Azad Engineering bags Rs 700 crore order from Japanese giant Mitsubishi

HYDERABAD: Azad Engineering Ltd, a Hyderabad-based manufacturer of complex and highly engineered precision forged components for global OEMs in aerospace & defence, energy and oil & gas, has bagged a $ 82.89 million (approx. Rs 700 crore) contract from Japan’s Mitsubishi Heavy Industries Ltd.
The long-term contract is for the supply of highly engineered & complex rotating and stationary airfoils for advanced gas & thermal power turbine engines to meet Mitsubishi’s global demand in the power generation industry. The order has to be executed over a period of five years.
News of the latest win powered the company’s scrip to an over 14% jump in early trading hours to an intraday high of Rs 1670.25 as against Friday’s closing price of Rs 1461.1 on the Bombay Stock Exchange.
According to sources, with the latest win the company now has orders worth around Rs 4,000 crore to Rs 4500 crore in hand with most of them being long-term contracts.
The company currently has a total manufacturing capacity of around 25,000 sq metres with another 2,00,000 sq mtrs under development. This includes an exclusive facility to cater to Mitsubishi and increase the company’s wallet share in the Japanese giant’s business.
The company has been working with Mitsubishi since 2012 and the revenues from the latest order are expected to start reflecting in the next three to four quarters.