Shares of Azad Engineering Ltd. rose almost 2.5% after the company announced in its regulatory filing that it has signed a five-year Strategic Supply Agreement (SSA) with Baker Hughes, a US-based company.

This long-term contract will involve the supply of medium to high-complex precision machined components for Oil Field Services. The contract is expected to bring substantial business value over the next five years and can be extended for up to an additional three-year term.

Last Financial year (FY23), the company earned 87% of its revenue from the energy industry. Aerospace & Defense contributed 9%, while oil & gas and scrap industry each made up 0.05% and 4% respectively.

The company raised Rs. 740 crore through an Initial public offer (IPO), with Rs. 240 crore from new shares and Rs. 500 crore from existing shares through an Offer for sale (OFS).

The company’s revenue grew by 48% Year-on-Year, from Rs. 60 crores in third quarter of FY23 to Rs. 89 crores in Q3FY24, with net profit surging by 325%, from Rs. 4 crores to Rs. 17 crores.

The company is a technology-driven and innovative company with manufacturing facilities and high-quality products that meet global standards. They manufacture high-quality component lines for aerospace and defence, energy, and oil and gas industries. The products include complex and highly engineered components such as 3D rotating airfoil portions of turbine engines for critical missions.

The company caters to prominent Original Equipment Manufacturers (OEMs) in the global supply chain with its high-precision manufacturing capability for precision forging and machining. Since its inception, the company has been supplying components to the USA, China, Europe, the Middle East, and Japan.

However, at 3:30 pm, the company lost all its early gains and closed at a 1.52% lower rate of Rs 1,283.00 on NSE.