Image Source: IPO Watch
Master Components Limited is pleased to confirm the securing of large orders aggregating ₹62.7 million (exclusive of tax) in the current fiscal year, the beginning of which is looking solid for FY25. Comprising an annual deal worth ₹50 million and a quarterly order amounting to ₹12.7 million, these orders further validate the firm's increasing penetration of the Indian automobile components industry.
Purchase Orders of ₹62.7 Million:
Master Components has obtained a purchase order of ₹50 million for the year and another order of ₹12.7 million for a quarter, both tax-free. These orders demonstrate strong demand from customers and support the company's order book for FY25.
Ability to Focus on Automotive Segment:
The most recent deals are for the supply of components and tools to Indian automakers, facilitating the production of different automobile parts. This reflects Master Components' main business and focus on precision engineering.
Implementation Timeline:
The deals are to be implemented within the ongoing financial year, with certain orders to be finished by August 2025. This provides a consistent revenue flow and operational visibility for the firm.
Patterned Payment Terms:
Payment against these orders will be staggered, i.e., 20% upon issue of purchase order, 30% upon design approval, 30% upon sample approval, and the balance upon final acceptance to provide liquidity across the project duration.
Strengthening Market Position:
These victories showcase Master Components' capacity to win repeat business and new contracts from top-tier automotive players as a testament to its quality and reliability reputation.
Positive Outlook:
The latest financial results and increasing order book of the company indicate sustained momentum in the future quarters, while other market volatilities subside.
"These new orders underpin our determination to supply good quality components to India's auto sector and prepare us for a continued growth during FY25," added a spokesperson for the company.
Source: MarketScreener, MoneyWorks4Me
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