Slide 1: MTAR Technologies Limited Investor Presentation – April 2021
MTAR Technologies Limited Please click here for corporate video Investor Presentation – April 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: MTAR at Glance
MTAR at Glance Order Book Position Nuclear Business Activities As on 31st Dec, 2020 › Manufactures complex mission critical components and assemblies such 47.8% has Fuel Machining Head, Drive Mechanisms, Bridge & Column, and Coolant Channel assemblies, among others for nuclear reactors › Also provid
Slide 4: 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 enthrust MTAR Diversity in Supplier Base
Slide 5: 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 su
Slide 6: Serving Multiple Sectors + Segments
Serving Multiple Sectors + Segments FY20 Sectorwise Break-up 9MFY21 Sectorwise Break-up Nuclear Has developed wide product portfolio catering to Space & Defence 3% 3% 14% diverse sectors Clean Energy 27% Others 18% 49% Export contributor >50% of FY20 revenue has been 64% derived from orders by custo
Slide 7: Multiple Companies enthrust MTAR
Multiple Companies enthrust 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
Slide 8: 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 9: 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 & Innovations Capabilities State-of-the-Art Manufacturing Facilities End to End Manufacturing Capabilities
Slide 10: 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 11: 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 12: 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 13: 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 14: Manufacturing Facilities
Manufacturing Facilities High End Machinery CNC 7 axis machine Assembly, Testing and Clean rooms Specialized Fabrication facilities Surface treatment, heat treatment, Painting 14
Slide 15: 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 16: 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 with IPO
Slide 17: 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 18: 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 19: 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 20: Product Offerings – Clean Energy
Product Offerings – Clean Energy Clean Energy Sector ▪ Fuel Cell Products Existing Product Supplies ▪ 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 Hydrog
Slide 21: 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 22: 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 work experience ▪ Ex-managing director of Ravileela Granites Ltd. ▪ Master’s degree in science, specializing in industrial enginee
Slide 23: Delivering Value to Stakeholders with IPO
Delivering Value to Stakeholders with IPO 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 gai
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: A leader in critical and differentiated engineered products
A leader in critical and differentiated engineered products Well-balanced Portfolio Strong Orderbook Position Sustainable Profitability Capital Disciplined Growth Profit & Loss Statement Balance Sheet Statement
Slide 32: Well-balanced Portfolio
Well-balanced Portfolio Rs. Crs Nuclear Power Space & Defense Clean Energy 20% 16% 18% 21% 49% 61% 64% 49% 29% 13% 14% 27% 48 39 138 46 37 37 113 26 88 31 78 24 FY18 FY19 FY20 9M FY21 FY18 FY19 FY20 9M FY21 FY18 FY19 FY20 9M FY21 32
Slide 33: Strong Orderbook Position
Strong Orderbook Position Receipt of new order Nuclear Segment ▪ Engaged with a nuclear research facility in developing Channel Health Assessment System (“CHAS”) used for Received an export order worth Rs. 93 crs inspection in fuel machining vault (USD 12.77 Mn) in March 2021, ▪ Recently received te
Slide 34: Sustainable Profitability
Sustainable Profitability Revenues (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +35% +140% +17% 214 54 58 53 39 184 177 31 157 28 32 5 FY18 FY19 FY20 9M FY21 FY18 FY19 FY20 9M FY21 FY18 FY19 FY20 9M FY21 Gross Profit Margins (%) EBITDA Margins (%) PAT Margins (%) 63.7% 65.9% 66.2% 61.4% 29.2% 29.9% 9.1%
Slide 35: Capital Disciplined Growth
Capital Disciplined Growth ROCe (%) ROE (%) Net Debt to Equity (x) 19.8% 19.0% 16.7% 15.2% 0.18 17.0% 13.9% 9.6% 0.08 0.05 2.6% 0.03 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Cash Flow from Operations (Rs. Crs.) Working Capital (in Days) Inventory Debtors Cr
Slide 36: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) 9M FY21 FY20 FY19 FY18 Revenue from Operations 177.3 213.8 183.7 156.6 Cost of Materials Consumed 74.8 87.3 65.5 66.0 Changes in Inventories of Finished Goods and Work in Progress -6.4 -15.1 -3.0 -9.0 Gross Profit 108.9 141.6 121.1 99.7 GP % 61.4% 66.2%
Slide 37: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities EQUITY & LIABILITIES (Rs. Crs) Sep-20 Mar-20 Mar-19 Mar-18 Equity Share Capital 26.8 26.8 28.2 28.2 Other Equity 218.9 198.3 206.8 177.3 Total Equity 245.6 225.1 235.0 205.5 Financial Liabilities Borrowings 7.2 0.0 0.0 0.0 Provisions 3.3 2.4 0.6 3.0 Deferred Tax
Slide 38: Balance Sheet - Assets
Balance Sheet - Assets ASSETS (Rs. Crs) Sep-20 Mar-20 Mar-19 Mar-18 Property, Plant and Equipment 155.0 155.0 162.0 152.2 Capital Work-in-progress 18.9 11.7 5.6 1.8 Investment in Subsidiary 0.0 0.0 0.0 0.0 Intangibles Assets 0.9 0.1 0.1 0.0 Financial Assets (i) Investments 0.0 0.0 0.0 0.0 (iii) Othe
Slide 39: 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 40: Thank You
Thank You MTAR Technologies Limited CIN: U72200TG1999PLC032836 Ms. Srilekha Jasthi – Manager – Strategy & Operations srilekha@mtar.in Ms. Payal Dave +91 9819916314 payal.dave@linkintime.co.in Mr. Sagar Shroff +91 9820519303 sagar.shroff@linkintime.co.in