NIBE Ltd hits upper circuit after company announces MoU to supply space related equipments, services and systems

NIBE Ltd witnessed stellar growth in Q1FY25 numbers with revenue more than doubling to ₹109 crore from ₹25 core in Q4FY24. The company is engaged in the business of Fabrication and Machining of components used in the Defence Sector as well as assembly of components of E Vehicles.

NIBE’s subsidiary, Nibe Space, has signed a Memorandum of Understanding (MoU) with leading infra & Defence Companies and Startups of India, namely Larsen & Toubro; Centum Electronics; Space Fields, SISIR Radar; CYRAN AI Solutions, AgniKul Cosmos; DV2JS Innovation LLP; Thales Alenia Space, France; and Thales India.

The MoU aims to collaborate as a consortium to supply equipment, services, skills, systems, support services, etc., to build and operate a Private Earth Observation Constellation and corresponding ground segment. The constellation will be provided on a lease basis and offer images and analytics as a service. These MoUs are valid for 12 to 24 months, as stated in the respective agreements.

The company is engaged in the business of Fabrication and Machining of components used in the Defence Sector as well as assembly of components of E Vehicles. It also offers strategic products and related research advancements in the E-Vehicles division and the BVM R&D Foundation.

Coming to the earnings, the total revenue for the quarter jumped 324.45%, ₹109 crore, for the June 2024 quarter, as against ₹25.7 crore during the corresponding quarter last year. Net profit grew by 501.45%, from ₹ 1.3 crore to ₹ 7.8 crore in the same quarter last year. While the operating profit grew substantially to ₹16.4 crore from ₹ 3.8 crore in the quarter ended June 2024.

Following the news, shares of NIBE ltd jumped 5% at ₹1,942 apiece on the NSE on Monday.