The shares of the drone manufacturer fell up to 19 percent after the company’s net profit and revenue dropped by 60 percent and 29 percent, respectively in H1FY25.
With a market capitalization of Rs 273.47 crore, the shares of Droneacharya Aerial Innovations Ltd closed at Rs 114.00 per share, decreased around 16.15 percent as compared to the previous closing price of Rs 135.95 apiece.
Reason for fall:-
The shares of the company have seen positive movement after Droneacharya Aerial Innovations Ltd announced weak financial performance in which revenue plummeted by 29 percent on a yearly basis from Rs 20.89 crore in H1FY24 to Rs 26.90 crore in H1FY25, however, on a Halfyearly basis revenue slipped by 29 percent from Rs 20.89 crore in H2FY24 to Rs 26.90 crore in H1Y25.
Moreover, net profit fell drastically by 60 percent on a yearly basis from Rs 3.96 crore in H1FY24 to Rs 1.61 crore in H1FY25, meanwhile on a half-yearly basis net profit dropped by 60 percent from Rs 3.96 crore in H2FY24 to Rs 1.61 crore in H1Y25.
Recent Milestone:-
Today, the company achieved major milestones after securing a master contract worth USD 1.75 million (INR 14.80 Crores) for specialized drone consultancy services from American Blast Systems (ABS), California, USA.
Moreover, the partnership between DroneAcharya and ABS will see the co-production and certification of these eight products in the U.S., thereby reinforcing the market position of both companies in the American drone landscape.
Recent order win:-
Droneacharya Aerial Innovations Ltd secured a service order from IIT Ropar to train 150 individuals in drone piloting under the Punjab Skill Development Mission. This initiative is part of an MoU between IIT Ropar and the Punjab government’s C-PYTE for youth training and Employment.
Ratio analysis:-
The company’s critical ratios show that the return on equity zoomed from 5.18 percent in FY22-23 to 8.52 percent in FY23-24, while the return on capital employed magnified from 7.02 percent to 11.65 percent. The net profit margin (NPM) for fiscal year 23-24 is 17.56 percent.
Company Profile:-
Droneacharya Aerial Innovations Limited is an Indian-based firm. The Company’s primary business is to provide drone operating training, drone supply, maintenance services, management consulting, and training services. The company offers a variety of trainings, including the DGCA Drone Pilot Training Course (Pune), among others.
Written by:- Abhishek Singh
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