Sachin Tendulkar backed-Azad Engineering shares rally after Q3 results; stock up 86% from IPO price

Shares of Azad Engineering Ltd surged more than 8 per cent during the trading session on Wednesday after the company reported its first ever quarterly profits after listing. The manufacturer of aerospace components and turbines reported a strong set of numbers in the December 2023 quarter. Sachin Tendulkar backed-Azad Engineering reported more than three-fold increase in net profit at Rs 16.8 crore for the three months ended December 2023. The Hyderabad-based company had reported a net profit of Rs 3.83 crore in the same quarter a year ago. Azad's revenue from operations in the third quarter of the current fiscal rose 49 per cent on a year-on-year (YoY) basis to Rs 89.23 crore. The company had reported a topline of Rs 68.8 crore a year ago. The exports revenue accounted for 88 per cent. Its energy segment accounted for 81 per cent of the revenue while aerospace and defence business contributed 17 per cent. Its adjusted Ebitda stood at Rs 32.8 crore for the October-December 2023 quarter, growing 87 per cent on YoY, while its Ebitda margins came in at 37 per cent for the quarter. PAT margins for the quarter stood at 18.8 per cent, which was 6.4 per cent in the Q3FY23. Following the announcement, shares of Azad Engineering surged 8.45 per cent to Rs 973.10 on Wednesday, with a total market capitalization of more than 5,600 crore. The scrip had previously settled at Rs 897.25 in the previous trading session on Tuesday. Azad Engineering reported a net profit of Rs 43.65 crore for the nine-month ended on December 31, 2023. The company had clocked a net loss of Rs 6.35 crore in the year-ago period. Its revenue from operations rose 49 per cent YoY to Rs 247.97 crore, while adjusted Ebitda grew 77 per cent to Rs 85.65 crore with an Ebitda margin of 34.5 per cent. "We are happy to see an overwhelming response to our IPO. We thank all the shareholders for their faith in us. We welcome our new shareholders & congratulate every stakeholder of the company, i.e., employees, customers, business partners, bankers who made our IPO listing successful," said Rakesh Chopdar Chairman & CEO of Azad Engineering. "The IPO has resulted in a strengthening of our balance sheet, which will contribute to better profitability through the reduction of interest costs and will also bolster our growth. The culmination of our efforts over the course of many years has placed us on a fast growth trajectory," he added. To recall, Azad Engineering raised a total Rs 740 crore via its IPO by selling its shares at Rs 524 apiece. It debuted at Dalal Street on December 22, 2023. The stock has surged about 86 per cent from its issue price. The stock scaled its highest level of Rs 1,013 on January 31, 2024.

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