Azad Engineering share price

Azad Engineering Secures ₹340 Crore Supply Deal with Arabelle Solutions for Global Nuclear Power

Azad Engineering Ltd has announced a significant milestone in its global expansion strategy, signing a ₹340 crore (USD 40 million) supply agreement with French energy company Arabelle Solutions. This five-year partnership underscores Azad’s commitment to advancing nuclear power infrastructure worldwide. Through this agreement, Azad Engineering will provide essential rotating and stationary components used in nuclear power generation facilities across the globe, as detailed in its latest exchange filing.

Expanding Influence in the Global Energy Sector

The partnership with Arabelle Solutions, a leading player in the energy industry, highlights Azad Engineering’s rising influence on the international stage. By supplying critical components for nuclear power, Azad is positioning itself as a key supplier within the energy sector—a move that not only reflects the company’s technical capabilities but also strengthens its foothold in high-demand markets.

Following the announcement, shares of Azad Engineering saw a 2.6% rise, reaching an intraday peak of ₹1,720 on the Bombay Stock Exchange (BSE) before settling at ₹1,682.35 by midday.

Recent Partnership with Mitsubishi Heavy Industries

This deal follows closely on the heels of Azad Engineering’s ₹700 crore contract with Mitsubishi Heavy Industries Ltd., secured earlier this month. Valued at USD 82.89 million, this five-year agreement involves the supply of specialized components for advanced gas and thermal power turbines, further diversifying Azad’s portfolio and international footprint.

Robust Financial Performance in Q2 FY24

Azad Engineering’s recent financial results showcase a strong growth trajectory. The company posted its highest-ever quarterly performance, with profit after tax (PAT) increasing by 8.3% year-over-year to ₹21.07 crore in Q2 FY24, compared to ₹19.45 crore in the same period last year. Revenue also surged, with a 34.5% year-over-year increase, reaching ₹111.4 crore.

Conclusion:

Azad Engineering Ltd’s recent contracts with both Arabelle Solutions and Mitsubishi Heavy Industries mark an impressive period of growth and international expansion for the company. By solidifying partnerships across the nuclear and thermal power sectors, Azad is not only boosting its revenue potential but also reinforcing its position as a trusted global supplier in the energy market. This strategic alignment is set to propel the company forward as demand for advanced power generation technology continues to rise.

FAQs:

1.What is the value of Azad Engineering’s agreement with Arabelle Solutions?

A. The supply agreement with Arabelle Solutions is valued at ₹340 crore (USD 40 million).

2.How long is the contract with Arabelle Solutions?

A. The contract spans five years, emphasizing a long-term strategic partnership in the nuclear energy sector.

3.What products will Azad Engineering supply under the Arabelle contract?

A. Azad Engineering will supply critical rotating and stationary components for nuclear power generation.

4.How did Azad Engineering’s stock respond to the Arabelle Solutions announcement?

A. The stock rose by 2.6% to an intraday high of ₹1,720 on the BSE following the announcement.

5.What recent contract did Azad Engineering secure with Mitsubishi Heavy Industries?

A. Azad Engineering secured a ₹700 crore contract with Mitsubishi to supply components for advanced gas and thermal power turbines.

6.What is Azad Engineering’s revenue growth in Q2 FY24?

A. Revenue increased by 34.5% year-over-year, reaching ₹111.4 crore in Q2 FY24.

7.How much did Azad Engineering’s profit increase in Q2 FY24?

A. The profit after tax (PAT) rose by 8.3% year-over-year to ₹21.07 crore.

8.What impact does the Arabelle contract have on Azad’s international presence?

A. The Arabelle contract significantly boosts Azad’s presence in the global nuclear power supply chain.

9.What industries does Azad Engineering serve?

A. Azad Engineering supplies components for nuclear, gas, and thermal power generation sectors.

10.Why is Azad Engineering focusing on international contracts?

A. International contracts help Azad diversify its portfolio, enhance revenue streams, and strengthen its global footprint in the energy market.

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