Result impacts on MTAR stock

MTAR Tech experienced a significant decline of 11%, emerging as the top loser on the NSE500 index. The company’s third-quarter results were disappointing, primarily due to delays in exports within its clean energy business segment. These delays adversely affected the company’s revenue. Additionally, increased expenses eroded both margins and bottom-line profitability. However, amidst these challenges, MTAR Tech secured new orders worth Rs 295 crore during the third quarter, contributing to its total order book, which currently stands at Rs 1,179 crore.
Key financial statistics for the quarter include a 26% year-on-year decrease in revenue to Rs 118 crore, a 47% decline in EBITDA to Rs 24 crore, and a significant reduction in EBITDA margin from 28.2% to 20.1%. Profit after tax (PAT) also suffered a substantial decline of 67% year-on-year, totaling Rs 10 crore.
While the company had previously adjusted its guidance for fiscal year 2024, indicating anticipated challenges, the timeline for improvement remains uncertain. Despite management’s assertion that the growth outlook for fiscal year 2025 remains positive, with a projected 45% year-on-year increase in topline, market sentiment appears cautious.