Paras Defence Eyes 30% Revenue Growth Annually After Strong Q1 Results
Director Amit Mahajan expects the order book to grow with new orders coming in the second quarter.
Paras Defence and Space Technologies Ltd. has a funnel of opportunities across all its sub-verticals that could fuel future growth. The company is aiming for a 20–30% growth in revenue on a yearly basis, Director Amit Mahajan said.
"I would consider the driving force behind any growth to be the amount of opportunities that a particular company has. And we have a solid lineup," Mahajan told NDTV Profit in a interview. "Our opportunity funnel is in the excess of thousands of crores and our order book is at least 2x."
Mahajan also shared his projection on the pace of linear growth for the company and the five-to-seven-year compound annual growth rate.
"We are looking at 20–30% growth, we would want to have that visibility for the next three years. In the next five years, maybe it will be higher than that. However, 20–30% is the kind of growth rate you should be looking at from a company like Paras Defence," Mahajan said.
Paras Q1 FY25 Earnings Highlights (Consolidated, YoY)
Net profit up 143% to Rs 14.1 crore.
Revenue up 73% to Rs 83.6 crore.
Operating income up 123% to Rs 24.1 crore.
Ebitda margin expands to 28.9% from 22.4%.
The company's optics and optronics business could significantly contribute to the revenue due to the potential for high scalability and profitability. It is focused on scaling the segment as a part of its growth strategy, according to Mahajan. "Optronics and optics systems is one extremely scalable business and at the same time, it is very profitable. We want to make sure optics is a vertical, which influences our revenue and that will be our growth strategy," he said.
Mahajan said the company's optics and optronics business not only provides it revenue and scalability but also adds to its operational margins. "They compensate for the highly competitive business we do in defence electronics or mechanical engineering."
He expects the order book to grow with new orders coming in the second quarter, especially from the electro-optical/infrared systems and the space domain.
"We expect defence electronics to continue growing. Although we are in a competitive space, the competition is limited. Electromagnetics as a vertical also has a good amount of opportunity and has a funnel of more than Rs 500 to Rs 600 crore," he said.
