Defence stock engaged in designing, developing, and maintaining wireless and satellite communication products, defence electronics, and many more for the defence, aerospace, and other emerging sectors jumped upto 13 percent in the day’s trade upon reporting its Q2FY25 results with a 210 percent jump in Net Profits.
Price Action
With a market capitalization of Rs. 4,578 Crores, the shares of Avantel Limited were trading at Rs. 188.20 per equity share, up 5.49 percent from its previous day’s close price of Rs. 178.40.
Q2FY25 Results
Its Revenue from operations grew by 43 percent YoY from Rs. 54.33 Crores in Q2FY24 to Rs. 77.42 Crores in Q2FY25 and it grew by 50 percent QoQ from Rs. 51.76 Crores in Q1FY25 to Rs. 77.42 Crores in Q2FY25.
Its Net Profit grew by 42 percent YoY from Rs. 16.07 Crores in Q2FY24 to Rs. 22.89 Crores in Q2FY25 and it grew by 210 percent QoQ from Rs. 7.38 Crores in Q1FY25 to Rs. 22.89 Crores in Q2FY25. Its Net Profit Margin increased from 29.36 percent in Q2FY24 to 29.39 percent in Q2FY25.
Segment-Wise Revenue
The revenue from Communications and Signal Processing products surged from Rs. 54.57 Crores in Q2FY24 to Rs. 77.74 Crores in Q2FY25 delivering a growth of 42.45 percent and its revenue from Health care surged by 7 percent from Rs. 15.81 Lakhs in Q2FY24 to Rs. 16.95 Lakhs in Q2FY25.
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About the Company
Avantel Limited is engaged in the business of designing, developing, and maintaining wireless and satellite communication products, defence electronics, radar systems and development of network management software applications for the defence and aerospace sector.
The main business of Avantel Limited i.e., Communication and Signal Processing Segment includes Manufacturing Wireless front end, satellite communication, Embedded Systems, Signal Processing, Network Management and Software development, rendering related customer support services, and an in-house R & D facility.
Avantel Limited majorly serves Indian Defense Forces and government organizations such as DRDO, ISRO, various Defence Public Sector Undertakings, Shipyards, Railways, and some private players like L&T, NewSpace India Limited, and many others.
Recent Order Wins
In the month of September 2024, it has received multiple work orders i.e., from Newspace India Limited for the Supply, Installation, and Commissioning of Ground Segment Hub for a consideration of Rs. 9.39 Crores.
Followed by work orders from Bharat Electronics Limited and Larsen & Toubro for a consideration of Rs. 3.45 Crores and Rs. 44.49 Crores, for the supply of Satcom Equipments respectively.
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Written by: Bharath K.S
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