Apollo Micro Systems Wins New Orders Of Rs 12.07 Cr For The Defence Sector

The stock price of Apollo Micro Systems Ltd. (AMS) shot up by 9.3% during Wednesday's trading session after receiving new orders for ₹12.07 crore from a private company. The stock was trading on The Bombay Stock Exchange (BSE) at a price of ₹105.3 which went up to ₹116.20 and closed down to ₹105.05 at the lowest point during the day.

Further supporting its claim, the company was announced as the lowest bidder for ₹5.97 crore worth of contracts from the Ministry Of Defence which will aid in the evolution of the company in the defence industry.

In the previous week, AMS disclosed that they received orders for ₹50.97 crores from several privately held companies for development of security systems and defence products. The latest AMS filings indicate a healthy order back balance, projecting demand AMS will be able to capitalize on for the long term.

AMS continues to establish new alliances which broaden AMS's technological and manufacturing capabilities. Recently, AMS entered the defense vertical through a partnership with Redon Systems and will manufacture Loitering Munition and allied systems like Containerized Automatic Landing Modules. Utilizing the strengths of both defense firms AMS sought to develop complex defense solutions.

Also, AMS has an ongoing 5-year Memorandum of Understanding (MoU) with the Garden Reach Shipbuilders & Engineers Limited (GRSE) which enables them to jointly develop, manufacture, and export advanced weapon and electronic systems. This collaboration is specific to the development of underwater and aerial defence technologies as used in other countries for commercial purposes and for the military.

AMS financial growth has been impressive as revealed by its most recent quarterly and annual reports. In the third quarter of FY25 the net sales of the company increased from the previous year by 62.5% to ₹148.39 crore. In addition, profit after tax soared by 83.1% to ₹18.24 crore. The company's financial record for FY 25's first nine months reflects further growth, as net sales jumped to ₹400.30 crore - a 69.5% increase - while PAT reached ₹42.40 crore, a staggering increase of 133.2% PAT compared to the same period in FY24.

In FY24, AMS financial performance was strong as the recorded figures were Rs 371.63 crores in net sales and Rs 30.11 crores PAT. This marked 24.91 and 66.01 percent increases respectively for a single fiscal year. These financial figures are a testament to profits reinvested and operational expansion efficiency.

Apollo Micro Systems is part of the BSE small-cap index and has a market capitalization of more than 3,700 crores. There is positive sentiment towards the company, which is why Foreign Institutional Investors (FIIs) increased their investment in AMS from 0.19% in September 2024 to 0.74% in December 2024. The stock has done exceptionally well with an increase of 800% in the last three years and 1500% in the last five years.

AMS has been in business since 1985, and over the years, the company has expanded its scope as a supplier and integrator of complex high-value-added electronic and electro-mechanical systems for aerospace and defense and space industries. The company is famous for its major research and development activities which led to technological improvements, including torpedo-homing systems and underwater mines.

Apollo Micro Systems has a strong financial position bolstered by a growing order book, key strategic partnerships, and a solid financial position, cementing its status as one of the leading defense and aerospace manufacturers in India.