Macpower CNC Machines Limited (MACPOWER) Earnings Call Transcript & Summary

Ladies and gentlemen, I welcome you all to the Q3 and 9 months FY '25 post-earnings conference call of Macpower CNC Machines Limited. Today on the call from the management team, we have with us Mr. Rupesh Mehta, CMD, along with his management team. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risk and uncertainties. Also, a reminder that this call is now being recorded. I would now request the management to detail us about the business and performance highlights for the quarter, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to you, sir.

Yes. Good morning, everyone. First of all, I earnestly welcome you all of Q3 '25 post-results conference call. We will have a brief about the overall performance of the company for the quarter and 9 month which we will take your -- the financial result and presentation have been posted on the company's website and hope you have had a opportunity to go through the same. So, it's already I think, financials and the presentation is in website and Vinay ji also sent the presentation to everyone. So Vinay ji, shall we start the Intex or after question and answer?

Sir, if you have any further comments on the performance, otherwise we can play the video.

We can play. We would like to show you the video. [Audio Gap] [Foreign Language]

[Operator Instructions] Submitting the first question from Khush Nahar.

First question you talked about exports. So I think in Q2, we had exported in the Middle East -- we had got an order. So similarly, Q3, did we have any export products? And going ahead, how do we see exports as a percentage of revenue?

No, we just focused Khush ji for the export. First time we had executed exports. [Foreign Language].

My second question was, are we hiring today any senior management level personnel since we're going ahead we're also eyeing for this big expansion? So are we having more people today?

Senior level [Foreign Language]. They're very good enough to handle this expansion. [Foreign Language].

Sir, could you guide how are the realization? How do we expect to end in FY '25 and FY '26 going ahead considering our order book? [Foreign Language].

In average price?

Average.

[Foreign Language]

Right sir. Just one last question on the interest cost. [Foreign Language] which is much higher than our other previously quarterly run rates. So any debt we have taken? What is the reason for this?

[Foreign Language]

Sir, just one last question, CapEx sliding sir if you can give for the next years 2 years. [Foreign Language] in terms of value?

[Foreign Language]

Right sir. Thank you.

[Foreign Language]

We will take the next participant, Mr. Daval Shah.

Yes. So 2, 3 questions. First is what is the update on the land which we are finding for the MOU, which we had signed for defense? So some update, if you can share. And then over the next, after this expansion of 500 machines, as a long-term planning for the next 3- to 5-year period, you are participating in various exhibitions, we are seeing very good response. Now we are going to participate in Germany plus focus on exports. So how will you show the customers that you have the capacity to grow and you have -- when they come for the visit. So what are the plans for that?

Thank you for your question. [Foreign Language] first of all you have to sign the MOU with the government, then demand of land in a district collector office. After that [Foreign Language] you have to submit a project with everything; manpower, water supply, electricity, or [Foreign Language].

[Foreign Language] foreign environment clearance and from the canal division [Foreign Language]

[Foreign Language] almost 50% to 60% [Foreign Language]

Fantastic. [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] Overall [Foreign Language] 200 peoples we added in the last 9 months [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

I will request you to come back.

Yes. Sure. I will do that. Thanks.

We will take the next question from Manthan Zaveri. Manthan, you can go ahead.

Am I audible?

Yes.

[Foreign Language]

Yes.

[Foreign Language]

[Foreign Language]

What did we expect in Q4? [Foreign Language]

[Foreign Language]

Okay. [Foreign Language]

[Foreign Language]

So, can we expect [Foreign Language] the last quarter, it was all-time high, somewhere between 17% to 18%. So, can we expect [Foreign Language]

[Foreign Language]

[Foreign Language] we will steadily grow 20% to 25%. [Foreign Language] Can we still expect [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We take the next question from Arnav Sakhuja.

So what has been the impact of the fire in your facility? Is it fair to say that the year-on-year fall in revenue that we saw this quarter was partially due to the fire? And also, if you could just highlight if there has been any inventory loss due to this fire.

[Foreign Language]

But then since this happened in February, will we see some impact of this in the Q4 numbers?

It is there. There is no manpower there. [Foreign Language]

So my next question is that given that we have announced temporary deferment of INR 10 crores and another INR 5 crores to INR 6 crores of orders pending due to the payment clearance, these additional INR 15 crores of orders will come through in Q4 over and above our regular sales amount?

[Foreign Language]

Just one last question. You had mentioned something about exports and you had said that you are using the Intex conference to get some good export orders. So what other methods are we using to boost our exports?

[Foreign Language]

Just to confirm this INR 42 crore orders from Intex, these were export orders or domestic orders?

Almost. I am not calculating the export in these orders. So totally [indiscernible]. [Foreign Language]

There are export orders from Intex that you got over and above this INR 42 crores and you are evaluating whether these are ethical to go through with?

Yes.

We'll take the next question from Devash Shah.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] Can we do 24 hours production or not?

[Foreign Language]

We go to the next participant, Mr. Manasha. Please go ahead.

Sir. If we see this quarters order book inflow also [Foreign Language] Just wanted to understand [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We'll move to the next participant Aryan.

Firstly, could you add some color on the new 5x machines? And amongst the product mix which one is going to expect to drive growth going forward?

[Foreign Language]

Okay. And sir, on the industry level, any growth drivers?

[Foreign Language]

We'll go to the next participant, Samarth Nagpal.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We'll move to the next participant, Piyush Jain.

Just want to understand [Foreign Language] is it only because of we haven't achieved the sales growth or [Foreign Language] Or does this have some reason for it because you remember 1 or 2 quarter back we had discussing we will move margins from 17% to somewhere number of 27% tied with backward integration and all. Is that target remains still on the cards and it's just one of quarter?

[Foreign Language]

When will we again back on track? At least 17% type of number which we used to do next quarter, next year after 2 quarters? How you're seeing raw material cost is stabilizing in this quarter or what?

[Foreign Language]

[Foreign Language] What do we see where we'll achieve this?

[Foreign Language] because of higher value, higher – higher end machines [Foreign Language]

[Foreign Language] And you'll get into some JV or something. [Foreign Language] You're expecting some defense related maybe CNC machines [Foreign Language]

[Foreign Language]

[Foreign Language] every call I've attended and I've got the opportunity to have a word with you, we were always sounding bullish there is so much of demand in the CNC machines and all and you're also not running for a turnover or something. You're seeing the growth where the profit is there, you've some -- your criteria [Foreign Language] Do you see some signs or some growth slow down or something subdued as per you which you were expecting maybe a 6 months back? [Foreign Language] Are we just going that [Foreign Language]

[Foreign Language]

[Foreign Language] We have seen you last many years. [Foreign Language] So, now if demand is not the problem, our aggression and our workforce, everything is on the place or something. Let's say we start FY '26 after this quarter let's say...

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] See, I'm not asking for 1 year, 2 year. We know [Foreign Language] execution is not a challenge from your side. I know that. When we will say, because right now everything is set [Foreign Language]. For FY ‘26-‘27, the platform is set for us. Then we will test 2,500, then we will talk about 5,000 machine growth.

[Foreign Language]

[Foreign Language] 100%.

[Foreign Language]

[Foreign Language] What is right now our bifurcation of Nexa and…

[Foreign Language]

Okay. INR 27 crores and 445 machines.

We'll take the next question from Deepak Pandey.

[Foreign Language]

[Foreign Language]

Not sold [Foreign Language]

[Foreign Language]

[Foreign Language] We are still at 1,500, 1,600 [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

On the terms of new capacity that are we putting up [Foreign Language], can you just specify the quarter in which you will be commercializing? [Foreign Language] Can you just provide a guidance [Foreign Language]

[Foreign Language]

Not 500 machines the next 2500 machines?

[Foreign Language]

Okay. And then you'll have the capacity to [Foreign Language] 2000 [Foreign Language]

[Foreign Language]

[Foreign Language] Why are we pushing the production [Foreign Language]. Why don't we just started using the whole proposals and utilize that capacity as soon as possible? [Foreign Language] Why are we pushing the CapEx ahead?

[Foreign Language]

[Foreign Language]

[Foreign Language]

We'll take the next question from [indiscernible]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We'll take the next question from Ajay Surya.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We'll take the last question for the day from Prateek Kothari. We'll take the last question for the day from Shantanu.

Prateek this side. [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

Thank you to all the participants for joining on the call, and thank you to the management team for giving us the valuable time. This brings us to the end of today's conference call.

Thank Vinay ji [Foreign Language], very nice conference call. [Foreign Language]

Thank you, sir and we will now disconnect. Thank you so much.