Macpower CNC Machines Ltd

- Currently, there is no ongoing discussion regarding fundraising through equity or debt. - The management emphasizes maintaining a zero-debt model as a point of pride. - Future fundraising may be considered depending on capacity increases and business needs, but no concrete plans exist at present. - Any new fundraising, such as a rights issue, would depend on future situations and requirements and could happen anytime but is not planned now.

- Current CapEx of INR 4.17 crores spent in H1 FY23, including machinery and starting a new pattern shop for in-house casting pattern production (previously outsourced). - Construction planned this financial year for expansion of assembly area with capacity for 150 machines, costing INR 3-4 crores. - Government deal under defense policy expected within 1-2 years, aiming for a major plant expansion to accommodate around 500 machines, likely taking 2-3 years for implementation. - Recruitment and training ongoing to support capacity ramp-up from current 1,200 machines to 1,500 machines by next financial year, with focus on automation and higher-end product lines. - Automation division recently started, with first orders booked, indicating a strategic investment in robotic and gantry computerized machines. - The company maintains a zero-debt model, funding capex from owned funds. - No rights issues or external fundraising currently planned but possible depending on future needs.

- Revenue growth of 15% to 25% expected in the current year driven by capacity expansion and new products. - Capacity planned to increase from 1,200 to 1,500 machines annually by next financial year, enabling revenue of INR 300 crore minimum at INR 20 lakh average price per machine. - Full utilization of 1,500 machine capacity expected by April next year. - Further expansion planned for 2,000 to 2,500 machines by 2024-25, improving EBITDA margins from current ~11% to 15%-18% due to economies of scale. - New plant expansion targeting 500 machines on government-allocated land expected in 2-3 years. - Import substitution products increasing share, aiding margin improvement. - Continued focus on automation and higher-end products to penetrate Tier 1 and Tier 2 markets. - Expected margin improvement of 5%-7% by 2024-25 from backward integration and scale.

- Macpower CNC expects EBITDA margins to improve by 5% to 7% by FY24-25 due to economies of scale and backward integration. - The company aims to increase machine production capacity from the current ~1300 to 1500 machines by Q3/Q4 FY23. - Revenue from 1500 machines is projected at a minimum of INR 300 crore, with average machine prices increasing to INR 20 lakhs due to high-end products. - Margin expansion is expected as fixed costs get divided with higher production volumes (from 1500 to 2500 machines). - Incremental recruitment and training, along with supply chain improvements, support growth. - Government defense contracts and import substitution products will support robust growth. - Dividend payments continue, but no immediate plans for rights issues; the company maintains a zero debt model. - Expansion plans include adding 500 machines capacity over 2-3 years via new plant development.

- The current order book/pending orders stand at 754 machines. - Approximately 50%-55% of these orders are from repeat customers who have been with Macpower for 5 to 10 years or more. - The rest of the orders come from new customer acquisitions, partly by taking market share from competitors and partly by creating new demand. - The company is focusing on increasing penetration in Tier 1 and Tier 2 markets this financial year through recruitment, training, and supplying machines. - They are targeting both existing and new customers to grow their order book.