Profit statements

Six of seven new defense companies created from OFB report interim profit

The ministry said that soon after their establishment, these companies were able to secure domestic contracts and export orders.

The ministry said that soon after their establishment, these companies were able to secure domestic contracts and export orders.

Six of the seven new defense companies created by the corporatization of the Ordnance Factory Board (OFB) last October reported interim profits in the first six months of business from Oct. 1, 2021 to March 31, 2022, it said. Friday the Ministry of Defense. .

“In the first six months, the new ventures had a turnover of over ₹8,400 crore, which is significant considering the issue value of the old OFB in previous years.”

With the exception of Yantra India Ltd. (YIL), all other companies — Munitions India Ltd. (MIL); Nigam Armored Vehicles Ltd. (AVANI); Advanced Weapons and Equipment India Ltd. (AWE India); Troop Comforts Ltd. (TCL); India Optel Ltd. (IOL) and Gliders India Ltd. (GIL) – reported interim earnings, the statement said.

The ministry said that soon after their establishment, these companies were able to secure domestic contracts and export orders worth over ₹3,000 crore and ₹600 crore respectively. The MIL won one of the largest ammunition export orders of ₹500 crore.

These companies are also taking steps to develop new products through internal and collaborative efforts. The YIL received orders of around ₹251 crore from Indian Railways for the axles.

After the OFB was dissolved, all outstanding withdrawals with the old OFB were acquired and converted into deemed contracts worth approximately ₹70,776 crore. Against the targets for the 2021-22 financial year, ₹7,765 crore was credited to the new defense companies as a 60% mobilization advance before the commencement of the opening date. An amount of ₹2,765.95 crore has been paid to the seven new companies in the current financial year for capital expenditure and equity, the ministry said.

The new entities were able to achieve cumulative savings of approximately 9.48% in areas such as overtime and non-production activities within the first six months themselves, the statement added.