Paras Defence DRDO Contract: Paras Defence and Space Technologies has received a new project from the Defence Research and Development Organisation (DRDO), which works under the Ministry of Defence. The company shared this update in an exchange filing on Monday.
The order is worth about ₹80.28 crore and this amount already includes taxes. According to the company, the project is for building a special and very accurate optical system that will be used in air defence. These systems help detect and track things in the air, which is important for protecting the country.
The company explained that the work will be done in India because the order has been given by DRDO, which is a domestic organisation under the Ministry of Defence. The project will focus on the development of this specialised optical system meant for air defence use.
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Paras Defence also said that the project will take about 18 months to complete starting from the date when the supply order is issued.
The company also made it clear that neither the promoter nor the promoter group has any connection or interest in the organisation that gave this contract. It also confirmed that the deal is not a related party transaction.
Share Price
While the news of the order came out, the company’s shares were trading slightly lower during the day. At around 2:09 PM on Monday, the stock of Paras Defence and Space Technologies was trading at ₹1860 per share. The price was down by 2.36% during the session.
Company’s Financial Performance
Paras Defence also recently shared its financial results for the December quarter. The company reported a strong increase in profit compared to the same period last year.
Net profit for the quarter rose by 21.3% and reached ₹18.2 crore. In the same quarter last year, the profit stood at ₹15 crore.
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The company’s revenue also showed good growth. Total revenue increased by 24% and reached ₹106.4 crore. A year earlier, the company had reported revenue of ₹85.8 crore.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) also moved up. EBITDA increased by 19% year-on-year and stood at ₹26.3 crore.
However, the EBITDA margin slightly reduced. It came down to 24.7% from 25.8% in the same quarter last year. The company said this happened because overall expenses increased. Finance costs and employee benefit expenses were higher which affected profitability.
Segment Performance
Looking at the business segments, the Optics and Optronics Systems division showed strong growth. Revenue from this segment increased to ₹58.4 crore. Last year during the same period it was ₹44.4 crore.
The Defence Engineering segment also reported higher revenue. This division generated ₹47.95 crore during the quarter. In the same quarter last year, it had reported revenue of ₹41.33 crore.
