Detailed Narrative
Q4 & FY25 Financial Performance Highlights
Macpower CNC reported its highest ever quarterly revenue of INR 80.01 crore in Q4 FY25, marking a 12% YoY and 33% QoQ growth. For the full fiscal year 2025, revenue reached a record INR 261.82 crore, up 9% YoY. EBITDA for Q4 FY25 was INR 14.30 crore, with a margin of 17.87%, showing an 11% YoY and 83% QoQ increase. FY25 EBITDA stood at INR 41.54 crore, with a 15.87% margin, growing 17% YoY. Adjusted PAT for Q4 FY25 was INR 9.76 crore (12.20% margin), up 10% YoY and 117% QoQ, while FY25 Adjusted PAT was INR 26.61 crore (10.16% margin), up 10.4% YoY. However, reported PAT for Q4 FY25 saw a 3% YoY decline to INR 8.6 crore.
Robust Order Book and Bidding Pipeline
As of March 31, 2025, Macpower CNC achieved its highest ever pending order book of INR 331 crore, including 168 main machines. The NEXA segment contributes 28% of this order book, with 465 machines. The company also secured its highest ever defence order book of INR 23 crore. Furthermore, Macpower submitted its highest ever bids, totaling INR 1,076 crore, which includes INR 570 crore in defence tenders. Management expects a minimum 10% win rate on these tenders.
Product Development and R&D Initiatives
In the last financial year, Macpower CNC developed over 37 new product variants and new products. These include a Drill Tap Center and a high-speed drill tap center for the electric EMS sector. They also launched new machines like a two-spindle vertical machining center with a two-pallet changer, capable of producing four components simultaneously. A new 1.5-meter turn-mill center has been developed for the defence sector, and the company is executing high-value machines like the INR 2.5 crore HMC MHX 800 for defence, requiring high speed and accuracy.
Capacity Expansion and Operational Efficiency
The company is actively expanding its manufacturing capacity. Currently, it has a capacity of 2,000 machines, which will increase to 2,500 machines by July 1, 2025. This expansion aims to cater to the growing demand and allow the company to entertain large corporate clients. Additionally, Macpower has installed solar captive consumption, reducing its daytime power bill by almost 90%, leading to lower power costs. The company plans to utilize over 80% of its capacity in the new financial year.
Strategic Initiatives: Exports, JVs, and New Markets
Macpower CNC is focusing on capturing the export market and is participating in the German EMO exhibition in September, the largest in the world, to meet foreign manufacturers for potential joint ventures. Discussions are underway with European companies for JVs, as Japanese partners have restrictions on defence supply. The company has also expanded its sales and service network to 39 cities, with 220 personnel, and increased its tech centers and branch offices, contributing to an increase in its order book.
Capital Expenditure and Funding for New Plant
The company plans a CapEx of INR 100 crore for the first phase of its new project, with another INR 100 crore for the second phase, depending on market needs. This CapEx will be used for capacity build-up, including a foundry and backward integration. The first phase is targeted for completion within 12-14 months after receiving the land. Funding options for this CapEx include strategic partnerships with JV partners, utilizing reserve funds, and debt, with the company exploring multiple avenues.
Defence Sector Focus and Opportunities
Macpower CNC is increasingly focusing on the defence and aerospace sectors, expecting them to be a major revenue driver in the coming year. The company has supplied high-value machines (INR 8-9 crore each) to NCR customers and bomb shell manufacturers in Maharashtra, indicating significant indirect contributions to the defence sector. The government's push for defence manufacturing and privatization is creating substantial opportunities, and Macpower is positioning itself for significant growth in this segment.