Marshall Machines Ltd. · NSE:MARSHALL
Marshall Machines — Q4 FY2022 Earnings Presentation
42 slides from Marshall Machines's earnings presentation, Jul 6, 2022
Slide 1: Q4FY22 Investor Presentation
Q4FY22 Investor Presentation J U L Y 2 0 2 2 MARSHALL MACHINES LIMITED w w w . m a r s h a l l c n c . c o m
Slide 2: Inside this Presentation
Inside this Presentation ABOUT BUSINESS GROWTH MARSHALL REVIEW DRIVERS & MACHINES OUTLOOK SLIDE 03 SLIDE 20 SLIDE 26 CONCLUSION FINANCIAL Q4FY22 PERFORMANCE PERFORMANCE HIGHLIGHTS SLIDE 30 SLIDE 32 SLIDE 36
Slide 3: About Marshall
About Marshall 04 EVOLUTION 05 MARSHALL AT A GLANCE 06 PRODUCT PHILOSOPHY 07 PRODUCT PORTFOLIO 09 PARTICIPATION IN IMTS, CHICAGO 10 PARTNERSHIP WITH IAMSME 11 MARSHALL AND MARUTI CENTER FOR EXCELLENCE 12 R&D & IP DRIVEN 14 OPERATIONAL UNITS 16 ESTABLISHED CLIENTELE 18 STRONG NETWORK 19 MANAGEMENT TE
Slide 4: Evolution
Evolution HUMBLE BEGINNINGS INNOVATION 1961-2001 2002 ONWARDS <svg id="Large_Preview" data-name="Large Preview" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 384.1 382.58"><defs><style>.cls-1,.cls-2{fill:none;stroke:#525151;stroke-linecap:round;stroke-width:16px;}.cls-1{stroke- INTEGRATION WITH li
Slide 5: Marshall at a Glance
Marshall at a Glance Years Old Brand Cumulative Team Strength Executed Successful in Machine Tool Machines 35+ Automation & Automation Projects Industry Deployed Innovation Team Incorporated in 1961, Marshall Machines is a renowned brand in the Indian machine tools industry. • Marshall has been a ma
Slide 6: Product Philosophy
Product Philosophy A THREE-PRONGED PRODUCT DEVELOPMENT PHILOSOPHY Super-focused product SUPER-OPTIMIZED AFFORDABLE MACHINES AUTOMATION development philosophy differentiating us from the Super optimized machines that Automation split over competition. offer higher productivity & lower more than one
Slide 7: Product Portfolio
Product Portfolio MARSHALL ROBOTURN XL CELL ROBOTURN FLEXI CELL TWINTURN UBER WITH SMARTLOAD Machine Offerings INDUSTRY AUTOMOBILE CONSUMER DURABLES AND DURABLES INDUSTRY COMPONENT/JOB INDUSTRY COMPONENT/JOB INDUSTRY COMPONENT/JOB GENERAL 2W alloy wheel Gear blanks Small turned jobs ENGINEERIN
Slide 8: Product Portfolio (Contd.)
Product Portfolio (Contd.) JUNO SMARTER TM SERIES TURNMILL Machine Offerings INDUSTRY AUTOMOBILE CONSUMER DURABLES AND DURABLES INDUSTRY COMPONENT/JOB INDUSTRY COMPONENT/JOB INDUSTRY COMPONENT/JOB GENERAL Pipe fittings Shafts and all Valves ENGINEERING Connectors types of medium Complex par
Slide 9: Participation in IMTS 2022, Chicago
Participation in IMTS 2022, Chicago Gurukul initiative for skilling India Marshall Machines is With initiatives like these, participating in one of the Marshall Machines hopes best International to create in-roads into the Manufacturing high-potential markets Technology Show such as the USA 09 MARSH
Slide 10: Partnership with IAMSME of India
Partnership with IAMSME of India Gurukul initiative for skilling India World bank funded Marshall among the 3 initiative for skilling in India partners with IAMSME of India Marshall will provide Hundreds of people will training on CNC be jointly trained through programming and this initiatives Indus
Slide 11: Marshall and Maruti Center for Excellence
Marshall and Maruti Center for Excellence India’s 1 st comprehensive Training Program for Industry 4.0 Technologies Maruti Center for Excellence Marshall has installed proprietary (MACE) will impart training for equipment for training on four Industry 4.0 Technologies to types of machines at MACE: a
Slide 12: R&D and IP Driven Company
R&D and IP Driven Company BENEFITS DERIVED FROM R&D SUPERIOR INTELLECTUAL PROPERTY 3rd Generation of Innovators and Engineers at the helm <svg id="Isolation_Mode" data-name="Isolation Mode" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 43.55 Marshall distinguishes itself as Smart CNC Systems C
Slide 13: R&D and IP Driven Company (Contd.)
R&D and IP Driven Company (Contd.) PATENTS FILED IN INDIA AND USA <svg id="Isolation_Mode" data-name="Isolation Mode" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 43.55 43.56"><defs><style>.cls-1{fill:none;stroke:#484852;stroke-linecap:square;stroke-miterlimit:10;stroke- Patents Filed India USA T
Slide 14: Operational Units
Operational Units Marshall Machines operates two state- UNIT 1 LUDHIANA UNIT 2 LUDHIANA of-art manufacturing facilities in Ludhiana. The company has recently completed an expansion in Unit 1 and 2 which Setup in 2001 Setup in 2012 includes addition of: Zeiss measuring machines 4,181 Sq. Mt.
Slide 15: State-of-art Facilities
State-of-art Facilities World Class Temperature Controlled, Manufacturing Facilities Dust Proof Assembly Areas World’s Best STUDER World Class European CNC Cylindrical Grinder Mother Machinery New 5 Axis CNC Universal Machine Parts Designed Machining Center with and Validated Using Solid Auto Indexi
Slide 16: Established Clientele
Established Clientele AUTOMOTIVE Active Broad customer 10/15 Year+ Alloy Wheels – 2W & 4W, Gear Blanks, Pistons, Crank Shafts Clientele segments: Relationships Corporate Institutions and SME’s MATURE SECTORS AUTOMOBILE CONSUMER GENERAL DURABLES AND ENGINEERING DURABLES EMERGING SECTORS AERO SPACE EL
Slide 17: Established Clientele (Contd.)
Established Clientele (Contd.) CONSUMER APPLIANCES GENERAL ENGINEERING AND DURABLES Motor Parts, Fans, Home Electronics Bearings, Consumables, Pumps 17 MARSHALL MACHINES LIMITED
Slide 18: Strong Network
Strong Network 1. 2. LUDHIANA CHANDIGARH 14. 15. AHEMADABAD INDORE Pan-India network with presence across 3. 4. ROHTA HARIDWAR 16. 17. JAMSEDPUR KOLKATA all key manufacturing hubs in India. 5. RUDRAPUR 18. NASIK 1 6. DELHI 19. AURANGABAD A team of sales & service engineers catering 2 4 7. GURGAON 20
Slide 19: Management Team
Management Team GAURAV SARUP SIDDHANT SARUP A.N. CHANDRAMOULI SANJAY KUMAR SONI PRASHANT SARUP ARCHANA SARUP CHI EF O PERAT I NG CO - FO UNDER & MD CO - FO UNDER & J T. MD W HO L E TI ME DI RECTO R W HO L E TI ME DI RECTO R STRATEG I C ADVI SO R O F F I CER TO THE BO ARD Deg r ee i n Pr o d u c t i
Slide 20: Business Review
Business Review 21 ANNUAL PERFORMANCE HIGHLIGHTS 22 REVENUE STREAMS 23 WORKING CAPITAL CYCLE 24 KEY STRENGTHS 25 BUSINESS CANVAS
Slide 21: Annual Performance Highlights
Annual Performance Highlights REVENUE EBITDA & EBITDA MARGIN PROFIT AFTER TAX & CASH DEBT & DEBT TO EQUITY FLOW FROM OPERATIONS (₹ IN CRORES) (₹ IN CRORES & %) (₹ IN CRORES & TIMES) (₹ IN CRORES) 26.0% 2.13 23.3% 21.6% 60.33 5.77 14.0% 5.00 1.33 12.3% 11.4% 2.97 1.10 6.90 0.83 0.87 10.87 13.60 11.79
Slide 22: Revenue Stream
Revenue Stream INDUSTRY-WISE REVENUE Reduced business for engineering industry due to maturing markets FY21 FY22 Working on limiting exposure to automotive 3% 1% markets, while concentrating on certain import- substitution products such as alloy wheels 19% Consistently working on growing emerg
Slide 23: Working Capital Cycle
Working Capital Cycle WORKING CAPITAL DISTRIBUTION WORKING CAPITAL DAYS REASONS FOR HIGH WORKING CAPITAL (IN DAYS) (IN DAYS) INVENTORIES High lead time of WIP-inventories due to a 6 months sun-baking seasoning procedure of machine structures, for high-performance machines Critical imported compo
Slide 24: Strengths & Weaknesses
Strengths & Weaknesses STRENGTHS WEAKNESSES Unmatched value proposition to the Commoditized & price-competitive industry industry for standard machines Innovative, customized solution Long working capital cycle offerings Scale of operations 61-year-old brand, Marshall Lack of presence
Slide 25: Business Canvas
Business Canvas KEY KEY VALUE CUSTOMER CUSTOMER PARTNERSHIPS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTATION International Machine R&D & designing Customized solution Strong, seasoned customer 2 key customer segments Tool Manufacturers machines offerings to machine shops relationships i.
Slide 26: Growth Drivers & Outlook
Growth Drivers & Outlook 27 STRATEGIC PRIORITIES 28 GROWTH DRIVER 29 DEVELOPING STRATEGIC GLOBAL ALLIANCES
Slide 27: Strategic Priorities
Strategic Priorities INCREASING SHARE OF AUTOMATION INCREASE SHARE OF EXPORT REVENUE & INDUSTRY 4.0 BUSINESS DIVERSIFICATION Increasing the share of Export to USA market Limiting exposure to any one under differentiated and unique Marshall industry, to not more than 25%, to Export to Europe
Slide 28: Growth Drivers & Outlook
Growth Drivers & Outlook IMPORT SUBSTITUTION INCREASING ADOPTION FOCUS ON FOCUS ON DE-SKILLING ADDING COMPETENCIES PRODUCT OFFERING OF INDUSTRY 4.0 AUTOMATION OPERATION IN EMERGINGG TECHNOLOGIES MANUFACTURING Alloy Wheels production Companies looking Customers will look Customers who cannot
Slide 29: Developing Strategic Global Alliances
Developing Strategic Global Alliances With European & Japanese Machine Builders MARKET IMPORTED AUTOMATED CELLS GOVERNMENT BUSINESS EXPANDING CLIENTELE MACHINE PARTS MACHINES IN INDIA Import advanced Machines manufactured Tap opportunities in the Partner machines built-in Machine parts to
Slide 30: Conclusion
Conclusion 31 INVESTMENT RATIONALE
Slide 31: Investment Rationale
Investment Rationale CAPEX OPPORTUNITY EMERGING FOCUSED ON SEASONED COMPLETED SIZE OPPORTUNITIES IN DELEVERAGING MANAGEMENT MANUFACTURING Completed a Huge potential of Emerging opportunities The company is focusing 3rd generation of significant CAPEX Affordable Automation in sectors such a
Slide 32: Financial Performance
Financial Performance 33 PROFIT AND LOSS SUMMARY 34 BALANCE SHEET SUMMARY 35 CASH FLOW STATEMENT SUMMARY
Slide 33: Profit & Loss Summary
Profit & Loss Summary (₹ IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 FY22 Sales 50.19 59.35 65.22 59.74 67.14 60.33 Raw Material Cost 33.97 38.05 38.89 30.12 46.32 37.91 Employee Expenses 4.24 4.57 5.77 6.83 6.85 10.75 Other Expenses 5.83 3.92 5.35 6.98 4.56 4.77 Total Expenses 44.04 46.54 50.01
Slide 34: Balance Sheet Summary
Balance Sheet Summary (₹ IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 FY22 Equity Capital 1.81 2.14 14.55 14.55 14.55 14.55 Reserves & Surplus 8.05 15.73 23.96 26.72 34.50 31.43 Shareholders Funds 9.86 17.87 38.51 41.27 49.05 45.98 Long Term Borrowings 5.93 7.41 8.38 13.72 14.22 9.50 Deferred Tax
Slide 35: Cash Flow Statement Summary
Cash Flow Statement Summary (₹ IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 FY22 Cash from Operating Activities 10.87 4.15 13.60 11.79 11.34 4.78 Cash from Investing Activities (5.09) (8.92) (27.25) (14.50) -10.36 -0.37 Cash from Financing Activities (5.18) 5.06 13.95 3.00 -1.76 -4.77 Net Change
Slide 36: Q4FY22 Review
Q4FY22 Review 37 PROFIT & LOSS SUMMARY 39 ORDER BOOK AND BID 40 MANAGEMENT COMMENTARY 41 MARKET STATISTICS 42 GET IN TOUCH
Slide 37: Profit & Loss Summary
Profit & Loss Summary (₹ IN CRORES) PARTICULARS Q4FY21 Q3FY22 Q4FY22 % Change Comments (Q4FY22 vs Q4FY21) Sales 29.04 9.29 24.38 -16%Focus on profitability over volumes. Raw Material Cost 20.81 6.10 14.74 -29% Driven by passing-on increased input costs to customers. Employee Expenses 2.72 2.67 2.68
Slide 38: Profit & Loss Summary
Profit & Loss Summary (₹ IN CRORES) PARTICULARS FY21 FY22 % Change Comments (FY22 vs FY21) Sales de-growth on an annual basis, due to severely impacted Q2 & Q3 where Sales 67.14 60.33 -10%the Company witnessed deferring of investments from customers due to 3rd wave Covid. Raw Material Cost 46.32 37.
Slide 39: Order Book and Bid
Order Book and Bid Order Book and Bid (₹ IN CRORES) Healthy Order Book ORDER BOOK ORDER BID (Y-o-Y) 260 Strong Order Bids (Y-o-Y) 135 51 54 31st March 2021 31st March 2022 31st March 2021 31st March 2022 39 MARSHALL MACHINES LIMITED
Slide 40: Management Commentary
Management Commentary • The Company's operational and financial • The demand outlook is especially good on the performance has rebounded in Q4FY22 after automation front. Clients are increasingly two subdued quarters that were disturbed in scouting and opting for automated machine cells anticipation
Slide 41: Market Statistics
Market Statistics Shareholding Pattern IPO Date 28th August 2018 Issue Price ₹ 42 33% NSE Symbol MARSHALL IPO Subscription 2.2X 67% Shares Outstanding 1.46 Cr Face Value ₹ 10 Promoters Public Promoter Pledge NIL 41 MARSHALL MACHINES LIMITED
Slide 42: Get in Touch
Get in Touch SIDDHANT SARUP SAYAM POKHARNA W hole -Time Director Investor Relations Advisor investors@marshallcnc.com sayam@theinvestmentlab.in www.marshallcnc.com SAFE HARBOR This document which has been prepared by Marshall Machines Limited (the “Company”, “Marshall”, “Marshall Machines”), have be