Following the release of FY24 financial results, which showed a decline in the net profit by 84.3 percent YoY, the share price of small-cap defence stock dipped by nearly 16 percent on BSE to hit an intraday low at Rs. 1,732 in the trading session of Wednesday.
With a market capitalisation of Rs. 5,780 crore, at 11:20 a.m., the shares of MTAR Technologies Limited were trading in the red at Rs. 1,875.85, down by 9.01 percent.
The fluctuations in the share prices were observed after the company announced the financial results for FY24, through the recent filings with the stock exchanges on Tuesday post-market hours.
The revenue from operations stood at Rs. 143 crores in Q4 FY23-24, indicating a growth of 20.8 percent QoQ from Rs. 118.4 crore in Q3 FY23-24, but on a year-on-year basis, it fell by nearly 27.2 percent from Rs. 196.4 crore in Q4 FY22-23.
MTAR Technologies witnessed a decline in the net profit by 53.4 percent QoQ from Rs. 10.44 crore in Q3 FY23-24 to Rs. 4.87 crore in Q4 FY23-24, and decreased by 84.3 percent YoY from Rs. 31.06 crore in Q4 FY22-23 to Rs. 4.87 crore in Q4 FY23-24.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA fell from Rs. 154 crore in FY22-23 to Rs. 112.7 crore in FY23-24, representing a 26.8 percent decline.
The company registered a lower-than-estimated EBITDA in FY23-24 as the operating leverage was lower due to the deferment of orders in the Clean Energy segment and delay in the execution of projects in the Space vertical, as mentioned in the filings.
“We are targeting to achieve a 30%-35% YoY increase in revenues with an EBITDA of 22% +/-100 bps in FY25. Significant orders are expected shortly as we have concluded discussions with some of the major MNCs in Aerospace,” the company’s Managing Director & Promoter commented.
The company has a diversified order book of Rs. 915.07 crore as of 31st March 2024 which includes Civil Nuclear Power, Fuel cells and Hydel, Space, Defence, Products and others.
The stock has delivered negative returns of nearly 15.2 percent in the last six months, and 14.1 percent so far in 2024.
MTAR Technologies Limited is a leading manufacturer engaged in the manufacturing and development of mission-critical precision engineered systems catering to Clean Energy – Civil Nuclear Power, Fuel Cells, Hydel & others, Space, and Defence sectors.
The company has seven strategically based manufacturing units including an export-oriented unit each based in Hyderabad, and has a long-standing relationship of over four decades with leading Indian organisations and global OEMs.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
