Indian precision engineering company MTAR Technologies experienced a sharp drop in share prices on Thursday, with over a 12% decrease on the National Stock Exchange (NSE). This fall was prompted by a reported decline in net profit for Q2, as well as a downward adjustment to the company's FY24 guidance. The trading day was characterized by strong volume, with almost a million shares traded on both NSE and BSE.
The company announced its Q2FY24 revenue as ₹166.8 crore, marking a 32.2% year-on-year increase. Additionally, EBITDA saw a slight rise of 3.4% YoY, reaching ₹36.1 crore. Despite these increases, Profit Before Tax (PBT) decreased by 22.1% YoY, falling to ₹25.7 crore.
MTAR's Managing Director, Parvat Srinivas Reddy, has revised the company's revenue forecast for FY24 to ₹670-700 crore, down from the previously projected ₹830-860 crore (INR100 crore = approx. USD12 million). This adjustment is due to the deferment of shipping plans for confirmed orders from Clean Energy into the next fiscal year.
InvestingPro Insights
Based on the real-time data from InvestingPro, MTAR Technologies yields a high return on invested capital and has been consistently increasing its earnings per share. This aligns with the reported 32.2% YoY increase in revenue for Q2FY24.
InvestingPro Tip: MTAR, despite the recent downward adjustment to the company's FY24 guidance, has been a prominent player in the Machinery industry, often moving against market trends. This characteristic could be of interest to investors looking for some portfolio diversification.
Another InvestingPro Tip to consider is the company's high return over the last year, which despite the recent dip, suggests a potential for strong long-term performance.
InvestingPro offers 17 additional tips for MTAR Technologies, providing an in-depth analysis for those interested in further understanding the company's financial health and market position.
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