to our top line. We expect to start seeing results from these
initiatives over the next couple of years and expect that our solutions will become a
significant contributor to our overall revenues over a period of time.
We further intend to undertake a few initiatives to link Astra with
various research-based institutions of higher learning and harness resources and the
technology being developed there for our solutions besides extending this collaborative
framework to other defense companies and early stage companies.
Major product deliveries made during the year are:
o LRUs supplied to 3D-CAR and Ashlesha Radars
o Developed & supplied Radar & EW Systems Test & Evaluation
Facility (50 MHz - 40 GHz) to DLRL to carry out T&E of EW systems in Radiation mode.
o Supplied TR Modules & Control Units for LRDE?s Long Range
Radar (LRR)
o Developed & supplied a Land-based 7.3m Ground Telemetry Station
which is designed to acquire and track airborne targets using five different carriers
simultaneously
o Proto Development & Production of Digital Transmit Receive Units
(DTRUs) and Digital Receive Units (DRUs) for Digital Active Phased Array (DAPA) Technology
Demonstrator Project
o Shakti Project Submodules
o Nayan Project Submodules
o Developed Active Array Antenna Unit (AAAU) For Uttam AESA Radar for
LCA Mk1A fighter aircraft.
o Delivered S-Band FHDR and X-Band FHDR which are CW Radars deployed in
close proximity of gun/
launcher at Firing Test Range(s) and operated from blockhouse to
measure muzzle velocity and range of the projectile after exit from the muzzle.
Business Highlights:
o Exclusive MoU signed with Eldis for all civil Airport Surveillance
Radars opportunities in India
o Developed Counter-Drone Radar based on DRDO Technology. This can be
integrated with any Jammer
& RF Sensor to form a complete Counter Drone System.
o Have bid for Netra Space Debris Radar for ISTRAC along with our
partner who is a global Radar OEM. This Radar can detect space debris as small as 10 cm at
2000 km range.
o Signed MoU with Sisir Radar for jointly build SAR payload for defence
application
o We are one of the ToT partner of DRDO for Low-level Transportable
Radar (LLTR) for which limited tender is expected in near future.
Major projects due for delivery during the year 2023-24:
o 6 Mtrs S-Band AAAU for strategic Naval application of DRDO
o Space Group CTRiM, XTRiM & X-TRIB, Anvesha Project
o Nayan Project Sub Modules
o Pulsed Phased Array Tracking Radar (PPTR).
o Shakti Project Submodules
o 16 Elements AATRU for ASPJ Pod (LCA Mk1A)
o C- Band Doppler Weather Radar For IMD
o Ku-Band AESA Seeker Head for future version of Astra missiles.
o X-Band AESA Seeker Head for Naval missiles
o Compact Telemetry System (CTS).
o X-Band Doppler Weather Radar.
b) Order Book:
The company has been able to create a solid diversified order book on
the back of our deep domain expertise. With our proven track record, we are well placed to
capture a bigger pie of Indian defence sector market which is growing at a fast pace on
the back of various government initiatives like IDDM, MAKE-II. We see opportunities coming
in from various programs planned by Government through Defense Research labs (DRDO) and
from the Make-II opportunities from Ministry of Defence (MoD). Many of these are,
especially in radar and electronic warfare systems where we have proven expertise. We
believe going forward, our revenue mix will increase in the domestic area as compared to
last three previous years which should give improved bottom line.
Our order book as on 31st March, 2023 stood at Rs. 1,544 crores (as
shown below) which is executable in the next 12 to 30 months? period. Our current
order book is 2 times of our FY23 revenue, which gives considerable visibility for next
few years revenues. During FY23, we have received orders worth Rs. 760 Crores.
| Sector |
Rs. In Lacs |
| Defence/Public Sector Products |
91,403 |
| Space |
21,107 |
| Meteorological & Other Products |
5,534 |
| Exports |
36,355 |
| Total |
1,54,399 |
c) Sales performance:
Sector wise sales are as follows
| Business Sector |
FY 2022-23 |
FY 2021-22 |
|
Rs. Lacs |
% |
Rs. Lacs |
% |
| Defence |
44,933 |
55 |
33,308 |
45 |
| Space |
804 |
1 |
896 |
1 |
| Metrology/Civil Telecom/Others |
2,855 |
4 |
4,585 |
6 |
| Exports (including deemed exports) |
31,923 |
39 |
34,472 |
47 |
| Other Operating Revenue |
212 |
1 |
235 |
1 |
| Total |
80,727 |
100 |
73,496 |
100 |
d) Expansion Plans:
The company will continue to look at organic and in-organic options to
stabilize top line performance as present business is project driven and hence lumpy in
nature.
To augment present operations we have budgeted to spend Capital
Expenditure of about Rs. 45 cr which will be funded through internal accruals and term
loans.
e) Risks & Concerns:
The Company?s main source of revenues lies in Defence market. Most
of these projects are initiated, designed and developed by DRDO labs and driven by Govt.,
policies and priorities. Though technically we can project and complete the product
development on the time lines indicated, conversion of that to a recognizable quantum of
orders lies mainly on the Government decisions. This results in an uneven and skewed
pattern of sales for the Company, which is beyond the control of the Company.
Defence export business is driven by offset provisions of Govt., of
India which is project based and hence generally lumpy in nature and is controlled by
export regulations where time delays could happen in granting necessary permissions. This
export business is also high precision and skilled job involving specialized inputs from
across the globe which has a bearing on timely execution and uniform billing.
B. Financial Condition:
1. Share Capital
At present, the company has only one class of shares-equity shares of
Rs. 2 each, par value. The paid up capital as on 31st March, 2023 is Rs.17.32
cr.
2. Reserves and Surplus
The change in reserves and surplus represents the profits made during
the year after making provisions for taxation.
3. Loan Funds
The company has enhanced its working capital loan during the year by
Rs. 30 Crs. Following are the details of secured loans maintained during the year.
| Particulars |
As of March 31 (Amount Rs.) |
|
|
2023 |
2022 |
| Working capital loans: |
|
|
| Open cash credit including WCDL |
|
|
| Sanctioned amount |
235,00,00,000 |
205,00,00,000 |
| Outstanding amount |
150,52,76,426 |
45,23,94,758 |
| Long Term Loans: |
|
|
| Outstanding at the beginning of the year |
14,60,41,225 |
- |
| Additions during year |
14,97,69,785 |
14,60,41,225 |
| Repaid during the year |
11,25,00,000 |
- |
| Amount outstanding at the end of the year |
18,33,11,010 |
14,60,41,225 |
4. Deferred tax
The deferred tax liability pertains to difference in the depreciation
claimed in the books and tax purposes.
5. Fixed Assets
| Particulars |
As of March 31 (Amount Rs.) |
|
2023 |
2022 |
| Original cost |
|
|
| Land |
23,56,21,666 |
20,51,85,713 |
| Buildings |
79,18,78,295 |
79,10,09,999 |
| Plant & Machinery |
176,21,87,072 |
152,09,85,534 |
| Electrical Installation |
4,87,73,837 |
4,91,48,265 |
| Air Conditioners |
4,93,31,843 |
4,76,68,518 |
| Office Equipment |
3,88,28,248 |
3,79,58,987 |
| Furniture and Fixtures |
5,38,31,742 |
4,89,29,619 |
| Software |
4,97,16,372 |
4,41,85,573 |
| Computers |
12,98,23,832 |
11,52,67,305 |
| Vehicles |
98,28,982 |
88,91,880 |
| Solar Power Generating System |
6,69,18,781 |
6,69,18,781 |
| Wind Electric Generating System |
12,45,47,464 |
12,45,47,464 |
| Capital work-in-progress |
1,98,87,471 |
8,22,839 |
| Less: Accumulated Depreciation |
170,94,30,553 |
148,30,11,588 |
| Net Block |
167,17,45,051 |
157,85,08,889 |
| Net Fixed Assets |
167,17,45,051 |
157,85,08,889 |
| Depreciation as % of total revenue |
2.86 |
2.91 |
| Accumulated depreciation as a % of gross block |
50.55 |
48.44 |
During the year the company added assets (net) worth Rs. 32 crores to
the gross block. Most of the plant and machinery additions pertain to cost of Test
equipment?s. Addition of these equipment and facilities has improved the productivity
of the Company directly and indirectly.
6. Investments
Investments represents amount invested in equity share capital of
wholly owned subsidiary companies and Joint Venture Companies.
| Particulars |
As At |
|
31.03.2023 |
31.03.2022 |
|
Rs. |
Rs. |
| i) Equity instruments of subsidiaries (unquoted): 1.
Bhavyabhanu Electronics Private Limited 49,75,998 (2022: 49,75,998) equity share of INR
10/- each fully paid up |
6,89,87,980 |
6,89,87,980 |
| Deemed investment in Bhavyabhanu Electronics Private Limited
on account of corporate guarantee |
2,63,37,500 |
2,10,70,000 |
| 2. Aelius Semiconductors Pte. Ltd, Singapore 1,11,700 (2022:
1,11,700) equity shares of SGD 10 each fully paid up |
5,52,41,674 |
5,52,41,674 |
| 3. Astra Foundation 9,990 (2022: 9,990) equity shares of INR
10/- each fully paid up |
99,900 |
99,900 |
| ii) Eauitv Instruments of Joint Venture (unquoted): Astra
Rafael Comsys Private Limited 2,00,00,000 (2022: 2,00,00,000) equity shares of INR 10/-
each fully paid up |
20,00,00,000 |
20,00,00,000 |
| Deemed investment in Astra Rafael Comsys Private Limited on
account of corporate guarantee |
14,73,630 |
- |
| Investments carried at FVTPL |
|
|
| i) Equity Instruments of Associate (unquoted): Janyu
Technologies Private Limited 1 (2022:1) equity share of INR 10 each fully paid up |
188 |
188 |
| ii) Preference Shares of Associate (unquoted) Janyu
Technologies Private Limited 1,06,436 (2022: 1,06,436) Series E Compulsorily convertible
preference shares of INR 10 each fully paid up |
2,00,00,000 |
2,00,00,000 |
| iii) Investment in share warrants of Associate (unquoted) 1.
Janyu Technologies Private Limited 30,00,000 (2022: 30,00,000) Investor Series 1 Share
warrants |
|
5,000 |
| 2. Janyu Technologies Private Limited 20,00,000
(2022:20,00,000) Investor Series 2 Share warrants |
- |
5,000 |
| Total |
37,21,40,872 |
36,54,09,742 |
7. Sundry Debtors
Sundry debtors amount to Rs. 282 cr at the end of the year as compared
to Rs. 202 cr for the previous year. They are at 35% of revenue for the year as compared
to 28% for the previous year representing an outstanding of 127 days and 101 days of
revenues for the respective years. However the outstanding days are to be read with skewed
pattern of sales with majority of billing happening in the last quarter.
The company reviews health of receivables on monthly basis and has
policy of writing off debts as bad after the review and recommendation by the management
review committee. Through Estimated Credit loss mechanism the Company is providing
provision for long outstanding dues though such debts may not be categorized as bad.
8. Cash and cash equivalents
The company is operating with multiple banks and the surplus funds if
any are parked with them or with their associates. For meeting certain statutory
requirements the company is maintaining current accounts with couple of other nationalized
banks. The company?s cash and cash equivalents is as follows.
| Particulars |
2023 |
2022 |
| Cash and cash equivalents as a % of total assets |
4.57 |
2.24 |
| Cash and cash equivalents as a % of revenues |
5.93 |
2.92 |
9. Loans and Advances
The advances paid for supplies, services and expenses represent the
amount paid to both domestic and foreign vendors for supply of materials and services. The
advances also include un-availed GST both on capital goods and raw materials.
The amount of income-tax paid represents the advance tax and TDS
deducted less provision for tax.
10. Current liabilities
Sundry creditors for capital works, supplies represents the amount due
at the end of the year for the capital goods and raw material supplied. Sundry creditors
for services and expenses represent the amount due and payable for various expenses
including the accrued salaries and other benefits of the employees.
Advances from customers represent the amount received as per the terms
of purchase orders from the Defence and Space establishments and on export orders.
11. Provisions
Provisions represents provisions made for taxation, gratuity, leave
encashment etc., Taxation provisions are shown net of advance tax for the years for which
the assessments are pending.
The provision for gratuity and leave encashment is provided on the
basis of actuarial valuation at the end of the financial year.
C. Others
Human Resources
We treat human resource as the most valuable asset. Employee
satisfaction is essential to us. We commit to improve the quality of work life and
employee satisfaction, while aligning the individual aspirations with the company
objectives.
Towards creating a vibrant and performance-oriented culture in the
organization, several interventions are initiated. Online HR portal facilities employee
interactions with HR department for all their requirements.
Company has introduced on line leave approvals, annual appraisals,
training programs etc., through the online portal. Overall employee relations are cordial
and productive.
Internal Control Systems & Adequacy
The Company is committed to maintaining an effective system of internal
control. The Company is conducting all its operations on ERP-SAP system. Successful usage
of ERP-SAP system has facilitated management?s objective of establishment of
accurate, reliable and speedy compilation of financial information, safeguarding the
assets and interest of the Company and ensuring compliance with laws and regulations.
The Company functions with well-defined budgets and has an effective
management information system to enable the management to regularly review actual
performance. The Company has also put in place a well-defined organization structure,
clear authority levels and internal guidelines for conduction of business transactions.
M/s. Kirtane & Pandit LLP - Chartered Accountants, conducts
Company?s internal audit program which supplements the Company?s internal
control systems. To achieve full effectiveness, the scope of the internal audit function
has an unrestricted range of coverage of the organisations operations and the internal
auditor was given sufficient authority to access such records, assets and personnel as are
necessary for proper fulfilment of his responsibilities. The Audit committee of the Board
of Directors reviews the Internal Audit Reports at regular intervals and suggests
implementation of best practices based on observations therein.
|
For and on behalf of the Board of Directors |
|
|
S. Gurunatha Reddy |
M.V. Reddy |
|
Managing Director |
Joint Managing Director |
| Place: Hyderabad Date: July 14, 2023 |
DIN:00003828 |
DIN:00421401 |
+91-9892691696
