MTAR sees PAT jump 47% YoY, Recommends Final Dividend of Rs.3/-

Consolidated Financial Performance for FY21

• Revenue from operations at Rs. 246.4 Crs up by 15.3%
• EBIDTA of Rs. 83.1 Crs up by 43.3%; margins at 33.7%
• PAT of Rs. 46.1 Crs up by 47.1%; margins at 18.7%

Hyderabad, June 2, 2021: MTAR Technologies, a Hyderabad based precision engineering solutions company engaged in the manufacturing and development of mission critical precision components and critical assemblies catering to nuclear, space, defense and renewable energy sectors has declared its Audited Financial Results for the Quarter & Year ended March 31, 2021.The Board has recommended Final Dividend @ 30% i.e. Rs. 3/- per share (face value of Rs. 10 each) for the financial year ended March 31, 2021, subject to approval of members at the ensuing Annual General Meeting.

The Revenue from Operations stood at Rs.246.40 crores in FY21 as against Rs 213.80 crores in FY20 up by 15% (y-o-y). Earnings before interest, tax, depreciation and amortization (EBITDA) was substantially up by 43% at Rs 83.1 crore in FY21 as compared to Rs 58 crore in FY20. Profit After Tax also increased considerably by 47% to Rs 46.1 crore as against Rs 31.3 crore in FY20.

The order book stands at Rs 415.90 crore in FY21. The breakup of the same is as follows

1. Nuclear: 29.2%
2. Clean Energy: 34.5%
3. Space & Defense: 1%
4. Others: 0.2%

Commenting on the results and performance for Q4 & FY21, Mr. Srinivas Reddy, Managing Director for MTAR Technologies Limited 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 crs for FY21, a growth of 15% Y-o-Y. Our order book as on 31° March 2021 stood at Rs. 415.9 crs 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. I would also like to thank all the share holders participating in the IPO & showing trust in our company. Moving forward, we also reiterate our confidence to create long-term shareholder value.”

Safe Harbor Statement Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward looking statements to reflect actual results changed assumptions or other factors.

About MTAR Technologies Ltd.

MTAR has seven strategically based manufacturing units including an export-oriented unit each based in Hyderabad, Telangana. The Company has a long-standing relationship of over three and four decades with customers such as the Indian Space Research Organisation(ISRO) and the Defence Research and Development Organisation (DRDO) and hasmanufactured a variety of mission critical components and critical assemblies such as liquid propulsion engines, components and assemblies for cryogenic engines, specifically turbo pumps, booster pumps, gas generators and injector heads for such engines, and electro-pneumatic modules to serve its space launch vehicles for the former (ISRO).

The Company is led by Mr. Parvat Srinivas Reddy,  Managing Director, MTAR Technologies Ltd. has over three decades of work experience and expertise in this segment. MTAR was also a key contributor to India’s Moon mission, Chandrayaan-2 by manufacturing spacecraft’s crucial parts. For the Defence sector, MTAR undertook complex assemblies for the DRDO, including assembly for Agni missiles, and the assembly of secondary injection thrust vector control (“SITVC”) valves and hydraulic fin tip control (“HFTC”)valves. MTAR has also consistently supplied products like hot boxes, hydrogenboxes and electrolyzers to Bloom Energy, a USA based Company and has also supplied critical defence products such as aluminium weldments and other machined components to a Israeli defence technology company.