Slide 1: MTAR Technologies Limited Investor Presentation – August 2022
MTAR Technologies Limited Please click here for corporate video Investor Presentation – August 2022
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 Strong Order Book Position Q1 FY23 Financial Performance Certifications under Progress Expanding Product Portfolio & Capabilities Exiting Customers & Customers in Pipeline Well Balanced Portfolio Experienced Board of Directors & Well Qualif
Slide 4: Strong Orderbook Position
Strong Orderbook Position Receipt of Major New Orders Order book Build-Up (Rs. in Crs) Existing Business Received USD 22 Mn orders (approx. 174.6 Crs) in Clean 85.9 765.6 202.7 Energy segment in Q1 FY 23 648.8 Diversified Order Book of Rs. 765.6 crs as on 30th June 2022 1.1% 21.0% Nuclear 31st March
Slide 5: Q1FY23 Financial Performance
Q1FY23 Financial Performance Revenues Revenues (Rs. (Rs. Crs) Crs) Gross Profit (Rs. Crs) ➢ Revenue for Q1 FY23 stood at Rs. 72.2% 61.2% 61.8% 91.0 crs as compared to Rs. 54.0 Crs in Q1 FY22, a growth of 68.4% +68.4% +44.1% YoY 98.6 60.3 91.0 56.2 ➢ EBIDTA for Q1 FY 23 stood at Rs. 39.0 54.0 25 Crs,
Slide 6: Improvement in Working Capital Management
Improvement in Working Capital Management Cash Flow from Operations (Rs. Crs.) Net Working Capital (in Days) 275 249 198 56.2 129 114 120 42.1 14.4 16.2 8.6 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Q1FY23 -29.8 ➢ Our Net Working Capital days has reduced to 249 days from 275 days due to the Mar-18 Mar-19 M
Slide 7: Q1 FY23 Consolidated Profit & Loss Statement
Q1 FY23 Consolidated Profit & Loss Statement Particulars (Rs. Crs) Q 1 FY23 Q1 FY22 Y-o-Y (%) Q4 FY22 Q-o-Q Revenue from Operations 91.0 54.0 68.4% 98.6 (7.7)% Cost of Materials Consumed 43.9 32.9 54.0 Changes in Inventories (9.1) (17.9) (15.7) Gross Profit 56.2 39.0 44.1% 60.3 (6.7)% GP % 61.8% 72.
Slide 8: Certifications Under Progress for Adibatla Plant
Certifications Under Progress for Adibatla Plant Expected Timeline to get Expected Timeline to get Certification Certification Certified Certified ISO 9001:2015 – ISO 27001:2013 Quality Management Received Information Security Aug’22 Systems Management Systems AS9100: Quality ASME U Stamp - Boiling
Slide 9: 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 sheet metal and specialized fabrication facilities Specialized fabrication Indigenizing the Roller S
Slide 10: Establishment of New Capabilities – Electronics Control Systems
Establishment of New Capabilities – Electronics Control Systems • The company has got the in- principle approval from the board to establish electronics manufacturing in-house • The company has started working on establishing a full- fledged EMS (Electronic Manufacturing System) facility 10
Slide 11: Key Products under Development
Key Products under Development Defence • Valves: The company has started working on the design of valves, which has an immense market potential in Defence • Semicryo Engine: MTAR is in the process of developing Semi Cryo Engine, the next generation liquid propulsion engines that enhances Space the p
Slide 12: Existing Customers
Existing Customers Defence & Aerospace Nuclear Power Space DRDL Marine, Oil & Clean Energy Others Energy ARDE Pune 12
Slide 13: Customers in Pipeline
Customers in Pipeline Defence & Aerospace MTAR is currently in discussions with a significant number of new customers from various sectors DMDE Clean Energy Others GE Hydro 13
Slide 14: Well-balanced Portfolio (1/2)
Well-balanced Portfolio (1/2) Revenue in Rs. Crs Nuclear Power Space Clean Energy 29% 13% 12% 22% 14% 4% 12% 16% 13% 24% 15% 12% 50% 61% 64% 50% 63% 76% 55.3 58.2 201.6 46.1 45.7 48.3 137.5 122.7 112.8 26.0 29.1 24.0 27.1 78.4 69.0 18.3 10.6 3.6 FY18 FY19 FY20 FY21 FY22 Q1FY23 FY18 FY19 FY20 FY21 FY
Slide 15: Well-balanced Portfolio (2/2)
Well-balanced Portfolio (2/2) Revenue in Rs. Crs Defense Products & Others 5% 4% 4% 1% 3% 3% 4% 5% 7% 4% 6% 5% 8.4 8.1 18.3 7.8 7.7 14.6 10.1 9.0 3.0 5.9 4.8 1.3 FY18 FY19 FY20 FY21 FY22 Q1FY23 FY18 FY19 FY20 FY21 FY22 Q1FY23 15
Slide 16: Supported by an Experienced Board of Directors
Supported by an Experienced Board of Directors Vedachalam Nagarajan Independent Director Parvat Srinivas Reddy • 35+yrs of experience at ISRO Managing Director and Promoter • Padma Shri awardee • 29+ years of rich work experience in Manufacturing and • Former member of various govt. committees Const
Slide 17: Experienced and Qualified Management Team
Experienced and Qualified Management Team Parvat Srinivas Reddy - Managing Director and Promoter ▪ Entrusted with the overall responsibility of management Shubham Sunil Bagadia, CS and Compliance Officer ▪ 29+ years of rich work experience in Manufacturing and Construction industries ▪ Responsible f
Slide 18: 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 19: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (Rs. Crs) FY22 FY21 FY20 FY19 FY18 Revenue from Operations 322.0 246.4 213.8 183.7 156.6 Cost of Materials Consumed 157.4 101.8 87.3 65.5 66.0 Changes in Inventories of Finished Goods and Work in Progress (41.2) (21.6) (15.1) (3.0) (9.0) Gr
Slide 20: Historical Balance Sheet – Equity & Liabilities
Historical Balance Sheet – Equity & Liabilities EQUITY & LIABILITIES (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity Share Capital 30.8 30.8 26.8 28.2 28.2 Other Equity 489.0 446.0 198.3 206.8 177.3 Total Equity 519.7 476.7 225.1 235.0 205.5 Financial Liabilities Borrowings 25.9 7.1 0.0 0.0 0.0
Slide 21: Historical Balance Sheet - Assets
Historical Balance Sheet - Assets ASSETS (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Property, Plant and Equipment 195.4 166.1 155.0 162.0 152.2 Capital Work-in-progress 43.8 10.5 11.7 5.6 1.8 Investment in Subsidiary 0.0 0.0 0.0 0.0 Intangibles Assets 1.0 0.9 0.1 0.1 0.0 Financial Assets (i) Inves
Slide 22: Abridged Consolidated Cash Flow Statement
Abridged Consolidated Cash Flow Statement Particulars (Rs in Cr) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18 Operating profit before working capital changes 96.1 82.0 60.9 57.3 33 Changes in working capital (108) (61.7) 2.5 (5.7) (16) Cash generated from operations (11.8) 20.3 63.4 51.6 16.9 D
Slide 23: Performance in Charts
Performance in Charts Revenues (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +83% +20% 322.0 +31% 94.4 60.9 83.1 246.4 46.1 213.8 58.0 39.2 183.7 53.7 31.3 156.6 31.9 5.4 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Gross Profit Margins (%) EBITDA Margins (%) PAT Margins (%)
Slide 24: Capital Disciplined Growth
Capital Disciplined Growth RoCE* (%) RoE# (%) Net Debt to Equity (x) 21.8% 17.8% 0.18 20.0% 19.0% 13.6% 13.1% 0.13 14.2% 11.7% 0.12 12.4% 0.10 2.7% 0.03 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 *RoCE = EBIT/Avg. Capital Employed #RoE =
Slide 25: 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 26: 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 27: Serving Multiple Sectors + Segments
Serving Multiple Sectors + Segments FY21 Sectorwise Break-up FY22 Sectorwise Break-up Nuclear 3.7% Has developed wide product portfolio catering to Space 5.7% 22.4% 14.2% diverse sectors Defence Clean Energy Products & Others 15.0% 49.8% 2.5% Export contributor >60% of FY22 revenue has been 23.6% de
Slide 28: 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 29: 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 30: 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 31: 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 engine which launched the Mars Orbiter for the Chandrayaan II mission Mission Spacecraft 31
Slide 32: 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 33: Technology & Innovation Capabilities
Technology & Innovation Capabilities • 400+ Total machines Manufacturing • 100+ Conventional / CNC Turning machines Manufacturing • 7 manufacturing units including an EOU Capabilities Units • 60+ Milling / CNC milling machines • 448 staff, 772 workmen and 427 third party contractors Advanced • High
Slide 34: 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 35: Manufacturing Facilities
Manufacturing Facilities High End Machinery CNC 7 axis machine Assembly, Testing and Clean rooms Specialized Fabrication facilities Surface treatment, heat treatment, Painting 35
Slide 36: 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 37: 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
Slide 38: 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 Establishment of ‘INS Industrial Excellence Magnatar Aero Systems partnership firm ‘M/s Machine the Society of Indian Manufacture of power units S
Slide 39: Awards & Certifications – FY22
Awards & Certifications – FY22 Received ISO 14001 & ISO 45001 certification for Certification ISO 14001 & ISO 45001 its 100% Export Orient Unit (EOU) and Unit 2 for a period of 3 years, valid until March 2024, for manufacturing of precision engineering components & assemblies for Aero Space, Energy
Slide 40: 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 41: 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 42: 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 43: 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 Strategic Roadmap for Sustained Growth
Slide 44: 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 45: 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 46: 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 47: 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 48: 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 Product • Enhance capabilities and grow value chains to supply critical and differentiated engineered products • Establishment of new capa
Slide 49: 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 50: 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 51: Thank You
Thank You MTAR Technologies Limited CIN: L72200TG1999PLC032836 Ms. Srilekha Jasthi – Senior Manager – Strategy & Operations +91 7674021818 srilekha@mtar.in Mr. Ashish Chovatia +91 99300 44680 Ashish.chovatia@linkintime.co.in Mr. Irfan Raeen +91 9773778669 Irfan.raeen@linkintime.co.in