Defense stock surged after receiving a ₹9 crore order from the Ministry of Defense for Satcom Systems.
Defense stock: hares of Avantel Limited, a leading technology solutions provider specializing in satellite communication systems and services, surged by 2 percent following the receipt of a work order worth Rs. 8.61 crores from Naval Headquarters, Ministry of Defence.
With a market capitalization of Rs. 3,407.19 crores on Friday, Avantel Limited’s shares are currently trading at Rs. 138.10, marking a 2 percent increase from its previous closing price of Rs. 139.29.
Avantel Limited, known for its expertise in Satcom systems and services, received a domestic work order for a Comprehensive Annual Maintenance Contract (CAMC) for Maintenance of Satcom Systems from Naval Headquarters, Ministry of Defence (Navy). The contract is scheduled to be completed by January 2028.
Furthermore, the company has announced that a meeting of the Board of Directors will take place on Saturday, January 18, 2025, to approve the unaudited financial results for the third quarter ended December 31, 2024.
In terms of revenue segments, the Communications and Signal Processing Products segment saw an increase in revenue from Rs. 154.74 crores in 2022-2023 to Rs. 225.22 crores in 2023-2024. The Healthcare segment also experienced growth, rising from Rs. 1.88 crores to Rs. 5.70 crores. Overall, total revenue increased from Rs. 154.93 crores to Rs. 225.79 crores.
Looking ahead, the Ministry of Defence (MoD) budget estimates for 2024-25 amount to Rs. 6,21,540.85 crore, representing 13.04 percent of the total Union Budget. A significant portion of this budget is allocated towards modernizing the Armed Forces, with Rs. 141,160.9 crore earmarked for modernization, reflecting a 5.52 percent increase
Avantel is actively contributing to its vision by developing cutting-edge technologies such as HF Software Defined Radios and MSS Xponders. Additionally, the company is expanding its operations in Hyderabad to focus on space technologies and research and development. Avantel is also aligning itself with India’s space policy by exploring new initiatives like Ground Station as a Service and SATCOM services.
In terms of financial performance, Avantel experienced a significant increase in revenue, jumping by 43.2 percent from Rs 54.73 crore to Rs 77.91 crore in Q2FY24-25. Furthermore, the company saw a rise in net profit from Rs 16.07 crores to Rs 22.9 crore during the same period.
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