MTAR Technologies (MTARTECH) Q1 24/25 earnings summary

Executive summary

• Delivered 814 hot boxes and 22 electrolyzers in Q1, with Q2 guidance of 990 hot boxes and record revenue of INR 200 crore.

• Maintains leadership in critical engineered products with a diversified order book of Rs. 894.2 Cr as of June 30, 2024, and significant new orders in clean energy and defense sectors.

• Q1 FY25 revenue at Rs. 128.3 Cr, down 10.3% sequentially; EBITDA at Rs. 16.6 Cr, down 8.9% QoQ; PAT at Rs. 4.4 Cr, down 9.1% YoY.

• Consolidated revenue from operations for Q1 FY25 was ₹1,282.60 million, down from ₹1,429.70 million in Q4 FY24 and ₹1,525.62 million in Q1 FY24.

• Strong ESG focus, with 85% of FY23 revenue from climate-positive products and a D&B ESG rating of 2 (good), outperforming industry in environment and governance.

Financial highlights

• Q2 expected to deliver highest-ever revenue of INR 200 crore, with margin guidance of 20%+.

• Q1 FY25 revenue: Rs. 128.3 Cr (down 10.3% QoQ, down 15.9% YoY); EBITDA: Rs. 16.6 Cr; PAT: Rs. 4.4 Cr.

• Total income for Q1 FY25 was ₹1,287.86 million, compared to ₹1,433.52 million in Q4 FY24 and ₹1,566.66 million in Q1 FY24.

• Segment revenue for Q2: Nuclear INR 16 crore, Space INR 15 crore, Aerospace INR 20 crore, Electronics INR 37 crore, Clean Energy INR 11-12 crore, Sheet Metal INR 17 crore, Hot Boxes INR 80-90 crore.

• FY24 revenue: Rs. 580.8 Cr; EBITDA: Rs. 112.7 Cr; PAT: Rs. 56.1 Cr.

Outlook and guidance

• Revenue growth guidance of 20%-25% year-over-year remains intact, with margins targeted at 22% ±100 bps.

• Long-term agreement with Israeli Aerospace Industries for potential orders of USD 90–120 Mn over 15 years.

• Export orders in clean energy fuel cells to be executed in FY25 and Q1 FY26.

• Oil & gas vertical targeted to contribute INR 150 crore revenue in FY26, with INR 40 crore capex for facility expansion.

• New product launches and import substitution (e.g., roller screws) expected to drive growth in FY25 and FY26.