Avantel shines on order win from Bharat Electronics

Avantel has informed the bourses that it has received one order, amounting to Rs 5.95 crore, from Bharat Electronics Limited, Bangalore. Under this order, Avantel will supply satellite communication equipment to Bharat Electronics.

The company has also received two other orders, amounting to Rs 42.98 crore, from ISRO and the Ministry of Defence in the pervious week.

Avantel is engaged in the business of manufacturing telecom products and provides related customer support services. The company derives 80 per cent of its revenue from the defence segment.

Looking at the financials for the recently concluded quarter Q2FY20, the company’s consolidated revenue came in at Rs 8.06 crore against Rs 10.08 crore in the corresponding quarter last year, registering a 20 per cent YoY decline. The EBITDA for the quarter grew by 103.9 per cent YoY to Rs 3.14 crore compared to Rs 1.54 crore in the same quarter last year, with a corresponding margin expansion of 2368 bps. The EBITDA margin for the quarter stood at 39 per cent. The PAT for the quarter came in at Rs 2.38 crore from Rs 0.62 crore in the corresponding quarter last year, YoY increase of 283.9 per cent. The company has given almost 35 per cent return in last one year.

Reacting to this order win, the stock of Avantel jumped nearly 4 per cent and made an intraday high of Rs 303 on the BSE.