MTAR Technologies Q4 net profit plunges 84.3%, stock down 9%

The firm saw its earnings before interest, tax, depreciation, and amortisation (EBITDA) fall by 62.8% YoY to ₹18.2 crore. The EBITDA margin also contracted significantly during the quarter to 12.7% as compared to 25% in the corresponding period of last year. The net profit margin in Q4 fell to 3.4% compared to 15.8% in Q4FY23.

For the financial year ending on March 31, 2024, the company’s net profit was lower by 45.7% YoY at ₹56.1 crore. The consolidated revenue during the year saw a rise of 1.2% YoY to ₹580.8 crore.

MTAR Technologies’ EBITDA in FY24 declined by 26.8% YoY to ₹112.7 crore. The EBITDA margin for the year contracted to 19.4% compared to 26.8% last year. The net profit margin shrunk to 9.7% from last year’s 18%.

Parvat Srinivas Reddy, managing director and promotor of MTAR Technologies said the firm 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.

“The company has improved its net cash flow from operating activities in FY24 to ₹57.4 crore compared to ₹7.4 crore in FY23. We are targeting to achieve a 30-35% YoY increase in revenues with an EBITDA of 22% +/-100 basis points in FY25. Significant orders are expected shortly as we have concluded discussions with some of the major MNCs in Aerospace,” he said.

MTAR caters to clean energy – civil nuclear power, fuel cells, hydel and others, space, and defence sectors. The firm has seven strategically based manufacturing units including an export-oriented unit each based in Hyderabad, Telangana.

Shares of the company have declined by nearly 15% since the beginning of the year. The stock has gained over 0.8% in the last one year.