MTAR Technologies Faces 12 Percent Share Price Drop Post Weak Q3 Results

MTAR Technologies Faces 12 Percent Share Price Drop Post Weak Q3 Results

VoM News Desk | February 14, 2024 | 03:22 PM IST | Breaking News | Follow on Google News

MTAR Technologies Faces 12 Percent Share Price Drop Post Weak Q3 Results

MTAR Technologies Faces 12 Percent Share Price Drop Post Weak Q3 Results

MTAR Technologies witnessed a more than 12% decline in its share price during Wednesday’s trading session following disappointing Q3 results. The stock opened at an intraday high of ₹1,798.75 on the BSE but touched an intraday low of ₹1,683. Analysts highlight that MTAR Tech has been underperforming and experienced significant selling pressure in recent weeks. The current selloff, marked by a gap down and substantial volumes, is expected to drive prices further down in the short term. Technical support is seen at ₹1,580, while resistance stands at ₹1,900.

Q3 Performance and Financial Metrics

MTAR Technologies reported a 66.8% YoY decline in profit after tax to ₹10.4 crore in Q3 FY24, down from ₹31.4 crore in Q3 FY23. Revenue from operations for the December 2023 quarter was ₹118.4 crore, reflecting a 26.1% YoY decrease from ₹160.2 crore in the same period last year. EBITDA also saw a significant 47% YoY drop to ₹23.9 crore during the reviewed quarter. The company attributes the lower revenues to the deferment of export shipments in the Clean Energy sector to the next fiscal year.

Outlook and Future Prospects

Despite the challenges in Q3, MTAR Technologies anticipates marginally higher revenues in FY24 compared to FY23, with deferred export shipments contributing to the next fiscal year. The growth outlook for FY25 remains positive, with a projected 45% – 50% YoY increase in revenues. The company is in advanced discussions with reputed global MNCs and has made progress in its Small Satellite Launch Vehicle project, signaling future opportunities.

VoM News Desk

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