Unimech bags ₹35-cr global order; shares climb 1.2%

Shares of Unimech Aerospace and Manufacturing rose by 1.21% to ₹1,050.50 today, after the precision engineering company announced a major overseas order for ₹35 crore.

The company's announcement, made in a filing to exchanges, stated that it had received an overseas order for the fabrication and supply of ground support equipment that is applicable in the aerospace segment. The order is worth ₹35 crore and is to be completed in a 5-12 month timeframe.

Unimech Aerospace also clarified that there is no interest from its promoters, or promoter group, with the awarding authority and therefore the transaction is not a 'related party' transaction.

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Unimech Aerospace, which specializes in precision engineering, is recognized as a designer, manufacturer and supplier of specialized aerospace components such as aero tooling, ground support equipment and electro-mechanical sub-assemblies. In addition to aerospace, the company services critical industry such as defence, energy and semiconductors providing quality in the high precision industry sectors in which it is a supplier.

While this is a positive development, the most recent financial report indicated that the company saw net profitability decline. Consolidated net profit fell 7.3%, to ₹19.12 crore in Q1 FY2025, even though net sales were up 6.4% to ₹62.99 crore as compared to Q1 for the prior year.

This new order is expected to provide Unimech Aerospace with a stronger growth trajectory and consolidate a position in global aerospace manufacturing. Significantly, rather, it is a first step toward developing a presence globally.