MTAR Technologies IPO: MD Srinivas Reddy speaks to Anil Singhvi on business outlook, order book, rivals and more
MTAR Technologies IPO: After a bumper listing of MTAR on Monday, company’s Managing Director (MD) and Promoter Srinivas Reddy spoke to Zee Business Managing Editor Anil Singhvi in an exclusive chat. In the interview he spoke freely about the growth outlook and how the company intends to fulfil promises made to the investors. (#NewsParViews).
MTAR, which is based out of Hyderabad, manufactures equipment for defence, space and nuclear sectors. This MTAR Technologies stock was listed at an 85 per cent premium ending the day at Rs 1082. MTAR Technologies issue price was just Rs 575.
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On MTAR Technologies Business Outlook
Reddy said that the vision of the company is quite clear. The company will be working on significantly increasing its CAGR from 16 per cent now, he added. MTAR Technologies order book is very strong and the current opportunities in all segments will lead to high growth, the MD said. Investors will have complete satisfaction having invested in this company, he said.
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MTAR टेक की शेयर बाजार में धमाकेदार एंट्री...
'News पर Views' में कंपनी के MD और प्रोमोटर श्रीनिवास रेड्डी ने कहा- आगे कारोबार में बेहतर ग्रोथ की उम्मीद, निवेशकों से जो वादा किया है उसे पूरा करेंगे#NewsParViews #MTARTechnologies #IPO @AnilSinghvi_ pic.twitter.com/TDVuobbJjh
— Zee Business (@ZeeBusiness) March 16, 2021
On MTAR Technologies Segments
He said that the maximum growth opportunities for the company will come from clean energy. The company has worked towards developing its core capabilities in the clean energy sector, Reddy said. He further said that opportunities in space sector was also immense and with likely privatisation in this sector, the chances have grown further.
MTAR Technologies’ core competence in this segment were rocket engines and cryogenic engines. The priority is to make MTAR an ESG (Environmental Social Governance) company.
On MTAR Technologies Order book
The order book of the company was Rs 336 cr as on December 2020, which is expected to grow in Q4 of 2020 and Q1 of 2021, Reddy said. The orders were not so forthcoming because of the Coronavirus Pandemic. The ratio of revenue to order book at 1.6 times will be maintained by the company, he assured. He also expected export orders to grow.
On MTAR Technologies competition
Reddy said that there were entry barriers in this sector and its was not easy to enter in this space. He said that it took MTAR Technologies 50 years to stand where it was today. The government’s push is now on the Aatmanirbhar Bharat, so this is a positive for the company. He said that the company will be coming out with exclusive products over the next 1-year period.
He said that the competition for MTAR was more internal than external.
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