Paras Defence Q3 Results: Revenue growth of 24% but stock falls on narrowing margins

Shares of Paras Defence and Space Technologies Ltd. fell over 3.5% on Friday, January 23, in response to its December quarter results. The stock, which had already opened lower, extended its losses after the results were declared.

Net profit for the period increased by 21.3% from last year to ₹18.2 crore from ₹15 crore last year.

Revenue for the quarter stood at 24% to ₹106.4 crore from ₹85.8 crore last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 19% from last year to ₹26.3 crore.

However, margins for the quarter narrowed to 24.7% from 25.8% last year. Margins were impacted due to the increase in total expenses with regards to finance costs and employee benefit expenses.

Revenue from the Optics and Optronics Systems rose to ₹58.4 crore from ₹44.4 crore last year, while the Defence Engineering business saw revenue growth of ₹47.95 crore from ₹41.33 crore in the year-ago quarter.

Shares of Paras Defence and Space Technologies are trading 3.4% lower on Friday after the earnings announcement at ₹626.4. The stock is still higher by 16% over the last 12 months.