Zen Technologies surges 10% on order win worth Rs 202 from Defence Ministry

Thus far in the calendar year 2023, the stock of India's leading anti-drone technology and defense training solutions provider has zoomed 146% as compared to a less than 3.3% rise in the Sensex


SI Reporter Mumbai

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Shares of Zen Technologies hit a new high of Rs 453.15, surging 10 per cent on the BSE in Thursday's intra-day trade, after the company said it has won order worth of Rs 202 from the Ministry of Defence, and foresees more orders in the near future.

Thus far in the calendar year 2023, the stock of India's leading anti-drone technology and defense training solutions provider has zoomed 146 per cent, as compared to less than 3.3 per cent rise in the S&P BSE Sensex.

The company, a leading provider of military training and anti-drone solutions, announced that it has won a significant order from the Ministry of Defence, Government of India valued at approximately Rs 202 crore.

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"The Company looks forward to securing additional sizeable contracts within the next quarter. This order win underscores Zen Technologies' steadfast commitment to delivering innovative solutions and driving transformative impact," it said in an exchange filing.

Zen Technologies is engaged in indigenous design, development and manufacture of sensors and simulators technology based defence training systems, drones and anti-drones solutions, and has relentlessly been providing defence training solution and seamless services to Ministry of Defence (Armed Forces), Security Forces Police, and Para-military forces.

For the financial year 2023 (FY23), Zen Technologies reported robust earnings with standalone profit after tax (PAT) zooming 1,763 per cent year-on-year (YoY) to Rs 37.64 crore. The company had posted PAT of Rs 2.02 crore in FY22.

Revenue grew 201 per cent YoY to Rs 161.44 crore. Earnings before interest, tax, depreciation and amortisation (ebitda) margin improved substantially to 34.62 per cent in FY23 from 12.34 per cent in FY22.

As on March 31, 2023, the company had orders of around Rs 473 crore in hand. The management said the company has placed bids for substantial orders and expects the results to be out by H1FY24.

Last month, the company’s board approved the allotment of 4.06 million equity shares of Re 1 each on conversion of compulsorily convertible debentures (CCDs) to the holders of CCDs belonging to public category. The board also approved the allotment of 469,333 equity shares on conversion of convertible warrants to the holders of warrants belonging to promoter category.

The company will allot more than 1 million equity shares to University of Notre Dame DU LAC (1.41 million) and investor Mukul Mahavir Agrawal (1.13 million).

First Published: Jun 8 2023 | 9:56 AM IST

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