Precision Electronics Reports Q1 Results: Revenue Surges 209% YoY Despite Net Loss

Precision Electronics , a leading provider of Tactical Infrastructure and Defence solutions, has announced its financial results for the first quarter, showcasing significant revenue growth despite reporting a net loss.

Financial Highlights

The company reported a substantial increase in revenue from operations, which rose to Rs. 2,226.35 crore, marking a remarkable 209% year-over-year growth from Rs. 719.47 crore in the same quarter last year. However, Precision Electronics posted a net loss of Rs. 28.27 crore for the quarter, an improvement from the loss of Rs. 179.66 crore in the previous year's corresponding quarter.

The company's total expenses for the quarter stood at Rs. 2,276.87 crore, compared to Rs. 930.94 crore in the corresponding quarter of the previous year.

Operational Performance

Precision Electronics' Tactical Infrastructure segment, comprising Telescopic Masts, Tripods, and Pan-Tilt Units, has maintained its strong growth trajectory. The company reported that this segment has nearly doubled its revenue each year since FY2022-23, driven by increasing domestic demand from India's Make in India and Atmanirbhar Bharat initiatives in the Security and Defence sectors.

In a significant achievement, a military force from a major Western nation has selected Precision Electronics' Tactical Infra systems over products from established European and American manufacturers, validating the company's engineering excellence and global competitiveness.

Order Book and Future Outlook

As of August 15, Precision Electronics has secured an order book of Rs. 56 crore for execution during the current financial year. The company has received orders from both local and global customers in the Aerospace & Defence segment, although specific details were not disclosed due to confidentiality clauses and commercial sensitivity.

To support its growth, Precision Electronics is expanding its production capacity by taking an additional 7,000 sq. meters of space at Sector 58, Ballabhgarh, Haryana. Production at this new facility is slated to start by October, which is expected to enable faster order turnaround and enhance profitability.

Corporate Updates

The Board of Directors has made several key decisions and appointments:

1. Re-appointment of Ms. Preeti Grover as an Independent Director for a second term of five years, from September 24 to September 23, subject to shareholder approval.

2. Appointment of Mr. Punit Amarpalsingh Bajaj as the Company Secretary and Compliance Officer, effective August 6.

3. Appointment of M/s. Yogesh Saluja & Associates as Secretarial Auditors for five years, subject to shareholder approval.

The 46th Annual General Meeting of the company is scheduled for September 22, to be held through video conferencing.

Commenting on the results, the management of Precision Electronics stated, "Our Q1 performance reflects the strength of our strategy and the growing trust in Indian manufacturing for defence applications. The consistent growth in our Tactical Infrastructure business, combined with the traction in our new Aerospace & Defence machining vertical, sets the stage for a strong and diversified growth path ahead."

As Precision Electronics continues to focus on indigenously designed and manufactured solutions aligned with national priorities for defence self-reliance, investors and stakeholders will be watching closely to see how the company translates its growing order book and expanded production capacity into improved financial performance in the coming quarters.