The Anup Engineering Limited (ANUP) has announced the termination of its manufacturing and supply agreement with Graham India Private Limited and Graham Corporation, USA. The cessation of the agreement, which was originally entered into on August 30, 2024, will take effect from October 2, 2025.

Mutual Decision

According to a regulatory filing by The Anup Engineering, both parties have mutually agreed to discontinue the agreement in its current form. The decision comes in light of the "current dynamic operational and strategic environment," as stated in the company's disclosure to the stock exchanges.

No Material Impact Expected

Importantly, The Anup Engineering has clarified that the termination of this agreement is not expected to have any material impact on its operations or financial performance. The company stated that no business transactions were executed during the tenure of the agreement, and there are no pending orders to be fulfilled.

Continuing Relationship

Despite the termination of the manufacturing agreement, The Anup Engineering emphasized that its relationship with Graham Group remains strong. Both companies intend to continue their pre-existing buyer-supplier relationship in both domestic and international markets.

Future Outlook

The Anup Engineering has reassured investors that its guidance for the full fiscal year 2026 and beyond remains unchanged. The company does not anticipate any impact on its future performance as a result of this agreement cessation.

About the Original Agreement

The original manufacturing and supply agreement, signed in August 2024, was intended to allow The Anup Engineering to manufacture, supply, and deliver products for Graham's Indian and overseas customers. However, no transactions were actually executed under this agreement during its tenure.

This development underscores the dynamic nature of business partnerships in the engineering and manufacturing sector, highlighting the importance of adaptability in response to changing operational and strategic environments.

The Anup Engineering Limited, a leading manufacturer of heat exchangers and industrial equipment, has announced strong financial results for the first quarter and is set to host an institutional investor and analyst meet in Singapore.

Financial Highlights

The company reported a robust performance for Q1:

• Consolidated revenue increased by 20% to ₹175.20 crore, up from ₹146.00 crore in the same quarter of the previous year.
• EBITDA grew by 22.4% to ₹40.40 crore, with margins improving to 23%.
• Profit After Tax (PAT) rose to ₹26.30 crore, representing a 9.6% increase year-over-year.

Strong Orderbook and Pipeline

As of July 31, The Anup Engineering boasts a healthy financial position:

• Consolidated orderbook of ₹604.00 crore, available for billing in the current fiscal year.
• Current inquiry pipeline of ₹1,020.00 crore, expected to close within the next three months.

Product and Market Breakdown

The company's Q1 revenue was primarily driven by:

In terms of market distribution:

Expansion and Capex

The Anup Engineering is currently expanding its manufacturing capabilities:

• Phase 2A construction at the Kheda plant is in progress with a capex of ₹50.00 crore.
• The expansion includes two bays (one complete bay and one open bay).
• Commissioning is expected in Q2.

Investor Meet and Presentation

The company is scheduled to host an institutional investor and analyst meet on August 11-12 at the Ambit Singapore Conference. The investor presentation will cover Q1 results and provide a comprehensive business overview.

Company Profile

The Anup Engineering Limited, with 62 years of experience, specializes in manufacturing heat exchangers, pressure vessels, and industrial equipment. The company serves various industries including oil & gas, petrochemicals, fertilizers, and the emerging hydrogen sector.

Outlook

With a strong orderbook, healthy inquiry pipeline, and ongoing expansion efforts, The Anup Engineering appears well-positioned for continued growth. The company's focus on exports, which account for over 70% of its Q1 revenue, demonstrates its global competitiveness in the industrial equipment manufacturing sector.

Investors and analysts will likely be keen to hear more about the company's strategies for capitalizing on opportunities in the hydrogen industry and its plans for further expanding its manufacturing capabilities during the upcoming investor meet in Singapore.