Balu Forge Industries Ltd wins order to supply Powertrain Sub-assemblies

Balu Forge Industries Ltd (BFIL), a forging and machining company based out of India, has secured a major trial order to supply Powertrain sub-assemblies to a tractor manufacturer based out of the middle east. The contract is a testament to the quality of BFIL's products and its commitment to providing innovative solutions that meet the evolving needs of the agricultural industry.

Under the terms of the contract, BFIL will supply a range of powertrain sub-assemblies. These components will be used in the production of engines that will power a variety of tractors.

The trial order initially comprises of supplying 10,000 sets of sub-assemblies & there is scope to increase the same to over 50,000 annually. BFIL has already started the supply under the said contract and expects to generate further revenues in upcoming quarters.

This order win is in line with the overall strategic initiatives taken by the management on expanding its presence in the international market while increasing the suite of products offerings by BFIL.

This marks an entrant for BFIL in the field of powertrain sub assembly production & supplies which will build a strong foundation for the company with the objective of adding Sub Assemblies for new energy vehicles to its product mix in the near future as well.

Commenting on the announcement, the Management team of Balu Forge Industries Ltd, stated: "We are thrilled to have been selected as the supplier of Powertrain sub-assemblies to the tractor manufacturer based out of the middle east. This contract is a testament to our expertise in the agricultural industry and our commitment to delivering critical and advanced products.

BFIL has been at the forefront of precision component manufacturing for many years, and this order further cements its position as a trusted supplier to the agricultural industry.

We are confident that our half engine and assemblies will meet the standards of our customer and exceed their expectations and accordingly help us build a strong, long term successful partnership with them.

On the financial front, the order is expected to support our long term growth plans and yield healthy EBITDA margins.

Further, BFIL remains committed in delivering the best possible products and services to its customers, and this order is reflective of its ongoing efforts to achieve excellence in every aspect of its business from product designing to execution.

The company looks forward to innovate and grow, and to serving its customers with the highest levels of quality, reliability, and customer service."

Shares of Balu Forge Industries Ltd was last trading in BSE at Rs. 89.68 as compared to the previous close of Rs. 89.64. The total number of shares traded during the day was 121282 in over 731 trades.

The stock hit an intraday high of Rs. 92.00 and intraday low of 89.00. The net turnover during the day was Rs. 10992307.00.

Source : Equity Bulls

Keywords

BaluForgeIndustries INE011E01029 OrderWin PowertrainSubAssemblies TractorManufacturer MiddleEast