With a market capitalization of Rs. 2,339 crores, the shares of this defence company started Friday’s trading session on a lower note at Rs. 1,781 compared to its previous close of Rs. 1,787.75. During the trading session, the shares hit a low of Rs. 1,762.50, losing around 1 percent and are currently trading at Rs. 1,779 apiece.
Financials
Looking at the NIBE Ltd financial statements, the revenue decreased by around 28 percent from Rs. 152.17 crores during the March quarter to Rs. 110.06 crores in the June quarter. On the other hand, the net profits declined by 24 percent from Rs. 10.43 crores to Rs. 7.88 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 327 percent from Rs. 25.80 crores during Q1FY24 to Rs. 110.06 crores in Q1FY25. In addition, the net profits magnified by 860 percent from Rs. 82 lakhs to Rs. 7.88 crores.
Recent orders
Recently, the company received two purchase orders from one of the leading Infra and Defence companies for the supply of FCR Trailers and Shelters including surface treatment and Air Conditioning for a total consideration of over Rs. 79.63 crores.
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According to the latest shareholding pattern, the company’s Promoters have raised their ownership from 49.96 percent in the March quarter to 51.43 percent in the June quarter, marking a 1.47 percent increase.
During the same period, Foreign Institutional Investors (FIIs) have decreased their stake from 11.03 percent to 8.30 percent, while Domestic Institutional Investors (DIIs) have also reduced their holding from 0.78 percent to 0.59 percent. Additionally, Retail Investors hold 39.67 percent of the shares.
On May 27, 2024, the company revealed that it had secured a Business Agreement with Thales USA. This agreement involves Thales USA serving as the designer, manufacturer, installer, and supplier of MM-7000 TACAN equipment and additional services for the Indian Navy.
Furthermore, the defence company also entered into a Licensing Agreement with Vehicles Research and Development Establishment (VRDE), Ahmednagar, Defence Research and Development Organisation (DRDO), Ministry of Defence, Government of India for Transfer of Technology to manufacture and sell Anti-Terrorist Vehicle (ATV) in India to Indian Armed Forces/Other Govt. Agencies (Central and State).
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.52 percent and a return on capital employed (RoCE) of 13.03 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 6.57 percent.
The company has strategically expanded its operations and has already set up two plants and one more plant is going to be operational in the coming years. All the 3 plants are within the MIDC area of Chakan.
The plant 1 is dedicated to serving L&T Defence, underlining the company’s commitment to delivering high-quality products and services in this sector. Plant 2 is dedicated to the production of heavy fabricated structures and machinery.
Incorporated in 2005, Nibe Ltd is engaged in the business of Fabrication and Machining of components used in the Defence Sector as well as the assembly of components of e-vehicles. It also offers strategic products and related research advancements in the E-Vehicles division and the BVM R&D Foundation.
Written By Vaibhav Patil
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