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The JVC will specialize in airborne maritime radar systems, fire control radar systems and other radar technologies designed for both airborne and land applications. According to the filing made by DCX Systems with the stock exchanges today, the venture underscores a long-standing relationship between the two entities and leverages complementary expertise in the radar and defense electronics space.
As per the agreement, ELTA Group will hold a 63% stake in the new entity and DCX Systems will hold the remaining 37%.
Initially, the board of the JVC will comprise four directors—three from ELTA and one from DCX. However, upon DCX’s full investment into the venture, the board will expand to five directors, with DCX gaining one additional seat.
Leadership positions in the new company, including CEO and CFO, will be nominated by ELTA, subject to board approval. ELTA will also grant the JVC an exclusive license to use its radar technology in India, except for government-to-government (G2G) and government-to-commercial (G2C) projects.
This collaboration is expected to significantly enhance India’s indigenous radar manufacturing capabilities. The move is aligned with India's push to reduce dependence on imports in the defense sector and become a global defense production hub.
The agreement outlines various governance and operational structures, including reserved matters, intellectual property rights, and a call option mechanism in the event of a deadlock.
No related party relationships exist between the two entities, and the proposed equity shares to be issued to DCX will be priced at fair market value, in compliance with applicable laws.
DCX Systems is an Indian defense manufacturer specializing in the production and supply of electronic systems, subsystems, and cable & wire harness assemblies for international and domestic customers.
On a consolidated basis, net profit of DCX Systems declined 25.19% to Rs 10.01 crore while net sales rose 0.93% to Rs 200.01 crore in Q3 December 2024 over Q3 December 2023.
The commercial production/operation of both units is expected to commence from March 2025.
Meanwhile, the company has received domestic and export purchase orders from its customers amounting to about Rs 24.51 crore to manufacture and supply of cable and wire harness assemblies.
These includes an order worth Rs 9.33 crore from Bharat Electronics, Rs 5.63 crore from Rafael Advanced Defence Systems, Israel and Rs 5.58 crore from Alpha-Elsec Defence & Aerospace Systems, India. Additionally, the company received an order for Rs 3.46 crore from Elbit Systems Israel, Rs 28.50 lakhs from India Optimel and Rs 23.44 lakhs from Elbit Systems, Israel.
DCX Systems is one of the leading Indian manufacturers of electronic sub-systems and cable harnesses in the defense and aerospace sectors. Operations of the company are classified as system integration, cable and wire harness assemblies, and kitting.
The company’s consolidated net profit slipped 25.19% to Rs 10.01 crore in Q3 FY25, compared with Rs 13.38 crore recorded in Q3 FY24. However, revenue from operations rose marginally to Rs 200.01 crore in the December 2024 quarter, compared with Rs 198.16 crore posted in Q3 FY24.
The counter declined 3.63% to end at Rs 251.05 on 17th February 2025.