Conference Call Details
• Date: June 3, 2024
• Submission: Transcript submitted to the National Stock Exchange of India on June 6, 2024
• Key Participants: Chairman Rupesh Mehta, CFO Rajnikant Raja
• Focus: Financial results for Q4 and FY '24
Financial Performance Highlights
• Q4 FY '24 Results:
• Revenue increased from ₹54.3 crore to ₹71.3 crore (31% growth)
• EBITDA margin improved from 9.3% to 18%
• PAT rose from ₹3 crore to ₹9 crore
• EPS increased from ₹3 to ₹9
• Annual Revenue: Reached ₹241 crore, up from ₹202 crore in FY '23
• Order Book: Increased from ₹153 crore to ₹262 crore, driven by aerospace and defense sectors
Future Plans and Projections
• Capacity Expansion: Plans for a new R&D center in Bangalore and production capacity increase
• Revenue Projections for FY '25:
• Expected 20-35% increase in EBITDA and PAT
• Margins projected to remain between 16-18%
• Capital Expenditures: ₹15-20 crores planned for new CapEx to enhance production
Market Outlook
• Demand in CNC Machine Sector: Positive outlook driven by government initiatives and increased orders
• Growth Potential: India's machine tools sector contributes only 16% to GDP, indicating room for growth
• Export Opportunities: Current low export levels with potential for future collaborations
Strategic Initiatives
• Backward Integration: Developing critical components in-house, aiming for 100% production by Q3
• Product Development: Enhancing product offerings through R&D and targeting growth in specific machine categories
Conclusion
• Commitment to Shareholders: Emphasis on maximizing shareholder value and delivering on promises
• Optimism for Future: Confidence in a manufacturing revolution in India over the next decade

Financial Performance
• Q3 FY24 Results:
• Revenue increased by 25% to INR 66 crore.
• EBITDA rose by 81% to INR 10.09 crore.
• PAT doubled to INR 7.03 crore.
• Order book grew by 159% year-over-year.
Strategic Developments
• Government Initiatives:
• Positive impact from government tenders in defense and aviation.
• New MOU with Gujarat government for a dedicated defense unit to enhance production capacity over five years.
Capacity and Production Insights
• Machine Orders:
• Discussion on execution timeline for 600 machine orders.
• Emphasis on maintaining a robust order book, ideally four times the dispatch volume.
• Product Focus:
• High demand for new DCM machines and higher-end products like the NEXA line.
• Anticipated strong realization in Q4 despite inspection delays.
Industry Outlook
• Manufacturing Sector:
• Machine tools sector supports over 3,000 manufacturing segments, contributing 15-16% to India's GDP.
• Plans for an R&D center in Bangalore to address skilled manpower challenges.
• Market Potential:
• Estimated market for 30,000 machines valued at INR 60,000 crores.
• Confidence in achieving 25-30% growth supported by a strong order book.
Challenges and Opportunities
• Import and Production:
• 50% of CNC machines are imported; efforts to reduce imports by 20% over the next decade.
• High domestic consumption limits export focus but potential for future growth.
• Aerospace and Defense Sector:
• A&D sector growing due to initiatives like Make in India, contributing 15-20% of Macpower's business.
• Plans for a new subsidiary, Macpower Defense.
R&D and Technological Capabilities
• Investment in R&D:
• 50 years of experience with a dedicated R&D team.
• No joint ventures or technology collaborations, positioning for future opportunities.
Bidding and Market Strategy
• Bidding Insights:
• Average strike rate of 8-10% with improved chances due to recent government norm changes.
• Margins can be adjusted based on product type.
Future Aspirations
• Growth and Stability:
• Focus on learning from industry mistakes and navigating challenges.
• Emphasis on controlling expenses and avoiding excessive debt.
• Optimism for future growth and completion of initiatives in FY25.

Conference Call Overview
• Date: October 23, 2023
• Purpose: Discuss financial results for Q2 and H1 FY24
• Key Participants: Chairman and Managing Director Rupesh Mehta
Financial Performance Highlights
• Record machine dispatches: 332 units
• Order book: INR 190 crores
• EBITDA margin: 14.33%
• PAT margin: ~9.75%
• Growth target: 20-25% annually
Strategic Focus
• Emphasis on cost control and productivity improvements
• Plans to expand production capacity and sales force
• Targeting growth in the defense sector
Market Insights
• Current order book is dynamic and expected to grow
• Projected revenue potential: INR 400 crores with 2,000 machines
• Automotive sector accounts for 20-30% of demand
• Improved market share due to focus on margins
Import and Domestic Production
• High percentage of machine imports, especially entry-level models
• Opportunities for import substitution with domestic production of higher-end machines
• Government support for R&D and manufacturing noted
Company Performance and Strategy
• Growth driven by increased production capacity and backward integration
• Target to increase order book by 20% monthly
• New manufacturing facility planned for completion by 2025
• Restructuring sales teams to better serve market segments
Order Fulfillment and Customization
• 25% of orders for immediate delivery; maximum cycle time of 90 days
• 60-70% of orders are standard products; 10% involve complex customization
• Advance payment structure: 5-50% upfront depending on machine type
Production Scaling and Challenges
• Key factors for scaling: construction, manpower, material availability
• Current production of 35% components in-house
• Strategy of not extending credit impacts cash realization
Industry Growth Potential
• Manufacturing sector projected to achieve 20% CAGR over the next 5-7 years
• Government aims to increase manufacturing's GDP contribution from 15% to 25%
• Anticipated revenue increase of 25-30% and EBITDA growth of 14.5-18% for FY25
Conclusion
• Confidence in growth trajectory due to R&D efforts and strong customer base.