MTAR Tech shares fall the most since June 2022 after FY24 revenue, margin guidance cut

In an interaction with CNBC-TV18, Parvat Srinivas Reddy, Managing Director & Promoter of the company, said, “The deferment of revenues happened because of the technology change in the model. The transition phase is happening right now and we see the deferment primarily because of that and it's got nothing to do with the demand as such. So that's the main reason why we have indicated that there is a reduction ₹160 crore of revenues being deferred to the next fiscal, because we need to ramp up to the new model, which gives a better higher power generation output, which is which is great, actually.”

However, it mentioned that the long-term growth remains intact as the company is witnessing significant growth across segments.

For the September quarter, MTAR Tech reported a 32% growth in revenue from operations to ₹167 crore, while operating profit or EBITDA grew by only 3% year-on-year. EBITDA margin narrowed by 600 basis points from last year to 21.7%.

Net profit for the period fell by 17% last year to ₹20.5 crore.

All five analysts that track MTAR Technologies continue to have a "buy" recommendation on the stock.

Shares of MTAR Tech are trading 9.1% lower at ₹2,321. This is the biggest single-day drop for the stock since June 2022.

Despite today's drop, shares of MTAR Tech are up 43% so far in 2023. The management will be having a post-earnings conversation on CNBC-TV18 today at 1:45 PM.