Shares of leading equipment suppliers for Defence and aerospace projects fell 6 percent to Rs 2,161.25 in early trade on Friday, despite the company reporting strong Q1 results.
At 12:30 p.m. on the National Stock Exchange, MTAR Technologies Ltd shares were trading at Rs 2,210 per share, down Rs 82.20 or 3.59 percent from the previous close price. The company has a market value of Rs 6,798 crore.
As per the company’s exchange filing, the Company’s revenue increased by 67 percent to Rs 152 crore in Q1FY24 as compared to Rs 91 crore in the corresponding quarter of the previous year Q1FY23, while the company’s net profit increased by 25 percent to Rs 20.3 crore in the latest quarter as compared from Rs 16.2 crore in the same quarter last year.
In the June 2023 quarter, the company’s revenue from operations fell by 22 percent quarter on quarter, compared to Rs 196 crore in the March 2023 quarter. In addition, net profit fell 34 percent to Rs 20.3 crore from Rs 31 crore in the previous quarter.
Profitability metrics of the firm have improved, with return on equity rising from 11.71 percent to 16.76 percent and return on capital employed rising from 15.80 percent to 21.51 percent.
The company’s margins are in acceptable condition, with a net profit margin of 18.15 percent and an operating margin of 27.10 percent.
MTAR Technologies stock has increased by 26 percent in six months and by 50 percent in a year.
As per the latest shareholding pattern, the promoters hold 39.14 percent of the company, while foreign institutional investors own a 4.52 percent stake and domestic institutional investors own 28.03 percent.
MTAR Technologies produces machine equipment, assemblies, sub-assemblies, and spare parts for the energy, nuclear, space, aerospace, defence, and other engineering sectors.
Written by Omkar Chitnis
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