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AXISCADES Engineering hits the roof after turnaround Q3 show

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AXISCADES Engineering Technologies hit an upper-circuit limit of 20% to Rs 75.15 crore after reporting a net profit of Rs 8.03 crore in Q3 December 2019 compared with net loss of Rs 0.73 crore in Q3 December 2018.

On a consolidated basis, net sales rose 4.9% to Rs 167.23 crore in Q3 December 2019 over Q3 December 2018. Profit before tax soared 804.4% to Rs 12.39 crore in Q3 December 2019 as compared to Rs 1.37 crore in Q3 December 2018. Tax expense rose 27.4% to Rs 2.79 crore in Q3 December 2019 as against Rs 2.19 crore paid in Q3 December 2018. The Q3 results were declared after trading hours yesterday, 22 January 2020.

The company recorded the highest ever EBITDA margin of 16% during the quarter, boosted through operational productivity measures and closer alignment to customers with enhanced service lines.

During the quarter, the firm renewed its two multi-year contracts; first, a major European Aerospace customer renewed their contract with increased scope of delivery and additional areas of business. Second, the company renewed its multi-year contract with global heavy engineering customer with increased scope and geographic coverage. It also signed a new contract with heavy engineering customer in North America. Amongst other wins, the company also received orders from a European OEM.

Speaking on the Q3 performance, David Bradley, the chairman of AXISCADES Engineering Technologies, has said that, "We have done some intensive groundwork to enhance our go-to-market approach and strengthen our relationship with existing clients for repeat business. Considerable steps have been taken to continue fostering high performance and agile work culture that is well suited to meet the stringent demands of the industries we operate in. With a good quarter in the bag, we are looking to end the financial year on a strong note with increased focus on our key strategies."

AXISCADES Engineering Technologies provides mechanical, electrical, electronics and manufacturing engineering services. It caters to the aerospace, defense, heavy engineering, automotive and industrial production sectors.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, January 23 2020. 12:16 IST