Company Update : MTAR Technologies Ltd by Motilal Oswal Financial Services Ltd
Miss on estimates led by lower revenue booking and unfavorable operating leverage
* Consolidated revenue declined 29% YoY to INR1.4b (est. INR1.5b).
* EBITDA declined 54% YoY to INR170m (est. INR283m).
* EBITDA margin contracted 680bp YoY to 12.5% (est. 18.6%), and gross margins stood at 51.2% (+370bps YoY), while employee expenses/other expenses as a % of sales stood at 24.6%/14.1% (+890bp /+170bp YoY), indicating a sharp operating deleverage due to lower revenue booking in 2Q.
* Adj. PAT declined 77% YoY to INR42m (est. INR119m)
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