ideaForge Technologies, the country's leading drone manufacturer, saw its shares tumble nearly 14% in early morning trade, reaching ₹740 apiece, after reporting disappointing results for the quarter ending in June. The weak performance affected investor sentiment.
The company reported declines in both revenue and profit. Revenue from operations dropped by 11.2% year-over-year to ₹86 crore, while EBITDA fell by 73.6% to ₹8.4 crore. Profit after tax stood at ₹1.17 crore, a 93.8% decrease compared to ₹18.87 crore in the same period last year.
The weak performance in the June quarter was attributed to a significant increase in expenses, as the drone manufacturer incurred the highest costs for raw materials. Expenditures on raw materials surged 321% year-over-year, reaching ₹56.1 crore in Q1 FY25, which indicates the company's business development initiatives.
In its Q1 FY25 presentation to investors, ideaForge highlighted several key developments and strategic initiatives. The company said it is currently prototyping a fog penetration radar in collaboration with space tech startup GalaxEye. It aims to build exclusive capabilities in surveillance and accelerate the expansion of drone-as-a-service (DaaS) and middle-mile logistics development in partnership with TechEagle.
The company also said it is working on developing next-generation payloads equipped with onboard AI computing capabilities. The company has successfully conducted high-altitude trials in the Himalayas. Flight testing and design enhancements of its tactical UAV platform are in advanced stages.
Additionally, ideaForge stated that it has set up infrastructure for prototyping a middle-mile logistics platform and said it is advancing the development of next-generation NETRA and SWITCH platforms.
Incorporated in 2007, ideaForge Technology is a pioneer and market leader in the Indian Unmanned Aircraft Systems (UAS) market, holding a 50% market share in FY 2021–22. As a dual-use UAV technology player, ideaForge is ranked 5th globally in the drone industry.
With a strong emphasis on innovation, ideaForge has filed 72 patents globally, solidifying its dominance in the Indian drone market. ideaForge has one of the largest operational deployments of UAVs across India, delivering mission-critical outcomes in some of the most challenging environmental and operational conditions worldwide, according to the company's FY24 annual report.
The Indian drone industry has experienced substantial growth in the last decade and is projected to grow from US$ 43 million in Fiscal 2022 to US$ 812 million by Fiscal 2027, exhibiting a CAGR of 80%.
This growth is driven by the government's industry-friendly policies and incentives, the increasing use cases and applications of drones, rising domestic demand, and a surge in startups and investments.
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