Quarterly Highlights
Mold-Tek Technologies Ltd (NSE: MOLDTECH, BSE: 526263), a leading player in engineering design services, has announced its financial results for the fourth quarter of FY24. The company reported a 14.5% year-on-year (YoY) increase in revenue, rising to ₹202.6 crore from ₹176.9 crore in the same quarter last year. However, net profit fell 9.45% YoY to ₹16.3 crore, down from ₹18 crore in Q4 FY23.
EBITDA for the quarter stood at ₹37.7 crore, marking a 6.2% rise from ₹35.5 crore a year ago. Despite this, operating margins contracted to 18.6% from 20.1%, signaling increased cost pressures or changes in project mix. On a sequential basis, there was also a marginal dip in both profitability and margin performance.
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Revenue Growth Driven by Strong Engineering Demand
The revenue growth in Q4 was primarily fueled by increased demand across the company’s core segments—civil, structural, and mechanical engineering services. Mold-Tek continues to benefit from the global outsourcing trend and infrastructure-related engineering projects, particularly in North America and the Middle East. The company’s strategic focus on expanding its engineering manpower and enhancing delivery capabilities also played a role in supporting this growth.
Despite top-line expansion, the dip in net profit and EBITDA margin suggests that inflationary input costs or higher hiring/training expenses could be eating into profitability. Additionally, a lower other income and slightly higher depreciation and tax expenses weighed on the bottom line.
Yearly Performance and Key Financial Metrics
For the full fiscal year ended March 2024, Mold-Tek posted consolidated sales of ₹161 crore, up from ₹147 crore in FY23. Net profit stood at ₹28 crore, reflecting a YoY decline from ₹29 crore. The company’s net profit margin slipped to 17.3% from 19.7%, while its operational performance, measured by operating profit margin (OPM), decreased from 29% to 26%.
Return ratios remained robust with ROCE at 31.4% and ROE at 24.7%, indicating continued capital efficiency. The company remains virtually debt-free, maintaining a debt-to-equity ratio of just 0.07. Mold-Tek also generated ₹28.3 crore in free cash flow during FY24 and maintained a healthy dividend yield of 2.27%, signaling shareholder-friendly policies.
Company Snapshot
Established in 1985, Mold-Tek Technologies Ltd is part of the Mold-Tek Group and provides specialized engineering and technology solutions to global clients. The company is ISO 9001:2015 and ISO 27001:2005 certified and is a registered partner with AISC and NISD. Mold-Tek’s clientele spans the automotive, oil & gas, telecommunications, and infrastructure sectors. Its consistent performance has earned it a reputation as a reliable partner for engineering outsourcing services.
As of May 19, 2025, the stock trades at ₹148 with a market capitalization of ₹422 crore. Over the last three years, the company has reported compounded sales growth of 24.7% and compounded profit growth of 40.7%. Promoter holding stands strong at 49%, with negligible pledging—a signal of confidence in the company’s long-term prospects.
Market Position and Peer Comparison
Within the engineering and turnkey services space, Mold-Tek faces competition from players like Engineers India, Power Mech Projects, and Techno Electric. While many peers operate at larger scales, Mold-Tek’s niche focus and cost-effective offshore delivery model give it a competitive advantage. Compared to an industry PE of 33.2, Mold-Tek trades at a relatively modest P/E of 21, suggesting room for potential upside based on earnings growth and re-rating possibilities.
Outlook
Looking ahead, Mold-Tek is expected to continue leveraging its domain expertise, operational efficiency, and cost competitiveness to win global contracts. The company’s plan to scale up capacity and deepen its relationships with existing clients may provide further earnings momentum. However, investors should watch for margin pressures and forex-related risks, given its international exposure.
With strong fundamentals, a clean balance sheet, and healthy cash flows, Mold-Tek remains a promising long-term bet in the engineering services space, albeit with short-term volatility in profit margins.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers are encouraged to consult with a certified financial advisor before making any investment decisions. FinanceXaditya is not responsible for any losses incurred based on this report.
Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
