Paras Defence shares surge 4% as firm returns to profit in Q3

Shares of Paras Defence and Space Technologies rose over 4% today after the firm turned profitable for the quarter ended December 31, 2021.

Paras Defence stock touched an intraday high of Rs 719.8, rising 4.09% on BSE. The stock opened with a gain of 2.88% at Rs 711.45 against the previous close of Rs 691.55 on BSE.

Paras Defence stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Total 0.35 lakh shares of the firm changed hands amounting to a turnover of Rs 2.49 crore on BSE.

Market cap of the firm stood at Rs 2,666.82 crore on BSE. The company reported a consolidated net profit of Rs 7.71 crore in Q3 against a net loss of Rs 2.59 crore in the year-ago period.

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However, sequentially, profit declined nearly 4 per cent from Rs 8 crore. Revenue from operations surged 112 per cent to Rs 46.44 crore in Q3FY22 against Rs 21.93 crore in the corresponding quarter of last fiscal.

Total income stood at Rs 47.52 crore as against Rs 22.06 crore. 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. "

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.