ZENTECNSE28 October 2023

Zen Technologies Limited has informed the Exchange about Investor Presentation

Zen Technologies Limited

Date: October 28, 2023

To Listing Department National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Through: NEAPS Symbol/Security ID: ZENTEC

Dear Sir/Madam,

To Dept. of Corp. Services BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400001 Through: BSE Listing Centre Security Code: 533339

Sub:

Investor Presentation

****

Please find attached Investor Presentation on the on the Un-audited Financial Results of the Company for the quarter and half year ended September 30, 2023.

above

The https://www.zentechnologies.com/calls-and-conferences

information

available

also

the website

the Company:

Kindly take the same on record and acknowledge the receipt.

Thanking you. Yours faithfully, For Zen Technologies Limited

M. Raghavendra Prasad Company Secretary and Compliance Officer M.no.: A41798

Encl: as above

Investor Presentation

Q 2 F Y 2 4

NSE: ZENTEC B SE: ZENTEC - 533339

BLOOMBERG: ZEN IN REUTERS: ZETE. BO

Management Commentary

Mr Ashok Atluri CHAIRMAN & MANAGING DIRECTOR

“I am pleased to provide an overview of our performance in the last quarter, with new wins totaling approximately ₹ 923 crores in Q2FY24. Moreover, the order book worth ₹ 1,487 crores amidst tough competition highlights Zen’s IDDM capability.

In line with our earlier guidance, we expect to achieve a revenue target of ₹ 450 crores during the current financial year. It's important to highlight that out of the total order book of ₹ 1,487 Cr, equipment orders worth ₹ 1,208 crores are slated for execution by 31st March 2025. As expected, the H2 started on a good note with order for training simulators worth ₹ 84 Cr received.

We expect to secure more orders in the coming quarters and expect that the prevailing demand will continue to increase. Additionally, our export prospects remain favorable. Zen Technologies is well positioned to seize these opportunities, underpinned by a robust liquidity of approximately ₹ 264 crores and the asset-light business model that we've built over the years.

We are pleased to report that deliveries have started earlier than the timeline given in the contracts.

Additionally, CRISIL has upgraded our long-term rating by two notches from CRISIL BBB/ Positive to CRISIL A-/Stable, and our short-term rating has been upgraded by three notches from CRISIL A3+ to CRISIL A1.

In conclusion, the recent events have demonstrated that not being prepared with extremely trained and combat ready forces entails huge costs. When the world’s most secure country can be taken by surprise, other countries have become acutely aware of the dangers of not remaining combat ready. We expect lots of enquiries and orders from friendly foreign countries in the coming quarters.

Defence remains a pivotal focus for the Indian Government, and we remain optimistic and anticipate this robust momentum to continue in the forthcoming years.”

Quarterly Standalone Highlights

Revenue from Operations (YoY)

EBITDA (YoY)

Profit After Tax (YoY)

(All Values ₹ in Crore)

203%

226%

281%

64.03

26.55

17.34

21.14

8.18

4.55

Q2FY23

Q2FY24

Q2FY23

Q2FY24

Q2FY23

Q2FY24

Revenue Segmentation (Sale of Equipment vs AMC)

Revenue Segmentation (Domestic vs Exports)

R&D Expenses

(All Values ₹ in Crore)

8.28

55.76

Q2FY24

9.36 11.77

Q2FY23

20.23

35.53

Q2FY24

4.34

7.43

Q2FY23

7.41

4.01

Sales of Equipment

AMC

Domestic

Exports

Q2FY23

Q2FY24

Quarterly Consolidated Highlights

Revenue from Operations (YoY)

EBITDA (YoY)

Profit After Tax (YoY)

(All Values ₹ in Crore)

99%

66.50

86%

170%

24.31

15.28

33.41

13.07

5.65

Q2FY23

Q2FY24

Q2FY23

Q2FY24

Q2FY23

Q2FY24

Q2FY23

Q2FY24

Q2FY23

Q2FY24

Q2FY23

Q2FY24

*PAT Adjusted for Non-Controlling Interests

H1 Standalone Highlights

Revenue from Operations (YoY)

EBITDA (YoY)

Profit After Tax (YoY)

(All Values ₹ in Crore)

250

200

150

100

261%

342%

404%

64.48

196.48

95.35

54.36

21.56

12.78

H1FY23

H1FY24

H1FY23

H1FY24

H1FY23

H1FY24

H1FY23

H1FY24

H1FY23

H1FY24

H1FY23

H1FY24

H1 Consolidated Highlights

Revenue from Operations (YoY)

EBITDA (YoY)

Profit After Tax (YoY)

(All Values ₹ in Crore)

182%

268%

376%

62.36

198.95

95.90

70.48

26.03

13.11

H1FY23

H1FY24

H1FY23

H1FY24

H1FY23

H1FY24

H1FY23

H1FY24

H1FY23

H1FY24

H1FY23

H1FY24

*PAT Adjusted for Non-Controlling Interests

Order Book Status as of 30th September 2023

Order Book

New Orders

Orders Executed

Total Order Book

Order Book as on 1st July 2023

New Order bagged in Q2FY24

Orders executed in Q2FY24

Total Order Book as on 30th September 2023

AMC: 169.76 Cr Equipment: 373.19 Cr

AMC: 94.54 Cr Equipment: 828.92 Cr

AMC: 8.27 Cr Equipment: 55.71 Cr

AMC: 257.03 Cr Equipment: 1,146.40 Cr

Total : 542.95 Cr

Total : 924.47 Cr

Total : 63.99 Cr

Total : 1,403.43 Cr

Note - In October 2023, we secured orders worth ~₹ 84 crores

Key Order Book Updates – Q2FY24

• Secured new orders worth ~₹ 923 crores during the quarter. • Some of significant orders received in quarter.

Month

Description

Product Value

AMC Value

Total

July-23

Aug-23

Sept-23

Supply of Anti Drone System to MoD

Significant order win in the Export Market (includes both Training Equipment and ADS)

Supply of Training Equipment to MoD

Supply of Anti Drone System to MoD

160

340

155

827

160

340

104

192

923

• Still anticipating new orders. • Export market prospects are also bright.

Financial Statement Summary

Summary of Standalone Profit & Loss Statement

Particulars (₹ in Crore)

KEY PERFORMANCE INDICATORS

Sales

Other Operating Revenue

Total Revenue

Total Operating Expenses

EBITDA

EBITDA Margins

Interest Cost

Depreciation

Profit Before Tax

Profit After Tax

Q2FY24 (Unaudited)

Q2FY23 (Unaudited)

Q1FY24 (Unaudited)

64.03

4.79

68.83

26.55

38.57%

0.45

1.77

24.34

17.34

21.12

2.80

23.93

8.18

34.18%

0.65

0.96

6.58

4.58

132.45

2.63

135.08

68.79

50.93%

0.35

1.46

66.98

47.13

Financial Statement Summary

Summary of Consolidated Profit & Loss Statement

Particulars (₹ in Crore)

KEY PERFORMANCE INDICATORS

Sales

Other Operating Revenue

Total Revenue

Total Operating Expenses

EBITDA

EBITDA Margins

Interest Cost

Depreciation

Profit Before Tax

Profit After Tax (Adjusted for Non-Controlling Interests)

Q2FY24 (Unaudited)

Q2FY23 (Unaudited)

Q1FY24 (Unaudited)

66.50

5.34

71.84

24.31

33.83%

0.53

2.20

21.57

15.28

33.41

3.15

36.56

13.07

35.74%

0.70

1.37

11.01

5.65

132.45

2.68

135.13

71.59

52.98%

0.42

1.91

69.26

47.09

R&D Spends over the Years (In crores)

12.30

7.90

8.16

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00

4.22

H1FY21

H1FY22

H1FY23

H1FY24

Strategic Priorities

Continue to grow the sales of Equipment and expand the product portfolio with strong focus on emerging space Anti- Drone systems.

Look for inorganic acquisition which fit in with company’s vision and positioning.

Scale the AMC business, where the contributions from AMC can take care of the fixed operating expenses.

Enhance technical capabilities by increasing our investments R&D and getting into high value-added complex systems.

The business model of the company has been strategically positioned to reduce lumpiness and enhance the profitability in the coming years.

Streamlining operational efficiencies and focusing on cost optimisation and enhancing financial performance.

Evaluating tie ups with OEMs.

Thank You

©2018 ZEN TECHNOLOGIES LIMITED., ALL RIGHTS RESERVED. ZEN TECHNOLOGIES LOGO IS A TRADEMARK OF ZEN TECHNOLOGIES LIMITED. IN ADDITION TO COMPANY DATA, DATA FROM MARKET RESEARCH AGENCIES, STOCK EXCHANGES AND INDUSTRY PUBLICATIONS HAS BEEN USED FOR THIS PRESENTATION. THIS MATERIAL WAS USED DURING AN ORAL PRESENTATION; IT IS NOT A COMPLETE RECORD OF THE DISCUSSION. THIS WORK MAY NOT BE USED, SOLD, TRANSFERRED, ADAPTED, ABRIDGED, COPIED OR REPRODUCED IN WHOLE ON OR IN PART IN ANY MANNER OR FORM OR IN ANY MEDIA WITHOUT THE PRIOR WRITTEN CONSENT. ALL PRODUCT NAMES AND COMPANY NAMES AND LOGOS MENTIONED HEREIN ARE THE TRADEMARKS OR REGISTERED TRADEMARKS OF THEIR RESPECTIVE OWNERS.

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Afzal Malkani

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Disclaimer:

Statements

Certain this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The relating to these risks and uncertainties statements include, but are not limited to, risks and uncertainties regarding fluctuations intense competition, political in earnings, instability and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

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Zen Technologies Limited has informed the Exchange about Investor Presentation

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