Zen Technologies shares hit 10% upper circuit limit as Q1 profit jumps nearly six times
Zen Technologies’ saw its June quarter profit surging to Rs 47.13 crore from Rs 8.21 crore in the same quarter last year. Sales also jumped four times to Rs 132.45 crore from Rs 33.23 crore.
- Aug 7, 2023,
- Updated Aug 7, 2023 11:26 AM IST
Shares of Zen Technologies Ltd climbed 10 per cent in Monday's trade after the drone maker report nearly six times jump in June quarter profit. Zen Technologies, which offers defence training solutions and drones and anti- drones solutions saw its June quarter profit surging to Rs 47.13 crore from Rs 8.21 crore in the same quarter last year. Sales also jumped four times to Rs 132.45 crore from Rs 33.23 crore. Ebitda margin expanded to 50.93 per cent against 35.65 per cent in March and 37.80 per cent in the year-ago quarter.
Following the development, the stock rose 10 per cent to hit a high of Rs 674.75 on BSE.
Chairman and Managing Director Ashok Atluri said Zen Technologies' revenue and profitability were at record high in Q1.
"This strong performance in the quarter was driven by the successful execution of a significant part of the simulation export and domestic anti-drone orders. The inherent operating leverage of our business model came to the fore this quarter, evident in Ebitda of 51 per cent," Atluri said.
Atluri said his company secured new orders amounting to approximately Rs 202 crore for the quarter. Additionally, in July, Zen Technologies bagged orders worth around Rs 500 crore.
"This brings our cumulative order book position to Rs 1,000 crore, a figure that exceeds the cumulative turnover of the last whole decade. We believe this is merely the onset of an inflection point—a positive black swan event, resulting from the convergence of various factors such as #MakeInIndia, #Atmanirbharata, Buy Indian IDDM, Defence Positive Lists, Simulation Framework, and the GoI's Sustainability Commitment. Owing to escalating geopolitical risks and India’s improved international relations, we are optimistic about making significant inroads in the export markets, especially for simulators and anti-drone systems," Atluri said.
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Atluri said his company has a strong liquidity position and a healthy balance sheet with a significant improvement in working capital cycle. This will support execution of the orders and fuel plans for the growth opportunities that will unfold in the coming years, he said.
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Shares of Zen Technologies Ltd climbed 10 per cent in Monday's trade after the drone maker report nearly six times jump in June quarter profit. Zen Technologies, which offers defence training solutions and drones and anti- drones solutions saw its June quarter profit surging to Rs 47.13 crore from Rs 8.21 crore in the same quarter last year. Sales also jumped four times to Rs 132.45 crore from Rs 33.23 crore. Ebitda margin expanded to 50.93 per cent against 35.65 per cent in March and 37.80 per cent in the year-ago quarter.
Following the development, the stock rose 10 per cent to hit a high of Rs 674.75 on BSE.
Chairman and Managing Director Ashok Atluri said Zen Technologies' revenue and profitability were at record high in Q1.
"This strong performance in the quarter was driven by the successful execution of a significant part of the simulation export and domestic anti-drone orders. The inherent operating leverage of our business model came to the fore this quarter, evident in Ebitda of 51 per cent," Atluri said.
Atluri said his company secured new orders amounting to approximately Rs 202 crore for the quarter. Additionally, in July, Zen Technologies bagged orders worth around Rs 500 crore.
"This brings our cumulative order book position to Rs 1,000 crore, a figure that exceeds the cumulative turnover of the last whole decade. We believe this is merely the onset of an inflection point—a positive black swan event, resulting from the convergence of various factors such as #MakeInIndia, #Atmanirbharata, Buy Indian IDDM, Defence Positive Lists, Simulation Framework, and the GoI's Sustainability Commitment. Owing to escalating geopolitical risks and India’s improved international relations, we are optimistic about making significant inroads in the export markets, especially for simulators and anti-drone systems," Atluri said.
Also read: Hot stocks on August 7, 2023: Zomato, Paytm, IRFC, Adani Green, Grasim and more
Atluri said his company has a strong liquidity position and a healthy balance sheet with a significant improvement in working capital cycle. This will support execution of the orders and fuel plans for the growth opportunities that will unfold in the coming years, he said.
Also read: Karur Vysya Bank, RITES, Saksoft, Gabriel India shares to turn ex-dividend today
Also read: Adani Green Energy shares extend fall, crash 12% today to slip below Rs 900; here's what tech charts indicate