Zen Technologies Ltd. shares fell as much as 10.4% on Monday after the defence technology company reported lower revenue, operating profit and net profit for the first quarter and disclosed a one-time loss during the period.
The stock declined to an intraday low of Rs 2,585.55. It has fallen 4% over the past five trading sessions. Trading volume was more than five times its 20-day average, according to Bloomberg data.
The decline followed the company's June-quarter earnings, which showed weaker operating performance on a year-on-year basis. Revenue, earnings before interest, tax, depreciation and amortisation, operating margin and net profit all declined from a year earlier. The company also reported a one-time loss of Rs 3.4 crore in the quarter. Separately, the board approved a two-year extension for the utilisation of funds raised through its qualified institutional placement in August 2024.
Q1 Results
For the quarter ended June, consolidated revenue declined 10.5% year-on-year to Rs 142 crore from Rs 158 crore.
EBITDA fell 38.8% to Rs 38.7 crore from Rs 63.3 crore a year earlier, while the EBITDA margin narrowed to 27.3% from 40%.
Consolidated net profit declined 27.8% to Rs 34.5 crore from Rs 47.8 crore in the corresponding quarter last year.
The company also reported a one-time loss of Rs 3.4 crore during the quarter.
Separately, the board approved an extension of two years for the utilisation of proceeds raised through the company's qualified institutional placement completed in August 2024.
According to Bloomberg data, six of the eight analysts tracking the stock have a "buy" recommendation, while the remaining two have a "hold" rating.
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