MTAR Technologies shares plummet over 16% to hit 2-month low as net profit drops 53% in Q4
MTAR Technologies shares plummeted 16.10% after weak Q4 financial results, with a 53.4% drop in net profit. Revenue increased by 20.8% but EBITDA decreased by 23.6%. Full-year profit fell by 45.7%.
After market hours on Tuesday, the company reported a 53.4% drop in consolidated net profit to ₹4.9 crore, compared to ₹10.4 crore in the same period last year.
Revenue from operations for Q4 FY24 stood at ₹143.0 crore, marking a 20.8% increase from ₹118.4 crore in Q3 FY24. However, EBITDA for Q4 FY24 was ₹18.2 crore, a 23.6% decrease from ₹23.9 crore in Q3 FY24.
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For the full fiscal year FY24, profit after tax stood at ₹56.1 crore, a 45.7% decrease from ₹103.4 crore in FY23. Revenue from operations for FY24 was ₹580.8 crore, a 1.2% increase from ₹573.8 crore in FY23. EBITDA for FY24 came in at ₹112.7 crore, down 26.8% from ₹154.0 crore in FY23.
The company’s order book as of March 31, 2024, stood at ₹915 crore, a decrease from ₹1,172.9 crore at the same time last year.
Commenting on the results, Mr. Parvat Srinivas Reddy, Managing Director & Promoter, MTAR Technologies, said, “We have registered a lower-than-estimated EBITDA in FY24 as the operating leverage was lower due to deferment of orders in the Clean Energy segment and delay in execution of projects in the Space vertical.
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The company has improved its net cash flow from operating activities in FY24 to Rs. 57.4 crore, compared to Rs. 7.4 crore in FY23. We are targeting to achieve a 30%–35% YoY increase in revenues with an EBITDA of 22% +/-100 bps in FY 25. Significant orders are expected shortly, as we have concluded discussions with some of the major MNCs in aerospace.”
Meanwhile, domestic brokerage firm Motilal Oswal has initiated coverage on MTAR Technologies with a ‘buy’ rating and a price target of ₹2,800 per share, citing the company’s strong growth prospects.
The report highlights that MTAR Technologies has established itself as a key supplier of precision-engineered systems to major global multinationals, government departments, and large Indian public and private sector enterprises.
MTAR Technologies’ primary revenue stream is derived from the clean energy fuel cells business, which heavily depends on Bloom Energy (BE). Additionally, the company’s other business segments—nuclear, space, defense, and products—offer substantial growth potential.
Motilal Oswal emphasises that MTAR Technologies is well-positioned to capitalise on emerging opportunities due to its strong manufacturing capabilities and established customer relationships.
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The brokerage projects that MTAR Technologies will see robust order inflows across its business segments, with a compound annual growth rate (CAGR) of 39% during FY24E–26E, driven by increasing global demand for fuel cells and enhanced government initiatives in the nuclear, space, and defense sectors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.