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MTAR Tech spurts after Q4 PAT rises 103% YoY

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Capital Market
Last Updated : Jun 03 2021 | 1:50 PM IST

MTAR Technologies rose 3.04% to Rs 1,042.75 after the company's consolidated net profit surged 103% to Rs 18.01 crore on 12.3% rise in net sales to Rs 69.16 crore in Q4 FY21 over Q4 FY20.

Profit before tax jumped 97.7% to Rs 25.24 crore in Q4 FY21 compared with Rs 12.77 crore in Q4 FY20. EBITDA soared 107% to Rs 30.1 crore in Q4 FY21 from Rs 14.5 crore posted in Q4 FY20.

The company's order book stood at Rs 415.9 crore as of 31 March 2021 compared with Rs 345.1 crore on 1 April 2020.

The company posted a 47.1% rise in net profit to Rs 46.07 crore on 15.3% increase in net sales to Rs 246.43 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20).

Commenting on the results and performance, Srinivas Reddy, MD for MTAR Technologies said, "Despite challenges faced due to COVID-19 pandemic during the year gone by, your company has been able navigate & has delivered resilient performance for the quarter & year ended FY21. Our revenues stood strong at Rs 246.4 crore for FY21, a growth of 15% Y-o-Y. Our order book as on 31 March 2021 stood at Rs 415.9 crore giving us strong revenue visibility for the coming years. We have been able to penetrate deeper among the existing customers & are witnessing traction from new customers across geographies. Our continuous focus on the markets we operate in has reaped rich benefits with prestigious order wins & are optimistic for future as well. At MTAR, we are continuously working on expansion of our product portfolio in developing critical hi-precision indigenous components and assemblies across sectors. We are in the process of developing associated technology for roller screws and electromechanical actuators. In addition, we are adding new capabilities by establishing exclusive facilities for precision sheet metal manufacturing and specialised fabrication at our Adibatla plant, which is expected to increase our wallet share from existing customers and add new customers. With our state of art manufacturing facilities, technology & innovation capabilities, execution strength & client stickiness, we believe we are well placed to capture the opportunities in the markets we operate. With strong order book in hand, we maintain a positive outlook and are optimistic of sustaining the growth momentum."

The board has recommended final dividend of Rs 3 per share for the financial year ended 31 March 2021.

MTAR Technologies (MTAR) is a leading precision engineering solutions company engaged in the manufacture of mission critical precision components with close tolerances (5-10 microns), and in critical assemblies, to serve projects of high national importance, through their precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured.

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Shares of MTAR Technologies were listed on the bourses on 15 March 2021. The stock was listed at Rs 1063.90, a premium of 85.03% to the initial public offer (IPO) price of Rs 575 apiece. On that day it settled at Rs 1082.25 on the BSE, a premium of 88.22% as compared to the IPO price.

The IPO of MTAR Technologies was subscribed 200.79 times. The issue opened for bidding on 3 March 2021, and closed on 5 March 2021. The price band for the IPO was set at Rs 574-575 per share.

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First Published: Jun 03 2021 | 10:29 AM IST

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