Zen Technologies Limited · NSE:ZENTEC
Zen Technologies — Q3 FY2023 Earnings Presentation
19 slides from Zen Technologies's earnings presentation, Jan 30, 2023
Slide 1: Exchange filing cover letter for earnings presentation
Date: 30th January 2023 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Dalal Street Bandra Kurla Complex, Mumbai- 400001 Bandra (E), Mumbai – 400 051 Through: BSE Listing Centre Through: NEAPS Security Code: 533339 Symbol/Security I
Slide 2: Q3 FY23 Earnings Presentation
Q3 FY23 Earnings Presentation Q 3 F Y 2 3 NSE : ZENTEC BLOOMBERG : ZEN IN B SE : ZENTEC - 533339 REUTERS : ZETE . BO
Slide 3: Inside this document
Inside this document 03 Management Commentary 04 Quarterly Highlights 06 Order Book Status 07 Financial Statement Summary 09 About the Company 11 Research and Development 13 Business Model INVESTOR PRESENTATIO N 2022 14 Strong Regulatory Tailwinds ZEN TECHNOLOG IES LIMITED 15 Investment Merits 16 St
Slide 4: Management Commentary
Management Commentary We expect a few more big order wins from aggressive purchase being made by Government of India. Mr Ashok Atluri CHAIRMAN & MANAGING DIRECTOR I am pleased to share an update on our performance in Q3FY23. Continuing on the strong start to the year, we have further gained momentum
Slide 5: Quarterly Standalone Highlights
Quarterly Standalone Revenue from Operations (QoQ) EBITDA (QoQ) Profit After Tax (QoQ) Highlights (All Values ₹ in Crore) (All Values ₹ in Crore) (All Values ₹ in Crore) Q3FY23 32.93 Q3FY23 10.27 Q3FY23 7.59 Q3FY22 12.36 Q3FY22 2.00 Q3FY22 0.12 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Revenue Segme
Slide 6: Quarterly Consolidated Highlights
Quarterly Consolidated Revenue from Operations (QoQ) EBITDA (QoQ) Profit After Tax (QoQ) Highlights (All Values ₹ in Crore) (All Values ₹ in Crore) (All Values ₹ in Crore) 18.66 52.49 11.94 16.26 1.94 -0.22 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 © Zen Tec
Slide 7: Order Book Status as of 31st Dec 2022
Order Book Status as of 31st Dec 2022 Order New Orders Book + Orders - Executed = TotalBook Order Order Book as on New Order bagged Orders executed Total Order Book as 1st October 2022 in Q3FY23 in Q3FY23 on 31st December 2022 AMC: 145.17 Cr AMC: 0.60 Cr AMC: 9.69 Cr AMC: 136.08 Cr Equipment: 287.10
Slide 8: Financial Statement Summary (Standalone)
Financial Statement Summary Summary of Standalone Profit & Loss Statement Particulars 31.12.22 30.09.22 31.12.21 (₹ in Crore) (Unaudited) (Unaudited) (Unaudited) KEY PERFORMANCE INDICATORS Sales 32.93 21.13 12.36 Other Operating Revenue 1.91 2.80 0.97 Total Revenue 34.84 23.93 13.33 Total Operating
Slide 9: Financial Statement Summary (Consolidated)
Financial Statement Summary Summary of Consolidated Profit & Loss Statement Particulars 31.12.22 30.09.22 31.12.21 (₹ in Crore) (Unaudited) (Unaudited) (Unaudited) KEY PERFORMANCE INDICATORS Sales 52.48 33.41 16.26 Other Operating Revenue 1.95 3.15 1.02 Total Revenue 54.44 36.56 17.28 Total Operatin
Slide 10: Overview: Vision and Mission
Overview Since 1993 Vision To be a leading global defence training & anti-drone solutions provider. Mission To provide defence training & anti-drone solutions through innovative and cost-effective solutions. © Zen Technologies Limited – All Rights Reserved. 9
Slide 11: Overview
Overview A pioneer An IP player 3 decades 25 years 4 years 100+ in developing defence (intellectual property) About 3 decades of Focus in the first 25 years Additional focus in Institutional customers training systems, drones successful track record exclusively on simulators the last 4 years on serv
Slide 12: R&D – Our Strong Suit
R&D – ~65 Our Strong IP driven business with bill of materials not contributing to more than 10% - 25% of the final CRORES OF INVESTMENTS Suit IN R&D IN LAST 5 YEARS product cost Investments in R&D over the last years has resulted in continuous new product additions. The company has recently com
Slide 13: R&D Spends over the Years
R&D Spends over the Years 146.98 92.22 87.29 LEGENDS 61.65 (All Values ₹ in Crore) 53.70 52.61 49.57 38.96 Sales 11.93 13.80 12.88 14.82 12.27 12.83 12.72 14.30 R&D Expenditure 9MFY23 FY21-22 FY20-21 FY19-20 FY18-19 FY17-18 FY16-17 FY15-16 © Zen Technologies Limited – All Rights Reserved. 12
Slide 14: Business Model
Business Model Annual Maintenance Contract Counter-Drone Solutions Combat Training Centre A recurring revenue stream with exceptional Anti drone systems are used to detect and/or A leader in defence training solutions. profitability margins intercept unwanted drones and unmanned aerial vehicle
Slide 15: Strong Regulatory Tailwinds
Strong Regulatory The Government of India (GOI) has formulated several measures along with Tailwinds strict implementation timelines. The confluence Aligning Defence Acquisition Procedure (DAP), 2020, of all these factors with the long-term goals of increase in indigenized provides for a strong co
Slide 16: Investment Merits
Investment Merits Asset-light Increasing Share of AMC business model which is annuity in nature Strong regulatory Focus on tailwinds High Value Complex Systems Increasing R&D spends Strong Balance Sheet with special emphasis on Anti-Drone systems with zero debt for armed forces © Zen Technologies Li
Slide 17: Strategic Priorities
Strategic Priorities Continue to grow the sales of Equipment Establishing the Demo center at Abu- and expand the product portfolio with Dhabi and focusing on export markets strong focus on emerging space Anti- expand the international presence and Drone systems. exports with friendly countries. Scal
Slide 18: Way Forward
Way Forward Increasing Predictability in Turnover Focus on New Products We are working towards strategically positioning the The continuous investments in R&D ensure that the business model to reduce lumpiness. The sale of products are technologically advanced and suited for the equipment done in th
Slide 19: Thank You
Disclaimer: Thank Certain Statements in this presentation Let’s connect concerning our future growth prospects are forward-looking statements, which involve a Afzal Malkani number of risks and uncertainties that could You afzal.malk a ni @ze nte c hn ologie s. c o m cause actual results to differ ma