Defence company Zen Technologies declares Q4FY22 result: On our order book and order status front, we have received an AMC contract worth INR 55 crore, wherein the revenue will be recognized periodically over the next 5 years. Both our export order of INR 120 crore and IAF order worth INR 155 crores are expected to be fully executed by Q3FY23. Our order book position as on 31st March 2022 stood at ~ INR 430 crores . On the exports front, we continue to pursue substantial opportunities and expect to have a big order book position by this year end. The extremely favourable environment for the Indian defence players created by current Government does act as an antidote to the Covid impacted environment. One example is the Indian government's robust simulation framework, which gives us confidence that in the coming years will see a very strong performance. Commenting on the results, Mr. Ashok Atluri – Chairman and Managing Director, said: “We are pleased to share an update to accompany our FY22 results. This year’s sales were primarily driven by AMC contracts, while we continued to face some unforeseen challenges. Our profitability was impacted on account of increase in selling and distribution expenses, accompanied by increased foreign travel, in line with our plans to expand Zen’s global outreach. Our Business Development and Business Promotion activities increased, as we spent close to INR 2.16 crores in our exhibition at Abu Dhabi. To add to this, cost of few components required in manufacturing our products increased drastically. There was a delay in executing the big orders that we have received. Shortage of electronic components globally caused delays in procurement; lead times for some chips has increased dramatically. Worse has been the complete non-availability of some components, forcing us to redesign some of the sub-systems. Mechanical components that were outsourced also were delayed due to labour non-availability (postCovid) at vendor locations. Logistics and shipping constraints further impacted the execution timelines." Result PDF
Zen Technologies declares Q3FY22 result: Revenue from Operations stood at Rs 26.22 crore EBITDA (excluding Other Income) stood at Rs 0.09 crores, resulting in EBITDA margins of -0.34% PAT stood at Rs 1.8 crore Company maintains strong Balance Sheet position by being almost Debt-free and supported by ample liquidity-position Total order book as at 31st December 2021 stood at AMC - INR 122.62 crore Sale of Equipment - INR 298.37 crore Commenting on the results, Mr. Ashok Atluri – Chairman and Managing Director, said: “I am pleased to provide you with an update on our performance in Q3FY22. Our revenue streams were primarily driven by AMC’s during the third quarter. AMC’s contributed a total of INR 9.35 crores during the quarter, and in line with our strategic objectives, they have now started to cover the Company's fixed operating costs. While we suffered a minor setback as a result of the fire incident at our demonstration centre in Hyderabad, we are pleased to report that the previous quarter brought a fresh wave of growth opportunities. Not only did we receive our first export order for ‘Live Simulators’, but our subsidiary Unistring Tech Solutions Private Limited also secured its largest order to date, worth ~ INR 61 crores, from an Indian defence PSU. I am also pleased to report that we successfully raised ~INR 86.57 crore through the issuance of 10% Compulsorily Convertible Debentures (CCD’s), which the Company intends to prudently invest in research and development and expanding its export footprint. With the recent framework issued by the Ministry of Defence (MoD) promoting the use of simulators in training the Indian Armed Forces and the changing dynamics of warfare presenting Drone threats, we believe Zen is well-positioned to capitalise on the opportunity and chart out a strong growth path for itself.” Result PDF
Highlights: EBITDA (excluding Other Income) stood at Rs -0.15 crores, resulting in EBITDA margins of -0.97% PAT stood at Rs -0.74 crores Company maintains strong Balance Sheet position by being almost Debt-free and supported by ample liquidity-position Consolidated Revenue from Operations stood at Rs15.75 crores Commenting on the results, Mr. Ashok Atluri – Chairman and Managing Director, said: “I am delighted to share with you our performance for this quarter. Our AMCs contributed about INR 7.63 crores to this quarter. We soon expect to cross the run rate of INR 8.5 crores per quarter. The AMC revenues will soon cover all the fixed overheads during this financial year, which is a positive direction for us at Zen. We recently bagged two big orders, one from the export market and another from the Indian Air Force. The order for our anti-drone technologies validates our hard work and our bets, and we believe that there will be many such big orders in the future. This quarter we have also integrated hard kill technology with our anti-drone systems, which has further strengthened our position and opened up new markets for us. We have also decided to raise INR 100 crores, primarily, for further R&D; in anti-drone area and export promotion.” Result PDF
Conference Call with Zen Technologies Management on their Analyst Day. Listen to the full transcript.