Apollo Micro Systems Eyes 50% Revenue Growth By 2027
Director Addepalli Krishna Sai Kumar expects the company's order book to cross Rs 2,000–2,500 crore in the next couple of years.
Apollo Micro Systems Ltd. is eyeing a 50% revenue growth in the next 2–3 financial years, according to the company's whole-time director, Addepalli Krishna Sai Kumar.
He told NDTV Profit that the company will see enhanced participation in production orders in the near future.
“There are several programmes where we are the development-cum-production partner. The production is going to be either through a PSU or a large private interference system integrator. We are going to have a lot of participation in these production orders,” he said.
Currently, Apollo Micro Systems has an order book of close to Rs 430 crore, which Sai Kumar claims will grow fourfold in the next few years.
“We are going to do 30–35% upscale compared to the last financial year. Our order book in the next couple of years will grow more than Rs 2,000–2,500 crore,” he said.
Apollo Micro Systems will also increase its capital expenditure to keep up with the large orders it expects to secure. The capex boost will push the company to reach a top line of Rs 1,000 crore in the next 2–3 years, Sai Kumar said.
Along with the top line, Apollo Micro Systems also expects its Ebitda margins to increase from the present 24%.
“Ebitda level margins will continue to increase as the size of the orders in terms of percentage increases on the top line,” Sai Kumar said.
On Wednesday, Apollo Micro Systems had bagged an order of Rs 10.9 crore from Bharat Dynamics Ltd. to produce a software-defined universal homing system for heavy-weight torpedoes. This technology was developed in collaboration with the Defence Research and Development Organisation.
According to Sai Kumar, the Bharat Dynamics order is a huge opportunity. "As this is the first project from the DRDO for the production of this particular class of heavyweight torpedoes. Already being a part of this programme is going to benefit us. We foresee that this would have a revenue potential of Rs 2,500–3,000 crore in the next few years,” he said.
