The shares of one of the leading technology solutions provider specializing in satellite communication (Satcom) systems and services, offering a wide range of products and solutions in the fields of telecommunication, defense, and space technology, jumped up to 2 percent upon receiving work order worth Rs. 8.61 crores from Naval Headquarters, Ministry of Defence
Price action
With a market capitalization of Rs. 3,407.19 crores on Friday, the shares of Avantel Limited is trading at Rs. 138.10 up by 2 percent making a high of Rs. 142.39 per share compared to its previous closing price of Rs.139.29 perr share.
What Happened
Avantel Limited specializing in satellite communication (Satcom) systems and services,offering a wide range of products and solutions in the fields of telecommunication, defence, and space technology has received a domestic work order worth Rs. 8.61 crores from Naval Headquarters, Ministry of Defence (Navy).
The domestic order is a Comprehensive Annual Maintenance Contract (CAMC) for Maintenance of Satcom Systems and is set to be executed by January 2028.
Additionally, the company has announced that a meeting of the Board of Directors will be held on Saturday, January 18, 2025, to approve the unaudited financial results for the third quarter ended December 31, 2024.
Segment Revenue
In 2023-2024, the Communications and Signal Processing Products segment saw a revenue increase to Rs. 225.22 crores, up from Rs. 154.74 crores in 2022-2023. The Healthcaree segment also grew, from Rs. 1.88 crores to Rs. 5.70 crores. Overall, total revenue increased from Rs. 154.93 crores to Rs. 225.79 crores.
Future outlook
The budget estimates for the Ministry of Defence (MoD) for 2024-25 are Rs.6,21,540.85 crore, constituting 13.04 percent of the total Union Budget. A significant portion of this budget is aimed at modernizing the Armed Forces, with Rs.141,160.9 crore allocated for modernization, up by 5.52 percent from 2023-24.
Avantel is actively contributing to this vision by developing advanced technologies, including HF Software Defined Radios and MSS Xponders, while also working on new facilities in Hyderabad for space technologies and R&D. The company is also pursuing new initiatives in line with India’s space policy, including proposals for Ground Station as a Service and SATCOM services.
Financials
The company’s revenue rose by 43.2 percent from Rs 54.73 crore to Rs 77.91 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 16.07 crores to Rs 22.9 crore during the same period.
Written by Sridhar J
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