MTAR Technologies shares fall 5% after 78% decline in Q1 net profit

Revenue from operations fell 15.9% to ₹128.3 crore during the quarter. Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 51.9% YoY to ₹16.6 crore during the quarter while EBITDA margin worsened to 12.9% from 22.6% in the same period last year. Net profit margin fell to 3.5% compared to 13.3% in Q1FY24.

On a sequential basis, the firm registered a 10.3% decline in operating revenue while net profit fell 9.1%. EBITDA declined 8.9% quarter-over-quarter.

Parvat Srinivas Reddy, Managing Director at MTAR Technologies, said the firm is looking forward to clock its highest ever revenue in Q2 of this fiscal year.

“Also, the execution in the second half is going to be stronger than the first half. There will progressive improvement in margins starting from Q2. The company has recently received ₹140 crore of orders in clean energy segment. We are expecting more orders in clean energy that shall be executed in this fiscal year itself. Further, there will be significant inflow of orders from oil & gas and other sectors as well in the second half,” he said.

Of the ₹140 crore (approximately $16.73 million) worth of orders received in the clean energy segment, $9.10 million orders will be executed in FY2024-25 while balance orders will be dispatched by the first quarter of FY2025-26, the firm stated.

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

The firm has entered into a long-term agreement with Israeli Aerospace Indus (IAI) with potential orders to the tune of $90 million – $120 million, which will be executed over the next 15 years.

Shares of the firm declined nearly 23% since the beginning of the year. The stock has lost over 23% in the last one year.