By Anurag Tiwari
Zen Technologies’ shares (Zen Tech Share Price) were caught in a 20% downward circuit at Rs 1,080 on February 17 after the firm released Q3 results. While the drone manufacturer’s Q3 earnings increased year over year, there was decline when compared to the prior quarter.
Zen Tech Share Price Plunges 20% After Q3 Results Announcement
Zen Tech recorded a net profit of Rs 38.62 crore in Q3, up 22% from Rs 31.67 crore in the same quarter last year, driven by greater other income. However, net profit was practically half from Rs 65.24 crore in the preceding quarter.
The company’s revenue followed a similar path. It increased 44 percent year on year to Rs 141.52 crore in Q3, up from Rs 98.08 crore; however, it fell 41 percent from Rs 241.69 crore in the September quarter, indicating a large sequential decline.
On the other hand, EBITDA margins demonstrated a different pattern, as they fell to 35.90 percent from 47.34 percent in the previous period but increased from 35.12 percent.
Zen Technologies Eyes Strong Growth Despite Market Setback
Zen Technologies reported a rise in profitability for the quarter, primarily driven by higher other income. “We remain confident in achieving our EBITDA target of 35% and PAT margins of 25% by the end of the financial year,” said Ashok Atluri, Chairman and Managing Director, in an exchange filing.
The company maintained a robust order book of Rs. 816.91 crore as of the December quarter, reinforcing management’s optimism about a healthy pipeline for the upcoming quarters.
During Q3, Zen Technologies transferred 9,000 equity shares to eligible employees under the Zen Technologies Employee Stock Option Plan-2021. Additionally, the board approved several strategic acquisitions, including:
- 100% stake in Applied Research International Private Limited and ARI Labs Private Limited in multiple tranches.
- 45.33% stake in Bhairav Robotics Private Limited through a subscription agreement.
- 51% stake in Vector Technics Private Limited via subscription.
These acquisitions are expected to strengthen Zen Technologies’ capabilities and market position.
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