MTAR Tech shares surge after strong Q4 earnings; profit up multifold

MTAR Tech's stock rose as much as 4.83 per cent after it reported a multifold increase in its Q4 net profit

Shares of MTAR Technologies surged nearly 5 per cent in Friday's intraday session after it reported a multifold increase in its net profit for the fourth quarter of the previous financial year (Q4FY25). 

 

MTAR Tech's stock rose as much as 4.83 per cent during the day to ₹1,743.6 per share, the biggest intraday gain since May 13 this year. The stock pared gains to trade 0.25 per cent higher at ₹1,667 apiece, compared to a 1.1 per cent advance in Nifty 50 as of 11:05 AM. 

 

Shares of the company gained for the third straight day on Friday and have risen over 20 per cent from its recent lows of ₹1,368, which it hit earlier this month. The counter has risen 0.5 per cent this year, compared to a 5.3 per cent advance in the benchmark Nifty 50. MTAR Tech has a total market capitalisation of ₹5,108.71 crore.   

 

MTAR Tech Q4FY25 results 

The company reported a net profit of ₹13.7 crore in the January to March quarter of FY25, as compared to ₹4.8 crore in the same period last year. The surge in the bottom line comes as the revenue from operations rose 28.1 per cent to ₹183 crore in the quarter under review. In the first quarter of the previous year, the company reported a revenue of ₹142.9 crore. 

 

Meanwhile, the company's operating margins or earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 87 per cent to ₹34.1 crore in the March quarter. The Ebita margin of MTAR Tech expanded to 18.6 per cent from 12.7 per cent earlier.  

MTAR Tech management commentary 

The company maintained a healthy growth trajectory in FY25 by registering 16 per cent growth in revenue year-on-year (Y-o-Y), Parvat Srinivas Reddy, managing director, MTAR Technologies. "Nearly ₹200 crore of revenue is generated from new products added over the past couple of years, underscoring the trust of our customers and technological leadership."

 

There shall be a sequential improvement in Ebitda margins over the coming quarters as we scale up the production of first article orders across various sectors, he added.  

About MTAR Tech

MTAR Technologies is a national player in the precision engineering industry engaged in the manufacture of mission-critical precision components with close tolerances (5-10 microns), and in critical assemblies, to serve projects of high national importance, through our precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured. 

 

Since its inception in 1970, Mtar has grown into a major group with facilities with an unparalleled history of contributing to the Indian Civilian Nuclear Power program, Indian Space program, Indian Defence, Global Defence, as well as Global Clean Energy sectors.

 

The company has the machining, assembly, specialised fabrication, painting, and special processes facilities available under one roof, which are probably considered as one of the best facilities available in India, as well as in Asia.