homebusiness Newscompanies NewsDefence equipment maker MTAR retains FY25 revenue and margin guidance
Defence equipment maker MTAR retains FY25 revenue and margin guidance
Parvat Srinivas Reddy, MD & Promoter of MTAR Technologies is confident of achieving 45-50% YoY growth in revenues in the next financial year.
Hyderabad-based defence equipment manufacturer MTAR Technologies has retained its revenue guidance for the next financial year at ₹830-900 crore with margin of 26%.
The company had revised its financial year 2024 revenue and earnings before interest, tax, depreciation, and amortisation (EBITDA) margin guidance lower due to a deferment of export shipments in clean energy sector to the next year.
Normalcy in this is expected to be restored by end of the fourth quarter. Therefore, the company is confident it will be able to grow revenue at 45 to 50% in FY25.
Speaking to CNBC-TV18, Parvat Srinivas Reddy, MD and promoter of MTAR Technologies said, “We are progressing very well with number of MNCs to work on long-term contracts, which will be more or less finalised within the next one, one and a half months.”
In April-December 2023, MTAR Technologies' revenue rose 16% to ₹438 crore. However, the profit after tax (PAT) dipped 29% to ₹51 crore. EBITDA margin was down to 21.6% from 27.8% last year.
MTAR had an order book of around ₹1,178 crore as of December 31 and bagged new orders worth ₹295 crore in the third quarter.
Reddy said the company currently has clean energy as one of its main customers, but is looking for customer diversification over the next year, and this will help drive growth.
Currently, about 66% of its order book is in the clean energy space including fuel cell, hydel and others. Around 14% is in civil and nuclear power.
Space orders are around 11% while defence and other segments make up around 4.5% each.
Reddy said the nuclear orders from reactors would be completed by the first quarter next year.
The company has a market capitalisation of ₹5,180.38 crore. Its shares have gained 9% over the last year.
(Edited by : Shweta Mungre)
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