Defence Stock Secures DRDO Orders Worth Rs 7.37 Cr, Reports Exceptional Financial Growth

Apollo Micro Systems Ltd (M/s AMS) is involved in the development of electronic and electro-mechanical systems for strategic and other important areas. AMS has received orders from the Defence Research and Development Organisation (DRDO) for a total of INR 7.37 crore and has been identified as the Lowest Bidder (L1), which follows the order of Rs 6.14 crore that was recently awarded by DRDO.

The company has shown a remarkable performance in Q2FY25, where total earned income rose massively to Rs 161.30 crore, reflecting a growth of 85% compared to the same quarter of FY24. The profit after tax also skyrocketed and AMS reported Rs 15.73 crore, which reflects a growth of over 140%. In the first half of FY25 (H1 FY25), net sales were Rs 253.09 crore showing an increase of 74%, while there was a PAT of Rs 24.16 crore recorded which indicates a staggering increase of 194% when compared to H1 FY24. For the complete FY24, AMS has reported net sales of Rs 371.63 crore which is an increase of 24.91% as compared with FY23. Furthermore, AMS reported PAT of Rs 31.11 crore which reflects a growth of 66.01%.

The Board gave its consent for the private placement of shares that would give substantial financial resources for the development of projects the company is working on. These included issuance of equity shares amounting to Rs 380.97 crore against 33418806 shares at Rs 114 each; and issuance of 38167059 convertible warrants which raised another Rs 435.10 crore. The warrants are to be converted to equity shares at par within six months of issue.

Apollo Micro Systems is also progressing in the area of securing orders for defence and aerospace projects. Previously, the company has received orders from BEL and CNA (OF) Pune Rs. 28.74 crore and contracts from Reliance Technology Systems, Economic Explosives Ltd, and Bharat Dynamics Ltd AMS have also been picked up by ARDE-DRDO to produce Munition Hardware for PRACHAND and has also received a contract for development of Rocket Guided Bombs for Anti-Submarine Warfare.

The company's standing in the stock market increased to over Rs 3600 crore making it a part of the BSE Small-Cap Index. AMS has performed commendably for their investors by increasing the stock price by 725% in the last three years and 1500% in the last five years.

Apollo Micro Systems, formed in 1985, is today one of the leading companies in the aerospace, defence, and space sectors. Apart from the development of torpedo-homing devices and underwater mines, the company has made other significant advances thanks to its focus on R&D.

Apollo Micro Systems is a market leader in critical technology solutions and maintains that status through a commitment to innovation. The company's existing projects, coupled with its healthy financial status, have also placed it in an ideal position to invest in new initiatives in defence and aerospace technology.