Dear Shareholders,
I hope you and your families are healthy and safe, lam pleased to
present to you our 21st Annual report for the financial year 2023-24.1 feel very proud
that your company has demonstrated ability to adapt and work cohesively with all our
stakeholders to deliver the targeted results as we promised. As a Chairman of Macpower CNC
Machines Limited (Macpower), let me assure you that despite myriad challenges, your
company has focused on maintaining the growth momentum and delivering value.
Macpower has once again demonstrated remarkable performance during the
financial year 2023-24 by generating highest ever operating revenue of Rs. 241.04 Crore
against Rs. 201.89 Crore of previous financial year, representing an increase of 19.39%
Y-o-Y. The ESITDA of the Company has grown by 70.92% Y-o-Y from the last year and reached
to Rs. 35.33 Crore in current year from Rs. 20.67 Crore in last year. Thisyear your
company's Net Profit came in at Rs. 24.25 Crore versus Rs. 12.89 Crore in last year,
representing a growth of 88.13% Y-o-Y. EPS standsat Rs 24.24 per share in current year
against Rsl2.89 per share in last year.
Your Company's Board has also recommended final dividend of Rs. 1.50
per share (15% of FV of Rs 10 per share} for FY 2023-24. which is equivalent to nearly
6.19% Dividend Payout for the FY2023-24.
We have started FY2024-25 with a strong order book of Rs 262.38 crore
and have continued to build on it in Q1FY25. Our order book as on 30th Dune, 2024 stands
at Rs 283.41 crore, which is nearly 8% higher than our order book as of end of FY24. On a
typical execution cycle of four to six months, this provides us reasonable growth
visibility for the rest of the year assuming that we are targeting significant order
inflows during FY2024-25. It's further heartening to see that our premium products, which
forms a part of the NEXA vertical contributes as of today contributes to 26% of our order
book ason 30th June 2024.
Your Company has enhanced its manufacturing capacity from 1500 to 2000
machines per annum in current year as per our commitment and also maintained its status as
a debt free company having strong liquidity. Also parallel expansion of our distribution
network for 39 cities was taken up by increasing distributors, which will help us
strengthen our position in the market.
To cater to various industrial segments in a more in-depth way,
Macpower is putting in all eDorts to expand itscurrent sales force & network. We also
use digital Social media tools like Instagram, FB & Linkedln etc. to address our
target audience in an efficient &eQective way and also participating in the various
Machine Tool Expo.
We also continuously focused on environment conservation and encourage
the use of renewable green energy. For this we have installed 200 KW rooftop solar power
plants, thereby supporting our efforts towards Green Energy and we will also install
another 600 KW rooftop solar power plant on new assembly building in FY25, totaling 800 KW
which will help in 90% power savings during day time.
Macpower has, for several years, been a key approved supplier of CNC
and VMC machines to the defence sector and is proud to be associated with more than SO
companies across the defence and aerospace sectors such as ISRO, Indian Ordinance
Factories, Cun and Shell Factory, HVF (Avadi), Ordinance Factory Medak, DRDO, TBRL, BHEL
and Rifle Factory Ishapore amongst others etc. These CNC and VMC machines are used in the
development of various parts used in the end product bytheseorgani2ations.
Macpower has submitted its Memorandum of Understanding (MoU) to the
Gujarat Government for the "The Tenth Vibrant Gujarat Summit 2024" and under the
Gujarat Government Defence Policy for a project of up to RslOOcrore to setup a CNC Machine
manufacturing facility focused on aerospace and defence. Initial setup shall take 12-18
months post the land allocation being finalized by the state government.
We have a R&D Center at Bangalore for new kind of technology
developing new generation machines like metal cutting, semiconductor ICEC, EMS which is
the highest consumption - EMS like Mobile. Laptop Metal body, Watch. Medical Equipment and
Electrical Vehicles etc. and S Axis & few other model which we develop in Bangalore
R&D Center will be display in January 2025 at Bangalore Exhibition.
We are exploring discussions with different top global techno companies
for co-manufacturing, transfer of technology or co-marketing partnerships for domestic
and/or global markets for new technology of CNC Machines which is not present in our
product basket.
We are working continuously to grow to the next level. Our efforts
towards setting up a CNC Machine manufacturing facility focused on aerospace and defence,
increasing our manufacturing capacity, expand our distribution network, increase our tech
centres and expand our management team as well as our sales & marketing teams is aimed
to help us to reach the Rs 500 crore turnover mark over the next 3-4 years. Manpower
management. Material management. Resources management and New Product developments
continue to be our mantra for growth. We aim to achieve 20- 25% Revenue CAGR over the next
Syears (baseyear FY2023-24) adjusted for any external events outside our control.
At the Company level, we implemented several cost rationalization
measures, ensuring optimal utilization of available capacity and continuous improvement in
profitability through enhanced efficiency. In summary, Macpower stands in a very
comfortable net cash surplus position, reflecting our commitment tof inancial stability
and sustainable growth. Macpower maintains a debt-free status, a testament to our
financial strength.
As an organization, we value our stakeholders and are deeply committed
to serving society. Our unwavering focus remainson ensuring thesafetyof our workforce and
safeguarding the environment.
With astrongfoundation, we will continue executing our strategic
priorities and accelerating ourgrowth momentum. Lastly, I extend my heartfelt gratitude to
everyone contributing to the Company's success.
Thank you and 3ai Hind!
Regards.
Rupesh Mehta
Chairman & Managing Director DIN: 01474523