Paras Defence back in the black; firm posts net profit at Rs 8 cr in Q3

Paras Defence and Space Technologies on Wednesday reported a consolidated net profit of Rs 7.71 crore in the quarter ending December 31, 2021. The company had posted a net loss of Rs 2.59 crore in the year-ago period. However, sequentially, the company's profit declined nearly 4 per cent from Rs 8 crore.

The company's revenue from operations surged 112 per cent to Rs 46.44 crore in Q3FY22 as against Rs 21.93 crore in the same quarter last fiscal.

The company's total income stood at Rs 47.52 crore as against Rs 22.06 crore.

In its quarterly commentary, the company stated that due to COVID-19 pandemic its operations and revenue during the period were impacted. The "second wave” significantly increased the number of cases in India and had led to delay of operations and hold on certain work order due to local restrictions in areas with a significant number of COVID-19 cases.

This unprecedented disruption continues to impact the business and financial results, it said, adding that inspite of the continuous prevalence of COVID-19 pandemic, the company was "able to achieve satisfactory business operation and believes that the Pandemic is not likely to impact the carrying value of its assets. "

Paras Defence, which went public last year in October, also stated that it will continue to closely monitor any material changes arising out of future economic conditions and impact on its business including recoverability of inventories, trade receivables and investments.

Back in October, shares of Paras Defence and Space Technologies made a dream debut and were 185 per cent higher at close of trade against its issue price of Rs 175. The stock listed at Rs 475, reflecting a huge jump of 171.42 per cent from the issue price on the BSE. It further zoomed 185 per cent to close at Rs 498.75 -- its upper circuit limit. On the NSE, it listed at Rs 469, rallying 168 per cent from the issue price. It settled at Rs 492.45, up 181.40 per cent.

The company is engaged in designing, developing, manufacturing, and testing a wide range of defence and space engineering products and solutions.

Paras Defence and Space Technologies' business is highly dependent on projects and programmes are undertaken by the central government and associated entities, such as defence public sector undertakings and government organisations involved in space research.

Shares of Paras Defence on Wednesday closed 1.51 per cent higher at Rs 691.55 apiece on BSE.