MTAR Technologies (MTARTECH) Q1 24/25 earnings summary

Executive summary

• Q2 is projected to deliver the highest-ever quarterly revenue of around INR 200 crore, with strong momentum expected to continue in H2 and FY 2026, maintaining 20%-25% year-on-year growth and margins of 22% ±100 bps.

• 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.

• 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.

• The results include performance from subsidiaries Gee Pee Aerospace and Defence Private Limited and Magnetar Aero Systems Private Limited.

Financial highlights

• Q2 revenue expected to reach INR 200 crore, the highest in company history.

• 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; EBITDA margin at 12.9%.

• 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.

• Segment revenue for Q2: nuclear ~INR 16 crore, space ~INR 15 crore, aerospace ~INR 20 crore, electronics ~INR 37 crore, clean energy (hydrogen) ~INR 11-12 crore, sheet metal ~INR 17 crore, hot boxes ~INR 80-90 crore.

• Gross profit margin declined to 47.9% in FY24 from 53.0% in FY23.

Outlook and guidance

• FY 2025 guidance reaffirmed: 20%-25% revenue growth, 22% ±100 bps margin.

• Order book expected to close FY 2025 at around INR 1,000 crore, with major contributions from nuclear, aerospace, defense, and space.

• 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 projected to contribute INR 150 crore in revenue next year, with incremental capex of INR 40-45 crore for facility expansion.