Zen Technologies Ltd

Based on the information on page 15 and related sections: - There is no explicit mention of any current or planned fundraising through debt or equity. - The company has a strong liquidity position with about INR 275 crores of cash as of end of July. - Ashok Atluri indicates that the company prefers to deploy available funds into growth opportunities and only consider dividends if deployment options do not arise. - No mention of immediate need for further capital infusion; focus is on using internal cash flow for growth, including minimal CAPEX needs due to outsourcing manufacturing. - The management appears confident in executing existing order book without additional fundraising. In summary, there is no indication of any new fundraising through debt or equity in the near future.

- The company expects minimal CAPEX going forward. - Manufacturing is outsourced; in-house work is mainly final integration, testing, and software. - Existing 8.5-acre land in Hyderabad offers ample space if new facilities are needed, avoiding land purchase costs. - Some CAPEX may be required for machinery, jigs, tools for quality purposes, but it is expected to be limited. - The company does not plan to make large manufacturing capacity expansions and prefers to remain focused on its core strengths rather than becoming a mass manufacturer. - Investments are primarily focused on R&D and product development, especially in anti-drone systems. - The strong liquidity position (INR 275 crores in cash as of July) supports execution of orders and strategic investments.

- Current year (FY ’24) revenue expected around INR 450-480 crores, up from earlier guidance of INR 400 crores. - Next year (FY ’25) revenue expected to be roughly double of FY ’24, indicating strong growth ahead. - Order book of approximately INR 1000 crores to be executed over next 18 months; pipeline expected to increase further. - Simulator market opportunity size estimated at around INR 15,000 crores domestically for Zen's products, showing significant potential. - Anti-drone market size is at least $2 billion domestically, with potential global market around $10 billion, expected to grow rapidly. - Growth expected to be three times last year's this year and much higher next year, with continued strong growth in following 3-4 years. - Growth driven by increased demand for simulators and anti-drone systems, supported by government initiatives like Agnipath and simulation mandates. - Export orders focused on Middle East, Africa, and CIS countries, adding to growth prospects.

- Zen Technologies expects significant growth over the next few years, projecting turnover around INR 450-480 crore for the current year (FY ’24). - For FY ’25, the company anticipates doubling its turnover compared to FY ’24, driven by a strong order book (over INR 1000 crore to be executed in 18 months). - Operating leverage is expected to sustain or improve EBITDA margins around 40%, with net margins maintained near 25%. - Growth is underpinned by increasing demand in simulator and anti-drone systems markets, both domestically and for export. - The company foresees sustained earnings power through strategic inorganic acquisitions fitting their product lines. - Risks include geopolitical factors like a potential China-Taiwan blockade, which could impact supply chains. - Zen is focused on maintaining high margins through product mix, economies of scale, and operational efficiencies.

- Current order book value: Approximately INR 1000 crores. - Execution timeframe: Most orders expected to be executed within the next 18 months. - Order breakup: About INR 340 crores from exports and INR 660 crores from domestic orders. - Product-wise breakup: Approximately INR 400 crores from anti-drone systems and INR 600 crores from simulators. - Expected growth: New orders expected before end of the current quarter and by September, increasing the order book. - Win rate: Success rate around 80% in recent order wins. - Future outlook: Strong pipeline with increased demand due to factors like Agnipath Yojana and sustainability focus in defense training. - Supply chain: Flexible with multiple locations to support scale-up; minimal expected CAPEX due to outsourcing manufacturing.