Defence company Zen Technologies announced Q1FY25 results: Revenue: Rs 253.96 crore, up by 92% YoY Operating EBITDA: Rs 103.2 crore, up by 56% PAT: Rs 74.2 crore, up by 57% YoY Commenting on the results, Ashok Atluri – Chairman and Managing Director, said: “I am pleased to share that Zen Technologies Limited has had an exceptionally strong start to FY25. Our revenue from operations for Q1FY25 came in at Rs 253.96 crore, recording a robust growth from Rs 132.45 crore in Q1FY24. This impressive growth is mirrored in our Operational EBITDA, which reached Rs 103.20 crore, and our net profit of Rs 74.18 crore, recording a growth of 56% and 57% year-on-year respectively. Our cornerstone remains in training and simulation, including technical training equipment like virtual simulators and live ranges. In the last few years, the armed forces have recognised the increasing need for tactical training, preparing soldiers for actual combat scenarios. This shift is expected to drive significant growth for our company. Furthermore, the surge in interest postUkraine war highlights the importance of competent training over merely acquiring advanced equipment Our early investment in counter-drone systems since 2018 has positioned us at the forefront of this critical technology. With the Government of India's focus on the Buy Indian IDDM category, we are well-placed to be the preferred supplier for the Indian Armed Forces. We continue to be an IP powerhouse, with over 155 global patents filed and about 75 granted. Our extensive library of software, electronic, and mechanical modules, developed over the last 30 years, enables rapid product realisation. This has allowed us to introduce innovative products like the Hawkeye anti-drone system, Barbarik URCWS, Prahasta automated quadruped, and Sthir Stab 640 stabilised sight, which are set to open new revenue streams. Our operational model, which leverages in-house R&D; and outsourced production, has enabled significant scalability with minimal capital expenditure, providing good operating leverage to our business. We are expanding our assembly and integration capabilities to support this growth. Additionally, we are experiencing strong regulatory tailwinds, including increased utilisation of simulators by the armed forces and aggressive export targets set by the government. Our strong balance sheet and ongoing investment in R&D; ensure we remain at the cutting edge of technology, ready to meet evolving customer needs. We are excited about the future and confident in meeting our guidance of Rs 900 crore of turnover in the current financial year. Thank you for your continued support.” Result PDF
Defence company Zen Technologies announced standalone FY24 results: Financial Highlights: Zen Technologies reported a significant increase in Financial Highlights for FY24 with Revenue at Rs 430.28 crore (167% YoY), EBITDA at Rs 191.16 crore (228% YoY), and PAT at Rs 129.23 crore (243% YoY). The company secured orders worth Rs 1,358 crore and projects that the order book, exceeding Rs 1,400 crore as of March 31, 2024, will contribute to sustained growth. Commenting on the results, Ashok Atluri – Chairman and Managing Director, said: “I am delighted to report that FY24 marks a significant milestone in our financial performance, achieving record sales, profitability, and order wins. We secured orders worth Rs 1,358 crore, reflecting a notable shift in the armed forces’ perception towards training equipment and anti-drone systems. This transformation is further underscored by the increasing demand for our products from friendly foreign nations. Our successful performance reaffirms our business model of self-funding three decades of R&D; for potential products. The pivotal role played by government initiatives aimed at indigenization has provided us with the right opportunity to amplify our success. With a robust order book exceeding Rs 1,400 crore as of March 31, 2024, we are poised for sustained growth in FY25, aiming to surpass the Rs 900 crore sales mark. To enhance our product portfolio and depth, we have augmented our investment in research and development. In the coming weeks and months, we anticipate launching a range of innovative products tailored to the needs of both the Indian armed forces and international clients. Our commitment to expanding our export business remains steadfast. Through active participation in major trade shows and exhibitions, supported by the Government, we continue to generate potential leads to bolster our international presence. Looking ahead, we are exploring strategic inorganic acquisitions to expand into market and product adjacencies, ensuring high probability of success. In conclusion, we believe this to be a prosperous era for companies like Zen, which prioritise design, development, IP generation, and innovation. We are poised for continued growth and success in the foreseeable future." Result PDF
Conference Call with Zen Technologies Ltd. Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.