Zen Technologies Limited, a leading player in the defense and training technology space, has seen impressive growth in its financials in recent years. With a diversified product offering and increasing demand for defense tech solutions, the company’s performance has been notable. Below, we break down Zen Technologies’ key Profit and Loss figures, growth rates, and financial ratios over the last decade, providing a detailed view for investors.
Sales and Revenue Performance
Zen Technologies has experienced consistent growth in its revenue over the last decade, with a sharp rise in recent years. Here’s a summary of the company’s sales figures:
- 2023-2024: The company reached ₹440 crores in sales, a massive increase compared to previous years. This growth can be attributed to its increasing market presence in defense technology and training systems.
- 2022-2023: Sales hit ₹219 crores, almost doubling from the ₹70 crores recorded in 2021.
- CAGR (Compounded Annual Growth Rate) over the last 10 years is a strong 25%, while the 3-year growth shows a remarkable 100% increase.
Zen Technologies’ strong growth in sales reflects both expanding demand for its innovative products and its successful penetration into both domestic and international markets.
Profitability
Zen Technologies has demonstrated a healthy operating profit over the years, with some fluctuations tied to global market conditions and internal operational changes.
- Operating Profit (OP): The company recorded an Operating Profit of ₹181 crores in FY 2023-24, representing an Operating Profit Margin (OPM) of 41%. This is an excellent margin, especially given the company’s defense sector focus, which often involves high-cost technology development.
- Operating Profit Margin (OPM) for the TTM period stands at 36%, showing sustained profitability.
- Over the last decade, Zen has posted operating profit as high as ₹73 crores in 2022-2023.
Net Profit and Earnings Per Share (EPS)
Net profits have shown significant improvement over the years, particularly in the last three years, driven by operational efficiency and increased demand. Let’s break down the numbers:
- Net Profit (2023-2024): The company’s net profit for the financial year 2023-24 stood at ₹130 crores, a substantial rise compared to previous years.
- EPS: Earnings per Share have also seen impressive growth, hitting ₹15.22 for FY 2023-2024, compared to just ₹3.55 in March 2012. This growth signifies Zen’s increasing profitability and value creation for shareholders.
- TTM Net Profit: Zen Technologies recorded a net profit of ₹223 crores for the trailing twelve months (TTM), signaling strong financial health.
Return on Equity (ROE)
The company’s Return on Equity (ROE) is a strong indicator of how efficiently Zen Technologies is using shareholders’ equity to generate profit:
- 5-Year ROE: The company has consistently delivered an ROE of 18% over the past five years.
- 1-Year ROE: A significant 33% ROE in FY 2023-24 further underscores Zen’s strong financial performance.
Dividend Payout and Shareholder Returns
Zen Technologies has exhibited a dividend payout strategy that balances between rewarding investors and reinvesting in growth opportunities:
- Dividend Payout %: The dividend payout ratio stands at 7% for the latest year, reflecting a cautious yet shareholder-friendly approach.
- Stock Price CAGR: Zen Technologies’ stock price has delivered an impressive CAGR of 39% over the last 10 years, 112% over the past 5 years, and 114% over the past 3 years.
This substantial growth in stock price over the long term is a testament to the company’s solid performance and investor confidence.
Key Financial Ratios and Metrics
- Expenses: Zen’s expenses have been rising in line with its sales, reaching ₹259 crores in FY 2023-2024. This expense growth is in line with its expanding operations and R&D investments.
- Other Income: Zen Technologies has been able to supplement its core revenues with other income, which grew to ₹39 crores for the latest year.
- Depreciation: Depreciation expenses have increased slightly, with ₹14 crores recorded in FY 2023-24, a natural result of the company’s growing capital expenditure in defense tech solutions.
Growth Prospects: What’s Next for Zen Technologies?
With strong sales growth, improving profit margins, and investor-friendly returns, Zen Technologies is well-positioned for future growth. The company’s CAGR in sales and profits indicates that it is on a solid growth trajectory, supported by its dominant presence in the defense sector and its focus on innovative solutions like air defense simulators and anti-drone technologies.
The 100% sales growth and 257% profit growth over the past 3 years demonstrate that Zen is tapping into lucrative markets, particularly in defense technology and training solutions. As the defense industry in India and abroad continues to grow, Zen Technologies is poised to capture significant market share.
Conclusion: Strong Financials with Future Growth Potential
Zen Technologies’ financials indicate a stable and profitable company with a promising future. The company’s ability to increase sales while maintaining profitability and a high return on equity makes it an attractive prospect for investors looking at the defense sector and technology space.
Investors looking for long-term growth potential can view Zen Technologies as a solid choice for exposure to India’s defense technology market.
Key Takeaways:
- Impressive Sales Growth: 100% over the past 3 years.
- Strong Profitability: Operating profit margin of 41% in FY 2023-24.
- Attractive Stock Performance: 39% CAGR over the last 10 years.
As the company continues to innovate and expand its market reach, Zen Technologies remains an exciting player in the defense sector for both growth and value investors.