Paras Defence & Space Technologies Q2 Results: Net Profit Rises 45%, Beats Estimates

Paras Defence & Space Technologies Ltd. reported a 45% year-on-year rise in net profit for the second quarter of this financial year, beating analysts' estimates.

The defence firm recorded a consolidated net profit of Rs 12.70 crore for the quarter ended Sept. 30, 2024, compared to Rs 8.76 crore in the same quarter of the previous fiscal, according to its stock exchange notification. This was above the Rs 11-crore estimate by analysts tracked by Bloomberg.

Revenue increased by 42% year-on-year for the three months ended Sept. 30, 2024, reaching Rs 87.09 crore. Analysts had projected revenue of Rs 76 crore.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 46% year-on-year to Rs 22.75 crore. The Ebitda margin expanded to 26.1% from 25.3% in the same period the previous year. Analyst tracked by Bloomberg had estimated Ebitda and Ebitda margin of Rs 17 crore and 22.90%, respectively.

The company is set to clock an Ebitda margin of around 29% in the current financial year, backed by better-than-expected performance in the optics and optronics systems segment, the company’s Director Amit Mahajan told NDTV Profit.

The optics and optronics systems offer good visibility, funnel, and opportunity to the company beyond the defence sector. “This (optics and optronics systems segment) is a drastic opportunity to increase profitability,” he said.

Share price of Paras Defence rose as much as 5% during the day to Rs 973.20 apiece on the NSE. It pared gains to trade 3.24% higher at Rs 956.90 apiece, as of 3:25 p.m. This compares to a 0.70% advance in the NSE Nifty 50. The stock has risen 39.66% in the last 12 months and 26.57% year-to-date.

Total traded volume so far in the day stood at 2.9 times its 30-day average. The relative strength index was at 35.

One analyst tracking the company recommends a 'hold', according to Bloomberg data.