Zen Technologies : Press Release

Date: 31st July 2022
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 ID: ZENTEC
Dear Sir/Madam,

Sub: Press Release Q1 FY 2023

Please find attached Press Release for the quarter ended 30th June 2022.

The above information is also available on the website of the Company: https://www.zentechnologies.com/press-releases.

This is for your kind information and records.

Thanking You.

Yours sincerely,

For Zen Technologies Limited

HANSRAJ	Digitally signed by
HANSRAJ SINGH
SINGH	Date: 2022.07.31
13:29:35 +05'30'

Hansraj Singh Rajput

Company Secretary & Compliance Officer

M. No. F11438

Q1FY23 PRESS & MEDIA RELEASE

Hyderabad, July 30, 2022

Zen Technologies, India's leading anti-drone technology and defense training solutions provider announced its

financial results for Q1FY23

Commenting on the results, Mr. Ashok Atluri - Chairman and Managing Director, said:

"I am pleased to share an update to accompany our Q1FY23 results and happy to report that all our efforts during the last two years are now starting to bear fruits.

We've had a particularly strong start to the year and have delivered on our commitment by executing an export order worth ₹ 19.94 Cr. on time. This is despite the severe challenges faced due to supply chain constraints resulting in an erratic supply of critical electric components. We also remain on track for executing our anti-drone order during the year, and I am glad to share that we have already executed the First-off production model for the same.

Having overcome the supply constraints by internally re-designing our sub-systems, we remain confident that we will be able to execute our complete equipment order book (₹ 290 Cr. as of 30th June 2022) during the remaining part of the year. Given the substantial operating leverage built into our business model, we expect FY23 to be a year of robust financial performance at Zen.

On our order book and order status front, we have received an AMC contract worth ₹ 47 Cr, wherein the revenues will be recognised periodically over the next five years. Additionally, our positive interaction with customers gives us the visibility of replenishing our order book to the existing levels in the second half of the year.

As discussed earlier, two focus areas at Zen remain enhancing our focus on R&D and tapping the potential in export markets. To this effect, we have strengthened our investments in our R&D team and initiatives and roped in a professional CFO to increase our management bandwidth. Furthermore, with support from the Indian Government to focus on exports, we are taking positive strides to establish a demonstration centre in Abu-Dhabi in a phased manner.

The extremely favourable environment for the Indian defence players created by the current Government acts as an antidote to the Covid-impacted environment. One example is the Indian Government's robust simulation framework, which gives us confidence that in the coming years will see a very strong performance.

#WalkingTheTalk #Atmanirbhar initiatives and announced policy actions clearly indicate the Government's resolve to make India self-reliant in defence. This augurs well for companies like Zen which have developed and continue to invest in developing their IP for global markets."

			All data ₹ in crores
Particulars	Q1FY23	Q1FY22	Q4FY22
Net Sales	33.23	9.13	15.97
Other Operating Revenue	2.15	0.74	2.60
Total Sales	35.38	9.87	18.57
Total Operating Expenses	22.00	9.17	16.07
EBITDA	13.38	0.70	2.50
EBITDA Margins	37.80%	7.05%	13.47%
Interest Cost	0.59	0.14	0.62
Depreciation	0.92	0.99	0.90
Profit Before Tax	11.87	(0.44)	0.71
Profit After Tax	8.21	(0.34)	1.40
Press & Media Release			01

Q1FY23 PRESS & MEDIA RELEASE

About Zen Technologies Limited

Zen Technologies Limited is a pioneer and leader in providing world class state-of-the- art Defence Training Solutions, Drones and Anti- Drones solutions and has a proven and impeccable track record in building training systems for imparting defense training and measuring combat readiness of security forces. The company is engaged in indigenous design, development and manufacture of sensors and simulators technology based defence training systems and has relentlessly been providing Defence Training Solutions and seamless services to Ministry of Defence (Armed Forces), Security Forces Police, Para-military forces and is privileged to have served the nation for over 2.5 decades.

The company manufactures land based military training simulators, driving simulators, Live range equipment and Anti drone Systems. With a dedicated R&D (recognized by the Ministry of Science and Technology, Government of India) and production facility in Hyderabad, the company has applied for over 90 patents and shipped more than 1,000 training systems around the world.

CONTACT US

Hansraj Singh Rajput

Company Secretary & Compliance Officer Zen Technologies Limited [e-mail]

SAFE HARBOUR

Diwakar Pingle	Abhishek Mehra
Investor Relations Advisor	Investor Relations Advisor
Ernst & Young	The Investment Lab
[e-mail]	[e-mail]

This document which have been prepared by Zen Technologies Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This document has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Document. This Document may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Document is expressly excluded.

Certain matters discussed in this Document may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Document. The Company assumes no obligation to update any forward-looking information contained in this Document. Any forward-looking statements and projections made by third parties included in this Document are not adopted by the Company and the Company is not responsible for such third-party statements and projections.

Press & Media Release

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