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Defence company Apollo Micro Systems announced Q4FY24 & FY24 results:
- AMS has showcased a robust financial performance with significant growth, where revenue from operations saw an increase to Rs 3,716.34 million in FY24 from Rs 2,975.26 million in FY23.
- The company's EBITDA and PAT have also indicated healthy growth, with EBITDA reaching Rs 838.66 million and PAT standing at Rs 311.07 million for FY24.
- The company has presented consolidated financial metrics such as EBITDA margin of 22.57% for FY24 and a PAT margin of 8.37%, indicating strong profitability.
- Balance sheet ratios highlight a ROCE of 10.10% and a Debt/Equity ratio of 0.38 for FY24, underlining efficient capital utilization and a solid financial structure.
Commenting on AMS’s performance, management team stated: “We are pleased to present an overview of Apollo Micro Systems Limited's (AMS) performance for Q4 and FY24. This year has seen Apollo Micro Systems make significant strides in several key areas, demonstrating our commitment to innovation, operational excellence, and sustainable growth.
AMS achieved significant financial growth in FY24, driven primarily by robust order execution. The revenue for Q4FY24 was Rs 1,354.37 million, up from Rs 1,068.46 million in Q4FY23, with the full-year revenue standing at Rs 3,716.34 million compared to Rs 2,975.26 million in FY23 showcasing a healthy growth of 24.91%. The company's EBITDA for Q4FY24 increased to Rs 287.43 million from Rs 228.83 million in Q4FY23, and for the entire fiscal year, it reached Rs 838.66 million, up from Rs 640.91 million in FY23, marking a growth of 25.61% for the quarter and 30.85% for the year, attributed to the increased scale of operations and cost efficient execution. Profit after tax (PAT) for Q4FY24 was Rs 129.31 million, compared to Rs 72.15 million in Q4FY23, and for FY24, it stood at Rs 311.07 million, compared to Rs 187.38 million in FY23. PAT margins were 9.55% in Q4FY24 and 8.37% for the full fiscal year.
Our order book has strengthened on account of several programs moving from development - production to more production based contracts which provides us added visibility for future revenue growth. Apart from the current order book we continue to focus on developing game changing solutions which find excessive defence applications and can be a prime for exports too. The testimony can be seen in our repeated order wins. The company is participating in Make-II Defence Projects and is likely to collaborate with other companies in building larger platforms.
On the capability augmentation front we have announced the groundbreaking ceremony for our Integrated Plant for Ingenious Defense Systems (IPiDS) in Hyderabad, this makes our foray into defense and space sector growth even more stronger with in-house capabilities. This would cater to developing products in the missile, unmanned aerial and ground systems development. IPiDS signifies our dedication to national security and technological advancement. AMS remains steadfast to innovation, excellence, and is poised to elevate India's defense prowess globally. Currently, AMS operates a 55,000 sqft manufacturing facility, with two additional facilities of 40,000 sqft and 3,50,000 sqft under development. These expansions will significantly enhance our manufacturing capabilities, supporting increased production and meeting growing demand. This strategic growth positions AMS to capitalize on emerging opportunities in the defense and electronic manufacturing sectors, driving our long-term success. Also AMS boasts over 700 on-board technologies and is actively involved in more than 150 indigenous programs and 60 DcPP programs as a sub-system partner. These engagements underscore our commitment to technological innovation and strategic partnerships, solidifying our leadership in the defense sector.
India's defense exports have experienced a remarkable 16-fold increase from FY17-24E, amounting to USD 3 billion, with a projected ascent to USD 7 billion by FY30E, in alignment with the Government's ambitious target of USD 6 billion by FY29E. Prominent export destinations encompass Italy, Egypt, UAE, Bhutan, Ethiopia, and Saudi Arabia, notably with the Middle East (ME) constituting 33% of global arm imports valued at USD 11 billion, presenting substantial prospects, particularly with Qatar and Saudi Arabia representing 52% of ME imports. Furthermore, the earmarked US$ 130 billion investment in fleet modernization over 5-7 years ensures enduring contracts and technological progress. Moreover, India's diminished imports provide domestic companies with an opportunity to cultivate indigenous technologies, fostering both exports and domestic production. In view of capitalizing these emerging opportunities, AMS is continuously investing in its manufacturing capabilities, man power capabilities and technological capabilities.
Looking ahead, we are optimistic about the future growth prospects of Apollo Micro Systems Limited. The robust demand for electronic solutions in defense, coupled with our strategic initiatives, positions us favorably for continued success. We will continue to explore avenues for innovation, collaborate with strategic partners, and pursue excellence in all aspects of our operations. We are confident in our capability to increasingly contribute to India’s drive for self – reliance in defence technologies and we will continue to scale greater heights in executing projection ahead. Our dedicated team, focus on innovation, and commitment to customer satisfaction will continue to be the pillars of our success.
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”
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