Drone manufacturer ideaForge’s profit after tax (PAT) tanked more than 77% year-on-year (YoY) to INR 89.2 Lakh in the second quarter (Q2) of the financial year 2023-24 (FY24) on account of a sharp decline in revenue.
The startup had clocked a PAT of INR 3.96 Cr in the year-ago period. Sequentially, PAT fell 95% from INR 18.8 Cr.
Revenue from operations declined 41% to INR 23.7 Cr in Q2 FY24 from INR 40.2 Cr in the year-ago period. On a quarter-on-quarter (QoQ) basis, operating revenue declined more than 75% from INR 97 Cr.
During the quarter under review, ideaForge earned 69% of its revenue from defence contracts while the remaining came from the civil business.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 28% to INR 7 Cr in Q2 FY24 as against INR 9.82 Cr in Q2 FY23.
“This quarter has been a building phase for ideaForge… We have strengthened our operations to gear up for the deliveries in the next few quarters and meet our annual revenue target. The order book has improved on the back of new orders received in this quarter,” said ideaForge chief executive officer (CEO) Ankit Mehta.
Meanwhile, total expenses rose marginally to INR 37.3 Cr in Q2 FY24 from INR 36.6 Cr in the year-ago period. Cost of materials consumed during the quarter under review stood at INR 35.6 Cr.
Employee benefit expenditure fell steeply to INR 8.3 Cr from INR 12.7 Cr in the year-ago period. However, other expenses jumped to INR 9.49 Cr compared to INR 7.87 Cr in Q2 FY23.
Meanwhile, the startup continues to be focussed on expansion. As per Mehta, ideaForge has made ‘progress’ in the development of middle-mile logistics and quadcopter UAVs which will propel the growth in the coming years. He also said the ‘successful’ proof of concept (PoC) of its drone-as-service (DraaS) offerings are moving towards potential commercial contracts.
“Successful PoCs of Drone as a Service (DraaS) are moving towards potential commercial contracts. Obtaining the SCOMET (Special Chemicals, Organism, Materials, Equipment and Technologies) licence to stock and sell the systems in the US through our US subsidiary and successful product demonstrations on the field bolster our confidence to establish our presence in the international market,” Mehta added.
On the operational front,ideaForge bagged new orders worth INR 169 Cr during the quarter under review. The manufacturer also claimed that its drones completed a cumulative 4 Lakh flights on the field in Q2 FY24.
The drone manufacturer listed on the bourses at a 94% premium to the issue price in July this year.
ideaForge’s shares ended Tuesday’s session 4.44% higher at INR 872.80 on the BSE.
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