Shares of Azad Engineering Ltd surged 4% on 29 September after the company announced signing a new long-term contract and price agreement with Japan’s Mitsubishi Heavy Industries Ltd worth $73.47 million (Rs 651 crore) on Friday. 

The deal comprises the provision of highly developed, complicated rotating and stationary airfoils for sophisticated gas and thermal power turbine engines, which will assist MHI in meeting global power-generating demand.

The agreement is an addition to an existing contract signed on 3 November 2024. The two firms’ contracts total $156.36 million (Rs 1,387 crore).

The long-term international contract has a five-year duration. Azad Engineering stated that it does not own any shares in MHI and that there are no related party transactions involved.

Azad Engineering announced its first-quarter earnings last month. The company’s net profit climbed by 73.7% to Rs 29.7 crore, sales increased by 39.2% to Rs 137 crore, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 50% to Rs 49.2 crore compared to the previous year. 

At 12:13 pm, the shares of Azad Engineering were trading 1.13% higher at Rs 1,574.40 on NSE.

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