Apollo Micro Systems Oct-24

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Questions and Answers

What date was the investor presentation for the quarter and half year ended 30th September 2024 released?

  • 25th October, 2023
  • 25th October, 2024 (correct)
  • 30th September, 2024
  • 25th October, 2022

Which regulation stipulates the disclosure requirements referenced in the letter?

  • SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (correct)
  • SEBI (Disclosure and Investor Protection) Regulations, 2000
  • SEBI (Market Manipulation Regulations) 2019
  • SEBI (Corporate Governance Requirements) Regulations, 2018

What type of products does Apollo Micro Systems Limited primarily specialize in?

  • Pharmaceutical supplies
  • High-performance solutions for defense and space (correct)
  • Food processing equipment
  • Consumer electronics and gadgets

When was Apollo Micro Systems Limited established?

<p>1985 (A)</p> Signup and view all the answers

What is the full form of COTS as mentioned in the letter?

<p>Commercial Off-the-Shelf (A)</p> Signup and view all the answers

What percentage of revenue does AMS typically invest in R&D?

<p>7%-8% (C)</p> Signup and view all the answers

Where is AMS's manufacturing facility located?

<p>Hyderabad (B)</p> Signup and view all the answers

How many employees does AMS have in its R&D team?

<p>150+ (A)</p> Signup and view all the answers

What is the total built-up area of AMS's manufacturing facility?

<p>55,000 Sq.ft (A)</p> Signup and view all the answers

Which type of programs does AMS collaborate with Bharat Electronics Limited?

<p>Both collaborative R&amp;D Design and Production Service Provider (B)</p> Signup and view all the answers

What type of systems are included in the Ground Defence Systems category?

<p>Various ground-based weapons (B)</p> Signup and view all the answers

Which of the following sectors does the company cater to?

<p>Telecom (B)</p> Signup and view all the answers

What is a key differentiator mentioned in the content?

<p>Four decades of expertise (B)</p> Signup and view all the answers

Which facility has the largest area among the upcoming manufacturing capabilities?

<p>Facility in Hardware Park-II, Hyderabad (C)</p> Signup and view all the answers

What services are NOT listed as part of Service Based Solutions?

<p>Automobile Engineering Services (A)</p> Signup and view all the answers

Which systems are included in the Aerospace Systems category?

<p>Electronic weapon systems (C)</p> Signup and view all the answers

Which of the following is a component of the Homeland Security services?

<p>Integrated surveillance systems (C)</p> Signup and view all the answers

What type of electronics does the company specialize in designing and assembling?

<p>Custom-built electronics and electro-mechanical solutions (A)</p> Signup and view all the answers

Which of the following is true about the testing facility at the manufacturing plant?

<p>It complies with DGQA standards (D)</p> Signup and view all the answers

Which type of system is NOT mentioned as part of Electronic Manufacturing Services?

<p>IT infrastructure setup (A)</p> Signup and view all the answers

What was the revenue growth percentage in Q2 FY25 compared to Q2 FY24?

<p>84.38% (B)</p> Signup and view all the answers

Which of the following technologies is NOT listed as acquired to enhance defense capabilities?

<p>Advanced Cyber Surveillance System (C)</p> Signup and view all the answers

What was the amount of fresh orders secured in the second quarter?

<p>₹ 1,309.60 Mn (C)</p> Signup and view all the answers

What was the increase in PAT for Q2 FY25 compared to Q2 FY24 in terms of amount?

<p>₹ 92.41 Mn (D)</p> Signup and view all the answers

What was the EBITDA amount in H1 FY25?

<p>₹ 552.66 Mn (C)</p> Signup and view all the answers

At what price were the Convertible Equity Warrants issued during the EGM?

<p>₹ 108.15 (C)</p> Signup and view all the answers

What was the margin percentage increase in PAT from H1 FY24 to H1 FY25?

<p>3.92% (B)</p> Signup and view all the answers

Which of the following statements accurately describes the company's position in the defense sector by the end of Q2 FY25?

<p>There is a robust order book reinforcing the company's position. (B)</p> Signup and view all the answers

What was the total amount of Non-Current Assets in September 2024?

<p>2,279.30 (A)</p> Signup and view all the answers

Which category showed the highest value in Total Assets as of March 2024?

<p>Current Assets (D)</p> Signup and view all the answers

What was the Cashflow from Financing Activities in H1FY25?

<p>317.45 (A)</p> Signup and view all the answers

As of March 2024, what was the total amount for Shareholders Fund?

<p>5,192.19 (C)</p> Signup and view all the answers

How much did Borrowings increase from March 2024 to September 2024?

<p>155.08 (D)</p> Signup and view all the answers

What was the Net Change in Cash and Cash Equivalents for H1FY24?

<p>5.50 (B)</p> Signup and view all the answers

Which of the following items is classified under Current Liabilities?

<p>Lease Liabilities (C)</p> Signup and view all the answers

What was the reported value for Total Equity and Liabilities in September 2024?

<p>10,572.70 (A)</p> Signup and view all the answers

Which item recorded the largest increase in value from March 2024 to September 2024?

<p>Reserves and Surplus (B)</p> Signup and view all the answers

Which of these organizations was part of the Transfer of Technology agreements?

<p>DRDO (C)</p> Signup and view all the answers

What was the EBITDA Margin in Q2FY25?

<p>9.24% (A)</p> Signup and view all the answers

Which quarter had the highest PAT reported?

<p>Q2FY25 (C)</p> Signup and view all the answers

What is the Debt/Equity ratio at H1FY25?

<p>0.36 (C)</p> Signup and view all the answers

What was the PAT Margin in Q1FY25?

<p>22.00% (B)</p> Signup and view all the answers

Which FY reported a ROCE of 14.98%?

<p>FY24 (C)</p> Signup and view all the answers

What was the total Revenue from Operations in Q1FY25?

<p>912.02 (D)</p> Signup and view all the answers

Which quarter saw a decrease in PAT compared to the previous quarter?

<p>Q1FY25 (B)</p> Signup and view all the answers

Which quarter had the lowest EBITDA reported?

<p>Q2FY25 (B)</p> Signup and view all the answers

Which was the highest reported ROE percentage?

<p>9.00% (C)</p> Signup and view all the answers

What was the EBITDA reported in Q2FY25?

<p>350 (C)</p> Signup and view all the answers

In which quarter did the PAT Margin rise to 25.00%?

<p>Q1FY25 (B)</p> Signup and view all the answers

Which figure represents the PAT for Q2FY25?

<p>186.13 (A)</p> Signup and view all the answers

Flashcards

Investor Presentation

A document outlining financial performance for a specific period, often delivered to investors.

Scrip Code

A publicly traded company's unique identifier on the stock exchange, used for trading purposes.

Symbol

An abbreviation used to represent the company's stock on the stock exchange.

Apollo Micro Systems

A company that specializes in providing high-performance solutions, often used for mission-critical operations.

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COTS (Commercial Off-the-Shelf)

Commercial off-the-shelf solutions customized for specific needs, often used in defense and space applications.

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Key Financial Metrics

A measure of a company's financial health, including its revenue, expenses, and profits.

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Backward Integration

A process where a company takes control of specific parts of its supply chain to improve efficiency and reduce dependence on external suppliers.

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DRDO Approved Partner

A certification from the Defence Research and Development Organisation (DRDO), demonstrating compliance with Indian defense standards.

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Collaborative R&D Design and Production Service Provider

A company that provides both design and manufacturing services for complex products, especially in the defense sector.

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Perimeter Security Systems

A system that combines various technologies to monitor and protect a perimeter, such as a border or military base.

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Battlefield Management

A system that manages battlefield operations, enabling communication, surveillance, and coordination of ground assets.

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Avionics

Electronic devices and systems that are designed for use in aircraft.

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Missile systems

Electronic equipment that supports the launch, operation, and maintenance of missiles.

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Naval Systems

Electronic systems that are designed for use in underwater applications.

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Satellite Space Systems

Electronic systems that are designed for space applications, such as satellites and space stations.

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Homeland Security Systems

Electronic systems that are designed for homeland security, such as surveillance and perimeter security.

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Ground Defence Systems

Electronic systems that are designed for ground warfare, such as battlefield management and secure communication.

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ADS-B Systems

A system that uses radar to detect and track aircraft.

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Electronic Manufacturing Services

Electronics manufacturing services that specialize in producing high-quality, custom-built electronic products.

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Revenue from Operations

The total amount of money a company earns from its primary business activities during a specific period.

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PAT (Profit After Tax)

The profit earned by a company after all expenses, including taxes, are deducted from its revenue.

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PAT Margin

PAT as a percentage of Revenue from Operations, indicating the company's profitability.

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EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

The earnings before interest, taxes, depreciation, and amortization are deducted.

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EBITDA Margin

EBITDA as a percentage of Revenue from Operations, indicating the company's operational efficiency.

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ROE (Return on Equity)

A company's return on equity, calculated as net income divided by shareholder's equity, showing how much profit is generated for every rupee invested by shareholders.

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ROCE (Return on Capital Employed)

A company's return on capital employed, calculated as net income divided by total capital employed, showing how much profit is earned for every rupee invested.

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Debt/Equity Ratio

The ratio of a company's total debt to its shareholder equity, indicating the company's financial leverage.

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Advanced Technologies

This encompasses a wide range of advanced technologies designed to enhance our defense capabilities. Examples include advanced components like the Unified Interface Computer, Rotary Electro Mechanical Actuator, and Guidance and Navigation Kit, as well as key systems like the UAV-Launched Precision Missiles.

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Warheads

This is a crucial component for the UAV-Launched Precision Guided Missile V2 (ULPGM-V2). It adds the destructive power to the sophisticated guidance system.

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Weaponization of Hand Held Thermal Imager with Laser Range Finder (WHHTI)

This refers to incorporating a thermal imager with a laser range finder into a weapon system. This provides advanced target identification and precision distance measurement.

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Revenue

This refers to the total revenue generated by a company during a specific period. It's a key indicator of a company's financial performance.

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EBITDA

This is a key financial metric representing a company's profitability. It measures earnings before interest, tax, depreciation, and amortization.

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Outstanding Shares

This refers to the total number of shares a company issues to investors. It represents the overall ownership structure of the company.

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Convertible Equity Warrants

These are financial instruments that give the holder the right to buy shares at a predetermined price at a future date. They offer the potential for upside gains if the stock price rises.

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Net Worth or Equity

The value of a company's assets, which are things owned by the company, such as buildings, equipment, and inventory, minus its liabilities, which are obligations the company owes to others, such as loans and payable bills.

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Total Liabilities

Represents the total amount of money a company owes to its creditors. These are debts and obligations that need to be repaid.

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Total Assets

The total value of everything a company owns, including its assets like buildings, equipment, and cash. It represents the company's resources.

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Cash Flow Statement

A list of all the cash inflows and outflows that a company has experienced during a specific period. It shows how the company’s cash position changed.

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Cashflow from Operations

Cash inflow generated by the normal day-to-day operations of the company, such as sales revenue and payments from customers.

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Cashflow from Investing

Cash inflow or outflow acquired from buying or selling long-term assets, like property, plants, or equipment.

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Cashflow from Financing

Cash inflow or outflow resulting from activities related to financing the company, like taking out loans, issuing bonds, or paying back debt.

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Cash and Cash Equivalents

The money that a company has on hand, in the form of cash or readily convertible assets like short-term investments.

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Lease

A legal agreement that grants a company the right to use an asset like machinery or software for a specific period, usually in exchange for regular payments.

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Profitability

A company's ability to generate enough money to cover its ongoing expenses and create a profit.

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Liquidity

A company's ability to meet its short-term financial obligations, like paying salaries and suppliers on time.

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Asset Turnover

Measures how efficiently a company is using its assets to generate revenue.

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Goodwill

Long-term assets that were acquired by the company through an acquisition, merger, or other business combination.

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Study Notes

Company Information

  • Company name: Apollo Micro Systems Limited
  • Established: 1985
  • Type of business: Leading electronic, electro-mechanical, engineering designs, manufacturing, supplying company in India
  • Specializes in: High-performance solutions critical for mission and time-sensitive operations
  • Capabilities: Custom-built COTS (Commercial Off-the-Shelf) solutions tailored to defense and space customers
  • Products: Avionic systems, Aerospace systems, Naval systems, Satellite space systems, Homeland security, Ground defense systems
  • Clients: Indian Army, DRDO, BHEL, HAL, TATA, Bharat Forge, Kalyani, ISRO, and more
  • Manufacturing capabilities: 55,000 Sq.ft Facility in IDA Mallapur, Hyderabad Unit-I; 40,000 Sq.ft Facility in Adibatla, Hyderabad Unit-II; 3,50,000 Sq.ft Facility in Hardware Park-II, Hyderabad Unit-III

Financial Highlights (Q2 and H1 FY25)

  • Revenue growth: 84.38% in Q2 FY25, reaching ₹1,607.07 Mn compared to ₹871.63 Mn in Q2 FY24
  • EBITDA growth: 77.73% in Q2 FY25, reaching ₹328.95 Mn compared to ₹186.16 Mn
  • PAT growth: 194.19% in H1 FY25, reaching ₹241.59 Mn compared to ₹82.12 Mn in H1 FY24
  • Half-year (H1 FY25) revenue: ₹2,519.09 Mn
  • Half-year (H1 FY25) EBITDA: ₹552.66 Mn
  • Half-year (H1 FY25) PAT margin: 9.59%
  • Manufacturing facility built up area: 55,000 Sq.ft in Hyderabad
  • Order book: Strong and reflects significant demand

Technology and Partnerships

  • Secured significant Transfer of Technology (ToT) agreements with various DRDO labs (e.g., Research Centre Imarat, Terminal Ballistic Research Laboratory, and Instrument Research and Development Establishment) for advanced defense technologies.
  • Technologies include Unified Interface Computer, Rotary Electro Mechanical Actuator, Guidance and Navigation Kit, Payload Electronics, SAM Systems, and others.

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