May 6 Reuters Spanish defence and technology firm Indra said on Monday its net profit rose 40 to 61 million euros 66 million in the first quarter, supported by strong orders as global tensions spur demand for air defences.

It reported a net profit of 44 million euros in the same period one year ago.

After shrinking for decades, European military budgets are on the rise due to heightening geopolitical tensions worldwide, which are set to lead to higher revenues and margins for defence groups.

NATO member countries have committed to ratchet up their defence spending to 2 of their gross domestic products in response to Russia39;s fullscale invasion of Ukraine.

Indra39;s revenues rose 22 to 1.12 billion euros from January to March, with all four of its divisions achieving doubledigit percentage growth.

The company reiterated its yearend revenue target of more than 4.65 billion euros in local currency, announced in February.

1 0.9295 euros

Reporting by Matteo Allievi; Editing by Tom Hogue and Mark Potter

Source Reuters