Financial Details:
- Revenue: MTAR Technologies reported a revenue of ₹588 crore in FY2023-24, compared to ₹573.8 crore in the previous fiscal year.
- EBIT: The EBIT for FY2023-24 stood at ₹102.7 crore, down from ₹150 crore in FY2022-23.
- Profit Before Tax: The company recorded a profit before tax of ₹73 crore, compared to ₹114.2 crore in the previous fiscal year.
- Profit After Tax: Profit after tax was ₹56.1 crore, a decrease from ₹103.4 crore in FY2022-23.
- Net Operating Cash Flows: Improved to ₹57.4 crore in FY2023-24, up from ₹7.4 crore in the previous fiscal year.
- Debt Levels: Fund-based debt stands at ₹190 crore, with working capital debt at ₹93.9 crore and a net debt of ₹54.7 crore.
Operational Details:
- Customer Transition Impact: The decline in earnings was attributed to a transition by key customer Bloom Energy, which impacted procurement volumes.
- Cost Management: MTAR is focusing on proactive cost management strategies to improve AB margins and investments in R&D projects.
- Order Book: Closed the year with an order book of ₹950 crore and expects to reach ₹1500 crore by March FY2024-25.
- Raw Material Management: Improved management of raw materials with a reduction in raw material days to 118 days from 154 days in the previous year.
Sector Details:
- Clean Energy: Encountered a temporary reduction in procurement volumes from Bloom Energy due to a business model transformation.
- Defense and Nuclear: Significant projects in defense and nuclear sectors, with an emphasis on sustainable and long-term growth.
- Aerospace: Developing new products and securing agreements in the aviation sector, expecting substantial orders in the near future.
Business Details:
- Revenue Guidance: MTAR expects a revenue increase of 30-35% in FY2024-25, with 40% of revenue in the first half and 60% in the second half.
- ABIT Margins: Targeting ABIT margins of around 22%, with a long-term goal to improve margins to 24%+.
- Long-Term Agreements: Secured agreements in the aviation sector worth ₹90-120 million over the next 15 years.
Customer Details:
- Key Customers: Bloom Energy, multiple multinational corporations (MNCs) in various sectors, including aviation.
- Diversification: Aiming to reduce dependency on any single customer, with Bloom Energy expected to contribute around 35-40% of revenue by FY2026.
- New Partnerships: Collaborating with new MNCs and exploring opportunities in the oilfield sector under new leadership.
Product Details:
- First Articles Development: Investing in R&D to develop first articles and products for MNCs, aiming for future revenue streams.
- Aviation Sector Products: Agreements signed for aviation sector projects, expecting significant business opportunities.
- Electrolyzer Products: Working on delivering 34 electrolyzers, with potential orders in the second half of the year.
- Defense Products: Developing various defense products, with a focus on long-term growth in the defense sector.
Summary:
MTAR Technologies Ltd faced a challenging Q4 FY2023-24 due to a transition by key customer Bloom Energy. Despite this, the company remains optimistic about future growth, expecting a significant increase in revenue and margins in the coming years. The company is focusing on diversifying its customer base, developing new products, and securing long-term agreements in sectors like aviation, defense, and nuclear. Financial metrics showed a decline, but operational improvements and strategic investments are positioning MTAR for long-term success.
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