Indian-Dutch partnersship to seek export markets
A new Joint Venture with VABO Composite of the Netherlands, now in the company formation stage, is set to manufacture composite doors, hatches, and superstructures for the Indian Navy and export to South East Asia, the Middle East and Europe, said Krishna Defence and Allied Industries Ltd (Bloomberg: KRISHNDF IN) (NSE: KRISHNADEF).
Krishna Defence hold 51% share in the JV. Both partners will make initial investments to establish a state-of-the-art manufacturing setup in India.
“The JV will be looking to target markets in South East Asia, the Middle East and Europe,” Krishna Defence said on 21 May.
The key product ‘Composite Doors & Hatches’ is in the last phase of trial with the Indian Navy, said the company in financial results for the year ended 31 March 2025.
Key Business highlights for FY25
• Capacity Expansion at Halol Facility – Increased manufacturing capacity for shipbuilding steel sections, with the additional capacity becoming operational in April 2025.
• Order Book Status – As of 31 March 2025, the unexecuted order book stands at Rs.269 crore, representing 1.3x of FY25 revenue. During the year the company received order inflows to the tune of approximately Rs 273 crore, while it executed orders worth approximately Rs 195 crore.
The company highlighted growth during the year:
Strategic Stake Acquired in Conceptia Software Technologies: Acquired a 20% stake in Conceptia Software Technologies Pvt. Ltd, a leading design and engineering partner in marine, shipbuilding, and oil & gas industries across India, the Middle East, and Asia Pacific, with over 20 years of expertise
Increased Shareholding in Waveoptix: Raised stake in Waveoptix Defence Solutions Pvt Ltd from 25% to 40%. Waveoptix is in the design, development and manufacturing of RF, Microwave, Optics Systems solution for Defence and Aerospace, with special focus on Optic Fibre over Radio Frequency for long distance and secure signal transmission. Within just 6 months of establishment, the company has successfully developed and supplied their FIRST Indigenously Developed Bidirectional RF Over Fiber module for Radio Communications to the Indian Defence, fulfilling a crucial need.
“We are aiming to grow at 30-40% CAGR for the next 3 – 5 years,” it said.
Key drivers for future growth:
Development of New Defence Products
The company is working towards new product development for the defence to indigenise the products which are currently being imported, Off set contract obligation and to collaborate with Defence Research Agencies / Foreign agencies to develop and manufacture the products.
Defence Electronics
Krishna Defence & Allied Industries Limited is currently in the process of evaluating investing in company specifically incorporated for designing, developing and manufacturing defence electronics for the Defence & Aerospace industry.
The company is eligible for migration from the NSE-SME Emerge (SME) exchange to the main board of both the major exchanges of NSE and BSE. It has initiated the process for the same and are expecting the approval for migration to the main board post which we will look forward to declaring quarterly results.
Commenting on the performance, Krishna Defence Managing Director Ankur Shah said, “FY2024-25 has been a redefining year for us. We recorded our best ever Revenue, EBITDA and Net Profit for the half year period as well as year and our best ever EBITDA and PAT margins for a half year period or for a full year. Our strong order inflow of Rs.273 crore during the year was also backed by strong execution of orders to the tune of Rs.195 crore, even as our capacity expansion for the ship building steel sections business came into play in the last quartile of FY25.
“During the year, we have taken significant steps in building up on our existing JVs as well as entering into new JVs, all of which are focused on making us a larger company with strong areas of business across the defence sector in India as well as international (for certain products) markets.
“We have also initiated the process of migrating to the main board of both the exchanges from the NSE-Emerge (SME) exchange. Overall, in line with our guidance, we are confident of achieving growth of 30-40% CAGR over the next 3-5 years.”
Highest ever FY25 Revenue, EBITDA and Net Profit grew ~83%, 96% and 124% respectively. Revenue was Rs.1,948.7 crore, EBITDA was Rs.303.1 crore, and PAT was Rs.219.2 crore.
Krishna Defence and Allied Industries Limited is a rapidly advancing defence company, providing critical components to the Indian Navy for its warships and developing special products for the Indian Army, in line with the national goal of achieving indigenous defence products manufacturing capabilities and self-sustainability in the years to come. Fiinews.com
