MTAR Technologies shares tank 12% after Q3 results; check details

Shares of MTAR Technologies Ltd fell sharply in Wednesday's trade after the company recorded a drop in its third-quarter (Q3 FY24) results. The stock slumped 12.17 per cent to hit a day low of Rs 1,683 over its previous close of Rs 1,916.20.

MTAR said profit after tax came at Rs 10.4 crore in Q3 FY24 as against Rs 31.4 crore in Q3 FY23, 66.8 per cent decrease on a year-on-year (YoY) basis.

Revenue from operations stood at Rs 118.4 crore in December 2023 quarter as against Rs 160.2 crore in the year-ago period, down 26.1 per cent YoY.

During the quarter under review, EBITDA slipped 47 per cent (YoY) to Rs 23.9 crore as compared to Rs 45.0 crore in Q3 FY23.

Parvat Srinivas Reddy, Managing Director and Promoter at MTAR Tech, said, "Revenues in FY24 shall be marginally higher as compared to FY23 due to deferment of export shipments in Clean Energy sector to the next fiscal year. However, the growth outlook for FY25 remains intact with 45-50 per cent YoY likely increase in revenues. The company is in final stages of discussion with reputed global MNCs as well as made good progress in Small Satellite Launch Vehicle project."

The company said it has received Rs 295.4 crore of orders in various sectors including clean energy – civil nuclear power, fuel cells and hydel, space, defence, products and others in Q3 FY24.

On technical setup, the counter was last seen trading lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs).

The stock's 14-day relative strength index (RSI) came at 13.23. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 57.17 against a price-to-book (P/B) value of 8.91.

As of December 2023, promoters held 37.26 per cent stake in the company.

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