Zen Technologies shares locked in 5% lower circuit; Management forecasts doubling of FY25 revenue

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Zen Technologies shares locked in 5% lower circuit; Management forecasts doubling of FY25 revenue

Team FS

06/May/2024

Key Points:

Revenue Surge: Zen Technologies, under the leadership of Chairman and Managing Director Ashok Atluri, anticipates a substantial revenue leap of 110% in FY2025, projecting a revenue of ₹900 crore compared to ₹430 crore reported in FY2024.
Export Expansion: Emphasizing its global reach, Zen Technologies aims to secure ₹300 crore through exports, highlighting its commitment to diversification and international market penetration.
Challenges and Opportunities: Despite robust growth prospects, the company anticipates a potential decline in EBITDA margin for the fiscal year, signaling a strategic shift amidst ambitious expansion plans. Additionally, Zen Technologies explores funding avenues through the QIP route while remaining open to inorganic acquisitions, reflecting a dynamic approach to sustain and accelerate growth.

Zen Technologies, a frontrunner in the realm of technology and innovation, unveils its ambitious growth trajectory under the stewardship of Ashok Atluri, Chairman, and Managing Director. With a strategic vision geared towards expansion and diversification, the company sets its sights on achieving unprecedented milestones in the fiscal year ahead.

A Visionary Outlook:
Central to Zen Technologies' strategy is a robust revenue projection, with Atluri forecasting a remarkable 110% surge in revenue for FY2025. Anticipating a revenue of ₹900 crore, the company aims to build upon the solid foundation laid in FY2024, where it reported a revenue of ₹430 crore. This ambitious growth target underscores Zen Technologies' unwavering commitment to delivering value and innovation in an ever-evolving market landscape.

Global Reach:
Diversification and global expansion form integral components of Zen Technologies' growth strategy, with Atluri highlighting the company's aspirations to fetch ₹300 crore through exports. By tapping into international markets, Zen Technologies not only broadens its revenue streams but also strengthens its foothold in the global arena, positioning itself as a formidable player in the technology sector.

Navigating Challenges:
However, amidst the optimism surrounding revenue projections, Zen Technologies acknowledges potential challenges on the horizon. Atluri indicates a possible decline in EBITDA margin for the fiscal year, reflecting the company's proactive response to market dynamics and strategic imperatives. Despite this, Zen Technologies remains poised for growth, leveraging its robust order book, which currently stands at ₹1,400 crore, to navigate through potential headwinds.

Funding Endeavors:
In a strategic move to bolster its financial position and facilitate growth initiatives, Zen Technologies explores funding avenues through the Qualified Institutional Placement (QIP) route. Atluri reveals plans to raise funds up to ₹1,000 crore, underscoring the company's proactive stance towards securing capital for strategic investments and expansion endeavors. Furthermore, Zen Technologies remains receptive to inorganic growth opportunities, with Atluri hinting at potential acquisitions in the pipeline, albeit without divulging specifics.

Market Performance:
As Zen Technologies shares witness a 5% lower circuit at ₹1,033.90, reflecting short-term market dynamics, the company's long-term growth trajectory remains robust. With a remarkable 230% surge in the last 12 months and a 30% increase in 2024, Zen Technologies continues to garner investor confidence and market traction, positioning itself for sustained success and innovation in the years to come.

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Zen Technologies shares locked in 5% lower circuit; Management forecasts doubling of FY25 revenue

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