Marshall Machines Ltd. · NSE:MARSHALL
Marshall Machines — Q3 FY2022 Earnings Presentation
40 slides from Marshall Machines's earnings presentation, Feb 16, 2022
Slide 1: Q3FY22 Investor Presentation
Q3FY22 Investor Presentation F E B R U A R 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 19 SLIDE 25 CONCLUSION FINANCIAL Q3FY22 PERFORMANCE PERFORMANCE HIGHLIGHTS SLIDE 29 SLIDE 31 SLIDE 35
Slide 3: About Marshall
About Marshall 04 EVOLUTION 05 MARSHALL AT A GLANCE 06 PRODUCT PHILOSOPHY 07 PRODUCT PORTFOLIO 09 PARTNERSHIP WITH IAMSME 10 MARSHALL AND MARUTI CENTER FOR EXCELLENCE 11 R&D & IP DRIVEN 13 OPERATIONAL UNITS 15 ESTABLISHED CLIENTELE 17 STRONG NETWORK 18 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 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: 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 10: Marshall and Maruti Center for Excellence
Marshall and Maruti Center for Excellence India’s 1st 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: au
Slide 11: 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 12: 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 13: 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 14: 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 15: 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 16: Established Clientele (Contd.)
Established Clientele (Contd.) CONSUMER APPLIANCES GENERAL ENGINEERING AND DURABLES Motor Parts, Fans, Home Electronics Bearings, Consumables, Pumps 16 MARSHALL MACHINES LIMITED
Slide 17: 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 18: 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 19: Business Review
Business Review 20 5 YEARS PERFORMANCE 21 REVENUE STREAMS 22 WORKING CAPITAL CYCLE 23 KEY STRENGTHS 25 BUSINESS CANVAS
Slide 20: 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 14.4% 1.33 12.3% 9.65 5.77 5.00 0.78 2.97 0.66 0.68 1.10 0.54 50.19 59.36 65.22
Slide 21: Revenue Stream
Revenue Stream INDUSTRY-WISE REVENUE § Reduced business for engineering industry due to maturing markets FY20 FY21 § Working on limiting exposure to automotive 3% 3% markets, while just concentrating on certain import- substitution products such as alloy wheels 14% § Consistently working on growing
Slide 22: 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 23: 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 24: 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 25: Growth Drivers & Outlook
Growth Drivers & Outlook 26 STRATEGIC PRIORITIES 27 GROWTH DRIVER 28 DEVELOPING STRATEGIC GLOBAL ALLIANCES
Slide 26: 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 27: 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 28: 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 29: Conclusion
Conclusion 30 INVESTMENT RATIONALE
Slide 30: 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 31: Financial Performance
Financial Performance 32 PROFIT AND LOSS SUMMARY 33 BALANCE SHEET SUMMARY 34 CASH FLOW STATEMENT SUMMARY
Slide 32: Profit & Loss Summary
Profit & Loss Summary (₹ IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 Sales 50.19 59.35 65.22 59.74 67.13 Raw Material Cost 33.97 38.05 38.89 30.12 46.25 Employee Expenses 4.24 4.57 5.77 6.83 6.60 Other Expenses 5.83 3.92 5.35 6.98 4.63 Total Expenses 44.04 46.54 50.01 43.93 57.48 EBITDA 6.15 12.
Slide 33: Balance Sheet Summary
Balance Sheet Summary (₹ IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 Equity Capital 1.81 2.14 14.55 14.55 14.55 Reserves & Surplus 8.05 15.73 23.96 26.72 34.50 Shareholders Funds 9.86 17.87 38.51 41.27 49.05 Long Term Borrowings 5.93 7.41 8.38 13.72 12.86 Deferred Tax Liabilities 0.15 1.82 3.43
Slide 34: 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 10.30 Cash from Investing Activities (5.09) (8.92) (27.25) (14.50) (10.36) Cash from Financing Activities (5.18) 5.06 13.95 3.00 (2.18) Net Change in Cash & Cash Equiv
Slide 35: Q3FY22 Review
Q3FY22 Review 36 PROFIT & LOSS SUMMARY 37 ORDER BOOK AND BID 38 MANAGEMENT COMMENTARY 39 MARKET STATISTICS 40 GET IN TOUCH
Slide 36: Profit & Loss Summary
Profit & Loss Summary (₹ IN CRORES) % Change PARTICULARS Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 (9MFY22 vs Comments 9MFY21) Revenue spill-over to Q4FY22, due to Covid disruptions Sales 23.12 12.50 9.29 38.10 35.95 -6% and dampened customer demand. Raw Material Cost 16.35 8.02 6.10 25.51 23.17 -9% Increa
Slide 37: Order Book and Bid
Order Book and Bid Order Book and Bid (₹ IN CRORES) Healthy Order Book ORDER BOOK ORDER BID (Y-o-Y) 213 Strong Order Bids (Y-o-Y) 60 50 34 31st December 2020 31st December 2021 31st December 2020 31st December 2021 37 MARSHALL MACHINES LIMITED
Slide 38: Management Commentary
Management Commentary • The revenue for Q3FY22 was dampened • The Company is yet to see a reversion in due to COVID-19 related disruptions on gross margins, as of 9MFY22, attributable account of anticipation and panic amongst to higher steel and critical components customers who feared a deadlier th
Slide 39: Market Statistics
Market Statistics Shareholding Pattern IPO Date 28th August 2018 Issue Price ₹ 42 32.45% NSE Symbol MARSHALL IPO Subscription 2.2X 67.55% Shares Outstanding 1.46 Cr Face Value ₹ 10 Promoters Public Promoter Pledge NIL 39 MARSHALL MACHINES LIMITED
Slide 40: 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