Q1 2027 Azad Engineering Ltd Earnings Call Transcript
Key Points
- Successfully manufactured and delivered India's first indigenous turbojet engine to DRDO, marking a major technological milestone and moving up the value chain.
- Revenue grew 26.8% YoY to INR 170.5 crore, with EBITDA expanding 32.1% YoY and margins improving to 37.6%.
- Inaugurated a new 7,600 sqm dedicated facility for Baker Hughes, enhancing customer stickiness and long-term supply visibility.
- Aerospace and defense segment grew 38.4% YoY, reflecting increased share of wallet with global aviation majors.
- Cost indigenization program reduced raw material costs, improving margins and sustainability.
- Other income dropped sharply to INR 4 crore from INR 9.1 crore YoY due to volatile foreign currency dynamics, impacting net profit growth.
- Employee costs increased significantly to INR 42 crore from INR 29 crore, reflecting hiring ahead of revenue ramp-up.
- Working capital days are elevated at around 170-180 days, with finance costs expected to remain high until H2 FY27.
- Revenue growth of 26.8% is below some global peers, partly due to ongoing stabilization of new facilities.
- Management remains conservative with long-term guidance of 25%+ growth, despite potential for higher growth from new capacities.
Ladies and gentlemen, good day and welcome to the Azad Engineering Limited Q1 FY27 Earnings ( Operators Instructions )
Please note that this conference is being recorded. I now hand the conference over to Mr. Rakesh Choptar, Chairman and Chief Executive Officer, Azad Engineering Limited. Thank you and over to you, sir.
Thank you. Thank you, Team SGA. Good morning, everyone, and a warm welcome to our first quarter earnings conference call for fiscal year 2027. Joining me today is Mr. Vishnu Walpani, our full-time director, Mr. Aronak Jargu, our CFO, and our investor relationship advisor from Sargic Road Advisors. Our standalone and consolidated financial results, along with our latest investor presentation, have been uploaded to the stock exchanges and our website for your reference. To start with, capitalization on global industry megatrends. Before we review our specific operational milestones, it is critical to look at the powerful macroeconomic stailwinds driving our businesses.
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