In a significant development for India’s defence technology sector, Paras Defence and Space Technologies has received an order worth about ₹80.28 crore, including taxes, from the Defence Research and Development Organisation under the Ministry of Defence. The company disclosed the contract through an exchange filing.
According to the filing, the order is for the development of a high-precision optical system designed for air defence applications. The project will involve specialised development work related to advanced optical technology intended for defence use.
The order has been awarded by DRDO, a domestic entity operating under the Ministry of Defence. The total value of the contract is estimated at approximately ₹80.28 crore, inclusive of taxes.
Paras Defence stated that the execution timeline for the project will be 18 months from the date of the supply order. The company also clarified that neither the promoter nor the promoter group has any interest in the entity awarding the contract. It further noted that the order does not fall under related party transactions.
Following the announcement, shares of Paras Defence and Space Technologies were trading at ₹1860 per scrip, down 2.36% as of 2:09 PM on Monday.
Financial performance overview
For the December quarter, Paras Defence reported a 21.3% year-on-year increase in net profit to ₹18.2 crore, compared with ₹15 crore in the same period last year.
Revenue for the quarter rose 24% to ₹106.4 crore, up from ₹85.8 crore a year earlier. EBITDA also recorded growth of 19% year-on-year, reaching ₹26.3 crore.
However, the EBITDA margin declined slightly to 24.7% from 25.8% in the year-ago quarter. The company attributed the narrowing margin to higher total expenses, particularly finance costs and employee benefit expenses.
Segment-wise, revenue from the Optics and Optronics Systems business increased to ₹58.4 crore compared with ₹44.4 crore in the previous year. The Defence Engineering segment reported revenue of ₹47.95 crore, up from ₹41.33 crore in the corresponding quarter last year.
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