1 hour ago
HomeMarket NewsDEE Development Engineers shares fall 10% after West Asia war impacts export orders
DEE Development Engineers said that the these developments are expected to have a limited bearing on DEE's overall performance for the current period.
Shares of DEE Development Engineers Ltd. fell as much as 10% on Wednesday, March 18, after the conflict in West Asia has impacted export orders to the region due to disruptions in the Strait of Hormuz.
The immediate consequence has been that export orders to the customers have been impacted, the company said in an exchange filing. "Certain shipments that were scheduled for execution in the near-term are now at the risk of delay or non-fulfilment, a situation that falls squarely within the ambit of Force Majeure, under the terms of our export contracts," the company stated.
Affected overseas buyers have been contacted by the company, who said that they are working with them through this period.
Additionally, the government has also invoked the Essential Commodities Act, 1955, and also notified the Natural Gas (Supply Regulation) Order, 2026. As per this, the supply of LPG and natural gas to industrial and commercial consumers has been regulated, with supplies being capped at 80% and to fertilizer plants at 70% of contracted volumes.
The company stated that while they are in compliance with these directives, the near-term supply to certain domestic clients will also be impacted.
"Taken together, these developments are expected to have a limited bearing on DEE's overall performance for the current period," the company stated, adding that the order book is healthy, manufacturing capabilities remain fully intact and financial position is stable.
The release does not disclose the company's overall exposure to West Asia or the overall financial implications of these developments.
DEE Development Engineers provides piping solutions for oil and gas industry, power, chemicals, and other customers in India and overseas.
Shares of DEE Development Engineers are trading 8.6% lower on Wednesday at ₹286.95. The stock had surged 55% in the month of February. The surge last month also brought the stock back above its IPO price of ₹203 per share.
