Shares of this Renewable Energy stock under the ‘small-cap’ category declined around 11 percent in Wednesday’s trading session after the company announced financial results for Q3FY23-24, i.e., for the quarter ended December 2023.
With a market capitalization of Rs 5,256.35 crores, the stocks of MTAR Technologies Limited opened their trading hour on Wednesday at Rs 1,798.75 and currently trade at Rs 1,709.60, slipping approximately 11 percent as compared to the previous closing levels of Rs 1,916.20 apiece.
Such bearish stock price movements are observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the December 2023 quarter.
Sequentially, the company reported a decrease in both the prime business indicators, viz, operating revenues as well as after-tax profits with the former reducing from Rs 167 crores during Q2FY23-24 to Rs 118 crores during Q3FY23-24, and the latter, keeping the timeframe the same, falling from Rs 21 crores to Rs 11 crores.
Moreover, the company, on a YoY basis too, reported a dip in the metrics mentioned above with the operating revenues shifting down from Rs 160 crores during Q3FY22-23 to Rs 118 crores during Q3FY23-24, and the after-tax profits, during the same period, taking a downshift from Rs 31 crores to Rs 11 crores representing a decrease of around 65 percent.
As per the recent presentations, the company reported a well-diversified order book totaling Rs 1,179 crores as of 31st December 2023.
The majority of the order book, i.e., nearly 66 percent, is attributed to the ‘Clean Energy-Fuel Cell, Hydel & Others’ segment, 13.7 percent towards the ‘Clean Energy-Civil Nuclear Power’ segment, 11.2 percent towards the ‘Space’ segment, and the remaining Defence and other segments.
According to the latest shareholding data for the quarter ended December 2023, the company’s Promoters hold a 37.26 percent stake, Public (retail) investors hold a 32.75 percent stake, and the Foreign Institutional Investors (FIIs) hold a 11.02 percent stake in the company.
MTAR Technologies Limited is an India-based company engaged in the business of manufacturing mission-critical precision components and other critical assemblies. The company’s product portfolio serves the varied requirements of sectors including nuclear, clean energy, space & defence, etc.
Written by Amit Madnani
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