Shares of this stock operating mainly in the defence electronics and cable harnessing sectors, surged over 5 percent after winning Rs.154.8 crore order for supplying Radio Frequency Electronics Modules to ELTA Systems Ltd., Israel.
Price Movement
In Thursday’s trading session, DCX Systems Limited‘s share price hit an intraday high of Rs.355.05 per share, up 5.4 percent from its opening price of Rs.336.95 apiece. The share has since retreated and is currently trading at Rs.344.95 each.
What is the news
DCX Systems Limited has received a significant purchase order from M/s. ELTA Systems Ltd., Israel, for the supply of Radio Frequency Electronic Modules.
This international contract, valued at approximately $18,495,779.10 (about INR 154.80 crores), is to be executed within 12 months. The order highlights DCX Systems’ continued growth and expansion in the defense electronics sector.
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This order from Elta Systems is a major achievement for DCX Systems, highlighting its expertise in the defense electronics sector. Successful execution of this contract is expected to positively impact the company’s financials in the upcoming quarters.
Order Book
As of June 30, 2024, DCX Systems has an order book totaling Rs.1,937 crores. Recently the company secured orders worth Rs.32.21 crores for cable and wire harness assemblies from both domestic and international clients.
Additionally, DCX Systems received a purchase contract valued at US$ 1.99 million (approximately Rs.16.53 crores) from Lockheed Martin Corporation, USA. The company also secured export orders from international customers worth about US$ 55.13 million (approximately Rs.457.58 crores).
Recent Developments
DCX Systems has signed an agreement with L&T India valued at Rs.1,250 crore for the manufacture and supply of electronic modules.
Furthermore, the company has entered into a supply and services agreement with Israel Aerospace India Services Pvt Ltd for the supply and repair of spare parts and electronic components.
Client Portfolio
DCX Systems features a robust client rooster with prominent names like Bharat Electronics, Israel Space Industries, Rafael Advanced Defense Systems, Lockheed Martin, Alpha Design Technologies, and many more.
Financial Performance
In its recent financial update for the quarter ending June 2024, DCX Systems reported a net profit of Rs.2.94 crore, reflecting a 69 percent decline from Rs.9.6 crore in Q1 FY24. Revenue from operations dropped by 19 percent to Rs.138.08 crore from Rs.170.1 crore. These figures indicate less favorable financial performance for the company.
Company Overview
DCX Systems Ltd is an Indian company founded in 2011, specializing in the manufacture of electronic sub-systems and cable harnesses primarily for the aerospace and defense sectors.
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Written by – Siddesh S Raskar
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