The shares of this small cap company, a leader in combat training solutions and defence technology, hit a 20 percent lower circuit on Monday after the company announced a 33 percent decrease in its quarterly net profits in Q3 FY25.
Price Action
With a market capitalization of Rs 9,745.49 crore, Zen Technologies Ltd hit a 20 percent lower circuit in Monday’s trading session and fell to a price of Rs 1,079.35 per share compared to its previous closing price of Rs 1,349.15 per share.
What Happened
The shares of Zen Technologies Ltd fell after the company reported its Q3FY24-25 results. Its total income increased by 68 percent from Rs 103.8 crore to Rs 174.2 crore in Q3FY25. On a quarter-on-quarter basis, the income fell by 30 percent from Rs 250.3 crore.
This was accompanied by a 43 percent year on year increase in net profits from Rs 29.9 crore to Rs 42.7 crore in Q3FY25. However, on a quarter-on-quarter basis, the company’s net profits fell by 33 percent from Rs 63.4 crore.
Further, the company’s EPS increased by 20 percent year on year from Rs 3.67 to Rs 4.42. On a quarterly basis however, the EPS fell by 39 percent from Rs 7.26.
Company Updates
Zen Technologies Ltd acquired a 100 percent equity stake in Applied Research International Private Limited (ARIPL) and ARI Labs Private Limited (ALPL). This acquisition was valued at a total amount of Rs 130 crore. Both of these companies have a focus on simulation and assessment tools in the marine and naval industries.
It also announced strategic investments in Vector Technics Private Limited (51 percent stake) and Bhairav Robotics Private Limited (45.33 percent stake). These acquisitions improve Zen’s expertise in propulsion, autonomous robotics, and aerospace components, driving self-reliance in manufacturing.
Company Overview
Zen Technologies Ltd is an Indian based company specializing in defence training systems, utilizing sensor and simulator technology. Headquartered in Hyderabad, it has offices across India, UAE and the USA. It has filed over 160 patents globally and has deployed more than 1000 solutions. Some notable repeat clients include Indian armed forces, paramilitary and state police forces, government transport departments, and civilian markets.
As of Q3 FY25, Zen Technologies’ order book stands at Rs 816.91 crore out of which, 48 percent comes from training simulators while 52 percent comes from anti-drone systems. This includes both domestic and international orders.
Written by Shwetha Sairam
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