DCX System shares rise 14% after ₹1250-cr order from L&T

DCX Systems is seeing a mercurial rise of 14.33% on the stock market today after receiving a purchase order worth ₹1,250 crore from Larsen & Toubro. The company’s stock price is currently pegged at ₹433.75 (at the time of writing this story) and briefly reached a 52-week high figure of ₹442.70.

DCX Systems is among India’s leading defence manufacturing companies, primarily engaged in system integration and manufacturing of electronic sub-systems and cables, wire harnesses, and printed circuit board assembly. The company offers these services through its wholly owned subsidiary Raneal Advanced Systems catering to both international and domestic customers.

The company informed SEBI about its domestic purchase order for ₹1,250 crore from Larsen & Toubro on July 1, 2024. L&T India has made a purchase order for the manufacture and supply of electronic modules within three years.

In the last financial year, the company received various orders from multiple foreign counterparts including Israel Aerospace India Services Private Limited and Lockheed Martin Corporation, USA. The export orders from overseas customers amounted to ₹457.58 crore, the order book thus added up to a total of ₹801.16 crore. DCX Systems reported a consolidated revenue of ₹1,424 crore, a year-on-year growth of 13.59%. In mid-January 2024, the company completed a qualified institutional placement raising ₹500 crore.

“The proceeds out of a fund raised through QIP would be utilised towards investment in NIART Systems, our JV agreement with ELTA Systems, we shall be developing and supplying obstacle detection solutions based on radar and optics technologies for the railway industry and also invest in opportunities through JV/Subsidiaries catering to Defence and Aerospace Sector through Transfer of Technology from Original Equipment Manufacturers (OEMs),” said Dr. H.S. Raghavendra Rao, Chairman & Managing Director at DCX Systems, after the company shared its annual financial report for the FY 2023-24.

DCX, with a presence in Israel, the United States, and South Korea, is an Indian offset partner for foreign original equipment manufacturers such as ELTA Systems and Israel Aerospace Industries, System Missiles and Space Division (together, the “IAI Group”), Israel, for executing defence manufacturing projects. Some of its key domestic customers like Bharat Electronics, Alpha Design Technologies, Alpha Elsec Defence and Aerospace Systems and Centum Adeno India.