Shares of Hyderabad-based defence equipment manufacturer MTAR Technologies experienced their most significant decline of 2023 following the company’s downward revision of its financial year 2024 revenue and EBITDA margin guidance. MTAR Technologies Ltd, known for manufacturing precision-engineered systems for clean energy, reported a reduced net profit of Rs 20.5 crore in the second quarter ending September 30, 2023, compared to Rs 24.7 crore in the corresponding quarter last year, marking a 17.1 percent decline.
During this period, the company recorded revenue from operations amounting to Rs 166.8 crore, up from Rs 126.2 crore in the comparable quarter last year, reflecting a 32.2 percent increase. MTAR Technologies caters to various sectors, including civil nuclear power, fuel cells, space, and defence.
Parvat Srinivas Reddy, Managing Director & Promoter of MTAR Technologies Limited, stated, “We have adjusted our annual guidance for the financial year 2023-24 to approximately Rs 670-700 crore, down from the previous projection of around Rs 830-860 crore, with an EBITDA margin of approximately 26 percent.”
As a result of this revised guidance, shares of MTAR Technologies plummeted by up to 10%, currently trading at ₹2,332.40, indicating an 8.67% decline at 10:28 am.
