MTAR Tech Shares Fall 6% After Strong Q4 Performance

Picture Source: Internet

MTAR Tech shares fell 6% in early trade on the morning of May 18 after the company reported a strong Q3FY23 performance, snapping a three-day winning streak for the stock.

The nuclear and aerospace equipment maker has gained about 7% over the past three sessions.

The company’s net profit rose 57% to Rs 31 crore in the fourth quarter from Rs 20 crore a year earlier. Operating income doubled from Rs 99 crore to Rs 196 crore in Q4FY22.

EBITDA was Rs 49 crore, up 77% from Rs 28 crore in the same period last year.

For the full year, profit after tax stood at Rs 103 crore, up 70% from Rs 61 crore in FY22, while operating income rose 78% from Rs 322 crore in FY22 to Rs 574 crore in FY23, up 78.2%.

EBITDA in FY23 grew by 63% to Rs 154 crore. It has an order book of Rs 1,173 crore as of March 31, 2023, the company told the exchange.

“MTAR is expected to witness accelerated growth and healthy margins in the coming years. The company has added well-known global MNCs in FY23 and is also in discussions with more clients.

“We are expecting 45-50% revenue growth in FY24. Our NWC days will be further reduced by the end of FY24. Positive industry growth in our industry is expected to further drive our growth,” MTAR Tech Managing Director and Promoter Parvat Srinivas Reddy said.

The company’s market capitalisation has jumped more than 32% in the last year and about 22% in the past six months.

The stock was down 5.31% at Rs 1,892 on the NSE at 11:17 am, while the benchmark Nifty was trading 0.38% higher at 18,250.55.

Get Daily Prediction & Stocks Tips On Your Mobile