Zen Tech trades 8% up after Q4 profit jumps 510%

Shares of Zen Technologies traded 8 percent higher intraday on May 8 after the company reported a 510 percent on-year jump in the fourth quarter consolidated net profit to Rs 20 crore. Its net profit stood at Rs 9 crore in the December 2022 quarter.

Total revenue increased 215 percent YoY to Rs 96 crore, compared to Rs 30 crore reported in the corresponding period of last fiscal. On a sequential basis, total revenue for the quarter grew 76 percent.

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On a full-year basis, the company which designs, develops, and manufactures defence training solutions reported a multi-fold growth in profit after tax (PAT) at Rs 50 crore in FY23 from Rs 2.6 crore in FY22. The company’s revenues from operations rose 214 per cent to Rs 219 crore against Rs 70 crore reported in FY22.

“As previously committed, we recorded the highest revenue in the history of Zen Technologies. We also secured new orders of worth Rs 141.67 crore during the quarter. We have strong order book of Rs 473 crore and expecting good growth in coming quarters,” said Ashok Atluri, CMD, Zen Tech.

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The Board of Directors has also approved a final dividend on equity shares at the rate of 20 percent i.e. Re 0.20 per equity share of Re 1 each for the financial year ended March 31, 2023.

The company’s market capitalisation has increased 51 percent in the last six months and over 64 percent till date this year. At 10.55am, the scrip was trading 7.23 percent, up on the NSE at Rs 307.30 with the benchmark Nifty IT trading 0.30 percent higher at 27,802.05 points.