Apollo Microsystems shares surge 11% after bagging ₹113 crore export order

Shares of Apollo Microsystems surged as much as 11% on Wednesday, May 28, after the company announced that it had managed to receive and export an order worth ₹113.81 crore.

In an exchange filing, the company said it has received an export order valued at $13.36 million or about ₹113.81 crore.

This deal was signed for the development of an avionic system intended for use in civil and military aircraft applications.
However, the company did not disclose any further specific details, because of the ‘sensitive nature’ of the engagement; specific technical and program details are bound by a Non-Disclosure Agreement (NDA) with the customer.

Earlier this month, the company acquired a 100% stake in IDL Explosives Ltd. for ₹107 crore in an all-cash deal.

IDL Explosives is involved in the manufacturing and supply of packaged and bulk explosives used in mining and infrastructure projects.

Apollo Micro reported results last week with its revenue for the full financial year grow by 19% from last year, while margins also expanded by 100 basis points year-on-year.

The company’s order book at the end of the year stood at ₹615 crore from ₹550 crore at the end of the December quarter.

During its earnings call, the Apollo Micro Systems management said that it is expecting its revenue to grow at a Compounded Annual Growth Rate (CAGR) between 45% to 50% over the next two years. The management also expects its order book to triple by the end of the year.

Apollo Micro is expecting large orders from pertaining to the Quick Reaction Surface to Air (QRSAM) from Bharat Dynamics within the next two quarters as well.

Shares of Apollo Micro Systems have gained 11.6% after the order win, and are now trading at ₹173.85. The stock has risen 52% in the last one month.

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