Shares of Zen Technologies were locked in the 20 percent lower circuit at Rs 1,080 on February 17 after the company reported its Q3 numbers. While the drone manufacturer's Q3 earnings showcased growth on an on-year basis, weakness was seen as compared to the previous quarter.
Zen Technologies reported a net profit of Rs 38.62 crore in Q3, reflecting a 22 percent growth from the rs 31.67 crore that it posted in the same quarter last year, driven by higher other income. However, sequentially, net profit nearly halved from Rs 65.24 crore in the previous quarter.
The company’s revenue also showcased a similar trend. It surged 44 percent on year to Rs 141.52 crore in Q3, up from Rs 98.08 crore, however, it was down 41 percent from the Rs 241.69 crore it clocked in the September quarter, reflecting a significant sequential slowdown.
On the flipside, EBITDA margins showcased a contrasting trend as it weakened to 35.90 percent from 47.34 percent in the year ago period, but improved from 35.12 percent a quarter ago.
Follow our market blog to catch all the live updates
“In this quarter, we experienced a rise in profitability due to higher other income; however, we remain confident that we will achieve our EBITDA target of 35 percent and PAT margins of 25 percent by the end of the financial year,” Ashok Atluri, Chairman and Managing Director, Zen Technologies said in an exchange filing.
The company's order book stood robust at Rs 816.91 crore as of the end of the December quarter, giving the management confidence over a healthy pipeline for the coming quarters.
In Q3, Zen Technologies transferred 9,000 equity shares to eligible employees, who had previously received grants under the Zen Technologies Employee Stock Option Plan-2021, from the Zen Technologies Limited Employees Welfare Trust. In addition, the board of directors approved several acquisitions, including a 100 percent stake in Applied Research International Private Limited and ARI Labs Private Limited in multiple tranches, a 45.33 percent stake in Bhairav Robotics Private Limited through subscription, and a 51 percent stake in Vector Technics Private Limited via subscription.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
