ideaForge, which saw its profit after tax decline sequentially in Q4, had reported a net loss of INR 5.4 Cr in Q4 FY23
Operating revenue increased 12.5% QoQ and over 164% to to INR 102.3 Cr in Q4 FY24
ideaForge said it was granted six new patents in Q4 and also obtained Type certification for its Q6 UAV
Drone manufacturer IdeaForge
posted more than a 30% decline in its consolidated profit after tax (PAT) to INR 10.3 Cr in the March quarter (Q4) of the financial year 2023-24 (FY24) from INR 14.8 Cr in the December quarter, partially hurt by a sharp jump in spending towards inventories and employee benefits.
The startup had posted a net loss of INR 5.4 Cr in Q4 FY23.
ideaForge’s operating revenue saw a 12.5% quarter-on-quarter (QoQ) increase to INR 102.3 Cr in the reported quarter. This was also an over 164% jump from INR 38.7 Cr operating revenue reported in Q4 FY23.
The startup’s EBITDA declined to INR 20.2 Cr in Q4 FY24 from INR 26.2 Cr in Q3 FY24. EBITDA margin expanded to 19.8% during the quarter under review as against 14% in Q4 FY23. However, it contracted from 28.8% in the preceding December quarter.
Commenting on the company’s Q4 performance, ideaForge CEO Ankit Mehta said that the quarter was a combination of execution and building phases.
“We were able to fulfill our delivery commitments before schedule, underscoring our dedication to customers and emphasising our ability to stay true to our commitments,” he said. “We witnessed significant progress in our diversification initiatives. We conducted live demos with end customers in the US with our systems carrying out real-world missions and received affirmative and encouraging responses from these customers.”
Mehta also said that successful progress of its drone-as-a-service pilot programmes and early paid pilots with anchor customers provided the necessary boost to the company’s plans.
In Q4 FY24, defence contributed the largest portion (57%) to its revenue while 31% revenue came from the civil sector.
Meanwhile, in the fiscal year 2024, ideaForge’s PAT jumped 41.5% YoY to INR 45.3 Cr and operating revenue surged almost 70% to INR 314 Cr.
“Q4 and FY24 results reinforce our belief that to evaluate our business, one must look at it holistically, with a combination of financial results, our efforts and achievements in diversification and product development and the moat we are creating through focusing on IP creation, and the growth trajectory of the UAV industry, and the defence space,” added Mehta
Zooming Into Expenses
In line with its business expansion, ideaForge’s total expenses surged almost 21% QoQ and 116% YoY to INR 93.5 Cr in Q4 FY24.
Employee Cost: The startup’s employee benefit expenses almost doubled to INR 19 Cr in the reported quarter from INR 9.8 Cr in Q3 FY24.
Cost of Materials Consumed: The company’s spending in this bucket witnessed only about a 5% rise QoQ to INR 50 Cr in Q4 FY24.
Changes in Inventories: ideaForge spent INR 8.4 Cr due to changes in inventories of finished goods and work-in-progress.
Meanwhile, ideaForge said that it was granted six new patents in Q4 and also obtained Type certification for its Q6 UAV.
Ahead of its earnings announcement, shares of ideaForge ended Tuesday’s (May 14) trading session 4.2% higher at INR 696.85 on the BSE.
