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“Azad Engineering Limited Q2 FY25 Earnings Conference Call” November 12, 2024 We have delivere...

Posted: 23 Nov 2024

“Azad Engineering Limited Q2 FY25 Earnings Conference Call” November 12, 2024 We have delivered a strong performance in this quarter with our revenues growing significantly to Rs. 111 crores demonstrated robust growth on a year-on-year basis, showcasing a growth of 35%. Adjusted EBITDA for this quarter stands at Rs. 41 crores. Further, the PAT has grown from Rs. 19.5 crores in Q2 FY24 to Rs. 21 crores in Q2 FY25, showcasing a growth of 8%. We have come a long way in our journey from doing business of Rs. 100 crores per annum to Rs. 100 crores per quarter, demonstrating an exponential growth in the last few years. This progression is a result of our commitment to excellence and our persistence and dedication. We spent the initial few years concentrating on getting our products qualified and approved and today we are in this unprecedented growth phase. The growth momentum has just started and we are confident that we will be able to capture a larger pie of our customers wallet share by leveraging our capabilities to better serve our customers’ needs with our new and existing facilities in place. Allow me to spend some minutes on the new orders that we have won during this quarter: We are honored to share that we have signed a MoU with Baker Hughes, Kingdom of Saudi Arabia in the presence of His Royal Highness Prince Abdulaziz bin Salman, Al Saud, Minister of Energy and distinguished officials and committee members of local content forum at Riyadh, Saudi Arabia. This arrangement, amongst other things, enables us to set up a facility to manufacturing supply of precision components, sub-assemblies, assemblies to cater requirements within the Kingdom of Saudi Arabia. Another remarkable achievement, we bagged an order win from Mitsubishi Heavy Industries Japan. This is approximately Rs. 700 crores order which will be executed over 5 years. This win is a testament of Azad's grit and vision as we are the only critical suppliers in India for airfoils. This demonstrates Mitsubishi's continuous confidence in us as an efficient strategic supplier and carrying forward the long outstanding partnership within them, which was started in the way back 2012. This order is a way for them to block our capacities in the dedicated upcoming manufacturing plant that we are building for them in our new upcoming facility to foundation stone laid in the year 2022. Additionally, we secured $16 million order from Honeywell to manufacturing supply complex components for the aerospace and defense requirements. Another critical contract with Siemens Energy to manufacture supply complex, rotating components for the energy sector for the tenure of 5 years. These things not only demonstrate our strategic partnership we have built with the OEMs, but also reflect our growth journey. Way back, I recollect, I started Azad with just one machine and today, we have become a global leader in providing high precision engineered components and solutions for the largest OEMs across energy, defense, oil, and gas sectors.