Q4FY22 Concall notes:
- Sold 1046 machines last year.
- Debottleneck effort to increase the capacity to produce machines from 1000-1100 to 1300-1500.
- Have pending order book of 1000-1200 machines already.
- India wide, ~31000 machines were made.
- Most of the payment is in advance. Thats why there are almost nil receivables.
- The high inventory is because they produce variety of machines and even though many parts are common, there are still per machine parts requirements and they need to keep inventory for all of them.
- Employee headcount at 590 people. To grow ~100 per year.
- NEXA vertical for premium products. 214 machines were sold as part of in the previous year. Although they gave discounts to build the brand. So the rise in margins wasn’t visible.
- The NEXA is vertical is headed by ex senior VP of Ace micromatic. The co is planning to hire more top level management from outside.
- May look into exports of products next year. A separate division will be formed, although No concrete plans yet. Ace did 450 machines export to china last year.
- CapEx boom cycle is very good for the industry. However a recession puts a full stop to the order book.
- Company plans to keep the dividend payout ratio to in the range of 8 to 15%.
- Company plans to stay debt free.
- 20 to 25% cagr growth for the next 5 years as per the mgmt.
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Disc: not invested, Started reading about CNC machines. Although the area doesn’t look so promising, Macpower alone is sure a great company.
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