In a significant development, Zen Technologies, a prominent provider of military training and anti-drone solutions in India, has won a commendable order worth Rs 202 crore from the Ministry of Defence (MoD). The announcement has propelled the company’s stock to reach a new milestone, surging by 10 percent to Rs 453.15 on the Bombay Stock Exchange (BSE) during Thursday’s intra-day trade. This remarkable achievement is indicative of Zen Technologies’ unwavering commitment to delivering innovative solutions and making a transformative impact in the defense sector.
Zen Technologies’ stock has experienced a remarkable surge of 146 percent in the calendar year 2023, outperforming the S&P BSE Sensex, which recorded a mere 3.3 percent rise during the same period. This remarkable growth showcases the market’s confidence in the company’s cutting-edge anti-drone technology and defense training solutions.
The recent order from the MoD further solidifies Zen Technologies’ position as a leading indigenous designer, developer, and manufacturer of defense training systems, sensors and simulators, drones, and anti-drone solutions. The company has been providing seamless services and training solutions to the Armed Forces, Security Forces Police, and Para-military forces, exhibiting its unwavering dedication to national defense.
The financial year 2023 (FY23) has been exceptionally lucrative for Zen Technologies, as reflected in their robust earnings report. The standalone profit after tax (PAT) skyrocketed by an impressive 1,763 percent year-on-year (YoY) to reach Rs 37.64 crore, a significant increase from Rs 2.02 crore in FY22. Revenue also witnessed substantial growth, surging by 201 percent YoY to Rs 161.44 crore. Furthermore, the company achieved a noteworthy improvement in its earnings before interest, tax, depreciation, and amortization (EBITDA) margin, which soared to 34.62 percent in FY23, compared to 12.34 percent in FY22.
As of March 31, 2023, Zen Technologies boasts a robust order book worth approximately Rs 473 crore. With several substantial bids placed for additional orders, the management anticipates the announcement of results by the first half of FY24, further bolstering the company’s growth prospects.
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In another development, Zen Technologies’ board recently approved the allotment of 4.06 million equity shares of Re 1 each to the holders of compulsorily convertible debentures (CCDs) in the public category. Additionally, the board approved the allotment of 469,333 equity shares to the holders of convertible warrants in the promoter category. Notably, the University of Notre Dame DU LAC and investor Mukul Mahavir Agrawal will receive over 1 million equity shares collectively.
Zen Technologies’ remarkable order victory from the Ministry of Defence, coupled with their exceptional financial performance and promising future prospects, solidifies their position as a leading player in India’s defense technology sector.
About Zen Technologies:
Founded in 1993, Zen Technologies Limited is a company that specializes in designing, developing, and manufacturing cutting-edge combat training solutions for defense and security forces around the globe. The company’s headquarters is located in Hyderabad, India, and it also has offices in India, the United Arab Emirates, and the United States.
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