Shares of Zen Technologies, a leading anti-drone technology and defense training solutions provider, moved higher by 8 per cent to Rs 319.50 on the BSE in Wednesday’s intra-day trade in an otherwise subdued market on healthy business outlook.
Zen Technologies is engaged in indigenous design, development and manufacture of sensors and simulators technology based defence training systems, and has relentlessly been providing Defence Training Solutions and seamless services to Ministry of Defence (Armed Forces), Security Forces Police and Para-military forces. The company manufactures land based military training simulators, driving simulators, Live range equipment and Anti drone Systems.
On March 24, Zen Technologies announced that it secured new orders worth of Rs 127 crore. As on December 31, 2022, the company had order book position of Rs 404.44 crore.
The company said it believes that the next few years will be extremely positive, and it anticipates the signing of several more significant contracts in the near future. Zen believes that it will play a significant supporting role in the government's prestigious Agnipath initiative and efforts to modernize training.
“On the order book front, we expect a few major order wins coming our way on the back of our aggressive participation in various defence events. Furthermore, we expect a few more big order wins from aggressive purchase being made by Government India (GOI),” Zen said while announcing its Q3 results on January 28.
The GOI has formulated several measures along with strict implementation timelines. The governments keen focus on Make in India and Atmanirbhar Bharat campaign has created a conducive environment to make in India for the defence industry. This should act as a strong tailwind going forward, it added.
The Centre has formulated several measures along with strict implementation timelines including Rs 52,000 crore allocated for equipment procurement from domestic defence industry and exports target of Rs 35,000 crore by 2025, the company said.
Meanwhile, Zen had reported robust earnings for the quarter ended December 2022 (Q3FY23), with a consolidated profit after tax (PAT) of Rs 11.94 crore, against loss of Rs 0.22 crore in the year-ago quarter (Q3FY22). Sales more-than-tripled to Rs 52.48 crore from Rs 16.26 crore. Ebitda (earnings before interest, taxes, depreciation, and amortization) margins improved to 34.27 per cent from 11.19 per cent in Q3FY22.
The company's strong performance was on the back of positive growth reported by the both business verticals, AMC and Equipment. The management said the sales of equipment are the business vertical where growth visibility continues to remain high and the opportunities opening up. The management remains extremely confident of recognizing these revenues in the current financial year with a possible spill over to Q1FY24.