The MTAR Technologies Ltd Q2 FY24 Earnings Conference Call discussed several key points:
MTAR Technologies Ltd Q2 FY24 Earnings Concall
Performance Overview: MTAR Technologies reported revenue of ₹166.85 crores, with a 3.4% year-on-year increase in EBITDA at ₹36.1 crores for Q2 FY24. However, there was a decrease in profit before tax and profit after tax compared to Q2 FY23.
Order Book and Growth Projections: The company anticipates a healthy order inflow in the second half of the year from new and existing customers in the clean energy, nuclear, and defense sectors. This is expected to maintain the closing order book around ₹1,400-1,500 crores. They have received around ₹80 crores of order inflows in Q2.
Clean Energy Sector - Bloom Energy: MTAR is focusing on the production of Santa Cruz block 2 hot boxes for Bloom Energy, moving from the previous Yuma model. There was a deferment of shipping plans from Bloom, impacting MTAR’s short-term growth. The company expects to ramp up production of Santa Cruz block 2 in the coming quarters. They also mentioned ongoing negotiations with Fluence for a substantial order.
Domestic Business Outlook: The company expects a significant pick-up in domestic business, particularly in the nuclear sector. They also highlighted the ongoing projects and the expected increase in revenues from these domestic ventures.
Financial Aspects: The company is working on reducing networking capital days by the end of the financial year. There was a mention of a sharp reduction in payable days due to liabilities paid for inventories purchased in previous quarters.
Guidance for FY24: MTAR aims to generate revenue of around ₹600-700 crores by the end of FY24, with an EBITDA margin of 26% ± 1%. This guidance reflects the current business scenario and the company’s strategic focus areas.
Investments and Future Plans: MTAR is investing in enhancing its product portfolio and expanding its customer base. The company is actively participating in the space and defense sectors, with a focus on import substitution opportunities like ball screws, water-lubricated bearings, and roller screws.
Challenges and Adaptability: MTAR discussed adapting to changes in technology and market demands, particularly in the clean energy sector with Bloom Energy. They emphasized their readiness to meet evolving customer requirements.
Open Invitation for Plant Visits: The management invited investors to visit their facilities to witness the company’s advancements and future project developments firsthand
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