PTC Collaborates with Dassault Aviation for Indian Titanium Casting Parts

PTC shares surged by 9.9% to reach a 52-week high of Rs 7,266.40 per share on the BSE. This increase followed the announcement of a multi-year agreement between Aerolloy Technologies Limited (ATL), a wholly-owned subsidiary of PTC Industries Limited, and Dassault Aviation, a French manufacturer. The agreement involves the supply of Titanium casting parts manufactured in India. According to the company's exchange filing, this comprehensive pact with the French military aircraft giant encompasses multiple years. As per the terms of the agreement, Aerolloy will be responsible for producing the entire range of Titanium casting parts for the Rafale multirole fighter aircraft and the Falcon business jet program starting in 2024.

"Through this agreement, Aerolloy Technologies is poised to contribute significantly to the enduring success of Make in India – Make for the World. As the only India-based manufacturer of critical titanium cast parts, we are eager to leverage our capabilities to support the growing requirements of the various aircraft in Dassault Aviation’s portfolio", says Sachin Agarwal, Chairman and Managing Director of PTC Industries.

This development follows shortly after PTC entered into a memorandum of understanding (MoU) with Nasmyth, a UK-based company, in December of the previous year. The purpose of this collaboration is to offer solutions to global defense and aerospace customers. PTC India, through the MoU, seeks to bolster its capabilities to meet the specific requirements of Indian customers more effectively. The collaborative effort is intended to concentrate on advancing casting, machining, assembly, and thermal precision engineering capabilities within India, as stated by the company.

On October 19, 2023, PTC India Ltd. announced that it approved ONGC Ltd.'s proposal for the acquisition of its wholly-owned subsidiary, PTC Energy Limited (PEL). The equity value assigned to this deal is Rs 925 crores, with potential adjustments in the bid value as per the bid format. Engaged in electricity trade, it was reported that PTC India traded electricity with Bhutan, Nepal, and Bangladesh, involving large-scale power projects, including renewables. Additionally, the company engages in short-term trading to address supply and demand imbalances prevalent in various regions of the country, the filing states.

PTC India's ownership is distributed, with 83.78% held by the public and 16.22% by the promoter and promoter group. In the second quarter of the fiscal year 2023-24 (Q2FY24), the company reported net sales of Rs 190.25 crore in September 2023, indicating a 2.85% decline compared to the Rs 195.83 crore recorded in September 2022. However, the quarterly net profit showed a positive trend, reaching Rs 59.77 crore in September 2023, marking a 13.5% increase from the Rs 52.66 crore reported in the corresponding period of September 2022. The EBITDA (earnings before interest, tax, depreciation, and amortization) figure also exhibited growth, standing at Rs 188.21 crore in September 2023, reflecting a 5.41% increase from the previous year's figure of Rs 178.55 crore in September 2022.