Marshall Machines Ltd. · NSE:MARSHALL
Marshall Machines — H1 FY2022 Earnings Presentation
40 slides from Marshall Machines's earnings presentation, Nov 15, 2021
Slide 1: H1FY22 Investor Presentation
H1FY22 Investor Presentation N O V E M B E R 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 17 SLIDE 23 CONCLUSION FINANCIAL H1FY22 PERFORMANCE PERFORMANCE HIGHLIGHTS SLIDE 27 SLIDE 29 SLIDE 34
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 15 STRONG NETWORK 16 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 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 Industry
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 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 14: Established Clientele (Contd.)
Established Clientele (Contd.) CONSUMER APPLIANCES GENERAL ENGINEERING AND DURABLES Motor Parts, Fans, Home Electronics Bearings, Consumables, Pumps 14 MARSHALL MACHINES LIMITED
Slide 15: 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 16: 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 17: Business Review
Business Review 18 5 YEARS PERFORMANCE 19 REVENUE STREAMS 20 WORKING CAPITAL CYCLE 21 KEY STRENGTHS 22 BUSINESS CANVAS
Slide 18: 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 19: Revenue Stream
Revenue Stream INDUSTRY-WISE REVENUE § Reduced business for engineering industry due to 3% 3% maturing markets 100% 90% 14% § Working on limiting exposure to automotive 80% markets, while just concentrating on certain import- 70% 18% 29% substitution products such as alloy wheels 60% § Consistently
Slide 20: 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 21: 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 22: 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 23: Growth Drivers & Outlook
Growth Drivers & Outlook 24 STRATEGIC PRIORITIES 25 GROWTH DRIVER 26 DEVELOPING STRATEGIC GLOBAL ALLIANCES
Slide 24: 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 25: 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 26: 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 27: Conclusion
Conclusion 28 INVESTMENT RATIONALE
Slide 28: 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 29: Financial Performance
Financial Performance 30 PROFIT AND LOSS SUMMARY 31 BALANCE SHEET SUMMARY 32 CASH FLOW STATEMENT SUMMARY
Slide 30: 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 31: 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 32: 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 33: H1FY22 Review
H1FY22 Review 34 PROFIT & LOSS SUMMARY 35 BALANCE SHEET SUMMARY 36 CASH FLOW STATEMENT SUMMARY 37 ORDER BOOK AND BID 38 MANAGEMENT COMMENTARY 39 MARKET STATISTICS 40 GET IN TOUCH
Slide 34: Profit & Loss Summary
Profit & Loss Summary (₹ IN CRORES) PARTICULARS H1FY21 H2FY21 H1FY22 % Change Comments (H1FY22 vs H1FY21) Sales de-growth YoY primarily due disruptions & order delays caused Sales 14.98 52.16 26.66 78% by the 2nd wave of Covid-19. In addition some supply related issues also led to order-execution de
Slide 35: Balance Sheet Summary
Balance Sheet Summary (₹ IN CRORES) PARTICULARS H1FY21 H2FY21 H1FY22 Equity Capital 14.55 14.55 14.55 Reserves & Surplus 24.93 34.50 32.28 Shareholders Funds 39.48 49.05 46.83 Long Term Borrowings 15.66 12.86 11.89 Deferred Tax Liabilities 2.53 5.89 5.13 Other Long Term Liabilities 1.86 1.68 1.33 Lo
Slide 36: Cash Flow Statement Summary
Cash Flow Statement Summary (₹ IN CRORES) PARTICULARS H1FY21 H1FY22 Cash from Operating Activities 0.46 2.81 Cash from Investing Activities 0.03 -0.23 Cash from Financing Activities -0.81 -2.63 Net Change in Cash & Cash Equivalents -0.33 -0.05 Cash & Cash Equivalents - Opening Balance 4.51 2.27 Cash
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) 165 Strong Order Bids (Y-o-Y) 51 47 28 30th September 202030th September 2021 30th September 202030th September 2021 37 MARSHALL MACHINES LIMITED
Slide 38: Management Commentary
Management Commentary • The Sales momentum was affected in • The EBITDA margins for H1FY22 were H1FY22 due to the 2nd wave of Covid-19 affected due to higher than anticipated raw around April & May. In addition certain material inflation in sheet metal, electricals supply side issues such as semicon
Slide 39: Market Statistics
Market Statistics Shareholding Pattern IPO Date 28th August 2018 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 has applied for migration from NSE Emerge (SME) to Mainbo
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