Avantel Ltd has seen a significant surge in its share price following the announcement of a substantial order win from Larsen & Toubro (L&T). The company has secured a purchase order valued at Rs 44.49 crore for the supply of satcom systems.
As a result of this order, Avantel's stock price jumped by approximately 9% to Rs 197.05. This increase reflects the market's positive response to the company's ability to secure major contracts, particularly in the defence and telecommunications sectors.
Contract Details
The contract, which is expected to be executed by March 2025, involves the supply of satcom systems. This order aligns with Avantel's specialization in providing strategic solutions to the Indian Defence Services and related establishments.
Avantel has a diverse portfolio that includes the development and manufacture of radio components, satellite communications, HF communications, electronic warfare, and radar systems. The company is also working on expanding its offerings by developing SCA-compliant software-defined radios, high power HF systems, air defence radars, and small satellites.
Financial Performance
Despite the positive news from the order win, Avantel's financial performance in the first quarter of FY25 showed a decline. The company's consolidated net profit decreased by 7.9% to Rs 7.38 crore, while net sales fell by 24.9% to Rs 51.76 crore compared to the same period in FY24.
Long-Term Performance
Over the past two years, Avantel's shares have shown remarkable growth, increasing by 796%. This significant rise underscores the company's growing presence and success in the defence and telecommunications sectors.
