July 30, 2024
New Delhi, India
Financial Performance:
- Revenue: ideaForge Technologies, a leading drone manufacturer, reported an 11.2% decline in operating revenue to ₹86.2 crore in Q1 FY25 from ₹97.1 crore in Q1 FY24.
- Net Profit: The company’s net profit nosedived by 94% YoY to ₹1.2 crore compared to ₹19 crore in the same quarter of the previous year.
- EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) fell 88% to ₹3 crore from ₹32 crore in Q1 FY24.
- Expenses: Total expenses surged by 20% to ₹90.6 crore from ₹75.5 crore in the year-ago quarter, driven by a 321% increase in raw material costs to ₹56.1 crore.
- Margins: The gross margin contracted sharply to 33% from 56% last year. The EBITDA margin also declined to 4% from 29% in Q1 FY24.
Market Reaction:
- Stock Performance: Shares of ideaForge Technologies fell as much as 14% to ₹740 apiece in early trading on Tuesday, reacting to the disappointing financial results. The stock is now trading 8.3% lower at ₹786.5 and has turned negative for the year, down 6% on a year-to-date basis.
At the time of writing thsi article, the shares were trading at Rs. 773 a piece down -85 0r 9.8%.
Order Book and Strategic Initiatives:
- Order Book: At the end of the June quarter, ideaForge’s order book stood at ₹54.2 crore, a significant drop from ₹125 crore at the end of the March quarter and the lowest in four quarters.
- Strategic Investments: The company announced it had been granted five new patents during the quarter and made strategic investments to enhance capabilities in surveillance, accelerate DaaS (Drone as a Service) expansion, and develop middle-mile logistics.
CEO’s Statement: “We are confident that in times to come, DaaS will drive technology adoption and will prove to be instrumental in demand generation,” said Ankit Mehta, CEO of ideaForge.
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