Paras Defence shares soar 11% after MoU with Korea’s Green Optics. Check details

Shares of Paras Defence rallied as much as 11% to a day’s high of Rs 750 on the BSE on Wednesday, after the company announced it had signed a Memorandum of Understanding (MoU) with Green Optics Co., Ltd., South Korea, to collaborate in the field of optics and optical systems.

Green Optics is engaged in designing and manufacturing optics and optical systems for space, defence, and other applications. Under the MoU, Paras Defence and Green Optics plan to establish a framework for joint development, manufacturing, and business expansion in their respective regions, focusing on optics and optical systems for space and defence.

The gains also come amid continued strength in defence stocks as the US-Iran conflict entered its fifth day. The Nifty India Defence index was the only sectoral index trading in positive territory on Wednesday.

Paras Defence share performance

The stock has risen over 6% since the beginning of the year. Over the past year, Paras Defence has delivered an impressive return of nearly 70%.

Paras Defence Q3 snapshot

For the December quarter, Paras Defence reported a 21.3% year-on-year rise in net profit to Rs 18.2 crore, compared with Rs 15 crore in the same period last year. Revenue for the quarter increased 24% to Rs 106.4 crore from Rs 85.8 crore a year ago. EBITDA rose 19% year-on-year to Rs 26.3 crore.

However, the EBITDA margin narrowed to 24.7% from 25.8% last year, impacted by higher total expenses, particularly finance costs and employee benefit expenses.

Segment-wise, revenue from the Optics and Optronics Systems business rose to Rs 58.4 crore from Rs 44.4 crore last year. The Defence Engineering segment reported revenue of Rs 47.95 crore, up from Rs 41.33 crore in the year-ago quarter.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)