AIA Engineering hits new 52-week high, soars over 10%

The company reported 28.4 per cent growth in Q1FY23 consolidated net at Rs 191.47 crore, and total income rose by 41.2 per cent YoY to Rs 1,100.33 crore on a YoY basis.

Shares of AIA Engineering soared over 10 per cent to hit a new 52-week high at Rs 2,644 post healthy Q1 results. 

According to a release issued by the company to the BSE on Tuesday, the company's consolidated net profit rose 28.4 per cent to Rs 191.47 crore in the quarter ended June 2022 when compared with Rs 149.10 crore in the corresponding quarter a year ago. Total income was up 41.2 per cent YoY (year-on-year) at Rs 1,100.33 crore. 

At 10:55 AM, the stock traded on a firm note at Rs 2,635 - up 10 per cent in an otherwise flat market. The counter has seen trades of around 13,000 shares as against it two-week daily average volume of around 2,800-odd shares on the BSE.

In the last eight weeks, the stock has rallied nearly 27 per cent as against a 14.5 per cent rally in the benchmark index. Further, the stock has zoomed nearly 79 per cent from its low in early March 2022.

Commenting on the business update the company said, it has been able to navigate Covid linked supply chain interruptions in raw material pricing, customer demand and shipping costs by engaging with the customers on the same. Shipping costs continue to remain elevated but we remain optimistic about rates normalizing in coming quarters as port closure, port constraints on container clearances and vessels and container availability become better and in sync with demand.

The company made focused efforts in sharpening its offerings to mining customers, especially in Gold and Copper and hope to continue the journey of converting forged grinding media to high chrome, the release added.

Further, the company has estimated a capex of Rs 300 crore in FY23, which includes Mill Lining Project, Grinding Media Expansion Project and Hybrid Power Project Wind and Solar Power.

The company's order book as of July 01, 2022, stood at Rs 700 crore.