By Aashika Jain
(Reuters) - British precision engineering group Renishaw Plc's (L:RSW) first-quarter profit doubled, driven by large orders from the Asia-Pacific region which analysts believe are related to new product launches by Apple Inc (O:AAPL).
Shares in Renishaw, a FTSE-250 (FTMC) company, rose as much as 4.6 percent on Thursday morning.
The company, which makes machine tool probes and gauges, said it expected continued investment in production systems leading to greater demand for its products even while it may experience "unpredictable orders" both in terms of size and timing.
Analysts believe the unpredictable orders were arising from the launch of new products by Apple, which is expected to unveil thinner and more powerful iPads. The smartphone maker launched the iPhone 6, iPhone Plus and Apple Watch last month.
Renishaw reported a record 51.2 million pound ($81.8 million) order book for the first quarter ended Sept. 30.
"Basically, the contract manufacturers that make the products for Apple buy products from Renishaw that are used to make these products. So if Apple brings out a new product, it means the contractor of Apple is more likely to buy a whole lot of products from Renishaw," analyst Jo Reedman of N+1 Singer Capital Markets told Reuters.
Renishaw's products, most of which are used for measurement of one type or the other and are used to make production more accurate, include machine tool products, precision measurement and calibration systems.
Renishaw, which reported 28 percent growth in revenue for the first quarter, said it expected the trend to continue into the second quarter.
The Gloucestershire, England-based company said pretax profit rose to 21.3 million pounds in the quarter from 10.6 million pounds a year earlier.
The company's stock was trading 1.2 percent higher at 1,567 pence on the London Stock Exchange at 1025 GMT (1125 EDT).
(Reporting by Aashika Jain in Bangalore; Editing by Gopakumar Warrier and Maju Samuel)