Apollo Micro Systems Aims To Surpass 45% Revenue Growth Guidance For FY25 After Strong Q2

Apollo Micro Systems Ltd. may exceed its 45% revenue growth guidance for fiscal 2025, driven by a robust order book in the second half of the year, Director Addepalli Krishna Sai Kumar said.

The company posted a sharp 84.5% year-on-year rise in its total revenue for the second quarter at Rs 161.3 crore versus Rs 87.4 crore a year ago. The company’s revenue for the first half of fiscal 2025 jumped 74% YoY to Rs 253 crore from Rs 145.3 crore in the corresponding period of the previous fiscal.

Commenting on the results, Kumar said that this Q2 was one of the ‘finest’ second quarters ever for Apollo Micro Systems. He emphasised that the company is on track to achieve its 45% revenue guidance and may further improve it. 

“With Q3 and Q4 continuing to be anchoring quarters, we should be outperforming over and above the guidance that we have given both on topline and bottom line,” he told NDTV Profit in an interview. 

Kumar noted that the dip seen in the company’s second quarter Ebitda margins was due to issues in the execution of projects.

The Ebitda margin of Apollo Micro Systems in the quarter that ended September 2024 dipped to 20.47% from 21.35% in the year-ago period. In the preceding three months, the company had reported an Ebitda margin of 24.53%.

“We had to procure some raw materials at a higher cost, and that’s why there was a small dip in Ebitda (margins) as compared to the previous quarter and previous H1. But we could leverage on the overall capacity that we have and could maintain the same PAT levels,” he noted.

The top executive reassured that Apollo Micro Systems' Ebitda will bounce back in the second half of the fiscal.

“Generally Q1 and Q2 are not very bright quarters but Q3 and Q4 will definitely be bright. We have a proper schedule of orders that will be executed in Q3 and Q4. The Ebitda will bounce back because of the existing orders we have, the work is in progress for them,” he said. 

Apollo Micro Systems’ order book currently stands at Rs 450 crore. This is excluding the orders that got finalised and are yet to be recognised. 

“These fresh orders that we received in Q2 typically have a delivery time of eight to nine months. In some of the quarters, we get orders where the delivery schedules will be shorter at four to five months. Broadly, we would be meeting the guidance. And the specific Rs 131 crore fresh orders we would be executing in the next financial year,” said the director of the company.

Shares of Apollo Micro Systems dipped over 2.5% on Monday to touch an intraday low of Rs 99.32 apiece on the NSE. The stock closed nearly 2% lower at Rs 100 per share.