Apollo Micro Systems receives license to manufacture high energy explosives; Shares up 3.6%

Synopsis: Apollo Micro Systems has informed the stock exchange that its step-down subsidiary has been granted an Industrial License to manufacture HMX and TNT explosives. 

The shares of this defence company are engaged in designing and developing the time critical solutions for the defence players, such as DRDO, Indian Army, Indian Navy, and more jumped upto 4 percent upon receiving industry licences to manufacture high-energy explosives 

With the market capitalization of Rs. 8268 Crores, the shares of Apollo Micro Systems have reached an intraday high of Rs. 234.8 per equity share, rising nearly 3.6 percent from its previous day close of Rs. 226.65

What is the NEWS: 

Apollo Micro Systems Limited has informed the stock exchanges that its step-down subsidiary, IDL Explosives Limited, has been granted an Industrial License under the Industries (Development & Regulation) Act, 1951 for the manufacturing of HMX (Cyclotetramethylenetetranitramine) and Trinitrotoluene (TNT).

The approved licensed capacity stands at 50 MTPA for HMX and 500 MTPA for TNT, with manufacturing to be carried out at the approved facility located at San Sunaparbat, Rourkela, Odisha. The industrial license is valid for a period of 15 years from the date of issuance.

 According to the company, this license allows the subsidiary to manufacture high-energy explosives for both industrial and defence applications, strengthens its ability to meet captive requirements for defence explosives, and creates opportunities to serve domestic as well as international markets. Management highlighted that the grant of the license validates the company’s technical expertise, operational excellence, and adherence to safety and quality standards, while supporting India’s Atmanirbhar Bharat initiative and positioning the subsidiary as a domestic supplier of high-energy materials.

Company Overview & Financial Highlights

Apollo Micro Systems Limited is a 40-year-old pioneer in defence technology, primarily engaged in the design, development, and manufacture of advanced electronic and electro-mechanical systems and components.

The company is actively involved in the supply of mission-critical systems supported by in-house research and development, catering to key defence applications such as missile and underwater missile programmes, weapon systems electronics, avionics systems, ship-borne systems, and submarine systems.

With multi-domain and multidisciplinary capabilities backed by robust infrastructure, Apollo Micro Systems is well-positioned to develop cutting-edge defence technologies and deliver them at scale to meet India’s national strategic requirements.

Year-on-Year analysis: Apollo Micro Systems revenue has shot up significantly from Rs. 161 crores  to Rs. 225 crores, up 39.7 percent. Operating profit increased by 78 percent, from Rs. 33 crores  to Rs. 59 crores and Net profit increased by 106 percent from Rs.16 crores  to Rs. 33 crores 

Quarter-on-Quarter analysis: Apollo Micro Systems revenue has shot up significantly on a quarterly basis from Rs. 134 to Rs. 225, up by 67.9 percent, operating profit up by 44 percent from Rs. 41 crores to Rs. 59 crores and net profit up by 73 percent from Rs. 19 crores to Rs. 33 crores. 

Written by-Vachan Kadli

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