Macpower CNC Machines Limited — PPTs, 30-05-2025: Investor Presentation

1. Financial Highlights:

Macpower CNC Machines reported FY25 revenue of ₹2618 Mn, up 8.5% YoY, with EBITDA rising 17.1% to ₹415 Mn (15.9% margin) and adjusted PAT increasing 10.4% to ₹266 Mn (10.2% margin). Q4 FY25 showed 12% revenue growth to ₹800 Mn, EBITDA up 11% at ₹143 Mn, and adjusted PAT rising 10% to ₹98 Mn. The company recorded a ₹7.67 Mn exceptional loss due to a fire incident (net of insurance). Inventories increased to ₹1088 Mn and trade receivables to ₹343 Mn. The balance sheet remains strong with zero debt and a net cash position. Capex of ₹12.4 Cr was completed for backward integration and capacity expansion.

2. Strategic Initiatives & Growth Drivers:

Macpower is investing ₹200-300 Cr across two phases to boost capacity from 2000 to 2500 machines per year by June 2025, with a new facility targeting foundry, defence, and aerospace sectors. Automation and robotics remain key, highlighted by new gantry and robotic-enabled machines. The NEXA premium product line now forms 28% of the ₹3309 Mn order book and secured ₹42 Cr orders at IMTEX 2025. The company is strengthening global technology collaborations and focusing on export growth.

3. Business Developments:

The order book stays robust at ₹3309 Mn, supported by 433 machine orders in Q4 and 1655 for FY25. Defence and aerospace remain strategic, supplying 35 factories including DRDO, ISRO, and HAL, with ₹506 Cr bids under review. A ₹100 Cr MoU was signed for an aerospace/defence CNC facility. New product launches include a high-precision 5-axis machine unveiled at IMTEX.

4. Market Position & Competitive Advantage:

Macpower leads with the lowest production costs and among the highest EBITDA and PAT margins in its peer group. It is net debt negative and free cash flow positive since FY18. Strong ROE and ROCE reflect excellent working capital and asset turnover (~3x). The company’s wide portfolio covers 27+ segments and 315+ variants, supporting broad customer reach and diversification. Promoter holding at 73% ensures aligned management and shareholder interests.

5. Investor Implications:

Revenue growth, margin expansion, and a healthy order book signal positive growth potential. The sizeable capex for backward integration and sector diversification strengthens long-term competitiveness. Execution risk exists around new facility ramp-up and automation integration. Defence bids and global partnerships could drive further value. Overall, Macpower’s strong fundamentals and strategic initiatives set a favorable outlook for FY26 and beyond.