MTAR Technologies shares slip over 10% after weak Q3 show; here is what management says about company's revenue

MTAR Technologies shares lost over 10 per cent in morning deals on Wednesday (February 14) and touched the day's low of Rs 1,709.4 apiece. The stock declined after the aerospace and defence company posted weak numbers for Q3 FY24.

At around 10:29 a.m., shares of MTAR Technologies traded 10.93 per cent or Rs 209.5, lower at Rs 1,706.7 apiece. The market capitalisation of the company at around the same time stood at Rs 5,249.74 crore.

How did MTAR Technologies perform in Q3?

The company reported a decline of 67 per cent in the profit after tax (PAT) at Rs 10.4 crore against Rs 31.4 crore logged a year ago. The revenue stood at Rs 118 crore against Rs 160 crore, which implies a slip of 26.3 per cent year-on-year (YoY).

The earnings before interest, tax, depreciation, and amortisation (EBITDA) for the third quarter ended December 31 (Q3 FY24) stood at Rs 23.4 crore against Rs 45 crore a year ago, which is a plunge of 48 per cent. The company's margin declined 820 basis points to 19.8 per cent from 28 per cent a year ago.

As per the filing, the company received Rs 295.4 crore worth of orders in various sectors, including clean energy, civil nuclear power, fuel cells and hydel, space, defence, products, and others, in Q3 FY24.

MTAR Technologies management commentary

"Revenues in FY24 shall be marginally higher as compared to FY23 due to the deferment of export shipments in the clean energy sector to the next fiscal year," said Parvat Srinivas Reddy, Managing Director & Promoter, MTAR Technologies.

Reddy added, however, that the growth outlook for FY25 remains intact, with a 45 to 50 per cent YoY likely increase in revenues. The company is in its final stages of discussion with reputed global MNCs and has made good progress in the Small Satellite Launch Vehicle project.

MTAR Technologies share price: Past performance

In a year, shares of MTAR Technologies have lost over 1 per cent, underperforming the Nifty 50's rise of 20 per cent.

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