Quadcopter manufacturing company Ideaforge on Thursday reported a massive drop in its profit for Q1 of the fiscal year 2025. As per the quarterly results published on the National Stock Exchange, ideaforge has witnessed its profit drop as steeply as 89.3 percent to Rs 1.1 crore from the previous quarter alone.
PC: ideaForge
The Mumbai-based company posted good financial performance in the fiscal year ending March 2024, but the company’s revenue from operations declined 15.7 percent to Rs 86 crore in Q1 FY25 from Rs 102 crore in Q4 FY24. Notwithstanding this fall, the company still remained in the black during the first quarter of the current fiscal year.
In the previous fiscal, Ideaforge had posted 68.8 percent year-over-year growth to Rs 314 crore in revenue, with its profit rising by 41.3 percent to Rs 45.2 crore. However, the firm failed to repeat this performance in Q1 FY25 due to a sharp fall in drone sales that had an impact on profits.
The Company generated its entire operating revenue from the sale of unmanned aerial vehicles during the said quarter. Besides, the company earned Rs 6 crore from financial assets, taking its overall revenue to Rs 92 crore in Q1 FY25 from Rs 108 crore in Q4 FY24.
Material costs related to making drones contributed 64% to the total spending of Ideaforge. The same, based on scaling down production, fell by 2.4 percent to Rs 57.6 crore in Q1 FY25. Employee benefit expense, finance costs, legal, professional advertising, and other overheads brought its total cost to Rs 91 crore in Q1 FY25 from Rs 93 crore in Q4 FY24.
The IPO of Ideaforge was valued at Rs 567 crore, including a fresh issue of Rs 240 crore—the rest was an offer for sale. Its listing date was July 23, 2022, at a share price of Rs 1,300. It had mobilized significant gains of 93 percent over the price band of Rs 638-672 per share at the time it listed on the stock exchange.
At 12:42 PM, the share price of Ideaforge is at Rs 761.95. The company also touched its 52-week low share price of Rs 618 on June 4 this year. Estimates by Fintrackr peg the current total market capitalization of Ideaforge at Rs 3,275 crore, or about $395 million.
In a nutshell, the financial performance of Ideaforge in Q1 FY25 is under pressure due to a fall in the sale of drones and, as such, profits have declined substantially. Though the company still remains in a profitable zone, this steep fall in growth quarter after quarter is definitely a matter of concern for the firm to sail through this fiscal year.
