ATS Company Reports: Astra microwave Access Company Reports here: http://www.adityatrading.in/Research-Reports.aspx

2. Company Details
Astra Microwave Products develops, manufactures, and distributes wireless communication solutions. AMP
offers products in the areas of telecommunications, defense, and space, and the product line includes
amplifiers, base stations, dish antennas, filters, microwave components, and switching equipment.
The company’s products are widely used in VSAT operations, radars, navigational equipment, public mobile
trunk radio (PMTR), WLL and Cellular GSM/DCS or PCS networks. The products meet ITU, MIL and Space
standards, and bear testimony to its R&D breakthroughs using ISO quality processes, world-class
manufacturing facilities and equipment, and trained manpower. AMP was incorporated in 1991 by a team of
senior professionals and eminent scientist. The manufacturing facilities are located at Bollarum and
Rangareddy in Andhra Pradesh
The defense segment, both domestic and exports, put together is the major contributor of sales with over
90% of revenues coming from this business. While the production program of missiles and radars sub-
systems are driving the domestic business, defense offset requirements drives exports. Business potential
of this segment is likely to further improve in the coming years. AMP present in four business verticals :
• Defence
• Space
• Telecom
• Metrological products
The current market capitalization stands at Rs 1,178.28 crore. The company has reported a standalone
sales of Rs 190.12 crore and a Net Profit of Rs 23.40 crore for the quarter ended Sep 2014.

3. Category No. of Shares Percentage
Promoters 13,898,288 16.99
General Public 21,866,173 26.72
NBFC and Mutual
Funds
19,005,723 23.23
Other Companies 13,686,045 16.73
Foreign - NRI 6,092,048 7.45
Others 3,220,718 3.94
Foreign - OCB 2,949,778 3.60
Foreign Promoters 870,000 1.06
Financial
Institutions
131,452 0.16
Foreign Institutions 105,000 0.13
Market Cap (Rs Cr) – 1182.78
Company P/E – 14.86
Industry P/E – 18.49
Book Value (Rs) – 29.49
Dividend (%) – 55 %
EPS (TTM) – 9.73
Dividend Yield (%) – 0.76 %
Face Value (Rs) - 2
Share Holding Pattern Financial details

4. Industry Details
The Indian defense industry is one of the fastest-growing global defense markets. India’s defense capital
expenditure, which refers to the part of the defense budget that is spent on the acquisition of all types of
military hardware and technology, has grown at a CAGR of 16.22% over the review period. In 2012, India
was allocated US$15.36 billion for defense capital expenditure in the budget. Defense expenditure is
expected to record a CAGR of 13.35% during the forecast period, to reach an annual expenditure of
US$69.41 billion by 2017.
This is primarily due to the country’s aging military hardware and technology, which is in need of replacing,
and demands for defense against domestic insurgencies and hostility from neighboring countries. The
strong growth in the industry is attracting foreign original equipment manufacturers (OEMs) and leading
companies from the domestic private sector to enter the market. Moreover, terrorism is leading to sharp
increases in the defense budget and a shorter sales cycle, which offers an attractive market for defense
manufacturers.
The country is especially expected to demand unmanned combat aerial vehicles (UCAVs), advanced
electronic warfare systems, combat systems, rocket and missile systems, fighter and trainer aircraft, stealth
frigates, and submarines during the forecast period. In addition, its expenditure on IT and communications is
expected to increase significantly, with a strong focus on enterprise applications, systems integration, and
real-time mobile communications.
The country relies upon imports to procure defense equipment with advanced technology, and, since most of
the equipment India is seeking use is advanced technology, there will be a significant prospect for foreign
OEMs to enter the Indian defense market.

5. Balance Sheet
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Sources Of Funds
Total Share Capital 16.37 16.37 16.37 16.37 10.83
Equity Share Capital 16.37 16.37 16.37 16.37 10.83
Reserves 224.91 184.52 154.94 128.40 117.23
Networth 241.28 200.89 171.31 144.77 129.12
Secured Loans 50.09 38.87 51.10 31.48 43.42
Unsecured Loans 1.74 2.86 2.82 2.53 2.24
Total Debt 51.83 41.73 53.92 34.01 45.66
Total Liabilities 293.11 242.62 225.23 178.78 174.78
Application Of Funds
Gross Block 231.19 198.80 167.64 156.34 149.20
Less: Accum. Depreciation 105.54 90.88 78.32 66.03 54.47
Net Block 125.65 107.92 89.32 90.31 94.73
Investments 2.36 23.56 0.00 2.18 2.18
Inventories 146.49 73.84 74.66 53.04 46.03
Sundry Debtors 131.31 143.37 87.53 81.49 82.59
Cash and Bank Balance 61.00 113.27 34.45 6.79 3.09
Total Current Assets 338.80 330.48 196.64 141.32 131.71
Loans and Advances 94.36 36.84 21.04 19.07 13.12
Total CA, Loans & Advances 433.16 367.32 217.68 172.86 163.29
Current Liabilities 249.04 241.09 67.20 79.45 80.17
Provisions 19.02 15.08 14.59 7.84 5.47
Total CL & Provisions 268.06 256.17 81.79 87.29 85.64
Net Current Assets 165.10 111.15 135.89 85.57 77.65
Total Assets 293.11 242.63 225.21 178.78 174.76
Contingent Liabilities 331.27 269.49 107.91 4.72 4.72
Book Value (Rs) 29.49 24.55 20.94 17.69 23.65

6. Profit and Loss Account
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Income
Sales Turnover 531.16 227.47 210.48 164.90 110.30
Excise Duty 0.00 0.00 6.74 3.79 3.76
Net Sales 531.16 227.47 203.74 161.11 106.54
Other Income 7.56 6.78 3.08 1.23 0.75
Stock Adjustments 43.44 -5.10 13.55 3.11 4.96
Total Income 582.16 229.15 220.37 165.45 112.25
Expenditure
Raw Materials 392.84 95.64 88.36 78.31 52.68
Power & Fuel Cost 2.85 2.00 1.54 1.21 0.98
Employee Cost 37.49 27.98 27.31 22.58 17.47
Selling and Admin Expenses 0.00 0.00 25.38 9.84 9.63
Miscellaneous Expenses 57.70 35.62 6.80 5.74 2.03
Total Expenses 490.88 161.24 154.10 121.16 85.80
Operating Profit 83.72 61.13 63.19 43.06 25.70
PBDIT 91.28 67.91 66.27 44.29 26.45
Interest 6.73 4.13 8.94 7.67 4.20
PBDT 84.55 63.78 57.33 36.62 22.25
Depreciation 14.80 13.35 12.45 12.42 11.20
Profit Before Tax 69.75 50.43 44.88 24.20 11.05
PBT (Post Extra-ord Items) 69.75 50.43 45.15 24.87 10.62
Tax 18.82 13.25 11.96 6.19 3.48
Reported Net Profit 50.93 37.19 33.20 18.61 7.14
Total Value Addition 98.05 65.59 65.74 42.85 33.12
Equity Dividend 9.00 6.55 5.73 4.09 2.73
Corporate Dividend Tax 1.53 1.06 0.93 0.66 0.46
Per share data (annualised)
Shares in issue (lakhs) 818.25 818.25 818.25 818.25 541.43
Equity Dividend (%) 55.00 40.00 35.00 25.00 25.00

7. Dividend and Bonus History

8. Index and Company Comparison

9. PBIT – 12.78 v/s 20.38
RoCE – 26.17 v/s 22.54
RoE – 23.04 v/s 19.98
Net Profit Margin – 9.44 v/s 15.86
Return on net worth – 21.1 v/s 18.51
Reserves – 224.91 cr v/s 184.52 cr
PAT – 50.93 cr v/s 37.19 cr
Total assets – 293.11 cr v/s 242.63 cr
Net sales – 531.16 cr v/s 227.47 cr
Book Value – 29.49 v/s 24.55
Days BSE NSE
30 120.23 120.32
50 119.62 119.71
150 123.09 123.17
200 110.79 110.86
Important Ratios Simple Moving Average

10. Recommendations
Buy Astra Microwave Products Ltd. at
current or lower market levels
Reasons for the recommendations are :
Key beneficiary of increased indigenization of defense equipments.
Equipped to supply sub systems to Dassault in the MMRCA deal.
Chance of takeover by more established market player.
Growth potential due to big order book and possibility of entering into
offset contracts.
 Sound financial position of the company.
Availability of adequate manufacturing facility to meet demands.
Partnership and MoU with leading players like DRDO and ISRO.