Incorporated on September 14, 1983, Azad Engineering Limited manufactures highly engineered precision forged and machined components. These products are supplied to global Original Equipment Manufacturers (OEMs) in the energy, gas, oil, aerospace and defence industries. The company has 4 manufacturing facilities in India, and the total manufacturing area is ~20,000 square metres.
The products offered by the company for the aerospace and defence industry include airfoils, blades, hydraulics, auxiliary power units (APUs), actuating systems, flight controls and many more, which are used in both commercial and defence aircraft. The company supplied to various spacecraft, such as B737 Max, B737, B747, B777X, B777, A350, A320, A350, A355, A350 XWB, Gulfstream G550 and B777.
The company also supplies drilling rigs and other key parts used in drilling equipment for the oil and gas industry. Their client base includes Honeywell International Inc., General Electric, Mitsubishi Heavy Industries, Ltd, Eaton Aerospace, Siemens Energy and MAN Energy Solutions SE. Their products are supplied to China, the USA, Europe, Japan and the Middle East.
The market size of aerospace, defence, and energy turbine components is expected to grow at a CAGR of 7% to ₹1,81,000 crore by 2027. This can be a good indication for the future growth potential of the company.
Azad Engineering Limited IPO Details
Azad Engineering Limited IPO Date
The IPO of Azad Engineering Limited is open for subscription from December 20, 2023 to December 22, 2023.
Azad Engineering Limited IPO's Price Band
Azad Engineering Limited’s IPO is a fresh issue and offer for sale IPO of up to ₹740.00 crore. It is a book-building issue. The price range is set to ₹499 to ₹524 per share.
Azad Engineering Limited IPO’s Lot Size
The lot size for Azad Engineering Limited’s IPO is 28 shares with a minimum investment of ₹14,672.
Azad Engineering Limited IPO’s Objectives
The objectives of Azad Engineering Limited's IPO are listed below:
- To fund the capital expenditure of the company.
- To prepay or repay certain outstanding borrowings availed by the company.
- To meet general corporate purposes.
Peer Details
Azad Engineering Limited faces competition from publicly listed players like
- MTAR Technologies Limited
- Paras Defence and Space Technologies Limited
- Dynamatic Technologies Limited
- Triveni Turbine Limited
How To Check the Allotment Status of Azad Engineering Limited’s IPO?
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Contact Details of Azad Engineering Limited
Registered office: 90/C,90/D, Phase-1, I.D.A. Jeedimetla, Hyderabad - 500055, Telangana, India.
Contact Person: Ful Kumar Gautam (Company Secretary and Compliance Officer)
Phone: +91 40 2309 7007
E-mail: cs@azad.in
Company Financials
| Particulars ( ₹ in million ) | Year ending on March 31, 2023 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|
| Total Income | 2,615.21 | 1,992.63 | |
| Profit After Tax (PAT) | 84.73 | 294.57 | 115.00 |
| PAT Margin (%) | 3.37% | 15.15% | 9.37% |
| Total Borrowings | 3,006.01 | 1,971.80 | 877.13 |
| Cash & Cash Equivalents | 194.06 | 44.25 | 17.74 |
| Debt to Equity Ratio(x) | 1.47 | 1.64 | 0.97 |
| Return on Net Worth (RoNW) (%) | 4.23% | 25.37% | 12.65% |
| Earning Per Share (EPS) in absolute ₹ | 1.79 | 6.49 | 2.53 |
Know before investing
Strengths
4Azad Engineering Limited, a key player in 2023, captured about 70% of the global gas turbine market based on its technology and orders in early 2022, continuing to supply this sector.
As of September 30, 2023, Azad Engineering operates 4 production facilities in Hyderabad, Telangana, spanning around 20,000 square meters. The combined annual capacity of these facilities is 642,310 hours, with an actual output of 578,316 hours, resulting in a remarkable 90% capacity utilisation annually.
The company boasts a varied client portfolio strategically dispersed across different regions. Azad Engineering serves an international customer base with substantial footprints in the USA, Europe, Japan, the Middle East, the UK, and China.
Risks
4Azad Engineering Limited heavily depends on its Hyderabad and Telangana facilities for a substantial part of its revenue. Any disruption, malfunction, or shutdown in Hyderabad could adversely affect the company's operations, financial health, and growth prospects.
As of September 30, 2023, the company's total debt, excluding PSCOF CCDs, stood at ₹154.22 crore, with a bank guarantee of ₹0.59 crore. The capacity to pay interest and principal depends on efficient business management and generating adequate cash flow.
The company previously allocated unspent Corporate Social Responsibility (CSR) funds from 2021 to 2023. Future CSR funds might not be used on time, leading to potential penalties. In Fiscal 2021, ₹0.305 crore remained unspent due to difficulties finding suitable projects.
Azad Engineering relies on external parties for product shipping and delivery. Any contingent liabilities in this area could impact the company's profitability and operational results.
