MTAR Tech Shares Plunge 12% After Revenue, Ebitda Guidance Cut
The company's net profit fell 17% to Rs 20.5 crore YoY in the September quarter, missing Bloomberg estimate of Rs 26.5 crore.
Shares of MTAR Technologies Ltd. fell on Thursday after it lowered its revenue and Ebitda guidance for fiscal 2024. Also, the company's second-quarter profit declined, missing analysts' estimates.
“We revise our annual guidance for FY24 to a revenue of around Rs 670–700 crore, as against previous guidance of around Rs 830–860 crore," the company said in a press release.
Ebitda guidance was also revised to 26% +/-100 basis points, as against previous guidance of around 28% +/-100 bps, due to deferment of shipment plans against the confirmed orders from clean energy to the next fiscal year, it said.
The company's net profit fell 17% to Rs 20.5 crore year-on-year in the September quarter. While, revenue rose 32% to Rs 166.8 crore year-on-year during the period, as per an exchange filing.
MTAR Technologies Q2 FY24 Highlights (Consolidated, YoY)
Revenue up 32% at Rs 166.8 crore. (Bloomberg estimate: Rs 175.8 crore).
Ebitda up 3.4% at Rs 36.1 crore. (Bloomberg estimate: Rs 36.3 crore).
Margin down 603 bps at 21.63% vs 27.66% (Bloomberg estimate: 20.7%).
Net profit down 17% at Rs 20.5 crore. (Bloomberg estimate: Rs 26.5 crore).
Shares of the company plunged as much as 12.5%, before paring some loss to trade 8.8% lower at 11:19 a.m., compared to a 0.1% decline in the NSE Nifty 50.
The stock has risen 43.39% on a year-to-date basis. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 34.8.
All five analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 16%.
