Slide 1: MTAR Technologies Limited
MTAR Technologies Limited Please click here for corporate video Investor Presentation – August 2021
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by MTAR Technologies Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
Slide 3: A leader in critical and differentiated engineered products
A leader in critical and differentiated engineered products Q1 FY22 Operational Performance Well Balanced Portfolio Q1 FY22 Financial Performance Expanding Product Portfolio & Capabilities Q1FY22 Profit & Loss
Slide 4: Q1 FY22 Operational Performance
Q1 FY22 Operational Performance Order Book (Rs. Crs) Sector wise Revenue (Rs. Crs) ➢ Recorded highest production of Hot Boxes per month so far in Space & Defence +11% June 2021 in spite of the Nuclear devastating second wave of Covid- 415.9 Clean Energy 54.2 354.0 Others* 48.7 19 10.9 11.6 5.0 10.3
Slide 5: Well-balanced Portfolio
Well-balanced Portfolio Revenue in Rs. Crs Nuclear Power Space & Defense Clean Energy 20% 16% 18% 21% 21% 49% 61% 64% 50% 69% 29% 13% 14% 26% 9% 62.4 53.4 137.5 122.9 112.8 46.1 39.3 36.8 78.4 30.5 26.2 24.0 36.8 10.9 5.0 FY18 FY19 FY20 FY21 Q1FY22 FY18 FY19 FY20 FY21 Q1FY22 FY18 FY19 FY20 FY21 Q1FY
Slide 6: Q1 FY22 Financial Performance
Q1 FY22 Financial Performance Revenues (Rs. Crs) Gross Profit (Rs. Crs) ➢ Revenue from Operations stood at Rs. 54.0 56.7% 72.2% Crs as against Rs. 48.7 Crs in Q1FY21 a growth of 10.9% Y-o-Y +11% +41% 54.0 39.0 ➢ Gross profit margins improved from 56.7% 48.7 27.7 in Q1FY21 to 72.2% in Q1FY22, a growt
Slide 7: Expanding Product Portfolio & Establishment of New Capabilities
Expanding Product Portfolio & Establishment of New Capabilities Electro-Mechanical High End High Precision Sheet Roller Screws Actuators Fabrication Metal Expanding Product Portfolio Establishment of New Capabilities ✓ Indigenizing the Roller Screws. Made a ✓ Building an exclusive specialized fabric
Slide 8: Q1 FY22 Profit & Loss Statement
Q1 FY22 Profit & Loss Statement Particulars (Rs. Crs) Q1FY22 Q1FY21 Y-o-Y (%) Revenue from Operations 54.0 48.7 10.9% Cost of Materials Consumed 32.9 24.2 Changes in Inventories -17.9 -3.1 Gross Profit 39.0 27.7 41.2% GP % 72.2% 56.7% Employee Benefits Expense 15.9 11.9 Other Expenses 8.7 4.4 EBITDA
Slide 9: A leader in critical and differentiated engineered products
A leader in critical and differentiated engineered products Historical Profit & Loss Consolidated Balance Sheet Abridged Cash Flow Statement Performance in Charts Capital Disciplined Approach
Slide 10: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (Rs. Crs) FY21 FY20 FY19 FY18 Revenue from Operations 246.4 213.8 183.7 156.6 Cost of Materials Consumed 101.8 87.3 65.5 66.0 Changes in Inventories of Finished Goods and Work in Progress -21.6 -15.1 -3.0 -9.0 Gross Profit 166.3 141.6 121.1
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY & LIABILITIES (Rs. Crs) Mar-21 Mar-20 ASSETS (Rs. Crs) Mar-21 Mar-20 Equity Share Capital 30.8 26.8 Property, Plant and Equipment 166.1 155.0 Other Equity 446.0 198.3 Capital Work-in-progress 10.5 11.7 Total Equity 476.8 225.1 Intangibles Assets 0.9 0.1 Financial Li
Slide 12: Abridged Cash Flow Statement
Abridged Cash Flow Statement Particulars (Rs in Cr) 31-Mar-21 31-Mar-20 Operating profit before working capital changes 82.0 60.9 Changes in working capital -61.7 2.5 Cash generated from operations 20.3 63.4 Direct taxes paid (net of refund) -11.7 -7.2 Net Cash from Operating Activities (A) 8.6 56.2
Slide 13: Performance in Charts
Performance in Charts Revenues (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +104% +16% 246.4 +38% 83.1 46.1 213.8 39.2 183.7 58.0 31.3 159.6 53.7 31.9 5.4 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Gross Profit Margins (%) EBITDA Margins (%) PAT Margins (%) 520 bps 1370 bps 1530 bps 62.
Slide 14: Capital Disciplined Growth
Capital Disciplined Growth RoCE* (%) RoE# (%) Net Debt to Equity (x) 21.8% 17.8% 0.12 0.13 19.6% 19.3% 13.6% 13.1% 0.10 12.4% 2.7% 0.03 Mar-18 Mar-19 Mar-20 Mar-21 Mar-18 Mar-19 Mar-20 Mar-21 Mar-18 Mar-19 Mar-20 Mar-21 Cash Flow from Operations (Rs. Crs.) Net Working Capital (in Days) ➢ Our Net Wor
Slide 15: A leader in critical and differentiated engineered products
A leader in critical and differentiated engineered products Wide Portfolio of Products Serving Multiple Sectors + Segments Multiple Companies entrust MTAR Diversity in Supplier Base
Slide 16: Wide Product Portfolio
Wide Product Portfolio Healthy mix of Mix of regular (less developmental versus complex) products versus volume-based products highly complex assemblies Rocket engines Hot boxes Rotor Mast Bearing Control Plug for Housing - Titanium Reactor Manufactures small Manufactures import products to large pr
Slide 17: Serving Multiple Sectors + Segments
Serving Multiple Sectors + Segments FY20 Sectorwise Break-up FY21 Sectorwise Break-up Nuclear Has developed wide product portfolio catering to Space & Defence 3% 2% 14% diverse sectors Clean Energy 26% Others 18% 50% Export contributor >55% of FY21 revenue has been 64% derived from orders by custome
Slide 18: Multiple Companies entrust MTAR
Multiple Companies entrust MTAR Large MNCs Long standing relationship with large MNC’s, Government Departments and Large Indian Public ▪ Strong relationship with a multitude of global relationships Long term defence, space and clean energy players- both and Private sector companies state-owned and p
Slide 19: Diversity in Supplier Base
Diversity in Supplier Base Established long term Large & diversified Ability to source Stringent quality checks supplier relationship supplier base specialized materials ▪ Ensures quality raw material within ▪ Maintains robust database of ▪ Developed a robust supply chain for ▪ Company performs exte
Slide 20: A leader in critical and differentiated engineered products
A leader in critical and differentiated engineered products Projects of Pride, Glory & Prestige Advanced Manufacturing Capabilities Technology & Innovation Capabilities State-of-the-Art Manufacturing Facilities End to End Manufacturing Capabilities
Slide 21: Projects of Pride, Glory & Prestige
Projects of Pride, Glory & Prestige Manufactures hi-precision indigenous components, subsystems, assemblies for projects of National Importance Supplied engine for the PSLV-C25, Integral for the GSLV Mark III Undertakes complex assemblies which launched the Mars Orbiter engine for the Chandrayaan II
Slide 22: Advanced Manufacturing Capabilities
Advanced Manufacturing Capabilities Legacy Engineering Manufacturing R&D Quality Control Legacy of over 50 years of Ability to manufacture within 5- State of the art manufacturing Extensive R&D for cycle time Extensive & stringent testing & manufacturing a wide range of 10 micron tolerance product f
Slide 23: Technology & Innovation Capabilities
Technology & Innovation Capabilities • 400+ Total machines • 7 manufacturing units including an EOU Manufacturing • 100+ Conventional / CNC Turning machines Manufacturing • Establishing a new unit at Adibatla for sheet metal Capabilities Units & specialised fabrication verticals • 60+ Milling / CNC
Slide 24: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities Units Products manufactured Sectors catered Facilities offered Accreditations Complex nuclear assemblies & high end defence products such Nuclear, defence Advanced computerized Unit 1 as base shroud assembly for Agni missiles and aerospace numerical control, mac
Slide 25: Manufacturing Facilities
Manufacturing Facilities High End Machinery CNC 7 axis machine Assembly, Testing and Clean rooms Specialized Fabrication facilities Surface treatment, heat treatment, Painting 25
Slide 26: End to End Manufacturing Capabilities
End to End Manufacturing Capabilities Machining Surface & Heat Treatment ▪ Manufacturing of precision components with ▪ Surface treatment activities such as - nitriding, close tolerances to the extent of 5-10 microns anodization, hard chrome plating, nickel plating, supported by induction hardening,
Slide 27: A leader in critical and differentiated engineered products
A leader in critical and differentiated engineered products Three Decades in Precision Engineering Product Offerings – Nuclear Power Product Offerings - Space & Defense Product Offerings - Clean Energy Experienced Board of Directors Qualified Management Team Delivering Value to Stakeholders
Slide 28: Three Decades in Precision Engineering
Three Decades in Precision Engineering ‘Award for Excellence in Incorporated a subsidiary - , Constituted in July, 1970 as a Aerospace Indigenization’ by ‘INS Industrial Excellence Magnatar Aero Systems partnership firm ‘M/s Machine the Society of Indian Manufacture of power units Award’ by the Indi
Slide 29: Product Offerings – Nuclear Power Segment
Product Offerings – Nuclear Power Segment Nuclear Sector Products High criticality of products given safety requirements Fuel Machining Head Comprises of 600 components; Bridge & Column Used in loading & unloading of fuel Moves fuel machining head in bundles in nuclear reactor sideways and vertical
Slide 30: Product Offerings – Space and Defence
Product Offerings – Space and Defence Space & Defence Sectors Base shroud assembly and air frames Components for Geosynchronous Satellite Launch Vehicle (GSLV) Used in Agni missiles such as A1, A2 A3, A4, A5, A1 P. Stage 4 – Inside Components for Satellite Aircraft Stage 3 Main Gear Box Titanium Suk
Slide 31: Product Offerings – Clean Energy
Product Offerings – Clean Energy Clean Energy Sector ▪ Fuel Cell Products Existing Product Supplies ▪ SOFC Hot boxes - Use methane to generate power ▪ MTAR is developing the following products in collaboration with Bloom to expand its product portfolio in clean energy sector: ▪ Hydrogen boxes- Use H
Slide 32: Supported by an Experienced Board of Directors
Supported by an Experienced Board of Directors Subbu Venkata Rama Behara Parvat Srinivas Reddy Chairman and Independent Director Managing Director and Promoter • Director - Ola Electric Mobility Pvt Ltd, Greaves Cotton Ltd & • 29+ years of work experience Ampere Vehicles Pvt Ltd • Ex-managing direct
Slide 33: Experienced and Qualified Management Team
Experienced and Qualified Management Team Parvat Srinivas Reddy - Managing Director and Promoter ▪ Entrusted with the overall responsibility of management ▪ 29+ years of rich work experience in Manufacturing and Construction industries ▪ Master’s degree in science, specializing in industrial enginee
Slide 34: Delivering Value to Stakeholders
Delivering Value to Stakeholders IPO Subscription March 2021 Category Times Subscribed ▪ Listing of MTAR Technologies Limited QIB 164.99x ▪ Listing done on BSE & NSE NII 650.79x RII 28.40x ▪ IPO Price : Rs. 575 per share Total 200.79x ▪ Listing Price: Rs. 1078.80 per share ▪ Listing day gain of ~88%
Slide 35: A leader in critical and differentiated engineered products
A leader in critical and differentiated engineered products Looking Ahead Industry Opportunity – Nuclear Power Industry Opportunity - Space & Defense Industry Opportunity - Clean Energy Experienced Board of Directors Strategic Roadmap for Sustained Growth
Slide 36: Looking Ahead
Looking Ahead ▪ ISRO Plans for next 2 years : 31 satellite missions/ 32 ▪ Power demand in India to grow at a CAGR of 3-4% over launch missions ▪ Government targets for clean energy, budgets the next 5 years ▪ Future missions include- Chandrayaan-3, Gaganyaan allocations, and incentives are the stron
Slide 37: Industry Opportunity – Nuclear Power
Industry Opportunity – Nuclear Power # 22 Additional # 7 # 14 NPCIL is the key entity Net nuclear power capacity Operational Reactors – Reactors to be operational New reactors planned and managing all nuclear target of 26.2 GWe by 2031 Capacity of 6.3 GWe in next 5 years tenders to be released react
Slide 38: Industry Opportunity - Space and Defence
Industry Opportunity - Space and Defence ISRO Successfully ISRO Conducted 14 ISRO is the key entity Armed forces likely to Defence exports grew at completed 118 spacecraft missions in FY19 and more spearheading India’s space spend Rs. 4,000 Bn over 82% CAGR to Rs. 91 Bn missions and 78 launch than p
Slide 39: Industry Opportunity - Clean Energy
Industry Opportunity - Clean Energy Fuel cells are able to Renewable accounts for Fuel cell market growing at Bloom is a key player 45% CAGR in Bloom’s produce electricity with 26% of global electricity 15% CAGR with increased globally operating revenues from near zero greenhouse generation R&D in t
Slide 40: Strategic Roadmap for Sustained Growth (1/2)
Strategic Roadmap for Sustained Growth (1/2) Strengthen existing product portfolio and diversify into products with attractive growth and profitability prospects • Enhance capabilities and grow value chains to supply critical and differentiated engineered products Product • Establishment of new capa
Slide 41: Strategic Roadmap for Sustained Growth (2/2)
Strategic Roadmap for Sustained Growth (2/2) Expand international presence including through increase in exports • Continue to expand international operations to enhance global presence in the sectors we currently cater • Growth in support for Hydrogen based clean energy solution along with expansio
Slide 42: Key Meeting Takeaways
Key Meeting Takeaways Precision engineering expertise with Wide product portfolio leading to complex product manufacturing long-standing relationships with our capability customers Modern technology at our state-of- Strong and diversified supplier base the-art manufacturing facilities for sourcing o
Slide 43: Thank You
Thank You MTAR Technologies Limited CIN: U72200TG1999PLC032836 Ms. Srilekha Jasthi – Manager – Strategy & Operations srilekha@mtar.in Mr. Sagar Shroff +91 9820519303 sagar.shroff@linkintime.co.in Mr. Deven Dhruva +91 98333 73300 deven.dhruva@linkintime.co.in