MTAR Technologies posts mixed Q2, cuts revenue guidance; stock down over 11%

MTAR Technologies, an aerospace and defence solutions provider, shares fell over 11 per cent in the morning deals on November 9 to touch the day's low of Rs 2,248 apiece on the BSE. The selling pressure in the stock came a day after the company posted mixed July to September quarter (Q2FY24) numbers and cut its revenue guidance.

At around 9:50 a.m., shares of MTAR Technologies traded 7.61 per cent or Rs 194, lower on the BSE at Rs 2,354.55 apiece. The market capitalisation of the company stood at Rs 7,237.73 crore.

MTAR Technologies posted its Q2 results post-market hours, where it reported a 17 per cent decline in its consolidated profit after tax (PAT) year-on-year (YoY) at Rs 20.4 crore as against 24.6 crore in the year-ago period.

The company logged revenue of Rs 167 crore as against Rs 126 crore registered in the same period a year ago, which translates to an increase of 32 per cent. The earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at Rs 36 crore as against Rs 34.8 crore seen in Q2 FY23, up 3 per cent.

The company's margin, a key to measuring profitability, fell by 660 basis points (bps) to 21 per cent from 27.6 per cent a year ago.

Other income of the company stood at Rs 80 lakh against Rs 5.3 crore YoY.

MTAR Technologies management commentary

The management has revised the annual revenue guidance in the range of Rs 670 crore to Rs 700 crore from the previous guidance of Rs 830 crore to Rs 860 crore.

The EBITDA guidance is also cut to around 26 per cent from the previous guidance of around 28 per cent.

The company revised its guidance due to the deferment of shipment plans against the confirmed orders from Clean Energy to the next fiscal year.

However, the long-term growth of the company remains intact, and it expects there will be an acceleration of order inflow from H2 FY 24.

The company has cut guidance for the first time since its initial public offering (IPO).

MTAR Technologies share price: Past performance

In 2023 so far, shares of MTAR Technologies have gained over 43 per cent as against the Nifty50's rise of over 6 per cent.

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