Zen Tech Q1 FY25 PAT Surges 57.39% to Rs 47.13 Cr

On Sunday, July 28 Zen Technologies’ standalone net profit jumped 57.39% to Rs 74.18 crore in Q1 FY25 compared to Rs 47.13 crore posted in the corresponding quarter last fiscal year. 



Key Takeaways from Zen Technologies Financial Performance

• Zen Technologies standalone net profit jumped 57.39% to Rs 74.18 crore in Q1 FY25, compared to Rs 47.13 crore posted in the corresponding quarter last fiscal year. 
• Revenue from operations surged 91.74% year-on-year (YoY) to Rs 253.96 crore in the quarter ended June 2024.
• The company's operating EBITDA rose by 55.96% to Rs 103.20 crore in Q1 FY25, compared to Rs 66.17 crore in Q1 FY24.
• EBITDA margin fell to 40.64% in Q1 FY25, compared to 49.96% in Q1 FY24. 

Sequentially, revenue from operations surged 91.74% year-on-year (YoY) to Rs 253.96 crore in the quarter ended June 2024.

The company's operating EBITDA increased by 55.96% to Rs 103.20 crore in Q1 FY25, compared to Rs 66.17 crore in Q1 FY24. EBITDA margin fell to 40.64% in QI FY25, compared to 49.96% in Q1 FY24. 

Ashok Atluri, chairman and managing director, said, "I am pleased to share that Zen Technologies has had an exceptionally strong start to FY25. 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 post Ukraine 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 turnovers in the current financial year."

About Zen Technologies Limited

Zen Technologies is a pioneer in anti-drone technology and cutting edge defence training solutions. The company has established a remarkable reputation in defence training and combat readiness assessment for security personnel over the course of more than three decades.

Zen Technologies specialises in the design, development, and production of defence training systems and anti-drone systems using sensor and simulator technologies domestically. Recognized by the Indian Ministry of Science and Technology, The company maintains a specialised research and development centre in Hyderabad that serves the Ministry of Defence, security forces, police, and paramilitary forces. Zen has sold more than 1,000 training systems throughout the world and has filed for more than 150 patents. 

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