Marshall Machines Ltd. · NSE:MARSHALL
Marshall Machines — Investor Presentation (July 2021)
37 slides from Marshall Machines's investor presentation, Jul 10, 2021
Slide 1: Investor Presentation
Investor Presentation J U L Y 2 0 2 1 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 16 SLIDE 22 CONCLUSION FINANCIAL H2 & FY21 PERFORMANCE PERFORMANCE HIGHLIGHTS SLIDE 26 SLIDE 28 SLIDE 32
Slide 3: About Marshall
About Marshall 04 EVOLUTION 05 MARSHALL AT A GLANCE 06 PRODUCT PHILOSOPHY 07 PRODUCT PORTFOLIO 09 PARTNERSHIP WITH IAMSME 10 R&D & IP DRIVEN 11 OPERATIONAL UNITS 13 ESTABLISHED CLIENTELE 14 STRONG NETWORK 15 MANAGEMENT TEAM
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 30+ 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 manu
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 SUPER-OPTIMIZED MACHINES AFFORDABLE AUTOMATION INDUSTRY 4.0 Machine Offerings Watch Marshall’s Product Portfolio Offer higher productivity & lower cost Only Indian machine manufacturer with Industry 4.0 technology addressing of operations compared to their peers. a focused automate
Slide 8: Product Portfolio
Product Portfolio Marshall Roboturn XL Cell for Motorcycle Wheel Turning 08 MARSHALL MACHINES LIMITED
Slide 9: Partnership with IAMSME of India
Partnership IAMSME of India – Gurukul initiative for skilling India § World bank funded initiative for skilling in India § Marshall among the 3 partners with IAMSME of India § Marshall will provide training on CNC programming and Industry 4.0 Lab will have on demo latest equipment desirable for best
Slide 10: 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 43.56"><defs><style
Slide 11: 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 12: 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 13: Established Clientele
Established Clientele AUTOMOTIVE CONSUMER APPLIANCES GENERAL ENGINEERING AND DURABLES Active 10/15 Year+ Alloy Wheels – 2W & 4W, Gear Motor Parts, Fans, Home Bearings, Consumables, Clientele Relationships Blanks, Pistons, Crank Shafts Electronics Pumps MATURE SECTORS AUTOMOBILE OIL & GAS GENERAL CON
Slide 14: Strong Network
Strong Network 1. LUDHIANA 14. AHEMADABAD 2. CHANDIGARH 15. 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 15: Management Team
Management Team GAURAV SARUP PRASHANT SARUP SIDDHANT SARUP ARCHANA SARUP A.N. CHANDRAMOULI CO-FOUNDER & MD CO-FOUNDER & JT. MD WHOLE TIME DIRECTOR WHOLE TIME DIRECTOR STRATEGIC ADVISOR TO THE BOARD Degree in Production Engineer by Qualification B.Tech in industrial Master’s Degree from Engineering f
Slide 16: Business Review
Business Review 17 5 YEARS PERFORMANCE 18 REVENUE STREAMS 19 WORKING CAPITAL CYCLE 20 KEY STRENGTHS 21 BUSINESS CANVAS
Slide 17: 5 Years Performance
5 Years Performance 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% 33.69 21.6% 67.13 10.29 14.4% 1.33 12.3% 9.65 0.78 0.66 0.68 11.79 2.97 13.60 5.77 10.87 5.00 21.
Slide 18: Revenue Stream
Revenue Stream INDUSTRY-WISE REVENUE § Reduced business for engineering industry due to (₹ IN CRORES) 1.4 maturing markets 0.5 0.2 1.2 4.3 § Working on limiting exposure to automotive 7.4 6.0 3.4 markets, while just concentrating on certain import- 2.4 14.9 10.3 10.7 substitution products such as al
Slide 19: 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 20: 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 21: 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 22: Growth Drivers & Outlook
Growth Drivers & Outlook 23 STRATEGIC PRIORITIES 24 GROWTH DRIVER 25 DEVELOPING STRATEGIC GLOBAL ALLIANCES
Slide 23: 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 § Export to Europe through strategic industry, to not
Slide 24: 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 25: 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 26: Conclusion
Conclusion 27 INVESTMENT RATIONALE
Slide 27: 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 28: Financial Performance
Financial Performance 29 PROFIT AND LOSS SUMMARY 30 BALANCE SHEET SUMMARY 31 CASH FLOW STATEMENT SUMMARY
Slide 29: Profit & Loss Summary
Profit & Loss Summary (₹ IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 Revenue from Operations 50.19 59.36 65.22 59.74 67.13 Total Income 50.54 59.42 65.45 60.54 67.25 Operating Expenses 44.04 46.54 50.01 43.92 57.48 EBITDA (excl. OI) 6.15 12.81 15.21 15.81 9.65 EBITDA % 12.3% 21.6% 23.3% 26.5% 14
Slide 30: Balance Sheet Summary
Balance Sheet Summary (₹ IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 Shareholders' Funds 9.85 17.87 38.51 41.26 49.05 Non Current Liabilities 6.94 10.13 14.71 19.47 21.23 Long Term Borrowings 5.92 7.40 8.37 13.72 12.85 Current Liabilities 48.23 51.63 54.54 60.37 62.72 Short Term Borrowings 15.16
Slide 31: Cash Flow Statement Summary
Cash Flow Statement Summary (₹ IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 Cash from Operating Activities 10.87 4.15 13.60 11.79 10.29 Cash from Investing Activities (5.09) (8.92) (27.25) -14.50 -10.36 Cash from Financing Activities (5.17) 5.05 13.94 3.00 -2.18 Net Cash Flow 0.60 0.28 0.29 0.28
Slide 32: H2FY21 & FY21 Review
H2FY21 & FY21 Review 33 PROFIT & LOSS SUMMARY 34 ORDER BOOK AND BID 35 MANAGEMENT COMMENTARY 36 MARKET STATISTICS 37 GET IN TOUCH
Slide 33: Profit & Loss Summary
Profit & Loss Summary (₹ IN CRORES) PARTICULARS H2FY20 H1FY21 H2FY21 FY20 FY21 Comments • Revenue growth of 12% delivered despite of COVID-19 led Revenue from Operations 25.64 14.98 52.15 59.74 67.13 disruptions. Total Income 25.73 15.02 52.23 60.54 67.25 • Drastic increase in RM costs including she
Slide 34: Order Book and Bid
Order Book and Bid Order Book and Bid (₹ IN CRORES) Healthy Order Book, up 19% Y-o-Y Order Book Order Bid 135 Strong Order Bids, up 101% Y-o-Y 67 Order Book and Bids as on 51 43 31st March, 2021 are at higher prices compared to 31st March, 2020 31st March 2020 31st March 2021 31st March 2020 31st Ma
Slide 35: Management Commentary
Management Commentary "We are pleased to present you our Q4 & FY21 from erstwhile ₹75 crores. At optimum financial and operational performance. FY21 utilizations, we will have the potential to do 25% has been a challenging year for the Indian EBITDA Margins. Manufacturing and Machine Tool Industry;
Slide 36: Market Statistics
Market Statistics IPO Date 28th August 2018 Shareholding Pattern Issue Price ₹ 42 NSE Symbol (NSE Emerge) MARSHALL 26.62% IPO Subscription 2.2X 73.38% Shares Outstanding 1.46 Cr Face Value ₹ 10 Promoter Pledge NIL Promoters Public The Company will migrate to NSE Main Board as soon as it meets the li
Slide 37: Get in Touch
Get in Touch SIDDHANT SARUP SAYAM POKHARNA Whole-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 been
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