Table of Contents
Overview of December Quarter Results
Zen Technologies Ltd., a small-cap defense company, has reported remarkable results for the December quarter, showcasing significant growth in various financial aspects. Zen Technologies Share 3x increase in Q3 revenue, Board approves a ₹1,000 crore Qualified Institutional Placement (QIP).
Revenue Growth
The company’s revenue witnessed an exceptional threefold increase, totaling ₹98 crore for the quarter. This notable surge is compared to the ₹32.93 crore reported in the same period the previous year. Even when juxtaposed with the September quarter, Zen Technologies Share demonstrated a substantial 53% growth in revenue.
Profit Surge
Zen Technologies’ net profit experienced a substantial fivefold growth, reaching ₹31.66 crore for the period. In contrast, the year-ago quarter reported a net profit of ₹7.58 crore.
EBITDA Performance
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) exhibited robust performance, standing at ₹44.22 crore in comparison to ₹8.35 crore the previous year. The EBITDA margin expanded impressively, reaching 45%, up from 25.3% in the corresponding period last year.
Board Approval for Fundraising
In a significant move, Zen Technologies’ board approved a fundraising initiative, allowing the company to secure funds of up to ₹1,000 crore. The funds can be acquired through a Qualified Institutional Placement (QIP) or any other permissible mode, either individually or in a combination.
Insights from Company Leadership
Ashok Atluri’s Statement
In an interview with CNBC-TV18 in November of the preceding year, Ashok Atluri, representing Zen Technologies, disclosed key insights. He revealed that the current order book for the company was valued at ₹1,500 crore, with over ₹400 crore attributed to export orders.
Guidance for FY 2025
Atluri provided guidance for the financial year 2025, expressing confidence in the company’s performance. The outlook includes an anticipated revenue of ₹900 crore, along with an EBITDA margin target of 35%.
Financial Performance Snapshot
For the first nine months of the financial year 2024, Zen Technologies achieved a remarkable topline of ₹294 crore. This reflects an impressive 82% increase compared to the ₹161 crore earned during the same period in the previous financial year.
Market Performance and Share Analysis
Zen Technologies Share Movement
On Thursday, shares of Zen Technologies closed 3% higher, settling at ₹729. While the stock has experienced a 20% decline from its recent peak of ₹911, it has still demonstrated substantial growth, recording a remarkable 280% increase over the last 12 months.
Zen Technologies’ robust performance
Zen Technologies’ robust performance in the December quarter, coupled with the board’s approval for substantial fundraising, positions the company on a promising growth trajectory. With a strong order book, strategic guidance, and a notable market presence, Zen Technologies remains a key player in the defense sector. Investors continue to monitor its performance closely, acknowledging the company’s remarkable achievements and growth potential which will be more important for Zen Technologies Share.
