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Investor Presentation
M A R S H A L L M A C H I N E S L I M I T E Dw w w . m a r s h a l l c n c . c o m
J U L Y 2 0 2 1
ABOUT MARSHALL MACHINES
S L I D E 0 3
Inside this Presentation
BUSINESS REVIEW
S L I D E 1 6
GROWTH DRIVERS & OUTLOOK
S L I D E 2 2
CONCLUSION
S L I D E 2 6
FINANCIAL PERFORMANCE
S L I D E 2 8
H2 & FY21 PERFORMANCE HIGHLIGHTS
S L I D E 3 2
AboutMarshall04 EVOLUTION05 MARSHALL AT A GLANCE06 PRODUCT PHILOSOPHY
07 PRODUCT PORTFOLIO09 PARTNERSHIP WITH IAMSME
10 R&D & IP DRIVEN11 OPERATIONAL UNITS13 ESTABLISHED CLIENTELE
14 STRONG NETWORK15 MANAGEMENT TEAM
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Evolution
M A R S H A L L M A C H I N E S L I M I T E D04
1961Late Shri Gautam Sarup founded the business
1986-892nd generation joins & drives the business
1994Incorporated V. B. Spinning Mills (P) Limited to design & manufacture high-precision bench lathe & heavy-duty lathe
1997Entered into 1st international tie-up with Path Wizard Inc. (USA)
2001Setup state-of-art facility at Ludhiana and launched double-spindle CNC Lathe
HUMBLE BEGINNINGS INNOVATION
STARTED BUSINESS AS MANUFACTURER OF MANUAL LATHE MACHINES
DESIGN & MANUFACTURING OF BREAKTHROUGH TURNING CENTERS
2002Launched patented double spindle turning center
2009Launched patented four spindle CNC Lathe
20143rd generation joins the business
INTEGRATION WITH AUTOMATION
2012Inaugurated the second state of the art facility for providing Turnkey Automated Solutions
2013§ Launched SmartCorrect Gauging
Stations§ Launched RoboTurn DS 400 for
the first time in India
2015Started executing high profile automation projects
INTEGRATION WITH INDUSTRY 4.0
2016Introduced IoTQ and launched world’s 1st plug-and-play SmartCorrect Gauging Station
2017• Established IoTQ & Tech Demonstration
Center in Manesar • In addition, launched TwinTurn UBER CNC
Machine
2018§ Introduced the concept of Super Optimized
Machines
2019§ Fine tuned and launched IoTQ – the first
dedicated quality management system § SmartFac Universal launched for factory
monitoring§ Opened technical center for export to USA
market
2021§ Finished CAPEX cycle to augment
manufacturing capacity to ₹250 crores
1 9 6 1 - 2 0 0 1 2 0 0 2 O N W A R D S
Marshall at a Glance
Incorporated in 1961, Marshall Machines is a renowned brand in the Indian machine tools industry. Marshall has been a manufacturer of high precision bench lathes, heavy-duty lathes and capstan lathes.
Over the last two decades, Marshall's single-minded focus on R&D, Automation, Industry 4.0 technology has positioned it as a niche player in a commoditized market.
At present, Marshall is a leading manufacturer of Smart Intelligent Internet Enabled Machine Tool Equipment (including Robotic Automation).
Years Old Brandin Machine Tool Industry
Cumulative Machines Deployed
Team Strength Executed Successful Automation Projects
Strong Brand recall
Superior Intellectual Property 6 Patents-held*
22 Patents-applied*
Active Clientele Machines in Portfolio
M A R S H A L L M A C H I N E S L I M I T E D05
30+ Automation & Innovation Team
*includes Patents files & held by promoter group as well
Product Philosophy
§ Super-focused product development philosophy differentiating us from the competition.
§ Focused on deploying a complete solution offering, and not selling an array of machines with numerous makes & models.
§ A ‘frugal innovation’ and ‘Indian Jugaad’ mindset helps us solve real problems for Indian machine shops, an edge we have over foreign machine manufacturers.
SUPER-OPTIMIZED MACHINES
AFFORDABLE AUTOMATION
INDUSTRY 4.0
Super optimized machines that offer higher productivity & lower cost of operations compared to their peers. Cost per component produced is reduced, hence increasing ROI of the machine.
Automation split over more than one machine, generating higher ROI and shorter payback period.
Focused on accessible, affordable & implementable Industry 4.0 technologies:
1. SmartFac (Productivity)2. SmartPredict (Predictive Maintenance)3. SmartCorrect (Quality)
Products§ CAF (CITIUS-ALTIUS-FORTIUS)§ UNO§ TWINTURN UBER§ RIGIDTURN§ RAPIDTURN§ TWINTURN
Products§ TWIN GRIP§ TWIN RELEASE§ ROBOTURN Cells &
Lines
Products§ IoTQ suit of smart machines§ SmartCorrect Gauging Station§ SmartCorrect Eco Low Cost
Gauging Station§ SmartSense 3 in 1 Sensor for
monitoring machine health
MARSHALL TECHNOLOGY
TRISHOOL
A THREE-PRONGED PRODUCT DEVELOPMENT PHILOSOPHY
M A R S H A L L M A C H I N E S L I M I T E D06
Product Portfolio
M A R S H A L L M A C H I N E S L I M I T E D07
SUPER-OPTIMIZED MACHINES AFFORDABLE AUTOMATION INDUSTRY 4.0
Watch Marshall’s Product Portfolio
Industry 4.0 technology addressing productivity, predictive maintenance, and quality.
Only Indian machine manufacturer with a focused automated machines portfolio.
Offer higher productivity & lower cost of operations compared to their peers. Watch Marshall’s Corporate
Profile
Machine Offerings
Product Portfolio
M A R S H A L L M A C H I N E S L I M I T E D08
Marshall Roboturn XL Cell for Motorcycle Wheel Turning
Partnership IAMSME of India –Gurukul initiative for skilling India
M A R S H A L L M A C H I N E S L I M I T E D9
§ 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
production practices
§ Hundreds of people will be jointly trained
through this initiatives
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R&D and IP Driven Company
M A R S H A L L M A C H I N E S L I M I T E D010
§ 3rd
Generation of Innovators
and Engineers at the helm
§ Marshall distinguishes itself as
an integrated machine tool
solution provider
§ Focused on catering emerging
needs of Indian machine
shops through Affordable
Automation and Industry 4.0
offerings
§ Completely integrated value
chain to design & manufacture
machines in-house
§ Extensive Research &
Development leading to higher
IP generation
§ Equally focused on IP
generation & protection
BENEFITS DERIVED FROM R&D
Integrated value chain
Ideation Design Manufacturing Solution Offering
§ Consultation
§ Software & Updates
§ Customized
Machines
AMC & After-Sales
Service
Smart CNC Systems Cost-effective & productive
machines
Higher ROI & shorter
payback periods of products
Zero-defect manufacturing
and unparalleled features
Patents Registered Globally
Patents Pending, many
in late-stages of approval
Superior Intellectual Property
*includes Patents files & held by promoter group as well
Patents Filed Globally in
FY21
1 Patents Granted in FY21
– “System and a Method to Enable Zero Defect Production”
Operational Units
M A R S H A L L M A C H I N E S L I M I T E D011
§ Marshall Machines operates two state-of-art manufacturing facilities in Ludhiana.
§ The company has recently completed an expansion in Unit 1 and 2 which includes addition of: § Zeiss measuring machines§ Large machining centers§ Grinding machines§ Turning and turnmilling machines
§ After the conclusion of CAPEX cycle (2018-21), the Company has a manufacturing capacity to do ₹250 crores in Sales, from erstwhile capacity of ₹75 crores in 2017.
§ Going forward, the company plans to streamline production and strengthen supply-chain by outsourcing certain sub-assemblies and adding reliable suppliers in vicinity to the manufacturing unit.
LUDHIANA
§ 4,181 Sq. Mt. Plot Area
§ 5,295 Sq. Mt. Buildup Area
§ Dedicated unit for assembly of traditional machines
UNIT 1
MANUFACTURING CAPACITY§ 600 traditional machines
Setup in 2001
LUDHIANA
§ 2,090 Sq. Mt. Plot Area
§ 3,716 Sq. Mt. Buildup Area
§ Dedicated unit & team for Automation and Industry 4.0 machines
UNIT 2
MANUFACTURING CAPACITY§ 100-125 RoboTurn Automated Machines
§ 150 Compact CNC Lathes
§ 1,500 SmartCorrect Gauging Stations
Setup in 2012
State-of-art Facilities
M A R S H A L L M A C H I N E S L I M I T E D12
World Class Manufacturing Facilities
Temperature Controlled, Dust Proof Assembly Areas
World Class European Mother Machinery
World’s Best STUDER CNC Cylindrical Grinder
Machine Parts Designed and Validated Using Solid Works
New 5 Axis CNC Universal Machining Center with Auto Indexing head with “A“ & “B“ Axis
Equipped to Perform Laser Calibration and Testing
Equipped with Latest Carl Zeiss CMM
Established Clientele
M A R S H A L L M A C H I N E S L I M I T E D13
Active
Clientele
10/15 Year+
Relationships
MATURE SECTORS
AUTOMOBILE OIL & GAS
GENERAL
ENGINEERING
CONSUMER
DURABLES
EMERGING SECTORS
AERO SPACE MEDICAL
EQUIPMENT’S
ELECTRONICS
AUTOMOTIVE
Alloy Wheels – 2W & 4W, Gear
Blanks, Pistons, Crank Shafts
CONSUMER APPLIANCES AND DURABLES
Motor Parts, Fans, Home
Electronics
GENERAL ENGINEERING
Bearings, Consumables,
Pumps
Strong Network
M A R S H A L L M A C H I N E S L I M I T E D14
DESIGN AND MANUFACTURING RESOURCES
R&D Team 07
IOT Engineers 03
Manufacturing Resources 180
CUSTOMER SUPPORT RESOURCES
Sales Engineers 14
Application Support 06
Service Support 14
Automation Support 14
A team of sales & service engineers catering to:
§ Lead & sales generation§ Machine deployment & after-sales
services
1. LUDHIANA2. CHANDIGARH3. ROHTA4. HARIDWAR5. RUDRAPUR6. DELHI7. GURGAON8. GHAZIABAD9. MANESAR10. AGRA11. JAIPUR12. KANPUR13. BHOPAL
14. AHEMADABAD15. INDORE16. JAMSEDPUR17. KOLKATA18. NASIK19. AURANGABAD20. MUMBAI21. PUNE22. HYDRABAD23. KOLHAPUR24. BANGALORE25. CHENNAI26. COIMBATORE
17
123
456
7 891011
12
1314
15 16
181920
21 2223
24 25
26
Pan-India network with presence across all key manufacturing hubs in India.
Management Team
M A R S H A L L M A C H I N E S L I M I T E D15
GAURAV SARUPCO-FOUNDER & MD
Degree in Product ion Engineer ing f rom Punjab Univers i ty35+ years of Work
Exper ience in des ign ing innovat ive machine too ls
PRASHANT SARUPCO-FOUNDER & JT. MD
Engineer by Qual i f icat ion
32+ years of Work Exper ience in des ign ing and e lect ron ic in tegrat ion
SIDDHANT SARUPWHOLE TIME DIRECTOR
B.Tech in indust r ia l Engineer ing and holds a Master ’s Degree in Operat ions Management (MBA) f rom Thapar Univers i ty , Pat ia la
7+ years of Work Exper ience
ARCHANA SARUPWHOLE TIME DIRECTOR
Master ’s Degree f rom Punjab Univers i ty
12+ years of Work Exper ience
A.N. CHANDRAMOULISTRATEGIC ADVISOR TO THE BOARD
Mechanica l Engineer f rom NIT, Tr ichy and PG f rom I IT, Calcut ta
40+ years of Work Experience, former President & CEO of Makino India (Japanese Machine Tools major) and former MD of Starrag India (Swiss based Machine Tools major)
M a n a g e m e n t Te a m i n c l u d e s s e v e r a l Q u a l i f i e d a n d E x p e r i e n c e d P e o p l e i n t h e f o l l o w i n g D e p a r t m e n t s ; D e s i g n , P r o d u c t i o n , Q u a l i t y, S a l e s , S e r v i c e , N e w
D e v e l o p m e n t s , F i n a n c e , e t c .
B o a r d o f D i r e c t o r s i n c l u d e s 3 I n d e p e n d e n t D i r e c t o r s
Business Review17 5 YEARS PERFORMANCE18 REVENUE STREAMS19 WORKING CAPITAL CYCLE
20 KEY STRENGTHS21 BUSINESS CANVAS
5 Years Performance
M A R S H A L L M A C H I N E S L I M I T E D17
REVENUE(₹ IN CRORES)
6.15
12.8
1
15.2
1
15.5
4
9.6512.3%
21.6%23.3%
26.0%
14.4%
FY17 FY18 FY19 FY20 FY21
EBITDA EBITDA MARGIN
EBITDA & EBITDA MARGIN(₹ IN CRORES & %)
PROFIT AFTER TAX & CASH FLOW FROM OPERATIONS(₹ IN CRORES)
DEBT & DEBT TO EQUITY(₹ IN CRORES & TIMES)
21.0
8
23.6
3
25.4
9
32.4
7
33.69
2.13
1.33
0.660.78
0.68
FY17 FY18 FY19 FY20 FY21
NET DEBT NET DEBT TO EQUITY
50.1
9
59.3
6
65.2
2
59.7
4
67.13
FY17 FY18 FY19 FY20 FY21
1.10 5.00 5.77 2.97
0.5410.87
4.15 13.60
11.79
10.29
FY17 FY18 FY19 FY20 FY21
PAT CFO
Revenue Stream
INDUSTRY-WISE REVENUE(₹ IN CRORES)
§ Reduced business for engineering industry due to
maturing markets
§ Working on limiting exposure to automotive
markets, while just concentrating on certain import-
substitution products such as alloy wheels
§ Consistently working on growing emerging sectors
like Electronics
§ Adding new sectors like Aerospace and Medical
Equipment
§ Ongoing de-risking efforts to not have >25% share from one industry
§ Primarily a product-based revenue stream
§ Prominence of AMC and Service & Maintenance to
rise in future, as the company moves towards
complex and automated offerings
11.8 13.9 29.5 39.1 26.7
17.0
28.5
16.9
5.4
19.8
3.6
6.0
10.310.7
14.9
8.2
6.0
7.4
3.4
4.3
2.4
0.2
0.5
1.2
1.4
FY17 FY18 FY19 FY20 FY21
Automobile Engineering Electronic Machine Tools Steel Others
M A R S H A L L M A C H I N E S L I M I T E D18
Working Capital Cycle
M A R S H A L L M A C H I N E S L I M I T E D19
A I M TO B R I N G D O W N W O R K I N G C A P I TA L C Y C L E TO 1 5 0 - 1 8 0 D AY S B Y F Y 2 3 .
WORKING CAPITAL DISTRIBUTION(IN DAYS)
393
352
371
519
368
71
40 48
81 70
-172
-171
-162
-218
-161
-45 -31
-24
-42 -39
Inventory Days Receivable Days Payable Days Advance Days
247
190
232
339
238
FY17 FY18 FY19 FY20 FY21
WORKING CAPITAL DAYS(IN DAYS)
FY17 FY18 FY19 FY20 FY21
REASONS FOR HIGH WORKING CAPITAL
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 components of machines kept in sufficient buffer to avoid any production breaks
DEBTORS§ Seasonality – more sales made in Q3 & Q4 of the
financial year, leading to higher debtors at year-end
EFFORTS TO OPTIMIZE WORKING CAPITAL
INVENTORIES § Deploying a technology called ‘Vibratory Stress
Relieving’ & other artificial seasoning methods which will reduce the lead time by eliminating the sun-baking process
§ Limiting business in Oil & Gas sector, where these high-performance machines are deployed
§ Adding suppliers in vicinity to the manufacturing unit, reducing the need to carry higher inventories
§ Outsourcing manufacturing or certain sub-assemblies
Strengths & Weaknesses
M A R S H A L L M A C H I N E S L I M I T E D20
S
S T R E N G T H S
§ Unmatched value proposition to the
industry
§ Innovative, customized solution
offerings
§ 61-year-old brand, Marshall
§ Early mover in Automated & Industry
4.0 offerings
§ State-of-art infrastructure & dedicated
team for Automation & Industry 4.0
§ One-stop solution provider for
customers
§ Agile and adaptable organization
§ Well-established team of implementors
for the latest technology
W
W E A K N E S S E S
§ Commoditized & price-competitive
industry for standard machines
§ Long working capital cycle
§ Scale of operations
§ Lack of presence in some industrial belts
Business Canvas
M A R S H A L L M A C H I N E S L I M I T E D21
KEY PARTNERSHIPS
KEY ACTIVITIES
VALUE PROPOSITION
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTATION
KEY RESOURCES
CHANNELS
§ International Machine Tool Manufacturers
§ Dealers in USA – TGH, Morris South
§ Actively looking for business tie-ups & collaborations with European & Japanese machine tool manufacturers
§ R&D & designing machines
§ Manufacturing superior machines
§ IP – development & protection
§ Customized solution offerings to machine shops
§ Unique value propositions include:
a. Affordable Automation
b. Industry 4.0 Technologies
§ Strong, seasoned customer relationships
§ Many 10/15 years+ relationships§ ~60% of repeat business from
existing customers
§ 2 key customer segments i.e. SME vs. Institutional (Corporates)
§ Majority erstwhile customers from Auto industry, now adding clients in new emerging manufacturing opportunities
§ Intellectual capital§ Established brand
‘Marshall’§ State-of-art manufacturing
units§ Human capital
§ Directly dealing with all customers in India
§ In USA through distributors (TGH and Morris south)
COST STRUCTURE
§ Fixed-cost based cost-structure § Elevated depreciation & finance cost after recent CAPEX
REVENUE STREAMS
§ At present primarily machines sales, with efforts to grow AMC & Service sales§ Automobile industry primary sales-contributor
Growth Drivers & Outlook23 STRATEGIC PRIORITIES24 GROWTH DRIVER25 DEVELOPING STRATEGIC GLOBAL ALLIANCES
Strategic Priorities
M A R S H A L L M A C H I N E S L I M I T E D23
INCREASING SHARE OF AUTOMATION & INDUSTRY 4.0
INCREASE SHARE OF EXPORT BUSINESS
REVENUE DIVERSIFICATION
ADDING COMPETENCIES
DEBT REPAYMENT
REDUCING WORKING CAPITAL CYCLE
§ Increasing the share of
differentiated and unique Marshall
offerings such as Affordable
Automation and Industry 4.0
§ Become default choice of
customers for Smart machines
§ Export to USA market
§ Export to Europe through strategic
partnership with European
Machine Tool Builders
§ Export to fast growing Asian
countries like Bangladesh.
§ Limiting exposure to any one under
industry, to not more than 25%, to
de-risk the business and counter
cyclicality in business
§ Adding competencies in new,
emerging manufacturing sectors of
India, namely Electronics,
Aerospace, Medical Equipment
§ Using Cash Flow from Operations
to bring down debt
§ Limiting working capital cycle to
150-180 days by FY23
Growth Drivers & Outlook
M A R S H A L L M A C H I N E S L I M I T E D24
IMPORT SUBSTITUTION PRODUCT OFFERING
INCREASING ADOPTION OF INDUSTRY 4.0 TECHNOLOGIES
FOCUS ON AUTOMATION
FOCUS ON DE-SKILLING OPERATION
ADDING COMPETENCIES IN EMERGINGG MANUFACTURING
§ Alloy Wheels production moving to India
§ Electronics manufacturing moving to India
§ Companies looking to improve efficiencies will look to digitize their shopfloor
§ Customers will look to reduce dependence on manpower going forward in order to de risk themselves. More and more people will move towards automation
§ Customers who cannot afford automation may look to reduce their dependence by using smart technologies like gauging stations
§ Adding competencies in new, emerging manufacturing sectors of India like Electronics
Developing Strategic Global Alliances With European & Japanese Machine Builders
M A R S H A L L M A C H I N E S L I M I T E D25
MARKET IMPORTED MACHINES IN INDIA
AUTOMATED CELLS GOVERNMENT BUSINESS EXPANDING CLIENTELE MACHINE PARTS
§ Import advanced
machines from European
& Japanese partners and
market them in India
§ Machines manufactured
by Marshall, including
automated cells, to be
exported in these
developed markets using
the strategic alliances
§ Tap opportunities in the
Government & Public
sector enterprises
through these alliances
§ Partner machines built-in
India (by Marshall) for
sales in India
§ Machine parts to be
exported to Europe or
Japan for the partner’s
machines built in their
respective country
Conclusion
27 INVESTMENT RATIONALE
Investment Rationale
M A R S H A L L M A C H I N E S L I M I T E D27
CAPEX COMPLETED
OPPORTUNITY SIZE
EMERGING OPPORTUNITIES IN MANUFACTURING
FOCUSED ON DELEVERAGING
SEASONED MANAGEMENT
§ Completed a significant CAPEX between 2018-21, taking manufacturing capacity to ₹250 crores in Sales from erstwhile ₹75 crores in 2017.
§ Potential to do 25% EBITDA Margins on the same.
§ Huge potential of Affordable Automation and Industry 4.0 offerings
§ Emerging opportunities in sectors such as Electronics, Aero Space and Medical Equipment
§ The company is focusing on debt repayment through a) higher internal accruals and b) reducing working capital cycle
§ 3rd generation of Innovators and Engineers at helm
Financial Performance29 PROFIT AND LOSS SUMMARY 30 BALANCE SHEET SUMMARY 31 CASH FLOW STATEMENT SUMMARY
Profit & Loss Summary
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% 14.4%
Finance Cost 3.10 3.21 3.71 4.39 3.81
Depreciation & Ammortization 1.60 2.19 3.72 8.10 5.12
PBT 1.79 7.46 8.00 4.12 0.82
PAT 1.10 5.00 5.77 2.97 0.54
EPS (₹) 1.22 5.47 4.97 2.04 0.37
M A R S H A L L M A C H I N E S L I M I T E D29
(₹ IN CRORES)
Balance Sheet Summary
PARTICULARS FY17 FY18 FY19 FY20 FY21Shareholders' Funds 9.85 17.87 38.51 41.26 49.05Non Current Liabilities 6.94 10.13 14.71 19.47 21.23
Long Term Borrowings 5.92 7.40 8.37 13.72 12.85Current Liabilities 48.23 51.63 54.54 60.37 62.72
Short Term Borrowings 15.16 16.22 17.11 18.74 20.83Trade Payables 18.39 18.38 16.07 19.94 21.09Advances from Customers 4.75 3.21 3.44 6.78 5.41
Total Equity and Liabilities 65.03 79.64 107.77 121.11 133.00
Non Current Assets 16.91 13.35 46.60 53.10 68.48Tangible Assets 14.85 16.44 38.28 31.92 61.82CWIP 0.00 0.00 0.00 14.11 0.00
Current Assets 48.12 46.00 61.16 68.00 64.52Inventories 36.73 39.07 39.91 45.79 48.02Trade Receivables 8.23 4.72 12.35 14.04 11.67Cash & Bank Balances 1.93 1.32 4.22 4.51 2.26
Total Assets 65.03 59.35 107.77 121.11 133.00
M A R S H A L L M A C H I N E S L I M I T E D30
(₹ IN CRORES)
Cash Flow Statement Summary
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 -2.24
Cash at the Beginning of Year 1.32 1.93 3.92 4.22 4.51
Cash at the End of Year 1.93 2.21 4.22 4.51 2.26
M A R S H A L L M A C H I N E S L I M I T E D31
(₹ IN CRORES)
H2FY21 & FY21 Review33 PROFIT & LOSS SUMMARY34 ORDER BOOK AND BID35 MANAGEMENT COMMENTARY
36 MARKET STATISTICS37 GET IN TOUCH
Profit & Loss Summary
PARTICULARS H2FY20 H1FY21 H2FY21 FY20 FY21 Comments
Revenue from Operations 25.64 14.98 52.15 59.74 67.13 • Revenue growth of 12% delivered despite of COVID-19 led disruptions.
Total Income 25.73 15.02 52.23 60.54 67.25
Operating Expenses 18.48 12.76 44.72 43.92 57.48
• Drastic increase in RM costs including sheet-metal, mechanical items, electronics etc. The same has been passed on in newer orders.
• Employee cost optimized due to astute manpower planning and reducing over-employment.
• Special efforts to optimize other expenses (administration expenses)
EBITDA (excl. OI) 7.16 2.21 7.43 15.81 9.65
EBITDA % 27.9% 14.8% 14.3% 26.5% 14.4% • Compression in EBITDA margins primarily due to lower GPM.
Finance Cost 2.59 2.35 1.46 4.39 3.81 • Changes in debt-profile, including closure of higher-cost loans and renegotiations helped lower interest cost.
Depreciation & Ammortization 4.06 2.16 2.95 8.10 5.12• Effective 1st April 2020, the company adopted a newer
depreciation method (SLM from WDV), this change is in line with company’s expectations of the pattern of consumption.
PBT 0.59 -2.26 3.09 4.12 0.82 • Decrease in PBT in line with decrease in EBITDA.
PAT 0.43 -1.78 2.33 2.97 0.54
EPS (₹) 0.30 -1.23 1.60 2.04 0.37
M A R S H A L L M A C H I N E S L I M I T E D33
(₹ IN CRORES)
Order Book and Bid
Order Book and Bid
(₹ IN CRORES)
M A R S H A L L M A C H I N E S L I M I T E D34
Healthy Order Book, up 19% Y-o-Y
Strong Order Bids, up 101% Y-o-Y
Order Book and Bids as on 31st March, 2021 are at higher prices compared to 31st
March, 2020
4351
67
135
31st March 2020 31st March 2021 31st March 2020 31st March 2021
Order Book Order Bid
Management Commentary
M A R S H A L L M A C H I N E S L I M I T E D35
GAURAV SARUPCO-FOUNDER & MD
"We are pleased to present you our Q4 & FY21 financial and operational performance. FY21 has been a challenging year for the Indian Manufacturing and Machine Tool Industry; COVID-19 led lockdowns & restrictions had really dampened the consumer & industrial sentiment. However, despite such a challenging year, Marshall has delivered a 12% growth in Revenues in FY21. We will continue to build on this momentum.On the operational front, we are better positioned than ever to deliver a higher growth benchmark for ourselves. After completing our CAPEX cycle, which first begun in 2018, we have created a capacity of ₹250 crores in Sales
from erstwhile ₹75 crores. At optimum utilizations, we will have the potential to do 25% EBITDA Margins. To ramp up our Sales and Capacity Utilizations, we will rely on the increased deployment of Industry 4.0 & Affordable Automation technology. COVID-19 has revealed many structural flaws of Indian machine shops, and Marshall will be at the forefront of addressing these problems with its carefully developed product portfolio. In addition, we are also looking at some potential global partnerships that can accelerate our export business, client penetration in India, and growth momentum."
Market Statistics
M A R S H A L L M A C H I N E S L I M I T E D36
Shareholding Pattern
Promoters Public
IPO Date 28th August 2018
Issue Price ₹ 42
NSE Symbol (NSE Emerge) MARSHALL
IPO Subscription 2.2X
Shares Outstanding 1.46 Cr
Face Value ₹ 10
Promoter Pledge NIL
The Company will migrate to NSE Main Board as soon as it meets the listing criteria.
73.38%
26.62%
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SAFE HARBORThis document which has been prepared by Marshall Machines Limited (the “Company”, “Marshall”, “Marshall Machines”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation topurchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offeringdocument containing detailed information about the Company.
This document has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on,the truth, accuracy, completeness, fairness and reasonableness of the contents of this Document. This Document may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of thecontents of, or any omission from, this Document is expressly excluded.
Certain matters discussed in this Document may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are notguarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and ofthe economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technologicalimplementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance orachievements could differ materially and adversely from results expressed in or implied by this Document. The Company assumes no obligation to update any forward-looking information contained in this Document. Any forward-looking statementsand projections made by third parties included in this Document are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
SAYAM POKHARNAInvestor Relations [email protected]
SIDDHANT SARUPWhole-Time Directorinvestors@marshal lcnc.com
www.marshal lcnc.com