MTAR Technologies' shares fall 6% after firm's weak Q1 results

As on 30 June, MTAR Tech had a diversified order book of Rs 894.2 crore.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Shares of MTAR Technologies dropped over 6 percent to an intraday low of Rs 1,672.05 apiece on August 14, following weak results for the quarter ended June 30, 2024.

At 11.20 am, shares of  MTAR Tech were trading 4 percent lower at Rs 1,709 apiece. Over the past six months, the stock has decreased by nearly 2 percent, lagging behind the Nifty 50, which has risen by 10 percent. Since August began, MTAR Tech's shares have fallen over 10 percent, reversing the gains of 3 percent seen in June and July.

Follow our live blog for all the market action

The profit after tax (PAT) for the June quarter stood at Rs 4.4 crore, down 78 percent year-on-year (YoY) and revenue stood at Rs 128.3 crore, down 16 percent YoY. In Q1FY24, MTAR Tech's PAT was Rs 20.3 crore and revenue was Rs 152.6 crore.

The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the June quarter fell 52 percent YoY to Rs 16.6 crore, down from Rs 34.5 crore. The EBITDA margin contracted to 12.9 percent from 22.6 percent recorded in the year ago period.

As on June 30, MTAR Tech had a diversified order book of Rs 894.2 crore. "We are expecting more orders in Clean Energy that shall be executed in this fiscal year itself. Further, there will be significant inflow of orders from Oil & Gas and other sectors as well in second half," Parvat Srinivas Reddy, Managing Director & Promoter of MTAR Tech said in a press release.

Also Read | Mining stocks fall after Supreme Court allows states to levy tax, collect past dues

"We are looking forward to clock highest ever revenue in Q2 of this fiscal year. Also, the execution in second half is going to be stronger than the first half," Reddy said. He also said that the company will see an improvement in margins starting from Q2.

MTAR Tech designs and manufactures components and equipment for the defense, aerospace, nuclear, and clean energy sectors.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.