MTAR Technologies – A wager on innovation meeting economies of scale

Few insights from Q1 Fy24
Missed the first few minutes. Kindly check the concall for complete info

1. Fluence energy asking MTAR to manufacture in Europe and USA. Company exploring the plans
2. orders from bloom received that are to be executed by end of Dec. Further orders for next CY expected in Q2 or Q3
3. 40:60 would be the fraction of revenue in H1 and H2 FY24
4. for clean energy, expect to do 590 cr revenue in clean energy in FY24
5. revenues from space to be 70 CR in FY24
6. need a new facility for Fluence business. Overall margins to be same as bloom business. But comes with Operating leverage and so overall better Ebidta
7. current revenue of Nuclear segment is 180 cr. Expect 500 crs of revenues coming in by end of the year (from 2 nuclear plants). Orders for 10 more reactors to be given out soon ( called mega projects, to be executed by private players instead of NPCIL)
8. 28% margin target to be achieved for the FY24
9. Working capital days to be 200 days by FY24 end, thanks to operating leverage, monitoring, etc.
10. Defense license enables us to directly supply to Army, Navy. Enables us to work with Multi national. To receive the license soon( in few days)
11. Capex for FY 24 to be 40-45 cr icluding 20-25 cr for Fluence energy.
12. 10 more crore for Fluence in next FY
13. Nuclear 60, space 70, Defense 15, products and others to be 125 crs. ( personally expect the guidance to be revised upwards or at least over achieve)
14. added about 20 people to work on SSLV. Cost is reasonable, as they’re working in existing facilities. No major cost other than mna power
15. Working with lot of defense organizations in India. In the process of qualification
16. Gross margins are to be around 60% on average
17. Fluence energy factories to be outside in US and EU. Some employees would be posted there. The project is very large revenue base. Large interest from the customer
18. gross margin to improve to 52% in next quarters from 49% currently, driven by higher domestic share
19. diversifying the revenue across customer base
20. reiterated 3000 cr revenue target by Fy 28 With more diversified revenue.
21. Fluence shortlisted MTAR as the only supplier. Looking at 10000 units ( of energy storage units) for US, once ramped up in US

Disc : invested

Not a comprehensive coverage of the call. Please listen to the concall for more insights

Thank you