Zen Technologies Q4 PAT squashes to Rs1.8cr, revenue stood strong at Rs21.55cr

Consolidated EBITDA (excluding Other Income) stood at Rs3.08cr, resulting in EBITDA margins of 14.30%.

May 04, 2021 11:05 IST India Infoline News Service

Zen Technologies consolidated net profit squeezed to Rs1.83cr in the quarter ending March 2021 (Q4FY21) compared to a profit of Rs19.12cr a year ago same period. Q4 PAT was better than a profit of Rs1.75cr recorded in the preceding quarter.

On the contrary, the top-line front was strong. Consolidated revenue from operations was at Rs21.55cr in Q4FY21 increasing from Rs19.79cr of  Q4FY20 and Rs16.57cr of Q3FY21.

Consolidated EBITDA (excluding Other Income) stood at Rs3.08cr, resulting in EBITDA margins of 14.30%.

Ashok Atluri, Chairman, Managing Director & CFO said, “We can look back at the last financial year as a challenging one. We entered FY2020-21 in a period of significant uncertainty related to macro factors that were beyond our control. The company also suffered a decline in financial performance due to the delay in release of Modernization fund from the central Government which led to lower orders than expected. However, in these challenging times the company continues to focus on factors within its control by harnessing its strong research and development capabilities and continuously introducing new products with huge market opportunities."

Atluri added, with an aim to strengthen the business further, the company has invested Rs11.97cr in Research and Development in FY2020-21.

As a result, this year the company has added 4 new products to its offerings -  1)Anti-Drone Systems;  2)Integrated Air Defence Combat Simulators; 3) Drone Simulators and Anti Drone Simulators; and Logistics Drones.

"We expect these products to make significant contributions to our topline given the changing dynamics of warfare. Also, we believe that the use of drones will not only be limited to military and will have much wider applications," Atluri adds.

Going forward, Atluri said,  "FY2021-22 has started on an uncertain note with severe impact from the 2nd wave of the ongoing COVID-19 pandemic. This may affect us in the short term as Government funds get diverted and some orders get delayed. However, we firmly believe that we have the experience and financial strength to see this through and emerge stronger. With all the Research and Development work that has happened behind the scenes of this subdued financial performance, we remain confident that we will emerge out much stronger once the situation normalizes.”

At around 11.12 am, Zen Tech was trading at Rs74.85 per piece up by Rs1.55  or 2.11% on Sensex. 

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