Hilton Metal Forging Ltd enters into interim sales agreement for Supply of 360,000 Standard 155mm M107 Bomb Artillery Shells

Hilton Metal Forging Limited ("the Company"), a reputed name in high-quality forging solutions with a strong global presence, with successful development and supply of Forged Railway Wheels for the Indian Railways, is pleased to announce that it has entered into an Interim Sales Agreement for the supply of 360,000 standard 155mm M107 empty bomb artillery shells, with a structured delivery schedule of 15,000 units per month.

Under the terms of the agreement, the Company will execute the order over a 24-month period, reinforcing its strategic expansion into the defence manufacturing sector, a key high-growth vertical.

Key Highlights of the Agreement

- Order Size: Contract for the supply of 3,60,000 (Approx. Rs. 720.00 Crores) empty artillery shells in compliance with the relevant standards and specifications.

- Execution Timeline: Delivery over a period of 24 months, with provision for a mutually agreed grace period.

- Payment Terms: Rolling advance equivalent to 50% of three months' supply, with monthly invoicing payable prior to dispatch and adjusted against advances.

- Revenue Visibility: Estimated monthly billing of approximately INR 30 crore, ensuring stable and predictable cash flows.

- Customer Credentials: The Buyer is registered with the relevant defence authorities and has the requisite approvals.

- Commencement: Supplies are expected to commence at the earliest upon completion of requisite formalities and receipt of advance payments.

- Non-Exclusive Nature: The agreement allows flexibility to cater to additional customers, enabling optimal capacity utilization.

Strategic Advantages & Company Strengths

This agreement highlights Hilton Metal Forging Limited's strong technical capabilities and proven execution track record, including:

- Successful Product Development: The Company has recently successfully developed and executed supplies of forged railway wheels, demonstrating its ability to manufacture critical, high-performance components meeting stringent quality and safety standards.

- Proven Export Excellence: A well-established presence in international markets, recognized for consistent quality, reliability, and on-time delivery.

- Advanced Manufacturing Infrastructure: State-of-the-art forging and machining facilities capable of producing high-specification, defence-grade products.

- Engineering & Metallurgical Expertise: Strong capabilities in handling complex forging requirements in compliance with global standards, including such requisite specifications.

- Scalable & Diversified Operations: Ability to scale production efficiently while diversifying into high-margin sectors such as defence and railways.

- Strong Customer Trust: Long-standing relationships with global clients across oil & gas, engineering, and infrastructure sectors.

Strategic Significance

This Interim Sales Agreement represents a significant inflection point for Hilton Metal Forging Limited. The successful development of forged railway wheels, coupled with this entry into defence manufacturing, reflects the Company's transition towards high-value, technology-driven engineering solutions.

The contract not only enhances revenue visibility and order book strength but also positions the Company as a reliable and capable participant in the global defence and critical infrastructure supply chain.

With its robust manufacturing base, experienced leadership, and demonstrated execution capabilities, the Company is well-positioned to deliver this order efficiently while maintaining the highest standards of quality and compliance.

Commenting on this development, Mr. Yuvraj Malhotra, Chairman & Managing Director of Hilton Metal Forging Limited, stated: "Hilton Metal Forging Limited, with its robust closed-die forging infrastructure, is strategically positioned to capitalize on a vast and largely untapped opportunity within the forgings segment. While our current achievements represent only the beginning, we see significant headroom for scalable growth and value creation.

We are confident that this development will act as a catalyst in unlocking new avenues, strengthening our market position, and driving sustained long-term performance. Our focus remains on delivering consistent value, operational excellence, and innovation.

We are committed to building a future where all our stakeholders can take pride in their association with Hilton Metal Forging Limited, supported by strong growth, enhanced profitability, and enduring trust."

This agreement reinforces our entry and positioning in the global defence supply chain for standard 155mm M107 artillery shells and reflects the confidence of international customers in our engineering and manufacturing capabilities.

The order provides strong visibility for optimal utilization of our manufacturing lines while also creating opportunities to expand supplies to additional customers within the same industry.

Backed by our experienced team, proven execution capabilities-including the successful development and supply of forged railway wheels-and our commitment to quality and timely delivery, we are confident of executing this order to the highest standards."

Shares of Hilton Metal Forging Limited was last trading in BSE at Rs. 17.35 as compared to the previous close of Rs. 14.46. The total number of shares traded during the day was 408785 in over 692 trades.

The stock hit an intraday high of Rs. 17.35 and intraday low of 15.00. The net turnover during the day was Rs. 7031646.00.

Source : Equity Bulls

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