DEE Development Engineers shares fell 5% on Tuesday even as the company posted a 22% jump in Q1 net profit and 31.6% revenue growth.

That fall is a bit surprising once you look at the numbers. Net profit for the quarter rose 22.3% year on year to Rs 16.15 crore, up from Rs 13.20 crore a year earlier.

Revenue climbed 31.6% to Rs 294.46 crore, and operating margins improved too, with EBITDA growing nearly 39% to Rs 49.75 crore.

That part isn’t fully clear from the earnings announcement itself, and can often happen when a stock has run up a lot beforehand and investors book profits regardless of results.

There’s more happening behind the scenes though. The company recently raised money through a share issue, and management has said the primary goal is cutting debt.

Around Rs 225 crore of those funds will go towards loan repayment, while the remaining Rs 75 crore is set aside for general business needs.

Once this is done, the company expects to save close to Rs 25 crore a year in interest costs.

Looking ahead, DEE Development is targeting fresh orders worth around Rs 2,000 crore for the current financial year, with a good chunk expected to come from export markets like the US, Europe and Japan.

The company makes process piping equipment for industries like power and oil and gas, running seven factories across India and Thailand.

At 12:50 pm, the stock was trading at Rs 657.75 on the NSE, down 5% for the day.

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