The order pertains to the supply of highly engineered and complex rotating and stationary airfoils for advanced gas and thermal power turbine engines to meet Mitsubishi’s demand in the global power generation industry.
Azad Engineering further stated that the current phase of the contract is valued at $82.89 million or nearly ₹700 crore. This long-term contract is to be executed over a five-year period.
In October this year, Azad Engineering had received an order worth ₹134 crore from Honeywell Aerospace Ltd. to manufacture and supply high complex components to meet the global demand in the aviation industry.
The company has not specified its current order book status after the order win from Mitsubishi.
At the end of the June quarter, 78.4% of Azad Engineering’s topline came from the Energy & Oil and Gas business, while 18.5% came from Aerospace & Defence.
Most of Azad Engineering’s business comes via exports as nearly 91% of its sales mix is from the overseas markets as of the June quarter.
Azad Engineering has four manufacturing facilities in Hyderabad, spread across 20,000 square meters.
Brokerage firm ICICI Securities, in a note in July, mentioned that even after factoring in a 25% to 30% growth rate for Azad Engineering until financial year 2035, the company will only reach 7% market share in the mature energy market, less than 2% share in the Aerospace & Defence market and a little less than 4% share in the Oil & Gas market.
Azad Engineering was one of the final listings of 2023, having made its stock market debut at an IPO price of ₹524. As of Friday’s close, the stock is nearly triple of that price, ending the Mahurat Trading session at ₹1,463.65.
