Market News
2 min read | Updated on August 19, 2024, 15:52 IST
SUMMARY
Shares of DCX Systems were trading higher after the company announced that it had secured orders worth₹107 crore from domestic and international customers. The company won orders for the supply of electronic kits and cable & harness assemblies.
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DCX Systems bags orders worth from domestic and overseas customers; stock up 4%
Last month the company had announced that it had received a purchase order from Larsen & Toubro for the manufacturing and supply of electronic modules. The company secured the order for a consideration of ₹1,250 crore and will execute it within 3 years.
During Q1FY25, the company also entered into a Supply and Services Agreement with Israel Aerospace India Services for the supply and repair services of spare parts and electronic components.
For the quarter ended June 30, 2024, DCX Systems reported a 69.38% year-on-year (YoY ) decline in its net profit to ₹2.94 crore. The company’s consolidated operational revenue for the quarter fell 18.82% YoY to ₹138.08 crore while the earnings before interest and taxes (EBIT) came in lower by 42.19% YoY at ₹10.70 crore.
In Q1FY25, the company’s EBIT margin contracted by 313 basis points (bps) to 7.75% while the net profit margin saw a contraction of 351 bps to 2.13%.
At the end of the quarter, the company’s order book came in at ₹1,937 crore.
Dr. H.S. Raghavendra Rao, chairman and managing director of DCX Systems, said that the company’s performance in the quarter has been in line with expectations. The company’s joint venture with ELTA System, NIART Systems, is undergoing development for obstacle detection for railway safety and efficiency.
“Our focus remains on penetrating in new geographies, focusing on Make in India initiative and establishing DCX as a Product manufacturing company through Transfer of Technology (ToT) and securing raw materials supply to support the anticipated growth with better margins and rationalizing expenses to improve operational efficiencies,” he said.
Shares of the company have declined by nearly 3% since the beginning of the year. The stock has gained over 19% in the past year.
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