MTAR Tech Shares Decline After Q1 Profit, Revenue Falls
Net profit declined 78% to Rs 4.4 crore, while the projection was Rs 12 crore.
Defence and energy equipment maker MTAR Technologies Ltd.'s shares declined early on Wednesday after the company's first quarter earnings missed street expectations.
The company reported a 16% drop in consolidated revenue from operations to Rs 128 crore in the April-June period, compared to Bloomberg estimate of Rs 140 crore.
Net profit declined 78% to Rs 4.4 crore, while the projection was Rs 12 crore. Operating profit tanked 53.3% to Rs 16.3 crore due to lower inventory gains, while margin contracted to 12.7% from 22.8%.
The Hyderabad-based manufacturer received Rs 104.94 crore of orders in various sectors, including clean energy, civil nuclear power, fuel cells and hydel, space, defence, products and others. The orderbook stood at Rs 894 crore as of June 2024.
Shares of MTAR Tech dropped as mush as 6% before paring loss to trade 5.2% lower at Rs 1,706 per share at 10:00 a.m. This compares to a 0.04% decline in the NSE Nifty 50.
The stock has declined 23% in the last 12 months and 22% year-to-date. Total traded volume so far in the day stood at 6.8 times its 30-day average. The relative strength index was at 29.
Four out of six analysts tracking MTAR Tech have a 'buy' rating on the stock, one suggests a 'sell' and one recommends a 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 44.1%.
