The shares of the prominent aerospace components manufacturer gained up to 8 percent after the company signed a prestigious agreement with GE Steam Power GMBH for Rs 452 crore.
With a market capitalization of Rs 10,740.59 crore, the shares of Azad Engineering Ltd were trading at Rs 1,664.05 per share, increasing around 7 percent as compared to the previous closing price of Rs 1,552.05 apiece.
Matter Explanation
The shares of Azad Engineering Ltd have seen positive movement after signing a Long Term Supply Agreement with GE Steam Power GMBH, part of GE Vernova Power. The agreement involves manufacturing and supplying complex rotating and stationary Airfoils for advanced nuclear, industrial, and thermal power applications globally.
Additionally, this order valued at USD 53.5 million (approximately Rs.452.48 crore), signifies a strong strategic partnership with GE Steam Power GMBH. This milestone enhances Azad Engineering’s presence in the global power generation space, reaffirming its capabilities in delivering high-precision components for essential and advanced energy sectors.
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Operational and Financial Highlights
Looking forward to the company’s financial performance, revenue magnified by 34 percent from Rs 89 crore in Q3FY24 to Rs 120 crore in Q3FY25, Further, during the same time frame, net profit jumped by 41 percent from Rs 17 crore to Rs 24 crore.
Azad Engineering specializes in precision-engineered, mission-critical components with 15+ years of experience and exports to over 12 countries. With 1,400+ qualified parts, 45 manufacturing processes, it boasts 87% export revenue and 96% from private clients. Vendor qualification can take up to 48 months.
Azad Engineering operates four manufacturing facilities in Hyderabad, spanning 20,000 sq.mts with an annual installed capacity of 642,310 hours and 90 percent utilization. Two new facilities are in the pipeline, adding approximately 169,766 sq.mts, significantly expanding the company’s production capabilities to meet growing global demand.
Azad Engineering Limited specializes in producing highly engineered, intricate, and mission-critical components for original equipment manufacturers (OEMs) in the energy, aerospace, defense, and oil and gas industries. The company’s clientele comprises renowned global OEMs such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, and many more.
Written by Abhishek Singh
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