Thanks for the summary, @shanid .
On my end, I was on a flight at the exact time of the AGM, so I couldn’t make it. Additionally, while the Subh Labh Research channel on Youtube had a recording of the AGM last year, I cannot find one for this time around.
This bit that you shared piqued my interest and I am keen to see how this progresses 
Hey Guys, Q1-June-2024 Results are out for ASM Tech.
Please share insights 
It’s hard for me to say anything substantial about the earnings and what it means for my investment in ASM Technologies.
All I can say at this point is that it’s good to see the very decent improvement in revenue from the previous quarter, and it’s of course great to see it becoming net income positive again.
What I am waiting for is to see how the 170 cr from the preferential allotment is deployed. Till then, I am waiting and watching.
Looking at the update from @Priyatham in the previous message, I am getting a response to my earlier message quoted above.
A 510 cr investment proposal for a company with a market cap of 1330 cr trading at approx 6x LTM sales is a huge deal in my opinion.
Financial Highlights for Q4 FY25:
Revenue: surges 156.8% YoY to 114.5 Cr
EBIDTA margin: expands to 22.2%
PAT: Rs 15.3 Cr compared to loss of Rs 3.4 Cr in Q4FY24
EPS: 13.04 for the quarter
It has been a great journey here from 70 cr marketcap.
happy to see finally numbers are started coming.
Interesting thing here is they have not yet deployed the preferential fund raised one year back.
As per recent investor presentation they have again mentioned about 500 crore capex in karnataka in ESDM,semiconductor segments. Future continue to be exciting and interesting for this company.
Excellent points put across by you and congrats on doing well with this pick. Your conviction has paid off.
Since you’ve done quite an extensive work, what I wanted to understand is how does revenue stream for semicon equipment manufacturers look?
Today ASM helps equipment manufacturers, so that would be a one time revenue, right? ASM helps them with their service, the OEM manufactures the equipment and sells it to chips manufacturer. Now how could the company earn recurring revenue?
How frequently are these machines replaced? This could be one avenue for recurring revenues? Also, if and when ASM sells its own equipments, how big this industry could be? Because machine once sold could be used by the chip manufacturer for 10-15 years, so every year to grow ASM will have to keep on selling more and more equipment. So, how much and for how long can it grow?
Just wanted to get my head around the kind of opportunity we are looking at.
Thanks and regards.
Hi @MrMrHarsh
Thank you! It’s been one heck of a journey with ASM Technologies.
So when analyzing this company, I have always had to try and connect the dots with very limited publicly available information, so please do keep that in mind.
As of say Q2 and maybe Q3 FY2025, ASM primarily seems to have provided engineering services (design, co-design, iterative design improvements) to the semiconductor equipment providers. I am assuming that there was a long term engineering services contract in place here (so recurring revenue + some one-off).
But now, with this design led manufacturing approach, the potential of this company is going to another level in the semiconductor space. Shareholders will have to ask the right questions during AGMs to get more clarity, but let me attempt to list the various possibilities:
Company makes its own semiconductor industry equipment (wholly owning any IP), and sells it directly to the end user (semicon plant/fab). Depending on the complexity, the equipment can sell anywhere from $100,000 to $300 million (for advanced extreme ultraviolet lithography machines). Now the higher end is in the realm of fantasy at this point. In what price range will ASM actually land, assuming this is their plan? We will have to question management and find out.
The company designs, customizes, optimizes, manufactures, and services the equipment under license from its semicon equipment clients to fulfill their customers’ needs in India. IP might be created in the customization of their client’s off-the-shelf equipment.
The company provides systems and sub-systems (design, optimize, and manufacture), with some degree of IP ownership, that then go into the final equipment that their semicon equipment clients will then sell to their customers.
Or there might be a completely different strategy at play here, that I haven’t been able to conceptualize.
From what I have gathered, the really expensive capital equipment in these semicon fabs can last anywhere from 10-30 years, though I would bet that there’s also good money to be made in providing spare parts and services over the equipment’s lifecycle.
Now, which path is the company pursuing exactly (turnkey equipment designer and manufacturer, contract manufacturer, supplier to equipment manufacturer, maintenance and service provider) is something that I will only be able to ascertain over the next few quarters.
Also, dear fellow shareholders, please make it a point to attend AGMs and ask questions 
Disclosure of holding: I kept buying shares in ASM Technologies from 2021 to 2023, with an overall cost basis of ₹227. I have a fairly concentrated portfolio and do not own more than 10 companies at any given time.
do they really make UV litho machines at 28nm,14nm etc level? or imported and configured at client end?
As of Q2 and Q3 (as far as I know), they didn’t make/import/configure this kind of equipment at all, and just provided design services. But, we will have to ask questions to find out about the revenue jump in Q4 (what exactly caused it) and whether that was a one-off event, or a sign of more growth in the near future.
From their previous AGM, recent investor presentations, and their JV with Hind High Vacuum, we know they have design led manufacturing aspirations. What exactly those are, I will try to find out and report back in a month.
thank you. you see, Sridhar Vembu at the national tech mission cancelled the physical chip plant idea saying that the entire value chain and even the knowledge is not there at all to build out a factory. that’s why i asked
My pleasure. Also, on that note, I am in wait and watch mode about the semiconductor fab ecosystem in taking shape in India (not including OSAT/ATMP units).
A major signal will be if the Tata Electronics fab in Dholera commences operations before calendar year end 2026, and at the stated 50,000 wafers per month capacity. If this happens, as far as I am aware, domestically speaking only ASM Technologies and Titan Engineering & Automation Limited (subsidiary of Titan Company) have the capabilities to be equipment providers to fabs. Feel free to correct me here, because if other domestic companies are developing these capabilities, it would be great to update this short list.
Thanks for such a detailed explanation, Ankit.
Please see the JV website and check what are the products company offering for semiconductor equipment’s and component segments.
I remember promoter mentioned in AGM about over 100’s of products under various stages of trial, industry sources says this is an industry where approval process takes years of trials and qualification processes. In this industry even small bolts and components have more than
6-9 months of lead time, i have shared that old article in this thread elsewhere,unable to find it now.
