ELTA and DCX concluded to enter into a joint venture by way of incorporating a jointly owned, private limited liability Israeli company (JVC) for the purposes of developing, producing and distributing, globally, obstacle detection solutions based on radar and optics technology for railway industry.

ELTA, due to long term association with DCX, desires to partner with DCX for further developing, producing, manufacturing, marketing, and distributing the said obstacle detection solutions to the global market.

DCX shall hold 100% share capital initially in the JVC and at later stage DCX shall hold ordinary A shares constituting 50.1% of the JVC share capital and ELTA shall receive option to receive such an amount of ordinary shares constituting 49.9% of the JVC share capital, which shall have exercise price at par value NIS 0.01 each.

Prior to the exercise of ELTA's option, DCX shall appoint 2 directors and ELTA shall be entitled to appoint an observer. Subject to the exercise of ELTA's option, in addition to DCX's appointed directors, ELTA shall be entitled to appoint 2 directors on the Board of the JVC.

DCX Systems is one of leading Indian manufacture of electronic sub-systems and cable harnesses in defence and aerospace sector. Operations of the company are classified as system integration, cable and wire harness assemblies, and kitting.

The company's consolidated net profit jumped 72.4% to Rs 9.60 crore despite of 20.2% decline in net sales to Rs 170.10 crore in Q1 FY24 over Q1 FY23.

The scrip hit an all time high at Rs 348 in intraday today.