Products and Services [ source – screener]
The Co. is engaged in manufacturing and sale of all types of marine and industrial electrical & electronic components like switch-gears, control-gears etc. It is also engaged in the renewable energy sector, specifically solar. It also provides services like designing, fabricating etc. for all types of electrical & electronic installations in India and abroad and undertake annual maintenance contracts. [1]
Revenue Split
Electricals & Electronics– 99% in FY22 vs 74% in FY18
Solar– 1% in FY22 vs 26% in FY18 [2] [3]
Geographic Split FY22
India – 82%
Outside India – 18% [2]
Manufacturing Facilities
The Co. has 6 manufacturing plants across Goa, Mumbai, Chennai and UAE & Italy.
+ve points [ from credit report ICRA]
Healthy order book position – The company’s order book position improved to ~Rs. 500 crore as on December 27, 2022 from
~Rs. 407 crore as on November 30, 2021, aided by higher order inflows from the marine and industry segments. While orders
in the marine segment are primarily driven by the government’s focus on indigenous procurement, modernisation of Navy and
capacity expansion by shipyards, orders in the industry segment are driven by the company’s increasing customer base as well
as the increasing need to improve electrical infrastructure. The orders in the industry segment are completed within six months
and those in the marine segment require longer execution time of two to three years. However, any delay in execution of
projects from the customers’ end could delay revenue booking for the company, thereby impacting its profitability, and hence
remains a key monitorable.
Long experience of promoters; technical tie-ups with reputed companies – MEIL is promoted and managed by Mr. Venkatesh
Uchil and Mr. Vinay Uchil, who have an experience of around two decades in this business. Besides, MEIL has technical tie-ups
with various companies across the world for advanced systems required in the marine and industrial sectors, which improve
the growth prospects as well as operational diversification of the company.
Reputed and diversified client base limits counterparty risk – MEIL has reputed national and international clients in the marine
industry including the Indian Navy, the Indian Cost Guard, Goa Shipyard Limited, Cochin Shipyard, Mazagon Dock Shipbuilders
Limited, Garden Reach Shipbuilders and Engineers Limited, among others. Besides, MEIL has a strong customer base in the
industrial sector, which includes reputed corporates across various sectors like data centers, banking, pharmaceutical
companies, information technology, automobile, oil and gas, among others. Its reputed and diversified clientele reduces the
counterparty risk to an extent.
Comfortable capital structure; satisfactory coverage indicators – The company’s capital structure remains comfortable, as
evident from a gearing of 0.3 times as on September 30, 2022, given its healthy net worth position as well as low debt levels
due to reliance on non-fund based facilities. ICRA notes that the company’s gross debt levels increased to Rs. 59.5 crore as on
September 30, 2022 from Rs. 36.6 crore as on March 31, 2022. The incremental debt was utilised to provide cash collateral to
the bank, invest in a subsidiary, and partly fund the capital expenditure (capex) requirement. Nevertheless, the net debt
continues to be in line with FY2022 levels.ICRA rating
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