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.
Defence company Zen Technologies announced Q3FY24 results: Financial Performance Highlights Revenue: Zen Technologies reported an increase in revenue, reaching Rs 98.08 crore in Q3FY24, a growth of 198% YoY. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): The company's EBITDA soared to Rs 48.41 crore, marking a substantial rise of 371% YoY. PAT (Profit After Tax): PAT stood at Rs 31.67 crore, which represents a remarkable 317% YoY increase. EBITDA Margins: EBITDA margins climbed impressively, reaching 47.34% in Q3FY24. Order Book and Strategic Growth New Patent Grants: Zen Technologies secured 15 new patent grants in India during FY24, emphasizing its focus on innovation and technological progress. Revenue Target: The company remains on track to achieve the revenue target of Rs 450+ crore for FY24. Order Book: The order book is robust with optimism for securing additional contracts. Export Markets: There is an active pursuit of significant growth opportunities in export markets with competitive product offerings. Future Projections and Investment Turnover Projection: The company is confident about achieving a turnover of 900+ crore in the next financial year. Acquisition and Expansion: Zen Technologies is exploring inorganic expansion opportunities through acquisitions. Fundraising Resolution: An enabling resolution has been passed to raise funds to an aggregate amount of Rs 1,000 crore to support growth. Commenting on the results, Ashok Atluri – Chairman and Managing Director, said, “Reflecting on the performance of Q3FY24, I am pleased to report that Zen Technologies Limited has continued its growth trajectory, reporting the company's best 9-month performance in its history. FY24 is on course to become the most successful year to date in terms of financial performance and new order wins for the company. To date in FY24, the company has secured 15 new patent grants in India, reinforcing its commitment to innovation and technological advancement. In line with our previously stated guidance, we remain on track to achieve our revenue target of Rs 450+ crore for FY24. The order book remains robust, and we are optimistic about securing additional contracts. Furthermore, the export markets continue to offer significant growth opportunities, which the company is actively pursuing with its competitive product offerings. Building on this momentum, we are confident in our ability to achieve a turnover of Rs 900+ crore in the next financial year, which would mark another milestone in our journey of growth. Zen Technologies remains focused on maintaining strong liquidity and leveraging its asset-light business model to ensure sustained growth and value creation for our stakeholders. Zen is also looking at opportunities to expand inorganically through acquisition. To support this path of probable growth, we have passed an enabling resolution to raise funds. This resolution allows for the raising of funds up to an aggregate amount of Rs 1,000 crore. We anticipate that our strategic investments and the unwavering commitment to our core competencies will continue to yield positive outcomes as we advance." Result PDF