Sunita Tools hit an upper circuit of 2% at Rs 836 after the company's subsidiary, Tripathi Aerotech & Weapons Systems has received a major Letter of Intent (LOI) for the supply of empty artillery shells to a major defence product supplier.
The major order falls within the Rs 200 crore to Rs 300 crore category, according to the project classification.The order involves the supply of 155mm M107 empty artillery shells, with a requirement of 100,000 pieces per annum. Sunita Toolss subsidiary, Tripathi Aerotech & Weapons Systems (formerly Shigna Industrial Corporation) has received approval for the supply of trial samples.
The customer has granted eight months for the setup of manufacturing facilities to produce the items on a large scale. In the interim, the customer will accept trail samples and low-volume batches from the current factory.
Sanjay Pandey, chairman & whole-time technical director of Sunita Tools, said: "We are happy to announce this great news, Its the biggest and major LOI for Sunita Tools group, This will propel Sunita Tools into another league, another industry and a fast growing and highly profitable industry, With massive numbers of 155mm howitzers ordered by the Govt. of India to L&T, Bharat Forge etc. The domestic demand for 155mm M 107 artillery shells is huge; now with the changing dynamics of warfare across the globe most countries have decided to increase their stockpile to 20 months instead of 2 months, Thus export demand for empty shellstoo is huge worldwide. We are sure once we submit trail samples the chances of renewing the supply for 3 years open up, and supplies to other entities opens up as well.
We are gearing up to supply the trail samples and to set up the large-scale setup to complete the order within 20 months of time with monthly deliveries starting as soon as possible; We look forward to the journey ahead and the contributions we will make to the companys overall growth."
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Sunita Tools is engaged in the manufacture of ground plates, mould bases, and precision CNC machining.
On a full-year basis, the company's standalone net profit jumped 61.7% to Rs 4.85 crore in FY24 as against Rs 3 crore posted in FY23. Revenue from operations surged 88.5% to Rs 26.09 crore in FY24 as compared to Rs 13.84 crore recorded in FY23.
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