Defence stock jumps 5% after receiving license to manufacture UAVs & radar systems

Synopsis::
Apollo Micro Systems Limited has been granted a defence license from DPIIT, Ministry of Commerce & Industry, Government of India to manufacture defence items at Mallapur, Hyderabad.

The shares of this defence company engaged in designing and developing the time critical solutions for the defence players such as DRDO, Indian Army, Indian Navy, and more jumped upto 5 percent in the day’s trade upon receiving defence license from the Ministry of Commerce & Industry.

With the market capitalization of Rs. 9890 crores, the share of Apollo Micro Systems Limited  has reached an intraday high of Rs. 281.5 per equity share, rising nearly 5% percent from previous day close price of Rs. 268.30.

What is the News

Apollo Micro Systems Limited has obtained a defence license under I(D&R) Act,1951 whose regulatory body includes DPIIT, Ministry of Commerce & Industry and Government of India. The license is obtained for Manufacturing of equipment under Categories of Defence Aircraft for Unmanned Helicopters activity which includes Unmanned Aerial Systems. The License has also been granted under Category of Allied Defence Equipment for manufacturing  Inertial Navigation Systems and Radar Equipments.

The obtained license would open various opportunities for the company to manufacture with the Ministry of Defence, license is valid for 15 years from the date of issue of the license. In addition, the company is collaborating with several domestic and international partners for the development of logistics and delivery UAV systems as well as offensive/attack-class unmanned systems. These systems are progressing as per schedule and are expected to enter field trials within the next two quarters. 

The Product portfolio under development includes

•  MEMS-based Inertial Navigation Systems 
•  Fiber Optic Gyro (FOG) based Navigation Systems  
•  Ring Laser Gyro (RLG) based Navigation Systems  
•  Rader Equipments 

Company Overview & Financial Highlights

AMS is a leading technology provider of high-performance, mission-critical solutions for the defence sector. The company specializes in electronic, electromechanical, and engineering design, along with the manufacturing and supply of advanced systems. It provides wide range of strategic domains, including Missile Systems, Satellite and Space Systems, Naval Systems, Avionics, and Homeland Security.

It has 700+ onboard technologies and is actively involved in 150+ indigenous programs and 60 DcPP programs as a sub-system partner. It has a presence in all Missile and Naval warfare programs. 

Year-on-Year analysis: Apollo Micro Systems revenue has shot up significantly from Rs. 161 crores  to Rs. 225 crores up 39.7 percent, operating profit increased by 78 percentage, from Rs. 33 crores  to Rs. 59 crores and Net profit increased by 106 percentage from Rs.16 crores  to Rs. 33 crores 

Quarter-on-Quarter analysis: Apollo Micro Systems revenue has shot up significantly on a quarterly basis from Rs. 134 to Rs. 225, up by 67.9 percent, operating profit up by 44 percent from Rs. 41 crores to Rs. 59 crores and net profit up by 73 percent from Rs. 19 crores to Rs. 33 crores. 

Written by-Vachan Kadli

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