Shares of Zen Technologies Ltd were locked at 20% lower circuit on 17 February after the company’s earnings for October-December showcased growth on a yearly basis but weakened on quarterly basis.
Zen Technologies reported a net profit of Rs 38.62 crore in Q3, marking a 22% year-on-year (YoY) increase from Rs 31.67 crore in the same quarter last year, primarily driven by higher other income. However, on a sequential basis, net profit nearly halved from Rs 65.24 crore in the previous quarter.
The company’s revenue followed a similar pattern, rising 44% year-on-year to Rs 141.52 crore in Q3 from Rs 98.08 crore. However, it declined 41% from Rs 241.69 crore in the September quarter, indicating a notable sequential slowdown.
On the other hand, EBITDA margins showed mixed trends, declining to 35.90% from 47.34% in the same period last year but improving slightly from 35.12% in the previous quarter.
Earlier on Saturday, 15 February, defense training solutions supplier Zen Technologies Ltd. made large investments in Vector Technics Private Ltd. and Bhairav Robotics Private Ltd.
These acquisitions solidify Zen’s standing as a significant player in India’s defense sector by reiterating the business’s commitment to innovation, homegrown defense production, and advancements in robotics, aerospace, and propulsion technology.
By acquiring these technologies, Zen Technologies expands its capabilities beyond combat training to encompass state-of-the-art defense systems, strengthening its ability to offer complete solutions to armed forces worldwide.
As per the agreements, Zen now holds a 51% controlling stake in Vector Technics Private Ltd, a leading provider of power distribution and propulsion systems for drones and UAVs. With this acquisition, Zen will be able to expand into airplane components and improve its position supporting the global robotics and drone sectors.
Additionally, by purchasing a 45.33% stake in Bhairav Robotics Private, Zen has increased its presence in the defense robotics and autonomous systems industry. Bhairav specializes on advanced robotic equipment, such as quadrupedal robots and autonomous weapon systems.
The investments encourage self-reliance in defense production by bolstering Zen’s skills in autonomous robotics, aerospace components, and UAV propulsion. By catering to overseas markets seeking cutting-edge defense products made in India, these strategic moves help position Zen to compete globally.
The chairman and managing director of Zen Technologies, Ashok Atluri, stated “These strategic acquisitions mark a significant step in our mission to build a self-reliant and globally competitive defence ecosystem. By integrating cutting-edge robotics, propulsion, and aerospace technologies, we are not only strengthening India’s defence capabilities but also positioning Zen Technologies Limited as a leader in next-generation defence innovation.”
At 12:25 pm, the shares of Zen Tech were locked 20% lower at 1,080 on NSE.
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