Apollo Micro Systems Q1 FY25 Earnings Release (Aug 09, 2024) PDF

Date: 09th August, 2024 BSE Limited National Stock Exchange of India Limited Listing Dept./ Dept. of Corporate Listing Department Services Phiroze Jeejeebhoy Towers Exchange Plaza, Plot no. C...

Date: 09th August, 2024 BSE Limited National Stock Exchange of India Limited Listing Dept./ Dept. of Corporate Listing Department Services Phiroze Jeejeebhoy Towers Exchange Plaza, Plot no. C/I, G Block Dalal Street Bandra –Kurla Complex, Mumbai – 400001 Bandra (East) Mumbai – 400051 Scrip Code / ID: 540879/ APOLLO Scrip Code: APOLLO Scrip Code: 540879 Symbol: APOLLO ISIN: INE713T01028 Sub: Investor Presentation for the Quarter ended 30th June, 2024 Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are herewith enclosing a copy of investor presentation for the quarter ended 30th June, 2024. The copy of the disclosure is available on the website of the Company i.e. https://apollo-micro.com/ This is for your information and records. Thanking You Yours Faithfully FOR APOLLO MICRO SYSTEMS LIMITED Digitally signed RUKHYA by RUKHYA PARVEEN PARVEEN Date: 2024.08.09 22:45:23 +05'30' RUKHYA PARVEEN COMPANY SECRETARY & COMPLIANCE OFFICER EARNINGS RELEASE Q1 FY25 August 09, 2024 Strengthening Defence Systems For A Self Reliant India… About us: ❑ Apollo Micro Systems Limited (“AMS” or “The Company”) was established in 1985 and has emerged as one of India’s leading electronic, electro-mechanical, engineering designs, manufacturing, and supplies company. ❑ AMS specializes in the design, development, and sale of high-performance solutions that are critical for missions and time-sensitive operations. ❑ Company’s products are used across multiple industries including Aerospace Systems, Ground Defence, Space, Avionics Systems, Homeland Security, and Transportation. ❑ AMS’s manufacturing facility is located in Hyderabad and has a built-up area of 55,000 sq.ft. with a team of 300+ employees, including 150+ employees in R&D. Our Key Differentiator: ❑ Over 39 years of experience in the Design, Development and Assembly of Custom-Built Electronics and Electro-mechanical solutions. ❑ AMS provides a gamut of products and services which includes designing, electronic manufacturing services, PCB fabrication, embedded software design and development, circuit board assembly, hardware design services, concept-to-product development, host interface development, and custom-built electronic systems. ❑ Company’s manufacturing plant boasts a full-fledged ESS testing facility, and the inspection is in line with DGQA standards. ❑ ISO, CEMILAC certified and DRDO approved partner with key roles in multiple ongoing defence programmes. ❑ AMS actively invests an average of 7-8% of the revenue in R&D for developing and testing critical components under DRDO programmes. Some of the key strategic projects are mentioned below: 1. Universal Homming System for Light & Heavy Weight Torpedoes 2. Landing Gear Actuators for Avionic Platforms 3. Digital RF Seeker Signal Processor 4. Integrated Guidance Kit for Various Platforms 5. Under Water Mines ❑ Company’s clientele consists of prominent government institutions such as the DRDO, Indian Army, Indian Navy, DPSU’s, as well as private players like Adani, L&T and many more. Our Capabilities Avionic Systems On-board & ground support equipment for avionics Aerospace Systems On-board electronic weapon systems & ground support equipment for missile systems Naval Systems Product On-board weapon electronics Based & ground support equipment Solutions for torpedoes, decoys- jammers, submarines & ships Satellite Space Systems Payload checkout systems & earth station acquisition systems for space applications Homeland Security Integrated surveillance systems, perimeter security systems, anti drones, drones, ads-b-systems Service Based Solutions 1 6 3 4 5 Embedded Electronic software 2 IT & design manufacturing serviceds Software development services Weapon & Hardware & sustenance platform designing Electronic & integration Mechanical CAD A Showcase of Our Cutting-Edge Products A Showcase of Our Cutting-Edge Products Sectors we work in Consolidated Key Financial Metrics: Revenue from Operations 1,600.00 1,354.37 1,400.00 1,200.00 1,000.00 912.02 800.00 576.91 600.00 400.00 200.00 - Q1 FY24 Q4 FY24 Q1 FY25 EBITDA & EBITDA Margin 350.00 24.53% 25.00% 300.00 24.00% 250.00 23.00% 200.00 22.09% 21.22% 22.00% 150.00 21.00% 100.00 50.00 20.00% 127.42 287.43 223.71 - 19.00% Q1 FY24 Q4 FY24 Q1 FY25 EBITDA EBITDA Margin (%) PAT & PAT Margin 140.00 12.00% 120.00 9.55% 10.00% 9.24% 100.00 8.00% 80.00 6.00% 60.00 2.87% 4.00% 40.00 20.00 2.00% 129.31 84.29 16.54 - 0.00% Q1 FY24 Q4 FY24 Q1 FY25 PAT PAT Margin % Consolidated Financial Summary: Income Statement: Particulars (Rs. Mn) Q1 FY25 Q1 FY24 YoY% Q4 FY24 Revenue from Operations 912.02 576.91 58.09% 1,354.37 Other Income 5.83 2.23 8.61 Total Revenue 917.85 579.13 1,362.98 Total Expenses excluding Depreciation, 688.31 449.49 1,066.95 Amortization & Finance Cost EBITDA* 223.71 127.42 75.57% 287.43 EBITDA Margin (%) 24.53% 22.09% 21.22% Depreciation & Amortization 76.04 75.25 82.98 Finance Cost 34.53 26.09 31.40 PBT & Exceptional Items 118.97 28.31 181.65 Exceptional Items - - - PBT 118.97 28.31 181.65 Tax 34.68 11.77 52.34 PAT 84.29 16.54 409.71% 129.31 PAT Margin % 9.24% 2.87% 9.55% Diluted EPS 0.29 0.06 0.48 *EBITDA is calculated excluding Other Income Management Commentary: “We are excited to share the remarkable progress Apollo Micro Systems Limited (AMS) has achieved in the first quarter of FY25. This period has been characterized by significant advancements and notable successes across various dimensions of our operations. Our unwavering dedication to innovation, operational excellence, and sustainable growth continues to drive our performance and shape our future. For Q1 FY25, AMS achieved a revenue of Rs. 912.02 Mn, an increase from Rs. 576.91 Mn in Q1 FY24, primarily driven by robust order execution. Our EBITDA rose to Rs. 223.71 Mn in Q1 FY25, up from Rs. 127.42 Mn in Q1 FY24, marking a growth of 75.57% due to the increased scale of operations. Profit after tax (PAT) for Q1 FY25 was Rs. 84.29 Mn, compared to Rs. 16.54 Mn in Q1 FY24, with PAT margins at 9.24% in Q1 FY25, up from 2.87% in Q1 FY24. These financial achievements underscore our commitment to operational excellence and sustainable growth, positioning AMS for continued success in the future. AMS's order book for Q1 FY25 reflects a strong and growing pipeline of projects, underscoring our market leadership and customer trust. The order book has expanded significantly, driven by high demand across various sectors. The diversity and quality of these orders ensure a stable revenue stream and enhanced profitability. This robust order book positions AMS to capitalize on emerging opportunities and maintain our growth momentum. We are proud to announce that Apollo Micro Systems Limited has been shortlisted and awarded a prestigious Make II project by the Indian Army. This significant project involves the procurement of a Vehicle Mounted Counter Swarm Drone System (VMCSDS) (Version I) under the Make II category of DAP-2020. It is an honor for us to embark on our first Make II project, a testament to our capabilities and innovation. The systems developed from this project are 'state of the art' and highly futuristic, reflecting our commitment to advancing technology and supporting national defense. Importantly, as a Make II project, there will be no cost obligation involved, ensuring efficient and effective execution. This achievement marks a major milestone for Apollo Micro Systems, reinforcing our position as a leader in cutting-edge defense solutions. At AMS, we are continually investing in our capabilities and are developing two state of the art modern manufacturing units cumulatively admeasuring ~ 400,000 sqft. The development is progressing well on time and will contribute significantly in expanding our scale of operations in near future. The Government has set an ambitious goal to export over Rs 50,000 crore worth of defense equipment by the fiscal year 2028-2029. In the 2023-24 financial year, the value of defense production surged to Rs 1,26,887 crore, marking a significant 16.8 percent increase compared to the previous year. This substantial growth underscores the momentum in the defense sector and reflects the government's commitment to enhancing India’s position as a global leader in defense manufacturing. To support this vision, the government is dedicated to fostering a more favorable environment for the defense industry, implementing policies and initiatives aimed at strengthening India's capabilities and competitiveness on the global stage. Through these efforts, India is poised to become a key player in the international defense market, contributing to both national security and economic growth. Looking ahead, we are confident about the future growth prospects for Apollo Micro Systems Limited. The strong demand for electronic solutions in the defense sector, combined with our highly specialized technology solutions positions us well for capitalizing on opportunities in the space. We remain committed to exploring new avenues for innovation, forging strategic partnerships, and striving for operational efficiency in our operations. We would like to extend our gratitude to our employees, customers, and shareholders for their unwavering support. Apollo Microsystems Limited remains committed to creating value, and we look forward to a successful future together” Disclaimer: Certain statements in this document may be forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Apollo Micro Systems Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward- looking statements to reflect subsequent events or circumstance Contact Details: Krunal Shah/Naman Maheshwari Apollo Micro Systems ltd Captive IR Strategic Advisors Pvt. Ltd. Contact: +914027167000 - 99 Contact: +919372467194 Email: [email protected] Email: [email protected]/[email protected]