Paras Defence & Space Technologies reports a steady fourth quarter with revenues 6 percent higher at Rs 65 crore. Earnings before interest, tax, depreciation and amortization declined 2 percent to Rs 17 crore. Operating profit margin at 26.4 percent stood 240 bps lower than 28.8 percent clocked in same quarter last year. Net profits, although jumped 5 percent in the fourth quarter of financial year 2022-23.

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The current order book is in excess of Rs 550 crore and will start building further in the next quarter. Amit Mahajan, Paras Defence & Space Technologies, in an interaction with CNBC-TV18 on May 17 expects 40 to 50 percent revenue growth in FY24. This is double of the 20 percent revenue growth clocked in FY23. The high revenue growth of FY24 is supported by a large order book. The margins are expected to be at similar levels or marginally better than FY23.

Also read: Paras Defence signs MoU MeiTY Research Lab for development of various technologies

Drones contribute less than 20 percent of company's order book. Furthermore, the company had received DGCA Type Certificate for agricultural drones. "Our technology in agri drones is much superior than the other agri drones available in market" Mahajan said. The company is manufacturing agri drones in-house and hence have been able to clock healthy margins in this segment. Paras Aerospace is expected to clock better growth than Paras Defence in FY24.

Exports are expected to contribute 10 to 20 percent of the company's revenues and by FY25, drones shall contribute 25 percent of total revenues.

Paras Defence & Space Technologies stock is 1 percent lower at noon on Wednesday and has fallen 13 percent in past one year.