Zen Technologies shares Hit 10% Upper Circuit As Q1 Profit Jumps Multi-Fold, Secures Rs 202 Cr Order

Zen Technologies Ltd shares hit 10% upper circuit in early trade on Monday trading after the drone manufacturer reported a nearly six-fold increase in June quarter profit. On August 5, Zen Technologies announced its April-June quarter (Q1FY24) results for fiscal 2023-24, reporting a 532% rise at 47.08 Crore, compared to 7.4 crore in the same period the previous year.

According to a regulatory filing, Zen Technologies has disclosed a new order booking of Rs 202 Crore, bringing their total order booking to Rs 1,000 Crore.

Commenting on the results, Mr. Ashok Atluri - Chairman and Managing Director, said, "Zen Technologies' performance for Q1FY24 has set a new record for us in terms of revenue and profitability. 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 businessmodel came to the fore this quarter, evident in EBITDA of 51%."

He added, "During this quarter, we secured new orders amounting to approximately ₹202 crores. Additionally, in July 2023, we bagged orders worth around ₹500 crores. This brings our cumulative order book position to ~ ₹1,000 crores, 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."

He further added, "We have a strong liquidity position and a healthy balance sheet with a significant improvement in our working capital cycle. This will support execution of the orders and fuel our plans for the growth opportunities that will unfold in the coming years."

Currently, the shares share of Zen Technologies trading in the green, up by 9.99% at Rs 674.75 apiece on the BSE. Zen Technologies' 52-week high is Rs 674.75 apiece and its 52-week low is Rs 175.50 apiece. The stock jumped 9.28% in the last 1 week, while in the last 1 month, it jumped 56.88%. Stock jumped 259.67% in 1 year and 902.60% in the last 3 years.