Result Analysis: MTAR Ltd. Result Update Q2FY22
Particulars (In ₹. Cr) Q2FY22 Q1FY22 Q2FY21 QoQ % YoY%
Revenue from Operation 91.29 54.03 73.28 68.96% 24.58%
Other Income 2.57 2.59 0.168 -0.77% 1429.76%
Total Income 93.86 56.62 73.448 65.77% 27.79%
Material cost 30.1 32.86 28.04 -8.40% 7.35%
Other Expenses 36.66 11.21 25.65 227.03% 42.92%
Material cost as percentage of Total Income 32.97% 60.82% 38.26% -45.79% -13.83%
EBITDA 29.44 14.47 24.07 103.46% 22.31%
EBITDA Margin 32.25% 26.78% 32.85% 20.42% -1.82%
Profit After Tax 19.05 8.70 13.88 118.97% 37.25%
PATM (%) 20.87% 16.10% 18.94% 29.59% 10.17%
Basic EPS (in Rs.) 6.2 2.83 5.19 119.08% 19.46%

Result Highlight: 

  • Revenue from Operations stood at Rs. 91.30 crore as against Rs. 73.29 crore in Q2FY21, 24.57% increase YoY, 68.97% increase QOQ.

  • EBITDA reported at Rs 29.44 crore as compared to Rs. 24.08 crore in Q2FY21, 22.26% increase YoY

  • Profit Before Tax stands at Rs 27.11 crore as against Rs. 19.76 crore in Q2FY21, 37.15% increase YoY

  • Profit after Tax reported was at Rs. 19.05 crore as against Rs. 13.89 crore in Q2FY21, 37.23% increase.

  • The gross non-performing loans as at September 30, 2021 stood at ₹ 10,341 crore. This is equivalent to 2.00% of the loan portfolio.

  • Revenue from Exports is increased by 32.34% in comparison with Q2 FY 21.

  • Order book as on 30 Sept 2021 stands at 535.64 Crores in comparison with 288.09 Crores as on 30 Sept 2020.

  • The company has received a rating of A-(Positive) from ICRA and A-/Stable from CRISIL for FY 22.

  • During the quarter company has reported negative cash flow from operation at ₹ 13.3 crore.

  • Net working capital of the company has increased to 198 days in March 2021 from 120 days in March 2020.

  • Around 50% of the revenue come from clean energy.

  • Debt of the company has increased from 7.1 crore in March FY21 to 19.6 crore in September 2021.

Management commentary: 

  • Parvat Srinivas Reddy, Managing Director & Promoter, MTAR Technologies, said, “We have witnessed an impressive growth in terms of revenue and order inflow in Q2 FY22. MTAR has clocked a solid revenue growth of 24.57%.and a net profit of Rs. 19.05 Crore with a YoY growth of 37.23%.

  • Company have received largest single order worth Rs. 220 Crore from Bloom in Q2; anticipate an accelerated order inflow from domestic and exports in Q3 and Q4. Company is confident of continuing this growth momentum backed by a robust order book over the coming quarters as the Indian manufacturing is at an inflection point amidst push by government on Atmanirbhar Bharat initiative

  • The company has also initiated the development of electromechanical actuators, which find application in Space and Defense sectors for this company have received initial order worth 1.3 Crores from Defense.

  • Company is building an exclusive specialized fabrication facility at Adibatla to take up high end fabrication jobs that shall enhance existing capabilities it is expected to be functional by end of FY22. The company will be initially catering to ISRO and Bloom Energy.

  • Management said that out of the order book of 535 core management expect a sizeable order execution to be done in Q3 and Q4 of FY22.

  • Management clarified that the increase in working capital is due to higher raw material procurement because of very high order book and rise in material cost because of rise in commodity prices.

  • MTAR is developing products in collaboration with Bloom to expand its product portfolio in clean energy sector: Hydrogen boxes these boxes use Hydrogen to generate power and Electrolyzes which generate green hydrogen from water that shall be used in power units to generate power with zero carbon emissions.


MTAR LTD reported a strong set of number in Q2 FY22 where revenue came in at ₹ 91.29 crore registering a growth of 25% Y-o-Y, EBITDA saw a growth of 22% in this quarter compared to last year and profit increase by 37% Y-o-Y, around 50% of revenue came from clean energy and export formed around 50% of their revenue. Company has a very strong order book of ₹ 535 crore of which around 53% is from clean energy. Company this year has received largest single order of ₹ 220 crore for export of Yuma hot boxes, company in their concall said they expect a strong pickup in order execution in Q3 and Q4. Company is expanding their capacity with an investment of 30-35 crore which is expected to complete by next year. MTAR has ability to provide exceptional quality products as per customer specifications, lays special emphasis on research and development of their manufacturing processes as it allows them to evolve their own process technologies, company is making investment in space technologies and expect trial order in Q3 while some of the negatives in this quarter was the rise in debt and increase in working capital requirement of the company which is due to rise in material cost, company has good order book but execution is going to be key in coming quarter.

At the CMP of ₹1740, MTAR is trading at PE multiple of 70x. Valuing the company at 55x FY23E EPS, we recommend buy on MTAR Ltd on dips with the Target Price of ₹ 1950.

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