Azad Engineering Signs Rs 960 Crore Supply Agreement With Ge Vernova International

Azad Engineering Ltd. signed a long-term supply agreement of Rs 960 crore with Ge Vernova International LLC, USA.

The company will provide highly specialised, complex rotating and stationary airfoils for advanced gas turbine engines to meet the global demand in the power generation industry, according to an exchange filing on Wednesday. Also, the contract needs to be completed within a time frame of six years.

On Jan. 3, the board of Azad Engineering met in Hyderabad to consider a proposal for raising funds. It will raise funds through various means, including equity shares, equity-linked instruments, convertible preference shares, convertible debentures, or a combination of non-convertible debentures and warrants.

The fundraising could be done through private placement, qualified institutional placement, public issuance, preferential allotment, rights issue, or any other method allowed by applicable laws.

Azad Engineering recorded a 34.7% rise in its revenue to Rs 111.50 crore for the quarter ended Sept. 30, 2024, of the fiscal 2025, as compared to Rs 82.80 crore for the same period last year.

The company's profit soared to Rs 20.80 crore, representing a 7% rise for the July-September quarter as against Rs 19.40 crore for the year-ago period.

Its earnings before interest, tax, depreciation and amortisation surged by 51% to Rs 39.80 crore for the three months ended Sept. 30, 2024, a contrast to Rs 26.30 crore for the same quarter last year. Margins expanded at 35.7% for the second quarter as compared to 31.8% for the same period of the previous fiscal 2024.

Shares of Azad Engineering closed 0.60% lower at Rs 1,582.50 apiece on the NSE, compared to a 0.16% rise in the benchmark Nifty.

The stock has risen 130.95% in the last 12 months. All three analysts tracing the company recommend 'buy' for the stock. The average of 12-month analysts' price targets implies a potential upside of 35.2%.