Zen Technologies shares soar 14% as drone solutions maker logs multifold jump in Q4 profit

Shares of drone maker Zen Technologies climbed 14 per cent in Monday's trade after the company reported multi-fold jump in March quarter profit. The company reported a standalone profit of Rs 17.27 crore for the March quarter against Rs 1.40 crore in the corresponding quarter last year. Net sales for the quarter rose to Rs 74.14 crore from Rs 15.96 crore in the same quarter last year. Ebitda margin, Zen Technologies said, expanded to 35.63 per cent from 29.48 per cent in December quarter and 13.46 per cent in the same quarter last year.

Following the development, the stock rose 13.67 per cent to hit a high of Rs 325.40 on BSE.

Chairman and Managing Director Ashok Atluri said FY23 was a strong year, as the company achieved its highest-ever annual revenue.

"During Q4FY23, we secured multiple new orders worth Rs 141.67 crore, increasing our orders in hand to Rs 473 crore as of March 31. We have placed bids for substantial orders and we expect the results to be out by H1FY24. To capitalise on these potential opportunities, we are taking steps to enhance the bandwidth of our key functions, including supply chain, procurement, and production planning. We have also initiated the recruitment of technical and non-technical manpower to support our growth," Atluri said.

Atluri said his company's liquidity position is currently at an all-time high, positioning it well to deliver ambitious growth plans. He anticipates a few order wins under the Emergency Procurement plan, which may further accelerate our growth.

"We are also optimistic about the promising prospects of the export market. Our long-term focus is on achieving leadership in several key areas. Our first priority is to establish ourselves as leaders in the development of both live and virtual land-based simulators. We are also committed to dominating the anti-drone market through continuous investment in research and development, and by maintaining strong connections with our customers," he said.

Atluri said his company also plans to grow services business by leveraging AMC.

"Finally, we aim to expand our global presence, with a particular focus on the Middle East, Africa and CIS countries. We will continue to strengthen our R&D capabilities and focus on high-value complex systems. Our investment in R&D reached an all-time high of nearly Rs 19 crore, significantly higher than the average of Rs 14 crore spent in the last 5 years. We have made significant progress on our export order, with a partial execution of the order and recording of the corresponding revenues during the fiscal year. However, we are excited to inform that we are confident about delivering the remaining part of the order in H1FY24," he said.

Additionally, Atluri said delivery of the remaining part of our anti-drone order, is also scheduled for Q1FY24.

"These developments set the stage for a robust start to the next financial year, and we look forward to further building on this momentum in the year to come,” it said.

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