Walchandnagar Ind wins Rs77-cr Isro order, expects Rs100-cr defence order
13 September 2019
Walchandnagar Industries has secured an order worth Rs77.20 crore from Vikram Sarabhai Space Centre of Isro (Thiruvananthapuram). The order is for the manufacture and supply of head, middle and nozzle end segments (total 30 numbers) for the GSLV MK III launch vehicle.
"Walchandnagar Industries Ltd (WIL) secured an order worth Rs77.20 crore plus escalation from the Vikram Sarabhai Space Centre of Isro located at Thiruvananthapuram. The order is towards manufacturing and supply of head, middle and nozzle end segments (total 30) for the GSLV MK lll launch vehicle. It is WlL's second-largest single order from Isro and the largest as far as the GSLV-MKlll launch vehicle is concerned," the Pune-based heavy engineering firm said.
This is the second-largest single order from Isro and the largest as far as the GSLV-MK III launch vehicle is concerned, Walcahandnagar said. The order is a significant milestone for its aerospace business.
Walchandnagar Industries share price hit its upper circuit of 20 per cent to Rs72.15 against the previous close of Rs60.15 on BSE in early trade today after the firm said it has secured an order worth Rs77.20 crore from Indian Space Research Organisation (Isro). The stock ended the previous day at Rs60.15 on BSE.
There were only buyers, no sellers in the stock.
Investors in Walchandnagar Industries became richer by Rs45.69 crore today after market capitalisation of the firm rose from Rs228.99 crore in previous session to Rs274.68 crore on BSE today.
The microcap stock has been gaining for the last 5 days and has risen 34.48 per cent during the period. However, the stock has lost 26.86 per cent since the beginning of this year and fallen 45.46 per cent during last one year.
Walchandnagar Industries is expecting defence orders for Akash Missiles to the tune of more than Rs100 crore in the next couple of months, GK Pillai, managing director and CEO of the company, said.
Pillai said there have been delays in the finalisation of defence orders and the overall order book from the segment stands at Rs150 crore. "Order inflows from that segment till date (this year) have been only to the extent of Rs10-12 crore, which could be due to non-clearance of the budget for the defence expenditure," CNBC-TV18 quoted Pillai as stating in an interview.
The total order book of the company currently stands at Rs850 crore and the total debt for the company is around Rs650 crore, added Pillai.