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  1. Paras Defence shares hit 5% upper circuit after subsidiary bags ₹305-crore order from L&T

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Paras Defence shares hit 5% upper circuit after subsidiary bags ₹305-crore order from L&T

Upstox

2 min read | Updated on August 16, 2024, 16:55 IST

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SUMMARY

The order includes the manufacturing and supply of 244 Sight – 25HD EO (Electro-Optics) Systems, along with extended warranty charges and an Integrated Logistics Support (ILS) package, for L&T’s Close-In Weapon System (CIWS) programme, the company informed the bourses.

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The stock pared early gains to trade at ₹601.2 apiece, down 0.96%, on the BSE at 2:20 pm

The defence sector stock has gained 79% the past 12 months and 68% year-to-date.

Shares of Paras Defence and Space Technologies Limited ended three-day losing streak and rallied 5% to hit the upper circuit of ₹1,208.35 apiece on the NSE on Friday, August 16, after the company announced securing an order worth ₹305 through its subsidiary.
In a filing to the stock exchanges, after market hours on August 14, the company said that its associate firm Controp-Paras Technologies Private Limited received an order from Larsen and Toubro Limited (L&T).

The order includes the manufacturing and supply of 244 Sight – 25HD EO (Electro-Optics) Systems, along with extended warranty charges and an Integrated Logistics Support (ILS) package, for L&T’s Close-In Weapon System (CIWS) programme, the company informed the bourses.

The order will be executed within 47 months, according to Paras Defence.

The company's consolidated net profit surged 142.85% year-on-year to ₹14.11 crore in the June quarter, compared to ₹5.81 crore in the same period a year ago. Sequentially, the company’s net profit also increased 46.97% from ₹9.6 crore in Q4FY24.

The defence technology firm’s total income rose 70.82% to ₹84.15 crore in the June quarter compared to ₹49.26 crore a year ago. On a quarter-on-quarter basis, the company’s total income declined 1.19% from ₹85.17 crore compared to the preceding quarter.

In the Optics and Optronic systems category, the revenue from the operations grew by 101.15% year-on-year to ₹38.57 crore in the June quarter, compared to ₹19.14 crore in the same period a year ago.

For the defense engineering segment, the revenue from operations rose 54.21% to ₹45 crore in the June quarter compared to ₹29.18 crore a year ago.

Paras Defence and Space Technologies Limited shares opened 4.27% higher at ₹1,200 apiece on the NSE on Friday. However, the stock touched an intraday low of ₹1,190.85 apiece, but managed in the morning session to bounce back rising 5% to hit the upper circuit limit.

The defence sector stock has gained 79% the past 12 months and 68% year-to-date.

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