MTAR Technologies shares log worst single-day decline of 2023 on weak Q2 earnings, lower FY24 guidance

Shares of MTAR Technologies plunged over 12% to the day’s low of Rs 2,235.05 on the NSE after the company reported 17% drop in its September quarter net profit at Rs 20.5 crore as against Rs 24.7 crore reported by the company in Q2FY23. It also lowered its FY24 guidance.

The price action was accompanied with strong volume on the exchanges. Nearly 1 million shares were trading on the NSE and BSE, higher than the usual volume.

The company’s revenue from operations stood at Rs 166.8 crore in Q2FY24 as against Rs 126.2 crore in the corresponding period of the last financial year. It was up 32.2%. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) reported by the company for the reporting quarter stood at Rs 36.1 crore as compared to Rs 34.9 crore in the year ago period. It was up by 3.4% YoY.

The Profit Before Tax (PBT) stands at Rs 25.7 crore in Q2FY24 as against Rs 33 crore in Q2FY23, a 22.1% decrease YoY.

MTAR Technologies manufactures and develops mission critical precision engineered systems catering to clean Energy viz. civil nuclear power, fuel cells, hydel & Others, space and defense sectors.

Commenting on the results, Parvat Srinivas Reddy, Managing Director and Promoter of MTAR said, “We revise our annual guidance for FY24 to a revenue of around Rs 670 crore to Rs 700 crore as against previous guidance of around Rs 830 crore to Rs 860 crore with an EBITDA of around 26% +/- 100 bps as against previous guidance of around 28% +/- 100 bps due to deferment of shipment plans against the confirmed orders from Clean Energy to the next fiscal year”.

However, Reddy said that the long-term growth of the company remains intact as the sectors MTAR is catering to are witnessing significant growth. In addition, the company expects that there will be an acceleration of orders inflow from H2FY24.(You can now subscribe to our ETMarkets WhatsApp channel)

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