Admach Systems wins Rs 7.92 crore steel-sector NDT equipment order, order book at Rs 76.25 crore
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Admach Systems has received a Rs 7.92 crore domestic order for steel-bar processing and NDT equipment, equivalent to about 10.4 per cent of its reported Rs 76.25 crore order book.
✨ Key Takeaways
Admach Systems Ltd has secured a purchase order worth Rs 791.80 lakh, or about Rs 7.92 crore, from a listed domestic company in the steel industry for supplying processing and non-destructive testing equipment for steel bars.
The order is scheduled to be executed within 26 weeks from the purchase-order date. Admach did not disclose the name of the customer, describing it as a renowned listed domestic steel-industry entity.
The contract adds to Admach Systems’ reported Order Book of Rs 76.25 crore, including GST. Based on the disclosed figures, the new order is equivalent to around 10.4 per cent of the current order book, underlining its relevance to the company’s near-term execution pipeline.
The equipment package will include processing systems and NDT equipment used for examining steel bars without causing damage to the material. Such equipment is typically relevant for quality-control processes in steel manufacturing, where testing helps identify internal or surface defects before products move through further processing or dispatch.
The payment structure provides for collections at multiple stages of execution. Admach will receive 20 per cent of the basic order value after submitting an advance Bank guarantee. A further 70 per cent of the basic value, along with 100 per cent of applicable Tax, will be payable after inspection and submission of a proforma invoice.
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Download Service BrochureThe balance 10 per cent of the basic order value will be released after successful commissioning of the equipment and submission of a performance bank guarantee. The performance guarantee will remain valid for 12 months from successful commissioning or 18 months from dispatch, whichever occurs earlier.
The terms indicate that a substantial part of the basic order value is linked to inspection, while the final retention amount depends on commissioning. This places importance on timely supply, installation and performance of the equipment within the stated execution period.
Admach Systems also said that its promoters, promoter group and group companies do not have any interest in the entity awarding the order. The company confirmed that the transaction is not a related-party transaction.
For investors, the order provides additional visibility on Admach’s domestic industrial-equipment pipeline. However, conversion of the order into revenue will depend on execution within the 26-week schedule, completion of inspection requirements and successful commissioning at the customer site.
Disclaimer: The article is for informational purposes only and not investment advice.