Event Overview
• Date and Location: June 9, 2023, at Grand Hyatt, Mumbai.
• Attendees: Senior management including Chairman Sachin Agarwal and CFO Smita Agarwal.
• Purpose: To provide insights into company operations and future prospects.
Key Presentations
• Opening Remarks: Diwakar Pingle emphasized high interest in PTC's story.
• Company Overview: Sachin Agarwal discussed the significance of NSE listing and future plans.
Strategic Focus Areas
• Advanced Manufacturing Technology Center (AMTC): Established in Lucknow for sustainable practices.
• Macroeconomic Themes:
• Global supply chain disruptions post-COVID.
• Implications of the Russia-Ukraine war.
• Indian government's push for self-reliance in defense (Aatmanirbhar Bharat).
Technology and Market Positioning
• Technology Pyramid: Categorizes technologies into four tiers.
• Focus on Defense and Aerospace: Limited competition due to complex technologies.
• Budget Allocations: Significant investments in new aircraft and defense systems.
Production and Capabilities
• Materials and Components: Production for naval defense, civil aerospace, and medical applications.
• Investment in Capabilities: Rs. 350 crores invested in advanced casting technologies.
• New Facility: 50 acres acquired in UP defense corridor for aerospace castings.
Sustainability Initiatives
• Renewable Energy: Rooftop solar and wind energy projects.
• Carbon Footprint Reduction: Targeting significant reductions in emissions.
Financial Performance
• Revenue Growth: 22% increase in revenue and 36% rise in EBITDA.
• Pricing Metrics: Price per kg increased by 80% over six years.
Future Projections and Investments
• Aerospace and Defense Revenue: Projected 70-80% revenue from these sectors in five years.
• Titanium Production Capacity: Targeting over 6,000 tons with high gross margins.
Q&A Highlights
• Dependency on Government Contracts: Discussion on reducing reliance and expanding foreign OEM markets.
• Return on Equity (ROE): Addressed concerns about low ROE due to asset-heavy nature.
• Rights Issue Explanation: Funds raised for land acquisition in UP defense corridor.
Upcoming Developments
• New Capacity Installation: VAR plant installation expected to begin soon.
• Commercial Production Timeline: Gradual ramp-up as certifications are obtained.
Conclusion
• Engagement and Future Outlook: Positive engagement from attendees, with a focus on growth and sustainability.