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MTAR001
MTAR TECHNOLOGIES LTD
CORPORATE RESEARCH Growth with Precision

18 December 2020
MTAR Technologies Limited (MTAR) is a leading precision
engineering solutions player, manufacturing mission critical
Operating income break‐up (FY20) precision components and critical assemblies for customers
across clean energy, nuclear, space and defence sectors. High
FY20 operating income mix
barriers to entry with stringent qualification requirements
(%)
Clean Nuclear and MTAR’s ability to meet rigorous technical and quality
Energy Sector, parameters with competitive cost structures have
Sector, 14.27
64.34
strengthened its market position and customer relationships.
Space
and Wide presence across traditional and emerging sectors: MTAR
Defenc operates in Rs4,098bn Indian precision engineering market and
e should benefit from government thrust on domestic manufacturing
Sector,
(indigenisation) and growing export opportunities. It has over 3
18.40
decades of presence in Indian nuclear, space and defence sectors
Source: Company offering specialized products and critical assemblies for Indian space
& missile programs, and for NPCIL’s new and existing reactors. MTAR
Trend in operating income is involved in manufacture of hot boxes, and in development and
manufacture of hydrogen units and electrolyzers for Bloom Energy
Revenue from Operations Inc., thereby steadily increasing its presence in clean energy.
(Rs mn)
2,500 Strong R&D and in-house capabilities: Focus on R&D has

2,000
enabled MTAR to enhance manufacturing processes with changing
technology and cost effective solutions. It has developed import
1,500 substitutes such as ball screws and water lubricated bearings. Order
1,000 book of Rs3,565mn, at 1.7x FY20 sales, represents a healthy mix of
1,595.97
1,836.71
2,137.74
1,220.26
developmental and volume-based production, customized to meet

500
customer requirements. It offers one-stop solutions to customers
0 using advanced equipment for precision machining, assembly,
FY18 FY19 FY20 1HFY21 testing and quality control, specialized fabrication, brazing and heat
Source: Company treatment, and other specialized processes.
Targeting growth with profitability: MTAR is targeting to diversify

and expand exports (67.58% of revenues in FY20) and leverage
sheet-metal and specialized fabrication capabilities to diversify its
portfolio and presence across existing and new sectors. During FY18-
20, MTAR reported, standalone revenues from operations/ EBITDA/
PAT CAGR of 15.74%/34.85%/140.31% with healthy EBITDA
margins. RoCE was 19.78% in FY20.
Standalone financial summary (Rs m)
Y/e 30 Mar FY18A FY19A FY20A 1HFY21
Operating Income (Rs m) 1,595.97 1,836.71 2,137.74 1,220.26
Renu Baid EBITDA Margin (%) 19.97 29.25 27.12 29.10
renu.baid@iiflcap.com Reported PAT (Rs m) 54.23 391.99 313.18 192.13
91 22 4646 4651 Reported EPS (Rs m) 1.92 13.89 11.11 7.18
Growth (%) 623.44 ‐20.01 17.70
Narendra Mhalsekar
narendra.mhalsekar@iiflcap.com ROE (%) 2.64 16.68 13.91 7.85
91 22 4646 4687 Debt/Equity (x) 0.10 0.12 0.13 0.17
www.iiflcap.com Source: Company, IIFL Research. Note: 1HFY21 numbers not annualised.
NO PART OF THIS RESEARCH MAY BE REPRODUCED OR SENT INTO THE UNITED STATES OR CANADA, THE PRC OR JAPAN OR TO ANY CANADIAN, PRC
OR JAPANESE RESIDENT OR TO ANY OTHER COUNTRY OR ITS RESIDENTS WHERE IT WOULD VIOLATE APPLICABLE SECURITIES LAWS BY ANY MEANS 1
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MTAR001
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MTAR001
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MTAR001
Company background
MTAR commenced operations in 1970 and is a leading precision
engineering solutions company engaged in the manufacture of
mission critical precision components (close tolerances of 5-10
microns) and critical assemblies serving customers in the nuclear,
space and defence, and clean energy sectors.
Since inception, it has strived for continuous growth by contributing

to the Indian civilian nuclear power programme, Indian space
programme, Indian defence and aerospace sector, global defence
and aerospace sector, as well as to the global clean energy sector
and has also developed import substitutes such as ball screws and
water lubricated bearings that are specialized and used in the sectors
catered to by the company. Its engineering capabilities, has enabled
it to consistently offer quality complex precision manufactured
components and assemblies, within stipulated timelines and at
reasonable cost in most cases, allowing it to forge a robust customer
relationship.
MTAR has established long standing customer relationships with

Nuclear Power Corporation of India Limited (“NPCIL”) in the nuclear
sector, Indian Space Research Organisation (“ISRO”) and Defence
Research and Development Organisation (“DRDO”) in space and
defence sector and have been associated with Bloom Energy Inc.,
United States (“Bloom Energy”) in the clean energy sectors. MTAR
operates through seven manufacturing facilities, each of which is
situated in Hyderabad, Telangana.
Figure 1: MTAR ‐ Key business segments and revenue share (FY20)
MTAR
Nuclear Space & Defence Clean Energy

(14.27%) (18.40%) (64.34%)
Source: Company
Figure 2: Revenue and net profit trend
(Rs mn) Revenue from operations (LHS) Profit after tax (LHS)
PAT Margin (RHS)
4,000 21.34% 25.0%
14.65% 20.0%
15.75%
2,137.74 15.0%
1,836.71
2,000 1,595.97
1,220.26 10.0%
3.40%
391.99 313.18 5.0%
54.23 192.13
0 0.0%
FY18 FY19 FY20 1HFY21
Source: Company
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Exports to international customers were 67.58% of revenue from

operations in FY20, largely led by hot boxes supplied to Bloom
Energy. Exports also include defence products such as aluminium
weldments to its international customer.
Figure 3: Revenue generated in India and outside India
Revenue in India Revenue outside India
(Rs m)
2,500
2,000
1,500
1,408.82
784.27 1,133.95
1,000
633.03
500 798.00 643.42 675.76 567.95
‐
Source: Company
Figure 4: Operating revenue contribution from top 5 customers
(%) Contribution from top 5 customers
91 90.04
90 89.00
89 88.39
88 87.31
87
86
85
FY18 FY19 FY20 Sep'20
Source: Company
Figure 5: Segmental revenue mix; segmental Order Book mix and trends in Order Book
1HFY21 revenue mix (Rs Order Book mix as on Nov'20 (Rs mn) Order Book

1,220.26m) (Rs 3,565.01m)
Clean
Clean
Energy 4,000
Energy
Sector Nuclear
Sector, Nuclear 24.57% Sector
47.48% Sector, 26.54%
30.17%
2,000
Space
Space
2,018.58
2,437.44
3,451.34
3,565.01
and
and
Defenc
Defenc
e
e Sector
Sector, 0
48.89%
21.46% FY18 FY19 FY20 30‐Nov‐20
Source: Company
The company was originally promoted by Late P. Ravinder Reddy,

Late K. Satyanarayana Reddy and P. Jayaprakash Reddy and is now
led by one of the Promoters, and Managing Director, Parvat Srinivas
Reddy, who has over 29 years of experience. The management team
is backed by a core technical team that has substantial experience in
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manufacturing and the technical know-how to manufacture niche

engineering products.
Figure 6: Employee base
As on Nov'2020 No of Employees
Permanent employees 896
‐Engineers 147
Contract workmen 244
Source: Company
Product offerings
Figure 7: Products manufactured and supplied by MTAR in each of the sectors
Customer Sector Product Application
Involves manufacture and assembly of 600 components. Used for loading
Fuel machining head
and unloading of fuel bundles in nuclear reactors
Moves fuel machining head in sideways and vertical directions to allow
Bridge and column
loading and unloading of the various nuclear fuel bundles
Consists of 1,758 holes in top and bottom plate and is used for resting the
Grid plate
fuel sub‐assemblies in prototype fast breeder reactor
Sealing plug, shielding plug, liner Involves assembly of large number of components and used in the core of
Nuclear sector
tubes and end fittings civilian reactor

They are critical products used for regulating and shutdown of nuclear
Drive Mechanisms
reactors under normal and undesirable operating conditions
Top hatch cover beams and deck
Requires high positional and dimensional accuracies
plate assembly
Used for inspection in fuel machining vault. Apart from manufacturing and
CHAS
assembly, the design is developed by company
Ball screws and water lubricated Import substitutes used in various assemblies such as actuators etc. in the
bearings reactor
Base shroud assembly and air frames Used in Agni missiles such as A1, A2 A3, A4, A5, A1 P.
Actuator assembly components Used in space launch vehicles
Components for LCA Actuators used in landing gear and flaps of LCAs
Various missile parts Used in various missile programs undertaken by DRDO
Valves Used in satellites
Space and Electro‐pneumatic modules
Defence sectors
Liquid propulsion engines
Used in space launch vehicles – PSLV and GSLV for various space missions
Cryogenic engines (turbo pumps, such as Chandrayaan‐II and Mangalyaan
booster pumps, gas generators &
injector heads for such engines)
Ball screws and water lubricated Import substitutes used in various assemblies such as actuators etc. in
bearings space launch vehicles, missiles etc.
Clean energy
Power units Acts as a reactor for fuel cells
sector
Source: Company
MTAR has been serving customers in the nuclear sector for over 35
years, and has established relationships with the NPCIL having
served them for over 16 years. MTAR manufactures and supplies
specialized products for the new pressurised heavy water nuclear
reactors as well as for refurbishment of the existing reactors.
It is also a key supplier of mission critical components to customers

within the space and defence sectors and has long-standing
MTAR001
relationships of over three decades and four decades with customers

such as ISRO and DRDO respectively. Its offerings to ISRO
comprised a wide variety of mission critical components and critical
assemblies such as liquid propulsion engines, components and
assemblies for cryogenic engines, specifically turbo pumps, booster
pumps, gas generators and injector heads for such engines, and
electro-pneumatic modules to serve its space launch vehicles. Within
the defence sector, it has undertaken complex assemblies for DRDO,
such as the base shroud assembly (for Agni missiles), and the
assembly of various valves. In addition, it has also supplied critical
defence products such as aluminium weldments and other machined
components to its international customers.
Figure 8: Fuel Machining Head Assembly Figure 9: Fuel Machining Head operating in Nuclear Reactor
Source: Company Source: Company
Figure 10: Bridge & Column
Source: Company
Figure 11: Space and defence sector products
Source: Company
MTAR001
In addition, MTAR also focuses on clean energy and has been

supplying power units (hot boxes) to Bloom Energy for over nine
years. It is involved in the manufacture of power units (which use
methane to generate power), the development and manufacture of
hydrogen boxes (which use methane to generate hydrogen) and
electrolyzers (which produce methane free hydrogen), to its
customer, Bloom Energy.
Figure 12: Revenue trends across key segments
Nuclear Sector revenues Space and Defence Sector Clean Energy Sector revenues

(Rs mn) (Rs mn) revenues (Rs mn)
500 500 1,500
400 400
300 1,000
300
200 200
1,128.20
1,375.39
261.58
368.37
393.39
261.85
500
461.10
239.61
305.10
368.15
784.27
579.36
100 100
0 0
FY18 FY19 FY20 1HFY21 0
FY18 FY19 FY20 1HFY21 FY18 FY19 FY20 1HFY21
Source: Company
Figure 13: Segment‐wise revenue share trends
Nuclear Sector Space and Defence Sector Clean Energy Sector
100%
80% 47.48
49.14
61.42 64.34
60%
40% 20.06 21.46
20% 16.39 18.40
28.89 30.17
13.05 14.27
0%
1HFY21
FY18
FY19
FY20
Source: Company
Events and milestones
Figure 14:Key events in the history of MTAR
Calendar Year Particulars
Incorporation of MTAR upon its conversion from a partnership firm to a
1999
private limited company.
Commencement of manufacture of base shroud and fin assembly and
1999
pneumatic components for use in flight systems
Manufacture of control and safety red drive mechanism and diverse
2003
safety rod drive mechanism for IGCAR
Manufacture of grid plates for a 500 mega‐watt prototype fast breeder
2008
reactor
2012 Manufacture of power units for Bloom Energy
2018 Commencement of defence exports
Source: Company
MTAR001
Manufacturing facilities
MTAR currently operates through seven manufacturing facilities,
including an export-oriented unit (“EOU”). These manufacturing
facilities situated in Hyderabad, Telangana, employ advanced
equipment to undertake precision machining, assembly, testing and
quality control, specialized fabrication, brazing and heat treatment,
and other specialized processes, enabling it to be a one-stop
solutions company for its customers.
MTAR lays special emphasis on research and development (“R&D”)

of its manufacturing processes. It has also recently established an
engineering cell that works on cycle time reductions to enhance cost-
effective manufacturing solutions in niche engineering segment.
Given the specialized nature of operations, its manufacturing
facilities also employ extensive and stringent quality control
mechanism at various stages of production.
Figure 15: MTAR operates through seven state‐of‐the‐art manufacturing facilities (including one EOU) in Hyderabad
Plant Sectors catered to Products manufactured Facilities offered
Complex nuclear assemblies manufacturing such as fuel
Advanced computerized
machining head, thimble package, top hatch beam, bridge
Nuclear, defence numerical control (“CNC”)
Unit 1 and column and high end defence products such as air
and aerospace machining and quality
frames, base shroud assembly for Agni missiles, among
control
others
Liquid propulsion engines such as Vikas engine, cryogenic
Advanced CNC machining,
engines, semi cryo engine, electro pneumatic modules for use
assembly, specialised
Unit 2 Space in polar satellite launch vehicle (“PSLV”) and geosynchronous
fabrication, quality control
satellite launch vehicle (“GSLV”) launch vehicles and satellite
and testing
valves
High volume nuclear components such as end fittings, liner
Nuclear, defence Advanced CNC machining
Unit 3 tubes, products such as ball screws and WLBs and other
and aerospace and quality control
nuclear site orders
Advanced CNC machining,
Power units for supply to Bloom Energy and high end defence
Clean energy and assembly, special
EOU unit components to be supplied to an Israeli defense technology
export defence processes, and quality
company
control
Unit 4 Undertakes rough machining Rough machining
Supporting plants Surface treatment, heat
Unit 5 for unit 1 & unit 2 Undertakes surface and heat treatment treatment and special
processes
Unit 6 Fabrication facility and large clean rooms Assembly
Nuclear, defence
Adibatla (2 units) Sheet metal manufacturing and specialised fabrication Fabrication
and space
Source: Company
Most of the manufacturing facilities, including the EOU have

accreditations such as the ISO 9001:2015 certification and AS9100D
certification (technically equivalent to the EN 9100:2018 and JISQ
9100:2016 certifications) for quality management systems. The
company has also initiated the process for receiving ISO
14001:2015, ISO 45001:2018, ISO 27001:2013 and applying for
NADCAP certifications for some of the units.
Health, Safety and Environment: MTAR continually aims to

comply with the applicable health and safety regulations and other
requirements in its business operations. They implement work safety
MTAR001
measures to ensure a safe working environment including general

guidelines for health and safety at its offices and manufacturing
facilities, accident reporting, wearing safety equipment and
maintaining clean and orderly work locations.
MTAR has machining, assembly and testing, fabrication, surface

treatment and heat treatment facilities and they are equipped with
advanced machinery such as 3D CNC CMM, CNC 7 axis mill turns, 5
axis Vertical Machining Centres (“VMCs”) and 4.5 axis VMCs, turning
machines, floor boring, horizontal boring and deep hole boring
machines. In addition, the assembly and testing capabilities are
supported by 10,000 class clean rooms and 100 class laminar table
with facilities for high and low temperatures for undertaking
vibration, flow and helium leak tests.
Figure 16: Brief particulars of manufacturing and fabrication facilities of MTAR
S. No. Machine Quantity Description and usage
Machining facilities
Conventional / CNC Used for a variety of turning operations to remove the excess material in the
1. 108
turning form of chips, from the external diameter of a work piece
Advanced CNC 7 axis mill‐turns, 5 axis, 4.5 axis and 3 axis VMCs and horizontal
2. Milling / CNC milling 62 machining centres (“HMCs”) are available for producing a variety of custom‐
designed products
CNC machining Used to perform drilling, milling and lathe operations to manufacture precision
3. 12
centers components such as air frames, covers etc.
Electrical discharge Used for machining of hard metal that would be difficult to machine using
4. 6
machining (“EDM”) traditional techniques
Used to produce fast and accurate machining of customised small deep holes in
5. EDM drilling 2
precision components
Used to enlarge the holes of the machined components so as to make their
6. Jig boring 28
diameters accurate to achieve the close tolerances required
Advanced horizontal boring machines are available to enlarge holes in a
7. Horizontal boring 8
horizontal direction as per the given customer specification
8. Deep hole boring 9 Used to produce very deep precision holes
9. Drilling 13 Used to cut holes of circular cross section for precision machined parts
10. Grinding 60 Used to shape and finish the machined components
Used to produce accurate flat surfaces and cutting slots as per the given
11. Planing 1
specifications
Used to cut raw materials that are required to undergo subsequent machining
12. Cutting machines 6
processes to achieve the finished product
Advanced wire cuts available for production of small, detailed items that would
13. CNC wire cut 14
be normally difficult to process through other manufacturing processes
14. Honing 8 Used to improve geometric form of surface and surface finish
Special purpose
15. 14 Used for special purpose operations
machine
Straightening Used wherever the precision components have to be straightened, bent/pre‐
16. 5
machines tensioned
17. Thread grinding 13 Used to produce accurate threads in hard materials
Fabrication facilities
Equipment to undertake automatic tungsten inert gas (“TIG”) welding, metal
1. Welding equipment 22 inert gas (“MIG”) welding, submerged arc welding, welding head manipulator, job
manipulator / positioner, electron‐beam (“EB”) welding, orbital welding
Vacuum brazing furnace and rotary vacuum brazing furnace are available to take
2. Furnaces 21
up specialized fabrication jobs
Source: Company
MTAR001
Manufacturing processes
MTAR carries out volume-based production and developmental
projects and ensures a right mix between them not only to meet the
revenue targets but also to enhance its technological capabilities.
The manufacturing processes widely vary across different products.
Broadly, the manufacturing facilities undertake machining as per the
process plans laid-out and the in-process quality inspection
procedures are carried out as per the QAPs. Once machining is
completed, the components are tested once again to ensure
dimensional and positional accuracies. The components are
assembled and tested to achieve the final product.
Figure 17:Typical product manufacturing cycle
Bill of material Release of Purchase
Order Acceptance Process Planning
generation Orders to Vendors
Preparation of Quality Manufacturing of
Procurement of Raw In‐process quality
Assurance Plans components based on
Materials inspections
("QAPs") process plans
Shipping release by customers
Final Inspection of Components Assemblies and Testing
to dispatch the products
Source: Company
Raw Materials
MTAR does not have any long term contracts with any raw material
suppliers but has maintained a long term relationship (at least over
five years) with its major suppliers.
However, in a majority of cases, its customers in the space and
defence sectors issue raw materials for undertaking the projects.
MTAR has been procuring raw materials such as 17-4 PH, SS 410
and inconel from its global suppliers, including, from suppliers
located in Brazil and United States, among others, as well as from
certain domestic suppliers.
Figure 18: Raw materials used by MTAR
Sector Raw materials used
Nuclear Specialised steels such as 17‐4 PH, SS 410, 13‐8 MO PH
Space and Defence Alloy steels and aluminium including bearing and seals
Clean energy Inconel sheets
Source: Company
MTAR001
Key strengths
Precision engineering expertise with complex product
manufacturing capabilities
MTAR develops and manufactures a wide range of mission critical
precision components with close tolerances, through its precision
machining, assembly, and specialized fabrication facilities, for its
customers in the nuclear, space and defence, and clean energy
sectors in India, and abroad.
These capabilities are further supported by an extensive and
stringent testing and quality control mechanism undertaken at each
stage of the production process. It uses high precision quality
inspection equipment such as 3D co-ordinate measuring machines,
laser measuring, optical alignment instruments, non-contact
measuring, and other such non-destructive testing equipment to
ensure ideal quality and also has experienced personnel who
undertake procedures and inspections such as radiography,
ultrasonic, magnetic particle and dye penetrant.
In addition, MTAR’s facilities are equipped with requisite equipment
for dimensional and geometrical inspection to establish micron level
adherence to customer specifications.
Wide product portfolio and long-term customer relationships

MTAR’s ability to provide quality products as per customer
specification, and consistent customer servicing standards, has
enabled it to increase the customers’ dependence on the company. A
significant demand for MTAR’s products is generated in India owing
to customers’ objective to enhance domestic sourcing as well as self-
reliance and its ability to supply technologically advanced products
enables it to nurture such established relationships with these
customers.
For instance, within the nuclear sector, MTAR has developed long
standing relationship with NPCIL (over 16 years) with its ability to
manufacture and supply specialized products for the new pressurized
heavy water nuclear reactors and refurbishment of the existing
reactors.
Within the space sector, it has established relationship with ISRO
(over three decade) by supplying a wide variety of mission critical
components and critical assemblies for its various missions.
It has undertaken complex assemblies for missile programs and
manufactured actuators for light combat aircrafts while catering to
organisations like DRDO, among others. It has also supplied critical
defence products such as aluminium weldments and other machined
components to its international customers.
It caters to customers in the clean energy sector through its supply
of power units, specifically, hot boxes to Bloom Energy.
State-of-the-art manufacturing facilities equipped with

modern technologies
MTAR operates through seven manufacturing facilities each of which
is situated in Hyderabad, Telangana. A series of high-end machines
support the manufacture of precision components. It has assembly
and testing capabilities supported by 10,000 class clean rooms with
facilities for high/low temperature, vibration, flow and helium leak
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tests. Its specialized fabrication facilities are supported by

conventional and orbital welding facilities, vacuum brazing, water jet
and plasma cutting facilities to meet ASME/ASTM standards. It has
surface treatment, heat treatment facilities and special processes
facilities. It also has in-house expertise to design and built certain
sophisticated special purpose machines instead of importing
comparable machines. Greater flexibility in terms of utilization of its
capacity for manufacture of customised products allows it to
optimally utilise its facilities.
Strong and diversified supplier base for raw materials

MTAR sources raw materials from third party suppliers depending
upon the requirement of a project in nuclear and clean energy
sectors. In certain instances, the raw materials for the manufacture
of products in space and defence sector especially involving the
critical and sensitive raw material are directly procured and supplied
by its customers.
Given that raw material expenses constitute a significant portion of
overall cost, MTAR benefits majorly from a strong, spread out and
diversified domestic and global supplier base located in Brazil, United
States, among others. The diversified supplier base helps in
minimizing supplier risk and enables to negotiate favourable terms
and avail better discounts.
In 1HFY21, the aggregate amount spent for the procurement of raw
materials towards its top five suppliers was 76.86% as a percentage
of total purchases.
Experienced and qualified management team

MTAR is primarily led by promoter and MD, P. Srinivas Reddy who
has over 29 years of work experience. In addition, the technical and
corporate management team has substantial experience in the
sectors served, which enables it to capture market opportunities,
formulate and execute business strategies, manage client
expectations as well as proactively respond to changes in the market
conditions.
Each business vertical is being managed by experienced and hands-

on segment heads having in-depth knowledge of the segments
catered and they are instrumental in establishing and maintaining
relationships with customers. The mid-level management is
supported by trained personnel and skilled workers who benefit from
regular in-house training initiatives on which special emphasis is
given. The current average employee tenure of approximately 15
years and a low attrition rate of 6% over last three years,
demonstrates the level of engagement of the workforce.
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Business Strategies
Strengthen the existing portfolio and diversify into new
products with attractive growth and profitability
MTAR intends to grow value chains to supply critical and
differentiated engineered products with a healthy mix of
developmental and volume-based production. It believes, this would
be possible through acquisition of new customers for existing
capabilities, establishing new capabilities like sheet metal facility and
enhancement of existing specialized fabrication capabilities. MTAR
will undertake sheet metal jobs for ISRO, Bloom Energy and certain
other customers. It intends to take up specialized fabrication jobs for
Multi-National Companies (“MNCs”) and other Indian organizations.
It is also in the process of developing roller screws (import substitute
in India) for nuclear, space and defence sectors. In addition to
currently supplying hot boxes in clean energy, MTAR intends to
supply electrolyzers (to produce methane-free hydrogen) to its
existing customers and have initiated the process for manufacturing
the same.
Further, the company is deliberating to establish a new facility for
the manufacture of high precision large and medium sized gears that
would cater to customers in defence, aerospace and clean energy.
Leverage on the domestic growth and indigenisation

opportunities in nuclear, space and defence sectors
Investments for 10 fleet reactors (7000 MWe) for nuclear power
plants present an opportunity for MTAR, which has been one of the
preferred suppliers of NPCIL for manufacturing equipment used in
the nuclear reactor. It also has the manufactories facilities to
undertake projects for four reactors at any given point of time.
The Indian defence sector is at an inflection point with several
policies announced to promote local sourcing and manufacturing like
indigenization of 108 systems and sub-systems, import ban on 101
items and Defence Acquisition Procedure, 2020 which mandated
50% local content. MTAR’s prior experience and robust relationships
with its customers provides an advantage over other private defence
companies in securing potential orders.
ISRO’s plans to manufacture small satellite launch vehicles, major
missions such as Gaganyaan, Aditya-1 and Shukrayaan-1, among
others and intentions to commercialise the Indian space sector, are
expected to support growth to the domestic companies like MTAR
operating in this segment.
Focus on deepening the relationships with existing customers

as well as catering to new customers
MTAR, along with its customers, has played a key role in the co-
development of products for national interests in space & defence
and benefits from the steep learning curve and investments in
advance manufacturing facilities. Also, given its relationship with
international customers, it believes it can be one of the preferred
suppliers in potential defence offset transactions.
Further, it intends to draw on its experience, niche market position
and ability to timely deliver quality products with cost efficiencies in
clean energy sector to not only supply more products to Bloom
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Energy, but also to develop new customer relationships, in India and

abroad.
Expand international presence and increase exports

MTAR is seeking growth in international markets where it can
provide cost and operational advantages to its customers. MTAR has
a dedicated business development team. Further, it has an
agreement with a marketing agency in USA, pursuant to which the
agency is required to make efforts to source global customers to
MTAR in return for a 5.00% commission upon the realization of
orders from such new customers.
CRISIL report mentions that Bloom Energy, one of the major players
in solid oxide fuel cell space in the United States, is now targeting
growth in the South Korean market. This provides a significant
revenue opportunity to MTAR which is a key supplier of hot boxes
and is involved in the development and manufacture of hydrogen
boxes and electrolyzers for Bloom Energy. In addition to exports to
Bloom Energy, the company has recently acquired a new
international customer in the clean energy segment.
It is eyeing defence offset partnership with global OEMs and has
incorporated a Subsidiary, Magnatar Aero Systems Private Limited in
this regard. MTAR has entered into a collaboration agreement with a
global player for spent fuel storage racks for nuclear power projects
and has jointly bid for the first tender.
Increase manufacturing capacity and market share through

organic and inorganic routes
MTAR intends to strengthen its leading market position and achieve
better economies of scale by establishing and acquiring additional
facilities, expanding existing production capacities and releasing
production bottlenecks. Consistent with past practice, it will look to
add capacity in a phased manner. By establishing sheet metal and
specialised fabrication facilities at Adibatla in Hyderabad, it intends
to cater to multiple customer segments (domestic and international).
In order to diversify into new markets, it aims to selectively acquire
capabilities such as electrical and electronics that are complementary
to its operations. It has entered into a MOU with an entity which will
cooperate with MTAR for offering services in electronics for all
electro-mechanical systems to be undertaken by the company.
Focus on operational efficiencies

MTAR intends to continue improving the cost structure through
emphasis on economies of scale, employment of learnings acquired
in manufacturing end components/assemblies and a robust supply
chain developed for sourcing of specialised raw materials.
It aims to focus on cycle time reduction by adopting advanced
technologies and thereby increase capacity to undertake more
number of projects. MTAR believes that its strategy to utilise
flexibility in manufacturing lines for different product verticals will
increase utilisation levels and cost advantage. Further, it aims to
leverage digital solutions to address the bottlenecks in shop floor and
to improve output efficiency.
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Financial highlights (Standalone)

The operating income has reported 15.74% CAGR over FY18-20.
Over the same period EBITDA (excl. other income) has witnessed a
CAGR of 34.85% and PAT has registered a CAGR of 140.31%.
For six months ending September 2020, MTAR has seen a growth of
22.24% in operating revenues with EBITDA growth of 14.25%. PAT
for 1HFY21 stood at Rs 192.13m implying a growth of 11.56% YoY
Figure 19:Revenue from operations has increased at a cagr of 15.74% over FY18‐20
(Rs mn) Revenue from Operations (LHS)
2,500
2,137.74
2,000 1,836.71
1,595.97
1,500 1,220.26
1,000
500
0
Source: Company
Figure 20: Segmental revenue mix (%)
Nuclear Sector Space and Defence Sector Clean Energy Sector
100%
80% 47.48
49.14
61.42 64.34
60%
40% 20.06 21.46
20% 16.39 18.40

28.89 30.17
13.05 14.27
0%
Source: Company
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Figure 21: EBITDA margin has ranged from 19.97% to 29.25% over FY18‐20

EBITDA (LHS) EBITDA Margin (RHS)
(Rs mn) (%)
700 29.25 35.0
29.10
600 27.12 30.0
500 19.97 25.0
400 20.0
300 15.0
200 10.0
100 5.0
318.75 537.16 579.66 355.07
0 0.0
Source: Company, EBITDA excludes other income
Figure 22: PAT has grown from Rs54.23m in FY18 to Rs313.18m in FY20
(Rs mn) PAT (LHS) PAT Margin (RHS) (%)
500 21.34 25.0
400 20.0
14.65 15.75
300 15.0
200 10.0
3.40
100 5.0
54.23 391.99 313.18 192.13
0 0.0
Source: Company
Figure 23: ROE and ROCE trend
(%) ROCE ROE
25
19.78
20 16.96
15 16.68
9.59 10.48
13.91
10
5 7.85
2.64
0
Source: Company, Sep’20 figures are not annualised
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Figure 24: Debt to equity
Debt / Equity
0.20 0.17
0.15 0.13
0.12
0.10
0.10
0.05
0.00
Source: Company
Figure 25: Trends in capex

(Rs mn) Capex
250 227.30
200
150
100 80.01
64.70
49.60
50
0
Source: Company
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Industry overview
(Source: CRISIL Research)
Indian Precision Industry

Precision engineering is a sub-discipline of engineering and is
concerned with manufacturing and assembling items that have
exceptionally low tolerance (less than 10 microns) and are required
to perform consistently over longer repeat cycles. Precision
engineering is more critical in sectors such as nuclear, defence and
space where errors can cause greater damage. It includes
manufacturing and assembly and covers materials, machining and
fabrication processes, to produce machinery and equipment of
perfect dimension and size. Accuracy and margin of error are
extremely important parameters for engineering and production. Any
deviation in dimensions can lead to loss of performance or even
catastrophic failure of the system.
Figure 26: Precision Engineering Products and share of end‐use segments
% share of
End‐use sectors Products
market – FY20
Automobiles Engine parts ‐ piston and piston parts, fuel injection equipment and carburetors, powertrain
components, engine bearings and valves, gaskets and liners , Suspension and braking parts , Drive 51%
transmission and steering parts , Other parts – sheet metal parts, ball and roller bearings
Power ‐ Hydro Hydro‐turbines, pumps and valves
6%
Power ‐ Wind Generator parts for gearless wind turbines
Nuclear power Steam generators, reactor components (end shield assembly and fittings) and pressurizers 0.9%
Defence Artillery systems, land and naval weapon systems, fire control systems, naval equipment and
systems, underwater platforms, engineering systems for land and marine forces, Unmanned
Aerial Vehicles (UAVs), Remotely Piloted Vehicles, autonomous programmable vehicles ‐ C4I
(Command, Control, Communications, Computers and Intelligence) systems, and missile
systems, ball screws as electro‐mechanical actuator
Aerospace Radar systems, missile carriers and launchers, hull equipment, and steering gear systems, spacecraft 19%
components, blades, fins, spars, aerospace structural components, complex mechanical
components, and soft‐turned bearings, ball screws as electro‐mechanical actuator
Engineering and Catalyst baskets for nitric acid plants
capital goods ‐ Hydraulic fittings
Plant and High precision machine spare parts
Industrial Hydro‐processing reactors, high‐pressure heat exchangers components, gasifiers, pressure vessels,
15%
process plant internals and other critical equipment for process plants
Engineering and
Steel plant and machinery, Textile machinery, Material handling equipment, cement machinery,
capital goods ‐
agro‐based machinery, Tooling machine parts and components, etc.
Others
Railways Diesel and electric locomotives
Space Satellite and launch systems parts and components, ball screws as electro‐mechanical actuator 11%
Fuel cell Electrolyser, Electrodes, fuel cell membrane, Bipolar plates, Anode and Cathode seal, stacks (Others)
Source: CRISIL Research
Precision engineering players exclusively cater to automobile sector’s

requirements due to the scale of volume and location preference
near the automobile plant/ cluster. Applications such as defence,
aerospace, nuclear, aviation and marine that have requirements of
high material performance and special material properties are
serviced by suppliers who have developed expertise for these niche
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applications. Other industrial end-use segments are catered to by

technology providers and respective suppliers.
Precision engineering industry is projected to log 6-7% CAGR

over FY20-25
The domestic precision engineering industry is estimated at Rs 4,098
bn for FY20, and has grown at a CAGR of 7.1% over FY16-20. The
industry is estimated to contribute 3-4% of overall manufacturing
output and will benefit from supportive government policies, growth
in the machinery and equipment industry and rise in penetration of
high technology machinery for manufacturing. Precision engineering
is expected to log 6-7% CAGR between FY20-25 to reach Rs 5,550-
6,550 billion by FY25. The growth in the industry will be driven by
auto-components and indigenous manufacturing in defence segment.
India’s manufacturing GVA constitutes 17-18% of the total GVA; it

increased from 17.4% in FY12 to 18.1% in FY20. Within
manufacturing GVA, machinery and equipment (capital goods and
engineering) GVA has grown faster than other segments. This
growth was supported by the Make in India initiative and sector-
specific initiatives to boost manufacturing.
Figure 27: Precision engineering industry to grow at a CAGR of 6‐7%

(Rs bn) CAGR 7.1% CAGR 6.0% ‐ 7.0%
6,000 5,550 ‐ 5,650
5,000 4,415
3,979 4,098
4,000 3,547
3,112
3,000
2,000
1,000
‐
FY16 FY17 FY18 FY19 FY20 FY25
Figure 28: Manufacturing GVA trends

CAGR
Parameters FY15 FY16 FY17 FY18 FY19 FY20 FY16‐
FY20
% of total GVA
17.3% 18.1% 18.1% 18.1% 18.1% ‐ ‐
(constant)
at current prices 115,043 125,745 139,652 155,131 171,400 183,432 9.8%
at constant prices 97,121 104,919 113,283 120,744 128,031 133,011 6.5%
Defence and aerospace has significant share in precision

engineering market
Auto components has the highest share in the precision engineering
market and its share is expected to rise on account of growing
demand for automobiles, domestic consumption as well as export
potential. Defence, aerospace, aviation, power and engineering and
capital goods segments are also expected to grow steadily with rise
in investments in these sectors. Defence and aerospace segment
(largest after auto) forms 18-20% of the precision engineering
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market and is valued at Rs 786bn in FY20. Engineering and capital

goods (excluding power) is the next largest segment with share of 9-
10% and is valued at Rs 609bn in FY20. Space equipment industry is
estimated at Rs 31.bn for FY20 contributing to 0.8% of the overall
precision engineering market. Demand for precision products from
nuclear segment is estimated at Rs 140-175bn between FY20 -25 as
compared to Rs 22.5-28bn between FY16-20.
Figure 29: Precision engineering industry by end user segment
Auto Components Defence & Aerospace Engg & Capital Goods
Aviation Power Nuclear
Rs bn
Space Others
6000
4000
2000
0
FY16
FY17
FY18
FY19
FY20
FY21
FY25
Overview of sheet metal fabrication in precision engineering

Sheet metal fabrication is a sub-segment of processes that use sheet
metal to build machines and structures. It involves complex
processes with bending and shaping of different sheet metal
techniques and finds application across various segments from niche
as space launch vehicle / satellite where high precision is required to
as simple as metal rack structure.
Steel is commonly used in metal fabrication for its durability and
strength while Aluminum is preferred for lower temperatures and
hence used in aerospace and refrigeration. Magnesium, Brass,
Bronze, and Copper are other metals used in sheet metal fabrication
of structures and machines.
Some industries that rely on sheet metal fabrication include the
aerospace, construction, automotive, HVAC, consumer goods,
robotics, electronics, and energy sectors among various others.
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Figure 30: Niche applications of sheet metal fabrication
Segments Uses Growth opportunities
 Airbus is planning to add new suppliers from its 45+ supplier base in India and
looking at developing a supplier base to support its partnership with Indian Air
force and Tata for supplying transport aircrafts.
Aero skin for fuselage, wing,
 Boeing procures from over 200 Indian suppliers and is planning to increase its
Aerospace building internal brackets,
supply from India from USD 1.1 Bn in 2019 to USD 2.0 Bn over the next five years.
racks, structures
 With government initiatives and Make in India efforts, defence and aerospace
domestic production is expected to rise which will generate demand for sheet
metal fabrication for niche applications.
 While stationary application is still in nascent stage in India, it is gaining traction.
GoI unveiled the first indigenous high temperature fuel cell system developed by
1. Stationary applications ‐ CSIR in partnership with Thermax and Reliance Industries in 2019
External casing
 Bloom Energy in partnership Atelier Global, GAIL India and Indian Oil, and USISPF,
structure, internal rack
announced a commercial real estate development in Bangalore powered by clean
structure of fuel cell
Fuel cell reliable electricity generated on‐site using natural gas and fuel cell technology
module
 Similarly fuel cell technology is being used by INTEL in Bangalore, IIT Delhi and BHU.
2. Transportation
With increased application of fuel cell stationary application, the demand for metal
applications ‐ mounting
fabrication for fuel cell units and modules will increase
structure
 Stationary application has higher requirement of metal fabrication than
transportation application considering only fuel cell module.
Exports have 19-20% share in precision engineering market

Exports have been growing at par with domestic industry demand for
precision engineering products due to huge investments in India for
manufacturing. The share of exports is expected to increase to 19-
21% going forward, as India focuses more on manufacturing. Rapid
rise in exports will be limited by longer maturation period for the
manufacturing sector and competition from other south Asian
countries.
Figure 31: Share of exports in precision engineering industry

Domestic share Export share
120%
100%
20% 19% 19‐21%
80%
60%
40% 80% 81% 79‐81%
20%
0%
FY16 FY20 FY25P
Precision engineering exports comprise 30-35% of overall

engineering exports and make up 3-4% of total exports. Precision
engineering exports increased to Rs781bn in FY20 at 6.1% CAGR
over FY16-20. Precision engineering includes exports of industrial
heavy machinery, aircraft and spacecraft parts, nuclear reactors,
industrial boilers and parts, pumps, auto components, internal
combustion engine parts, railways transport and locomotives.
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Figure 32: India’s Engineering exports
(Rs bn) Overall Engineering exports Precision engineering exports
6,000 5,662
5,381
4,911
5,000 4,314 4,377
3,836
4,000
3,000
2,000
671 615 639 686 821 781
1,000
‐
FY15 FY16 FY17 FY18 FY19 FY20
Growth drivers for precision engineering industry

• The precision engineering industry will continue to expand as
India increases its focus on manufacturing. Government of India
is aiming to raise the contribution of manufacturing to 25% of
GDP by 2025 from current 17-18%.
• Investment in capacity augmentation up to FY25 is expected to
drive demand for precision components used in machinery and
equipment. Government’s target to achieve USD 25 bn in terms
of country’s defence manufacturing, expected tenders for 14
reactors by NPCIL, among others will benefit precision
engineering industry
• Robust foreign direct investment is expected to boost India’s
engineering and manufacturing industries.
• Supportive government policies like increasing FDI in defence
manufacturing, Defence Acquisition Procedure (DAP 2020),
Atma-Nirbhar Bharat, focus on indigenous defence procurement
• Simplifying taxation and providing incentives.
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Figure 33: Growth drivers for precision engineering from key segments
Industry Growth forecast and reasons
Auto components The sector is expected to grow at 7‐9% CAGR between FY20‐25, to ~Rs 4,730 bn. The industry, along with
automobiles, is among the 27 champion manufacturing sectors identified by the Indian government.
Nuclear India’s nuclear power installed capacity was 6.78 GW in Aug 2020. By 2022, ~3,300 MW of capacities are
expected to be commissioned. This translates into a business opportunity of ~Rs 150 bn for manufacturing.
Further, tenders for 14 reactors (planned expansion market) is also expected in the near to medium term.
Defence and India plans to spend US$130 bn on military modernisation over the next 7‐8 years and targets revenue of USD
aerospace 25 bn in terms of country’s defence manufacturing. The Ministry of Defence has eased its procurement
norms, making it easier for Indian companies and start‐ups to provide equipment and other products to the
Indian armed forces. To achieve self‐sufficiency, the government is investing in defence industrial corridors in
northern and southern regions of the country, as well.
Power generation, CRISIL Research expects investments of Rs 9.5‐10.0 trn in this space over FY21‐25. Investment in the
transmission and generation segment is expected to be Rs 3.5‐4.0 trn. Rising private sector participation and ultra‐high capacity
distribution (T&D) green energy corridors, with expected investments of Rs 430 bn, will also support transmission capex
Material handling
Robust demand from the steel, power, mineral, and other infrastructure industries.
equipment
Commercial The commercial aircraft fleet is expected to increase from the current 600‐700 aircrafts to over 1,000 aircrafts
aviation over the next 4‐8 years to address the 3.3x increase in passenger traffic over the next 20 years.
Space Equipment ISRO has plans for 31 satellite missions over the next two financial years i.e FY21 and FY22 and a total of 32
launch missions have been planned. ISRO has announced that over the next five years, the private sector will
receive the mandate for ~70% of all the upcoming space missions
Clean Energy Government of India is supporting growth in fuel cell energy generation. MNRE is supporting investments in
hydrogen fuel cell transportation infrastructure in India. Also with rise in fuel cell installations /cars in Asian
continent, India will eventually adopt the technology on commercial viable scale as it is currently exploring
the area. At the same‐time India can cater to the manufacturing demand for fuel cell in Asia market.
Competitive landscape in precision engineering industry

The engineering manufacturing industry is very fragmented, but
established players with developed technological expertise create
entry barriers for new players, especially in precision engineering
sectors such as defence, aerospace nuclear, space, and aviation.
MTAR Technologies, Larsen & Turbo (L&T) (defence, aerospace

engineering segment) , Godrej & Boyce (aerospace and precision
engineering segment), Mahindra Defence Systems, Tata group
(aerospace and defence segment) and Vem technologies are some
of the leading players in the nuclear, space and defence and
aerospace equipment manufacturing in India.
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Figure 34: Business overview of key players in the Indian precision industry space
Year of
Company Business description
establishment
MTAR Nuclear equipment, defence and aerospace equipment, fabrication facilities, Fuel cells
1999
Technologies manufacturing
Mahindra
Armoured solutions for military and paramilitary forces, and aircraft mobile surveillance, and
Defence 2012
modern defence equipment for the army, navy and air force
Systems
Alpha Design
2003 Defence electronics, avionics and space satellite systems
Technologies
Vem
1993 Manufacturing parts and systems for missiles, bombs, UAVs, helicopters, aircrafts, and radar
Technologies
CIM Tools 1997 Manufacturing aircraft parts and equipment
Sika Interplant Manufacturing engineering products and systems for aerospace and defence ‐ Aircraft landing
1985
Systems gear, hydraulic LRUs/assemblies, and actuators
Schaeffler India 1962 Ball bearings and roller bearings
SKF India 1961 Manufacturing bearings and its components
Timken India 1966 Manufacturing bearings, components and accessories
Shanti Gears 1972 Manufacture of gearboxes and geared motors
Offerings in the defence and space segment include space engines and satellite thrusters,
composites for space industry, land based systems such as missiles carriers, land mine, missile
Godrej & Boyce 1932
launchers, mixer bowls, air frame system for defence, sheet metal brackets and complex
fabrication and composites.
Offerings in the defence segment include weapon systems, naval platforms / systems, land
systems, missiles, aerospace offerings and defence infrastructure. Engineering systems under
L&T 1946 defence comprises of steering gear, stabiliser, ship lift and transfer system, helicopter handling
suite, shiplift and propulsion systems for aerospace segment. L&T’s nuclear segment offerings
include steam generators, reactor end shields, reactors vessels, spent fuel handling equipment.
Figure 35: Financial performance
Op Op Net Interest Current
Company Year OPBDIT PAT RoCE Gearing
income margin margin coverage ratio
Rs. Mn % Times
Mahindra Defence FY20 3,073 420 190 13.7 6.2 16.3 0.0 33.4 2.2
Alpha Design
FY19 2,325 299 65 12.9 2.8 9.4 0.2 2.5 1.9
Technologies
Vem Technologies FY19 1,555 355 86 22.8 5.5 15.1 0.9 2.5 1.1
CIM Tools FY19 1,516 336 153 22.1 10.1 17.8 1.7 3.9 1.2
MTAR Technologies FY20 2,138 609 300 28.5 14 19.2 0.1 13.1 1.5
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Nuclear Equipment Industry

Global Nuclear Equipment Industry
Currently, nuclear power plants account for 10% of the world’s total
generated power. This is supplied by about 440 reactors across the
globe. The most widely-used reactor is the PWR, which accounts for
nearly three-fourths of the overall operational reactor capacity. The
second most widely-used reactor is the BWR. The PHWR are mainly
preferred in India and Canada. The PHWR currently used in India are
based on Canadian technology and have been improved upon
indigenously.
Figure 36: Overview of global nuclear reactors
Share of operational Share of under
Reactor type Main countries
capacities construction capacities
USA, France, Japan, Russia, China,
Pressurized Water Reactor (PWR) 72.4% 91.8%
South Korea
Boiling Water Reactor (BWR) USA, Japan, Sweden 16.8% 2.4%
Pressurized Heavy Water Reactor
Canada, India 6.1% 4.5%
(PHWR)
Advanced Gas‐Cooled Reactor (AGR) UK 2.0%
1.2%
Light Water Graphite Reactor (LWGR) Russia 2.3%
Fast Neutron Reactor (FBR) Russia 0.4%
Source:, CRISIL Research
Figure 37: Projected increase in global nuclear capacity Figure 38: Global nuclear equipment supply chain

additions in GWe (2020‐2025) hierarchy
50
Tier 1 : Technology vendors
40
Tier 2 : Systems integrators
30 Tier 3: OEM
40‐47 Tier 4: Sub component
20 38 suppliers/ distributers
Tier 5: Processors / fabricators
10
Tier 6: Raw material suppliers
/ miners
0
2015‐2019 2020‐2025P
Source: CRISIL Research Source: CRISIL Research
In the past two decades, the share of nuclear power across the world
has been dwindling, largely on account of rising capital cost, safety
concerns, long construction cycle and greater focus on low-cost
renewable sources. However, the growth in nuclear capacity is
expected to be fuelled by the Asia-Pacific nations. The installed
capacity base is forecast to increase by ~5% - ~23% compared with
the previous five years. While the advanced economies are expected
to gradually reduce their dependence on nuclear power, countries
such as China, the UAE, South Korea and India together represent
more than ~45% - ~50% of future expected capacity additions.
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India Nuclear Equipment Industry

Currently, India has 22 operational reactors and an additional 7 are
under construction. India’s operational nuclear capacity is 6.3 GWe.
Traditionally, India has been meeting its energy requirements by
importing fossil fuels. Reducing the dependence on these imports is
one of the major driving forces behind investment in nuclear power.
The target now is to bring net nuclear power capacity to 26.2 GWe
by 2031. With international cooperation, nuclear energy outlook has
improved and the Indian government is working towards its
investments to achieve its nuclear power generation target.
Figure 39: Share of various types of reactors in India’s Figure 40:Increase in India’s nuclear capacity, for 2019‐2025P

Reactor Operational Under construction Installed Nuclear Capacity (GWe)
Type (6.3GWe) (5.3 GWe) 14
PHWR 65.4% 52.8% 12
9.25 ‐ 10.25
PWR 29.8% 37.8% 10
FBR 5.8% 9.4% 8
6.255
6
4
2
0
2019 2025P
The focus of India’s nuclear programme has been promotion of

indigenisation. Over the years, it developed indigenous expertise in
the PHWR technology as it did not have access to enriched uranium.
The 2009 nuclear agreement signed with international community
permitted India to produce nuclear energy from imported fuel under
the guidelines of IAEA. Since then, the country has been expanding
its nuclear fuel complex. The upcoming nuclear power projects are
largely using PHWRs as local suppliers have developed expertise in
this technology and the government is also keen on protecting the
domestic industry.
There are a number of other types of reactors too with foreign
technology vendors providing the reactor technology. VVER by
Russia and EPR by France are examples. But these are
fundamentally PWRs. Indigenously developed fast neutron reactors
are gradually gaining traction as well.
Market size of nuclear equipment industry

India’s installed nuclear capacity as of 2019 is 6.255 GWe and it is
expected to rise to approximately ~9.255 to ~10.255 GWe by 2025.
Over 2020-2025, the country’s nuclear power capacity is estimated
to register a CAGR of 7.5 – 8.5%.
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Figure 41: Type of opportunities in nuclear equipment market
Market Particulars Frequency
Maintenance Regular maintenance and site orders ‐ Awarded on an annual basis
Refurbishment Change of parts and assemblies for reactors operational for ‐ Awarded every two years
17‐18 years
‐ 7 reactors (5.3GWe) under construction. 3‐4 GWe
to be operational in the next five years
New build Contracts regarding new and under‐construction projects
‐ 14 new reactors (10.5 GWe) planned and tenders
are expected to be released in phases
Source: Company, CRISIL Research
The combined Maintenance and Refurbishment market is estimated

to reach Rs 9-10 bn over 2020-2025.
Figure 42: India nuclear power plant Refurbishment & Figure 43: New build market outlook

Maintenance market (Rs bn)
Refurbish Market Maintenance Market Overall capital Equipment
(Rs bn)
cost cost
1,200
9 ‐ 10 Operational 110‐120 22‐28
1,000
Under‐construction 680‐720 130‐170
2.4‐2.6
800 Planned expansion
5.5 ‐ 6.0 1,760‐1,800 350‐435
600 (medium to long term)
1.4‐1.6
400 6.5‐7.5
200 4.2‐4.5
0
2015‐2019 2020‐2025P
Figure 44: Equipment costs 20‐25% of the total capital cost of nuclear power plant
(700 MWe)
Construction and installation works
3% ‐ 4%
2% ‐ 3% Equipments
29% ‐ 33%
3% ‐ 4%
Labor onsite
4% ‐ 5%
Site development and civil works
4% ‐ 7%
Construction material
Project management services
8% ‐ 11%
Project engineering, procurement and
11% ‐ 14% construction management
20% ‐ 25% Design, architecture, engineering and
licensing
Others
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Figure 45: Under construction and planned reactors
Reactors Construction start State Type Gross capacity (GWe)
Under construction
Kakrapar ‐ 3 & 4 2010 Gujarat PHWR 0.7x2
Kudankulam ‐ 3 & 4 2017 Tamil Nadu PWR 1.0x2
PFBR 2004 Tamil Nadu FBR 0.5
Rajasthan ‐ 7 & 8 2011 Rajasthan PHWR 0.7x2
Total 7 units 5.3
Planned
Gorakhpur ‐ 1, 2, 3 & 4 Haryana PHWR 0.7x4
Chutka ‐ 1 & 2 Madhya Pradesh PHWR 0.7x2
Mahi Banswara ‐ 1, 2, 3 & 4 Rajasthan PHWR 0.7x4
Kaiga ‐ 5 & 6 Karnataka PHWR 0.7x2
Kudankulam ‐ 5 & 6 Tamil Nadu PWR 1.05x2
Total 14 units 10.5
Growth drivers for Indian Nuclear Equipment Industry

• With rising carbon neutrality goals and targets, India is focussing
on clean power generation through renewables and nuclear
technology.
• To benefit from large thorium reserves, India has been
developing indigenous reactor technology to reduce its
dependence on imported uranium. India wishes to become
largely self-reliant in terms of nuclear fuel requirements.
• The 2009 nuclear deal and the subsequent adoption of IAEA
safety norms boosted the outlook for India’s nuclear industry and
made authorities confident of aggressively expanding nuclear
energy capacities
• To strengthen the domestic nuclear supply chain in line with the
government’s ‘Atmanirbhar Bharat’ initiative, the government has
devised a policy to construct a fleet of reactors with a single
timeframe. This is expected to increase opportunities for
domestic suppliers such as L&T, Godrej, MTAR etc.
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Competitive landscape in nuclear equipment industry
Figure 46: Product offerings of key Indian competitors in the Nuclear Energy space
L&T Godrej & Boyce MTAR Technologies
 Steam Generators  Pressurized Heavy Water Reactor (PHWR)  Fuel Machining Head – 220
 Reactor End Shields (PFBR) - Bridge and Carriage ‐ 700 MWe MWe
 Reactor Vessels Reactor  F.M Bridge and Carriage –
- PHWR - Calendria ‐ 700 MWe 500 MWe
- PFBR - Drive Mechanisms ‐ 500 MWe and 220  Transfer Magazine – 500
 Plasma Reactor & Research Reactor MWe MWe
- Tokamak Reactor Vessel - MAL FMAL Doors ‐ 500 MWe  Coolant Channel
- Deck Plate - New Fuel Magazine (STIB) – 220 MWe  Standpipe Thimble
- Fueling Machine - Shuttle Station (STIB) – 220 MWe Assembly
- Carriage and Trolley - Shuttle Transfer Stations – 500 MWe  Liner Tube
- Test facility - Rotating Plugs of PFBR for BHAVINI  Ball Screws
 Heat Exchanger  Equipment for Research Labs  Sealing Plugs
 Spent Fuel Handling Equipment - Glove Box  Shielding Plugs
- Spent fuel Canisters & Cask - Toroidal Vacuum Vessel  Fuel Locator Assembly
- High Level Radioactive Waste Storage - Microtron Assembly  Adjustor Rod Mechanisms
Tanks  Heat Exchangers  Shut off Rod Drive
- Dump tanks - HP Feedwater Heaters Mechanisms
 Heavy Water Production Equipment - LP Feedwater Heaters  Calendria
- Distillation Columns & Trays - Closed Cooling Water Heat Exchangers  PFBR Assemblies
 Control Rod Drive Mechanism (CRDM)  Miscellaneous  Grid Plate
 Fuel Transfer Arm & Tool Delivery System - Surface Condensers  Control Plug
 Nuclear Power Piping - Piping Spools
 Modification, Revamp and Upgrades - Deaerators
- Steam Generators
 Process Plants Internals
- Pressurizer
- Reactor Tray Internals
- Distillation Column
 Power Plants
- Moisture Separator Re‐heaters
- Surface Condensers
- Flash Tanks
- HP Feedwater Heaters
- LP Feedwater Heaters
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Indian space equipment industry

ISRO is responsible for driving the space sector in India. It is
responsible for space missions related to satellites, launch vehicles
and R&D. It has an ecosystem of 400+ suppliers (largely SMEs) that
contribute components towards ISRO’s mission. ISRO is the sole
entity that is responsible for procurement and assembly of satellites
and launch vehicles. Currently, launch services come under the
purview of ISRO. However, the regulations are in the process of
getting updated to involve private participation.
ISRO has plans to expand its technological prowess in the future
with missions such as Chandrayaan-3, Gaganyaan (human
spaceflight mission), Aditya-1 (proposed mission to study the Sun),
Sukrayaan-1 (proposed orbiter to Venus) and a new port in Tamil
Nadu for SSLVs. ISRO conducted 14 missions in FY19 and more than
11 missions in FY20. It hopes to complete 36 missions in FY21 and
31 missions in FY22.
Investment in space technology constitutes a major chunk of the
overall space budget and is likely to hold a majority in future
budgets as well. The investment share of space technology in overall
expenditure has risen from 59.7% in FY16 to 72.4% in FY21.
Figure 47: India’s space budget for FY16‐FY25P Figure 48: ISRO’s past and future missions

Department of Space, India ‐ Budget (Rs billion) Missions FY19 FY20 FY21E FY22E
CAGR (FY21‐FY25P): Earth observation satellites 2 4+2* 10 8
CAGR (FY16‐FY21): 14.2%
8.0‐9.0% Communication satellites 4 1+1* 3 3
220.00
Navigation satellites 1 0 2 2
170.00 Space science satellites 0 1 3 0
Technology demonstrator 1 0 1 0
120.00 PSLV 4 4+2* 10 8
GSLV Mk II 1 0+1* 3 6
143 ‐ 148
185 ‐ 190
70.00 GSLV Mk III 1 1 1 0
112
125
135
SSLV 0 0 2 2
80
91
69
20.00 Gaganyaan 0 0 1# 2
FY16 FY17 FY18 FY19 FY20 FY21 FY22P FY25P Total 14 11+6* 36 31
Source: CRISIL Research Source: CRISIL Research, *Number of missions expected to be
achieved by March 2020. However, it might not have been achieved
due to the Covid‐19 pandemic. # Unmanned
Figure 49:Indian space equipment market
Rs Bn Satellites Launch Systems Rs Bn Military and government Commercial

CAGR: ‐12.4% CAGR (P): 7 ‐ 8%
100 100
77.93 77.93
80 76.14 80 76.14
59.52 59.00 59.52 59.00
60 60
46 ‐ 48 46 ‐ 48
40 35.91 35.5‐36.5 40 35.91 35.5‐36.5
20 20
0 0
FY17 FY18 FY19 FY20 FY21E* FY22P FY25P FY17 FY18 FY19 FY20 FY21E* FY22P FY25P
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The satellite manufacturing and launch systems market in India is

estimated to reach Rs 46 – 48 bn by FY25, at a CAGR of 7-8% over
FY20-25. Due to regulations, the commercial segment of this
industry is virtually non-existent. However, proposed policies have
changed the outlook for the commercial segment and it is expected
to reach Rs 8-9 bn by FY25. Given India’s military position with
respect to its neighbours and rising prominence of satellite
applications in military use, the military and government segment is
expected to lead and reach Rs 37–39 bn by FY25.
Key growth drivers and trends

• India’s satellite launch services are highly cost-competitive and
reliable. Hence, it is expected that foreign entities will seek out
ISRO for satellite launches of medium and small category.
• With the possibility of private players owning satellite systems,
the demand for satellite manufacturing and launches will rise
from the commercial end. Start-ups are also coming up in the
space domain with significant technological prowess.
• Government support to private players (in the form of technology
transfer, infrastructure support for launches etc) will aide end-to-
end manufacturing set-up for satellites and launch systems.
Rising demand for small satellites and SSLVs will foster cost
optimisation through economies of scale and manufacturing
efficiency
• The small and micro satellites market is gaining ground due to
electronic miniaturisation technology, reduced manufacturing
time, its lightweight, and cost-effective nature. In the near term,
a surge in demand for SSLVs is expected as it will make ISRO
more cost competitive for lower payload launches.
• The growth of the earth observation downstream market is
expected aid the satellite manufacturing and launch industry
• ISRO has plans for 31 satellite missions over the next two
financial years. A total of 32 launch missions have been planned.
These consist of PSLV, GSLV Mk II, GSLV Mk III and SSLV. ISRO
has also outsourced end-to-end production of 5 PSLVs to the
private sector and a further order of 12 is on the cards
Competitive landscape of space industry
Figure 50: Product offerings of key Indian competitors in the space industry
MTAR Technologies L&T Godrej & Boyce HAL
 Liquid propulsion rocket engines  Rocket motor casings  Air frame systems for  PSLV
(Vikas Engines)  Convergent and divergent defence  GSLV ‐ MK II
 Command system modules nozzles  Space engines &  GSLV ‐ MK III
 POGO command modules  Titanium gas bottles for liquid satellite thrusters  Indian remote
 Hot gas roll control module stages  Sheet metal brackets sensing satellites
 Pressurisation system module –  Titanium tanks for liquid upper  Complex fabrication  Indian national
ground operation valve stages parts satellites
 Roller screws  Heat shield  Tubes & ducts
 Gas bottles for cryogenic engine  Core base shroud  Line replacement units
start‐up system  Solar deployment mechanism  Structures
 Semi cryogenic engines  Reflector deployment  Rubber fuel tanks &
 Cryogenic engines mechanism seals
 Aerodynamic test facilities  Composites & special
processes

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Indian Defence equipment industry

India’s defence capital outlay has been growing at a compounded
annual growth rate of 9.6% over FY16-FY20 which is slightly lower
than the growth in defence expenditure (~11% CAGR) over the
same period. In FY21e, the budgeted capital outlay has risen to
~23% of defence expenditure. A decade back the contribution of
defence expenditure to GDP was 2.2-2.3% which has been rising
consistently to reach ~3% (in Rs terms) by 2019.
Figure 51: India (GDPx) – Defence Expenditure to GDP Multiplier (FY12‐FY25)

Defence Expenditure (INR Bn) (LHS) GDP Growth (RHS)
Defence Expenditure Growth (RHS)
GDPx 
1.6 1.5 1.7 1.7 0.5 2.5 1.1 1.3 2.6 0.9 1.7‐1.9
Rs bn
7,000 19% 25%
6,000 CAGR: 4‐5% 20%
11% 11% 12% 11% 15%
5,000 8% 8% 7%
8% 10%
4,000 4%
6,000 ‐ 6,500
7% 6% 7% 7% 6% 5%
3,000 5%
4,714
9% 0%
4%
2,000 ‐5%
2,373
2,573
2,846
3,194
3,323
3,967
4,290
4,609
5,138
1,000 ‐8%
‐10%
‐ ‐9% ‐15%
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21e
FY25P
Figure 52: India’s defence capital outlay
Rs Bn Defence Capital Outlay (LHS)
Capital Outlay as % of Defence Expenditure (RHS)
Growth in Capital Outlay (% yoy) (RHS)
1500 22% 23% 25%
21% 21% 20% 20%
20%
16%
15%
1000
10%
10%
8% 4% 5%
500 ‐2% 4% 0%
‐5%
717 834 904 939 1034 1,072
0 ‐10%
FY16 FY17 FY18 FY19 FY20 FY21e
Figure 53: Modernisation Budget of Indian Armed Forces
2019‐20 (BE) 2020‐21 (BE)
YoY%
(Rs Bn) (Rs Bn)
Army 229.5 256.0 13.3%
Navy 221.0 256.2 15.9%
Air Force 363.7 390.3 7.3%
Total 814.2 906.5 11.3%
The Indian government’s funding for the next 5 years is expected to

be USD 130 bn for defence procurement. The government is also
looking to achieve target revenue of USD 25 bn in terms of country’s
defence manufacturing.
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Figure 54: Trade Balance for Arms and Ammunition ‐ Parts and Accessories (FY18‐
FY20)
Rs Bn Exports Imports Export CAGR: 21% Import CAGR: 38%

10.0 9.3
7.8
8.0
6.4
6.0
4.6 4.4
4.0
2.3
2.0
‐
2017‐18 2018‐19 2019‐20
The arms and ammunition exports from India have risen at a robust
CAGR of 21% to Rs 9.3 bn from FY18 to FY20. However, in the same
period, the imports rose faster (38% CAGR), albeit at low base, to
reach Rs 4.4 bn. The trade balance has tilted in favour of exports
rising from INR 4.1 bn in FY18 to INR 4.9 bn in FY20.
MTAR’s defence capabilities

MTAR has been integrally involved in India’s strategic missile
program in various stages. Moreover, it has been a major supplier to
various programs of DRDO labs like ADA (Aeronautical Development
Agency), Advanced Systems Lab (ASL), GTRE (Gas Turbine Research
Establishment), and DRDL (Defence Research and Development
Laboratory). It has been involved as a supplier to major DPSUs like
BEL (Bharat Electronics), BDL (Bharat Dynamics), HAL (Hindustan
Aeronautics Ltd) etc. It has expertise in manufacturing control
actuation mechanisms which involves electronic mechanisms such as
DSRDM & CSRDM Assemblies and Fuel machining head mechanisms
which are vital for major system integration projects in Defence.
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Figure 55: MTAR’s product offerings based on specific Defence clients
Client Offerings Production Expertise
Base Shroud and Fin Assembly
Airframe Structures for Agni A1, A2, A3, A4, A5, A1P
It has been key supplier for programs such as Agni A1,
ASL Metallic Canister for LRSAM Program
A2, A3, A4, A5, A1P and Prithvi missiles
Interstage ½ Assemblies for Missile programs
SITVC AND HFTC VALVES
Drop Tank Components –1200 & 800 Litres
Radome Bulk Heads
ADA ‐
10T, 20T Actuators
Control Module Components
Actuators
L P Shaft Turbine
Gear Casing
GTRE Casing Compressor ‐
Bevel Pinion Housing
Gear Box Casing
Assembly Diffuser Casing
Gyro Components for Invar
BDL Motor Body for Konkurs ‐
Manifold for C303 Anti Torpedo Missile System
Input Housing for ALH
Titanium Center Piece
Rotor Mast Bearing Housing MTAR manufactures actuators for LCA Tejas, critical
10 T ‐DALIA Actuators for HAL Tejas ‐Sleeves, Control Manifold, front and rear shafts for fighter aircrafts. They also
Fwd. & Rear cylinders, Pistons & other parts. manufacture critical turbine nozzles and turbine discs in
HAL
Main Gearbox for ALH super alloys, landing gear pistons, power door opening
Stub Shaft for ALH systems, ram bodies, housings, frames, leavers, pistons,
Tail Rotor Shaft for ALH cylinders etc.
Sukhoi HPC Shaft ‐Nickel Alloy
Engine Components for HAL
Precision Machined Components Critical Aluminum Weldments and other Machined
RAFAEL
Critical Aluminum Weldments components go into LRSAM Missile program by Rafael
Shaft V‐Tail
Actuator torque link, RHS Approximately 92 different critical components has been
ELBIT
Fork Wheel NLG supplied to ELBIT for Hermes 900 Drone program
Gear Leg
Source: Company
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Fuel cell (clean energy) industry

The need to address climate change is driving a transformation of
power systems globally. Renewables, including solar, wind, hydro,
biofuels, tidal energy and others, are at the centre of the transition
to a less carbon-intensive and more sustainable energy system.
Renewables has been in a bright spot with the strong growth of solar
photovoltaics and wind turbines in recent years. But the role of
renewables in transportation and heating is also critical for the
energy transition and portable sources of energy, such as hydrogen
fuel cells and electric cars, have come to play a larger role.
Figure 56: Global electricity production in 2018 Figure 57: Global electricity production in 2040
Nuclear Oil Biofuels Others

Wind 3% 4%
10% 5% 3%
Solar PV Coal
Hydro
Solar PV 13% 23%
16%
2% Oil
Biofuels
1%
2%
Natural
Others Wind
gas Natural
1% 13%
23% gas
21%
Coal Nuclear
38% 8% Hydro
14%
Fuel cells are evolving as a source of distributed generation

Stationary fuel cell systems are used for backup power, powering
remote locations, stand-alone power plants for off-grid towns and
cities, distributed generation for residential and commercial
buildings, and co-generation. Fuel cell-based distribution energy is
still nascent, and is limited to niche applications and regions. Fuel
cell stationary applications find more relevance for commercial
applications such as data centers and servers, hospitals, cellular
towers. USA has seen the largest deployment of fuel cell energy.
So far, fuel cells have succeeded in certain niche applications, such
as space (satellites, and the space station), forklifts in warehouses,
telecom tower, and primary and backup power for critical facilities
Figure 58: Types of fuel cell
Type Particulars
Fuel cell utilises hydrogen for A fuel cell uses the chemical energy of hydrogen or another fuel to produce electricity. Fuel
production of electricity cells continuously generate electricity as long as there is supply of fuel.
Electroyser / reformer for This helps in generation of hydrogen from other sources, such as natural gas/biogas (through
sourcing hydrogen reformation) or by electrolysing water.
Fuel cells based on natural gas / Fuel cells can also be designed to run on other fuels, provided these contain hydrogen (natural
methane gas/methane)
The chemical composition of the electrolyte differentiates one fuel

cell technology from another. Fuel cell technologies – PEMFC
(polymer electrolyte membrane fuels), AFC (alkaline fuel cell), PAFC
(phosphoric acid fuel cell), MCFC (Molten carbonate fuel cell), and
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SOFC (solid oxide fuel cells) – are available with >200 kW capacity.
Each has a different operating characteristic and serves a different
segment of the CHP or power generation market
PEMFC and SOFC dominates fuel cell technology deployment

Not all fuel cell technologies have taken off successfully. Deployment
of some fuel types has been limited owing to road blocks in
effectiveness and high lifetime cost of the technology as compared
with alternatives. PEMFC requires highly pure hydrogen as fuel, and
its operational temperature provides only low grade heat. However,
it demonstrates a fast response to change in power demand. SOFC
offers high electrical efficiency and high-grade heat, use natural gas
as fuel, but has long start-up time and slow response time.
Figure 59: Comparison of technology types of fuel cells
Operating Major technology
Fuel cell type Typical stack size Electrical efficiency (%)
temperature deployment players
Polymer electrolyte 60% direct hydrogen fuel,
<120°C 1–100 kW Ballard
membrane (PEM) 40% reformed fuel
Alkaline fuel cell (AFC) 90‐120°C 1–100 kW 60% AFC Energy
Direct methanol fuel cell
30‐130 °C 25‐5 kW 40% SFC Energy
(DMFC)
5–400 kW, 100 kW module
Phosphoric acid fuel cell
150–200°C (liquid PAFC) <10 kW (polymer 40% Doosan Corporation
(PAFC)
membrane)
Solid acid fuel cell (SAFC) 220‐280°C 10W ‐ 10kW ‐ SAFCell Inc
Molten carbonate fuel cell 300 kW –3 MW,
600–700°C 50% Fuel Cell Energy
(MCFC) 300 kW module
Solid oxide fuel cell (SOFC) 500–1,000°C 1 kW – 2 MW 60% Bloom Energy
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Figure 60: Overview of fuel cell technologies
Fuel cell
Applications Advantages Challenges
type
 Backup , Portable power
 Solid electrolyte reduces corrosion and
 Distributed generation
electrolyte management problems  Expensive catalysts
PEM  Transportation & Specialty
 Low temperature  Sensitive to fuel impurities
vehicles
 Quick start‐up and load following
 Grid support P2P
 Wider range of stable materials allows  Sensitive to CO2 in fuel and air
 Military & Space
lower cost components  Electrolyte management
AFC  Backup power
 Low temperature (aqueous)
 Transportation
 Quick start‐up  Electrolyte conductivity (polymer)
 Ideal for consumer goods such as mobile
 Portable consumer devices  Ill‐suited for powering large
phones, digital cameras or laptops
DMFC  Military vehicles
 Low noise & thermal signatures, no toxic
 Smaller vehicles  Limited power production capacity
effluent
 Expensive catalysts
 Suitable for CHP
PAFC  Distributed generation  Long start‐up time
 Increased tolerance to fuel impurities
 Sulphur sensitivity
 High‐temperature corrosion and
 High efficiency & Fuel flexibility
 Electric utility breakdown of cell components
MCFC  Suitable for CHP
 Distributed generation  Long start‐up time
 Hybrid/gas turbine cycle
 Low power density
 High efficiency & Fuel flexibility  High‐temperature corrosion and
 Auxiliary power
 Solid electrolyte breakdown of cell components
SOFC  Electric utility
 Suitable for CHP  Long start‐up time
 Distributed generation
 Hybrid/gas turbine cycle  Limited number of shutdowns
Fuel cell market is growing at 15% CAGR with increased R&D

for commercial application
Fuel cell manufacturing industry stood at an estimated $2.8 bn in
2019. Fuel cell market logged 15% CAGR from 2015 to 2019 with
increased R&D for commercial application of fuel cell in niche areas
of transportation and distributed stationary power. The increase in
usage of fuel cell for electricity generation has been supported by the
decline in cost due to R&D and economies of scale from higher
production volume. Applications of the fuel cell technology have
increased over the past five years as electricity wattage installation
logged 30-40% CAGR to reach 1,130 MW in 2019 from 300 MW in
2015.
Figure 61: Fuel cell installation in megawatts
3.8 times energy installations for fuel cell in 2019
1,200
1,000
800
MW
600 1,130
400 806
659
517
200
298
0
2015 2016 2017 2018 2019
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Growth trend to continue over the next five years with

increase in adoption
The fuel cell industry, in value terms, is expected to grow at 14.0-
15.0% between 2020 and 2025 with the increase in volume and
decline in cost. In volume terms or megawatt installation for fuel cell
industry is expected to grow strongly at 35-40% CAGR over the next
five years to reach 5,000+ MWs by 2025 as compared to 1,130 MWs
in 2019 while cost is expected to decline by 15-20% during the same
period. Growth will be driven by the demand from transportation
application and stationary application in niche areas for power
backup and distributed reliable power generation.
Figure 62: Global fuel cell industry size
$ mn
6,000
CAGR: 15.0% YoY ‐5% 14.0‐15.0% CAGR
5,000
4,000
3,000
5,200 ‐ 5,500
2,650 ‐ 2,700
2,000
1,620
1,977
2,226
2,467
2,832
1,000
0
2015 2016 2017 2018 2019 2020E 2025P
The growth in fuel cell industry will be subject to various factors such
as improvements and innovations in technology and cost
effectiveness of fuel cell, innovations and cost competitiveness from
alternate power sources such as renewable energy, batteries or
electric vehicles, and support from government for policy and
regulations.
SOFC have been gaining market share over the recent years with
commercial success after product R&D and cost improvement. SOFCs
gained traction in the fuel cell market with increased R&D for
stationary applications.
Figure 63: Overview of growth in fuel cell industry
Parameter 2019 2025P Times increase
Fuel industry size RS. 2.8 bn Rs. 5.2‐5.5 Bn 1.9
Fuel industry installations by MW 1.1 GW 5.0+ GW 4.5
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Figure 64: Market segmentation by fuel type – MW Figure 65: Market segmentation by fuel type – Unit / stack

installation (electricity generated) installation (volume installed)
PEMFC SOFC PAFC Rest PEMFC SOFC PAFC Rest
100% 4% 100% 3% 5%
23% 9% 9%
80% 7% 80% 32%
8%
60% 18% 60%
40% 83% 40% 88%

62%
51%
20% 20%
0% 0%
2015 2019 2015 2019
Growth drivers
Figure 66: Growth drivers for fuel cell technology
Drivers Particulars
Efficiency Fuel cells operate at high efficiency, ~60%, to convert chemical energy into electricity, as
compared to other conventional power sources with efficiencies of 20‐40%
Zero emissions Hydrogen can be produced from diverse domestic resources with potential for near zero
greenhouse gas emissions. Once produced, hydrogen generates electrical power in a fuel cell
emitting only water vapor and warm air
Government’s support towards While support for hydrogen is steadily increasing within the US, many other nations are taking an
decarbonisation of power active approach by implementing hydrogen and fuel cell focused strategies and investments
Utilising hydrogen as energy With growing concerns over climate change, hydrogen is emerging as a clean solution that can
source help curb carbon emissions globally
Reduces dependency on non‐ Diversification of sources of fossil fuel supply, due to growing security, economic concerns and
conventional energy sources environment concerns
Transportation and logistics Increasing demand for EVs/hybrid EVs/Plug‐in hybrid vehicles/FCEVs and need for alternate
applications sources in transportation
Demand for uninterrupted Commercial growth of the wireless telecommunications and data centers market provides
distributed power opportunities for backup power fuel cells
Niche applications Off‐grid applications at remote locations and marine and defense applications are attracting
interest from players
Competitive landscape
The global deployment of large-scale fuel cells is currently dominated
by the US and South Korean markets, which together make up
~95% of installed capacity. In the fuel cell industry, there is one
specialist company that currently dominates the production of each
fuel cell type and its deployment. Fuel cell technologies are still in a
growing phase and R&D investments are supported by government
policies and strategies towards environment and energy market.
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Figure 67: Overview of business operations
Fuel cell Geographic
Company Product line End‐use sector Regions catered to
type revenue
Heavy duty modules, fuel China, Europe and China – 32%
cell stacks, backup power California Germany – 30%
Ballard Transportation
PEM systems, marine modules US – 24%
Power Material handing applications
and technological (2018)
solutions for fuel cell
US, Japan, China, US – 70‐75%
Bloom Stationary power India, and the Asia Pacific – 23%
SOFC Stationary power generation
Energy generation platform Republic of Korea (2019)

Fuel Cell MCFC, Stationary power US, South Korea, United States – 90‐
Stationary power generation
Energy SOFC generation platform Germany, England 95%
Hydrogen fuel cell turnkey solutions for North America North America
Plug Electric mobility and
PEM electric mobility and stationary power Europe >80%
Power stationary power
markets
Alkaline fuel cell and related Europe ‐
AFC AFC technologies (no
AFC technologies for modular power
Energy commercialization )
generation
Doosan Stationary power Stationary power generation Korea, US ‐
PAFC
Fuel Cell generation Charging stations
Germany, the North America –
Stationary power generation (mobile
DMFC & Stationary power Netherlands, 39%
SFC power generation for mobility, defence
hydrogen generation and power Romania and Germany – 13.5%
Energy & security, oil & gas and industry
FC supply solutions Canada Rest of Europe –
markets)
36.6%
 Bloom Energy is the largest player among the peers listed above
in terms of operating revenue and segmental product revenue
from fuel cell products. MTAR is one of the key suppliers to
Bloom Energy and sole supplier from India market as of FY20.
 The top five players mentioned above - Bloom Energy, Ballard
Power, Fuel Cell Energy, Plug Power, and SFC Energy - contribute
to 35-40% of the overall fuel cell market, among which Bloom
Energy has the highest segmental product revenue from fuel cell
of $ 557 bn in 2019 followed by Plug Power at segmental revenue
of $ 150 bn in 2019.
 Bloom Energy is one of the fastest growing company above the
peers listed during 2017-19, registering a CAGR of 45%, followed
by Plug Power at 32%.
 Ballard Inc. is a leading player in PEMFC, Bloom Energy in SOFC
and Doosan in PAFC technology, which are the major
technologies in commercial application currently.
MTAR001
Figure 68: Product revenue comparison for competitive landscape
Product Operating
Product Product revenue
Company revenue revenue Service
revenue Service revenue contents CAGR
revenue share
share
($ mn) 2019 2019 2017‐2019
Installation of energy servers,
sales revenue from electricity produced
Bloom Energy 557 786 71% 29% by energy servers, 88%
service revenue generated from
maintenance services agreements
Ballard Power 50 106 47% 53% Technology solutions revenue ‐20%
Service and licence revenues,
1% (58%
Fuel Cell Energy ‐ 61 99% generation revenue, ‐2%
in 2018)^
advanced technologies contracts
Plug Power 150 230 65% 35% Fuel cell services, PPAs 55%
SFC Energy 65.5 65.5 100% ‐ NA 3.3%
Source: CRISIL Research, ^ Fuel Cell Energy has shifted business focus from product sales to fuel cell service and power generation sales
MTAR001
Key risks
Dependence on key customers
MTAR depends on a limited number of customers for a significant
portion of revenues. While the company catered to 35 customers
during 1HFY21, the top five customers contributing to 88.39% of
revenues from operations (87.31% in FY20). The loss of one or more
significant customers or a significant reduction in demand for its
products or failure to succeed in tendering for projects for its
customers in the future or a decline in the customers’ business
performance may adversely affect MTAR’s business, financials and
cash flows.
Dependence on Government (budgetary support and policies)

MTAR depends significantly on orders from NPCIL, ISRO and DRDO.
A decline or reprioritisation of funding in the Indian budget towards
the respective departments of the Government of India, under which
these customers operate, or delays in the budget process could
adversely affect MTAR’s ability to grow or maintain sales, earnings,
and cash flow. Further, the liberalisation of the defence or space
sectors to allow the entry of private and foreign companies may
increase the level of competition faced by MTAR thereby impacting
its ability to compete effectively.
Short-term nature of purchase orders

MTAR primarily relies on purchase orders to govern the volume and
other terms of the sales of its products and does not have long-term
supply agreements with its customers. If its customers choose not to
source their requirements from MTAR or manufacture such products
in-house, its business and results of operations may be adversely
affected. Any failure to meet its customers’ expectations and
stringent specifications could result in the cancellation or non-
renewal of contracts or purchase orders. MTAR also face risks of a
low growth rate because the orders placed by some of its customers
are typically non-recurring in nature.
Failure to comply with quality standards and Risk of

liquidated damages
MTAR is subject to strict quality standards and any failure to comply
with such quality standards may lead to cancellation of existing and
future orders which may adversely affect its reputation, financial
conditions and cash flows.
MTAR may face claims and incur additional rectification costs for
delays and/or defects in respect of precision components and
equipment. Further, imposition of liquidated damages and invocation
of performance bank guarantees / indemnity bonds by its customers
could impact its results of operations and it may face potential
liabilities from lawsuits and claims by customers in the future. MTAR
may not be able to secure new contracts if it is unable to issue the
requisite performance guarantees. While MTAR has not incurred
significant liquidated damages, in the past, the company has been
required to pay certain liquidated damages for delays. The maximum
extent of such liquidated damages range between 5% and 10% of
the value of the delayed portion, of the supplies of the purchase
order.
MTAR001
Failure to identify evolving industry trends

Changes in customer preferences, regulatory or industry trends or
requirements or in competitive technologies may render certain
products of MTAR obsolete or less attractive. The company needs to
anticipate changes in technology and regulatory standards and
successfully develop and introduce new and enhanced products to
remain competitive in the key segments.
RM price volatility and availability

Volatility in the supply of the raw materials could have an adverse
effect. Its raw material suppliers could fail to meet their obligations,
which may have a material adverse effect on its business. Further,
import of certain raw materials, exposes MTAR to currency
fluctuation risk and it may not be able to effectively hedge itself from
the fluctuations in raw material prices and foreign exchange rate
thereby adversely impacting profitability.
Pricing pressure and increase in competition

Pricing pressure from customers may adversely affect MTAR’s gross
margin, profitability and ability to increase prices. MTAR faces
competition in its product line, including from competitors that may
have greater financial and marketing resources. Failure to compete
effectively may have an adverse impact on its business.
Higher fixed cost structure

MTAR owns a large range of sophisticated and modern equipment,
resulting in increased fixed costs. Lower business activities and
inadequate cash-flows can impact the maintenance activities and
hence performance of the equipment.
Promoter pledge
As of the date of its Draft Red Herring Prospectus, 1,269,625 Equity
Shares constituting 4.74% of the Equity Shares, held by Parvat
Srinivas Reddy, a Promoter of MTAR, are pledged in favor of
Blacksoil Capital Private Limited. Any exercise of such encumbrance
by such pledgee could dilute the shareholding of such Promoter and
consequently dilute the aggregate shareholding of its Promoters,
which may materially and adversely affect its business.
MTAR001
Key Managerial Persons

Figure 69:Management organization chart
Source: Company
Parvat Srinivas Reddy, Managing Director

He is one of the promoters and has been entrusted with the overall
responsibility of management of the Company and its affairs. He has
over 29 years of work experience. He holds a bachelor’s degree in
engineering, specialising in industrial production, from the University
of Mysore, and a master’s degree in science, specialising in industrial
engineering from College of Engineering, Louisiana Tech University.
Devesh Dhar Dwivedi, Chief Operating Officer

He is responsible for leading the day to day operations of the
Company. He holds a bachelor’s degree in technology (mechanical
engineering), from the Motilal Nehru National Institute of
Technology, Allahabad and has completed a post graduate
programme in management from the Indian School of Business,
Hyderabad. He has over 13 years of experience in the defence
manufacturing and information technology and engineering,
procurement and construction sectors, among others. He joined the
company in 2019.
Sudipto Bhattacharya, Chief Financial Officer

He is responsible for the planning, implementation, management and
running of all financial activities of the Company. He is an associate
member of the ICAI. He joined the company in 2020.
Shubham Sunil Bagadia, Company Secretary, Compliance Officer

He is responsible for ensuring compliance with statutory and
regulatory requirements, and ensuring that decisions of the board of
directors are implemented. He holds a bachelor’s degree in
commerce from the Rashtrasant Tukadaji Maharaj Nagur University
and is an associate member of the Institute of Company Secretaries
of India. He joined the company in 2020.
MTAR001
Pusparaj Satpathy, Vice President, Human Resources

He is responsible for the human resource development functions of
the Company. He holds a masters’ degree in arts, with a
specialisation in political science from the University of Hyderabad,
and a post-graduate diploma in business administration from the
Jaipuria Institute of Management, Lucknow. He has over 23 years’
experience in the human resources field. He joined the company in
2019.
Board of directors
Figure 70: Board of Directors
Name Designation
Subbu Venkata Rama Behara Chairman & Independent Director
Parvat Srinivas Reddy Managing Director
Mathew Cyriac Nominee Director
Venkatasatishkumar Reddy Gangapatnam Non‐Executive Director
Praveen Kumar Reddy Akepati Additional Director
Gnana Sekaran Venkatasamy Independent Director
Vedachalam Nagarajan Independent Director
Udaymitra Chandrakant Muktibodh Independent Director
Krishna Kumar Aravamudan Independent Director
Ameeta Chatterjee Independent Director
Source: Company
Subbu Venkata Rama Behara

He holds a master’s degree in arts, with a specialisation in
economics, from the Jawaharlal Nehru University and a post
graduate diploma from IIFT, New Delhi.
Mathew Cyriac
He holds a bachelor’s degree in engineering, specialising in
mechanical engineering, from Anna University. He also holds a post-
graduate diploma in management from the Indian Institute of
Management, Bengaluru, where he was awarded the IIMB Medal for
securing the first rank in the course for the years 1992-1994. He has
previously worked with Blackstone Advisors India Private Limited,
and is currently a director on the board of Florintree Advisors Private
Limited.
Gnana Sekaran Venkatasamy

He holds a bachelor’s degree in engineering (mechanical
engineering), from Madurai University, a master’s degree in
engineering (Aeronautical engineering), from the IISc, Bengaluru
and a doctorate in philosophy from the Queen’s University of Belfast.
He has previously served with DRDO in various capacities.
Vedachalam Nagarajan
He holds a bachelor’s degree in engineering (mechanical
engineering), from the Faculty of Engineering, University of Madras.
He has also been conferred an honorary doctorate in science from
Madurai Kamraj University. He had worked with ISRO for over 35
years.
MTAR001
Udaymitra Chandrakant Muktibodh

He holds a bachelor’s degree in engineering, with a specialisation in
mechanical engineering, from Indore Vishwavidyalaya. He has
formerly served with NPCIL.
Krishna Kumar Aravamudan

He holds a bachelor’s degree in arts, with honours and specialising in
economics, from the University of Delhi, and is a certified associate
of the Indian Institute of Bankers.
Ameeta Chatterjee
She holds a bachelor’s degree in commerce, with honours, from the
University of Delhi, and a post graduate diploma in management
from the Indian Institute of Management, Bengaluru.
Shareholding and Equity history

Figure 71: Shareholding pattern
Shares % stake
Promoter holding 17,808,046 66.55
Fabmohur Advisors LLP 8,371,040 31.28
P. Simhadri Reddy 90,975 0.34
Source: Company
Figure 72: History of the Equity Share capital
Date Nature of Allotment New shares Cumulative shares
Nov'99 Initial subscription 201,000 201,000
Mar'02 Preferential allotment 150,000 351,000
Feb'05 Bonus issue 526,500 877,500
Mar'06 Bonus issue 731,250 1,608,750
Nov'07 1:10 stock split 14,478,750 16,087,500
Nov'07 Allotment pursuant to the 2007 Scheme 14,040,000 30,127,500
Nov'07 Private placement 5,682,386 35,809,886
Mar'09 Buyback (7,596,000) 28,213,886
Sep'14 Allotment pursuant to the 2014 Scheme 246 28,214,132
Mar'20 Buyback (1,454,541) 26,759,591
Source: Company
MTAR001
Financial Summary (Standalone)

Figure 73: Standalone Balance sheet
Rs m FY18 FY19 FY20 Sep'20
Assets
Non‐current assets
Property, plant and equipment 1,522.00 1,620.45 1,549.61 1,552.35
Capital work‐in‐progress 18.44 56.17 117.34 136.42
Intangible assets 0.31 1.43 1.39 2.72
Investment in subsidiary ‐ ‐ 0.10 0.10
Financial assets
Investments 0.10 0.10 0.10 0.10
Others 113.2 226.57 32.98 53.46
Non‐current tax assets (net) 22.77 15.76 6.19 6.13
Other non‐current assets 38.17 41.4 39.88 34.98
1,714.99 1961.88 1,747.59 1,786.26
Current Assets
Inventories 419.32 410.71 754.59 754.88
Financial assets
Trade receivables 489.66 504.17 616.37 720.07
Cash and cash equivalents 90.68 107.67 135.44 90.55
Bank balances other than cash and cash equivalents 0.13 ‐ 96.98 101.63
Others 47.34 23.72 16.66 29.55
Other current assets 48.2 43.43 95.08 111.4
1,095.33 1,089.7 1,715.12 1,808.08
Total assets 2,810.32 3,051.58 3,462.71 3,594.34

Equity and Liabilities
Equity
Equity share capital 282.14 282.14 267.59 267.59
Other equity 1,773.1 2,067.68 1,983.18 2,180.57
2055.24 2,349.82 2,250.77 2,448.16
Liabilities
Non‐current liabilities
Financial liabilities
Borrowings ‐ ‐ ‐ 10.99
Provisions 29.92 5.57 23.81 27.53
Deferred tax liabilities (net) 87.89 0.32 53.07 85.47
117.81 5.89 76.88 123.99
Current liabilities
Financial Liabilities
Borrowings 197.86 287.31 291.33 406.07
Trade payables 136.28 59.8 305.55 115.81
Other financial liabilities ‐ ‐ 2.13 6.9
Provisions 13.42 8.26 34.34 27.92
Current tax liabilities (net) ‐ 11.7 9.23 46.11
Other current liabilities 289.71 328.8 492.48 419.38
637.27 695.87 1,135.06 1,022.19
Total equity and liabilities 2,810.32 3,051.58 3,462.71 3,594.34
Source: Company
MTAR001
Figure 74: Standalone Profit and loss
Income
Revenue from operations 1,595.97 1,836.71 2,137.74 1,220.26
Other income 9.48 22.39 43.68 5.82
Total income (i) 1,605.45 1,859.1 2,181.42 1,226.08

Expenses
Cost of materials consumed 659.77 655.32 872.55 522.43
Changes in inventories of finished goods and work‐in‐progress (90.49) (29.7) (150.88) (11.27)
Excise duty on sale of goods 29.77 ‐ ‐ ‐
Employee benefits expense 446.09 435.08 516.26 235.77
Depreciation and amortisation expense 112.07 112.34 120.48 60.63
Finance costs 44.61 44.6 47.53 28.62
Other expenses 232.08 238.85 320.15 118.26
Total expenses (ii) 1,433.9 1,456.49 1,726.09 954.44

Restated profit before exceptional items and tax (I) 171.55 402.61 455.33 271.64

Exceptional items (II) ‐ 12.94 ‐ ‐

Restated profit before tax (III)= (I+II) 171.55 415.55 455.33 271.64

Tax expenses
Current tax 43.37 92.13 78.11 49.27
Taxes for earlier period/year 0.01 20.91 1.44 ‐
Deferred tax (credit)/charge 73.94 (89.47) 62.6 30.24
Total tax expenses (IV) 117.32 23.56 142.15 79.51
Restated profit for the period/year (V)=(III‐IV) 54.23 391.99 313.18 192.13
Source: Company
MTAR001
Figure 75: Standalone cash flows
A. Cash flow from operating activities
Restated profit before tax 171.55 415.55 455.33 271.64
Depreciation and amortisation expense 112.07 112.34 120.48 60.63
Provision for doubtful receivable and advances 11.91 ‐ 14.77 ‐
Bad debts written off 8.01 9.61 1.82 ‐
Finance costs 44.61 44.6 47.53 28.62
Liabilities no longer required written back (0.3) (3.34) (4.26) ‐
Loss/(Profit) on sale of property, plant and equipment 0.07 (1.63) ‐ ‐
Unrealised exchange loss/(gain) (10.43) 14.75 (16.8) (1.09)
Profit on sale of land ‐ (12.94) ‐ ‐
Interest income (7.15) (6.69) (9.96) (5.82)
Operating profit before working capital changes 330.34 572.26 608.92 353.98
Movements in working capital:
Increase in trade receivables (113.84) (34.66) (90.06) (104.69)
(Increase)/decrease in inventories (104.13) 8.61 (343.88) (0.29)
(Increase)/decrease in current and non current financial assets 235.91 1.49 115.27 (34.67)
(Increase)/decrease in other current and non current assets 58 27.43 (39.29) (9.53)
Increase/(decrease) in trade payables (75.96) (75.85) 250.01 (189.74)
Increase/(decrease) in other current liabilities (151.74) 39.09 122.87 (34.12)
Increase/(decrease) in provisions (9.01) (22.98) 10.5 4.72
Cash generated (used in)/from operations 169.58 515.38 634.34 (14.33)
Income tax paid (net of refunds) (25.4) (94.32) (72.45) (12.33)
Net cash flow (used in)/from operating activities (A) 144.18 421.06 561.89 (26.66)

B. Cash flows from investing activities
Purchase of PPE, intangible assets, CWIP, capital creditors and capital advances (21.01) (273.23) (118.89) (86.54)
Proceeds from sale of property, plant and equipment 0.79 29.96 ‐ ‐
Investment in subsidiary ‐ ‐ (0.1) ‐
Investment in bank deposits (net) (0.13) (91.04) (10.81) (4.65)
Interest received 7.12 6.62 9.17 7.12
Net cash flow used in investing activities (B) (13.23) (327.69) (120.63) (84.07)

C. Cash flows from financing activities
Dividend and dividend distribution tax paid ‐ (102.04) (170.07) ‐
Amount paid on equity shares bought back and buy back tax ‐ ‐ (179.21) (38.98)
Proceeds from/(repayment of) short term borrowings (93.3) 89.45 (4.95) 116.5
Proceeds from long term borrowings, including current maturities ‐ ‐ ‐ 12.21
Finance costs paid (44.61) (62.27) (59.26) (24.2)
Net cash flows from/(used in) financing activities (C) (137.91) (74.86) (413.49) 65.53

Net increase/(decrease) in cash and cash equivalents (A+B+C) (6.96) 18.51 27.77 (45.2)
Effect of exchange differences on cash & cash equivalents held in foreign currency (0.02) (1.52) ‐ 0.31
Cash and cash equivalents at the beginning of the period/year 97.66 90.68 107.67 135.44
Cash and cash equivalents at the end of the period/year 90.68 107.67 135.44 90.55
Source: Company
MTAR001
Financial Summary (Consolidated)

Figure 76: Consolidated balance sheet
Rs m FY20 Sep'20
Assets
Non‐current assets
Property, plant and equipment 1,549.61 1,552.35
Capital work‐in‐progress 117.39 136.42
Intangible assets 1.39 2.72
Financial assets
Investments 0.10 0.10
Others 32.98 53.46
Non‐current tax assets (net) 6.19 6.13
Other non‐current assets 39.88 34.98
1,747.54 1,786.16
Current Assets
Inventories 754.59 754.88
Financial assets
Trade receivables 616.37 720.07
Cash and cash equivalents 135.34 90.65
Bank balances other than cash and cash equivalents 96.98 101.63
Others 16.66 29.55
Other current assets 95.05 111.37
1,715.19 1,808.15
Total assets 3,462.73 3,594.31

Equity and Liabilities
Equity
Equity share capital 267.59 267.59
Other equity 1,983.18 2,180.5
Equity attributable to equity holders of the parent 2,250.77 2,448.09
Non‐controlling interests ‐ ‐
Total equity 2,250.77 2,448.09

Liabilities
Non‐current liabilities
Financial liabilities
Borrowings ‐ 10.99
Provisions 23.81 27.53
Deferred tax liabilities (net) 53.07 85.47
76.88 123.99
Current liabilities
Financial Liabilities
Borrowings 291.33 406.07
Trade payables 305.57 115.85
Other financial liabilities 2.13 6.9
Provisions 34.34 27.92
Current tax liabilities (net) 9.23 46.11
Other current liabilities 492.48 419.38
1,135.08 1,022.23
Total equity and liabilities 3,462.73 3,594.31
Source: Company
MTAR001
Figure 77: Consolidated profit and loss
Rs m FY20 Sep'20
Income
Revenue from operations 2,137.74 1,220.26
Other income 43.68 5.82
Total income (i) 2,181.42 1,226.08
Expenses
Cost of materials consumed 872.55 522.43
Changes in inventories of finished goods and work‐in‐progress (150.88) (11.27)
Employee benefits expense 516.26 235.77
Depreciation and amortization expense 120.48 60.63
Finance costs 47.53 28.62
Other expenses 320.15 118.33
Total expenses (ii) 1,726.09 954.51

Restated profit before tax (I) 455.33 271.57
Tax expenses
Current tax 78.11 49.27
Taxes for earlier period / year 1.44 ‐
Deferred tax charge 62.6 30.24
Total tax expense (II) 142.15 79.51
Restated profit for the period/year (III) = (I‐II) 313.18 192.06
Source: Company
MTAR001
Figure 78: Consolidated cash flows
Rs m FY20 Sep'20
A. Cash flow from operating activities
Restated profit before tax 455.33 271.57
Adjustments to reconcile restated PBT to cash net flows
Depreciation and amortisation expense 120.48 60.63
Provision for doubtful receivable advances 14.77 ‐
Bad debts written off 1.82 ‐
Finance costs 47.53 28.62
Liabilities no longer required written back (4.26) ‐
Unrealised exchange gain (16.81) (1.07)
Interest income (9.96) (5.82)
Operating profit before working capital changes (608.90) 353.93

Movement in working capital:
Increase in trade receivables (90.06) (104.69)
Increase in inventories (343.88) (0.29)
(Increase)/ decrease in current and non ‐current financial assets 115.26 (34.67)
Increase in other current and non‐current assets (38.98) (9.50)
(Decrease) / increase in trade payables 250.05 (189.72)
(Decrease) / increase in other current liabilities 122.88 (34.13)
Increase in provisions 10.49 4.72
Cash generated (used in)/from operations 634.66 (14.35)
Income tax paid (net of refunds) (72.44) (12.33)
Net cash flow (used in)/from operating activities (A) 562.22 (26.68)

B. Cash flows from investing activities
Purchase of PPE, intangible assets, CWIP, capital creditors and capital advances (119.22) (86.51)
Investment in bank deposits (net) (10.81) (4.65)
Interest received 9.17 7.12
Net cash flow used in investing activities (B) (120.87) (84.04)
C. Cash flows from financing activities
Dividend and dividend distribution tax paid (170.07) ‐
Amount paid on equity shares brought back and buy back tax (refer note 11(a)(i) in Annexure VII) (179.21) (38.98)
Proceeds from / (repayment of) short term borrowings (net) (4.95) 116.50
Proceeds from long term borrowings, including current maturities ‐ 12.21
Finance costs paid (59.26) (24.20)
Net cash flows from/(used in) financing activities (C) (413.49) 65.52
Net (decrease)/increase in cash and cash equivalents (A+B+C) (27.86) (45.20)
Effect of exchange differences on cash & cash equivalents held in foreign currency ‐ 0.31
Cash and cash equivalents at the beginning of the period / year 107.68 135.54
Cash and cash equivalents at the end of the period/year 135.54 90.65
Source: Company
MTAR001
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MTAR001
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indirectly related to the specific recommendation or views contained in the research report.
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Name, Qualification and Certification of Research Analyst: Renu Baid(MMS), Narendra Mhalsekar(MBA)

IIFL Securities Limited (Formerly ‘India Infoline Limited’), CIN No.: L99999MH1996PLC132983, Corporate Office – IIFL Centre, Kamala
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Key to our recommendation structure
BUY - Stock expected to give a return 10%+ more than average return on a debt instrument over a 1-year horizon.
SELL - Stock expected to give a return 10%+ below the average return on a debt instrument over a 1-year horizon.
Add - Stock expected to give a return 0-10% over the average return on a debt instrument over a 1-year horizon.
Reduce - Stock expected to give a return 0-10% below the average return on a debt instrument over a 1-year horizon.
Distribution of Ratings: Out of 177 stocks rated in the IIFL coverage universe, 86 have BUY ratings, 9 have SELL ratings, 41 have ADD ratings,
and 41 have REDUCE ratings.
Price Target: Unless otherwise stated in the text of this report, target prices in this report are based on either a discounted cash flow valuation or
comparison of valuation ratios with companies seen by the analyst as comparable or a combination of the two methods. The result of this
fundamental valuation is adjusted to reflect the analyst’s views on the likely course of investor sentiment. Whichever valuation method is used there
is a significant risk that the target price will not be achieved within the expected timeframe. Risk factors include unforeseen changes in competitive
pressures or in the level of demand for the company’s products. Such demand variations may result from changes in technology, in the overall level
of economic activity or, in some cases, in fashion. Valuations may also be affected by changes in taxation, in exchange rates and, in certain
industries, in regulations. Investment in overseas markets and instruments such as ADRs can result in increased risk from factors such as exchange
rates, exchange controls, taxation, and political and social conditions. This discussion of valuation methods and risk factors is not comprehensive –
further information is available upon request.
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Our previous printed reports (click on thumbnail to download)
India - Gas India - Chemicals India - Pharma India - Auto India - Strategy
Ready Set Flow! 1Q2020 Substitution reactions! 1Q2020 Legacy portfolio hurts MNCs 1Q2020 Gearing up for recovery 4Q2019 Uphill trek 4Q2019
City Gas scores over others Amid Easternisation, India plans for market share gains Advantage local firms Current headwinds more cyclical, less structural Resetting our Expectations (RoE)
Detailed
report
RBL Bank BUY India - Life Insurance Institutional Equities

India - Steel Institutional Equities
India - FMCG Institutional Equities
India - Pharma Institutional Equities
Institutional Equities
CMP Rs675 All set to scale-up Dairy Products

Target 12m Rs800 (18%) RBL Bank (RBK) is likely to witness a sustained increase in
Market cap (US$ m) 4,144 scale and profitability for the next few years and graduate
into a large-size private bank. A well-set management team,
Bloomberg RBK IN clearly articulated strategies, focus on sectors with high
Sector Banking & Fin growth potential, ability to acquire adequate deposits and

access to equity capital are key ingredients that will aid such

growth. Improving revenue intensity, both fee-based and
18 April 2019
fund-based, will be RoA drivers over FY19-22ii. We estimate a
52Wk High/Low (Rs) 692/438 30% balance sheet CAGR, 34% EPS CAGR and a ~27bps RoA
Shares o/s (m) 426 expansion to ~1.5% over FY19-22ii. We value RBK at 2.8x
Daily volume (US$ m) 18 FY21ii BVPS post-money (implied 22.7x EPS), attributing the
Dividend yield FY20ii (%) 0.5 high multiple to high growth and improvement in profitability.
Free float (%) 100.0
Right focus to drive strong balance sheet growth: RBK can
Shareholding pattern (%) deliver 35% Cagr in loans and 32% in deposits over FY19-22ii. Loan
Promoters 0.0 growth would be driven by the credit cards, MFI and SME/MSME
Pledged (as % of promoter share) 0.0 segments within retail banking. Within wholesale banking, large
FII 18.8 client acquisitions and deepening relationships will drive growth.
DII 21.3 Deposits would be driven by branch expansion and focus on

improving the productivity of existing branches.
Price performance (%)
1M 3M 1Y
RBL Bank 6.1 18.6 32.4
Several levers for RoA improvement: Over FY19-22ii, RoA
Absolute (US$) 4.6 21.4 25.5 expansion would be driven by an increase in the mix of credit cards
Rel. to Sensex 3.2 11.0 18.6 and MFI to ~25% of loans as well as better operating efficiencies and
CAGR (%) 3 yrs 5 yrs lower credit costs in both businesses. Other segments are likely to
EPS 31.1 42.9 see better revenue intensity, led by higher fees and faster re-pricing

in yields. We estimate revenues to contribute ~35bps to RoA, with
Stock movement expenses and credit costs partially offsetting this impact. Overall, we
Vol('000, LHS) Price (Rs., RHS)
estimate ~27bps RoA expansion over FY19-22ii.
40,000 800
30,000 600
Valuations reflecting higher growth, improving profitability:
20,000 400 We value RBK at 2.8x FY21ii BVPS (22.7x EPS) or Rs800/share. We
10,000 200 have assumed a ~Rs35bn capital infusion in FY20ii in our estimates.
0 0 The high valuation is based on the high growth potential, given a
Mar‐17
May‐17
Jul‐17
Sep‐17
Nov‐17
Jan‐18
Mar‐18
May‐18
Jul‐18
Sep‐18
Nov‐18
Jan‐19
Mar‐19
supportive operating environment, strong execution, outlook of

improving profitability and its well-regarded management team. High
dependence on credit-cards/MFI and challenges in raising adequate

Return on Assets (%)
(%)
liabilities would be key risks to our call.
1.6 1.5
1.4 1.3
1.4 Financial summary (Rs bn)
1.2
1.2
1.1 Y/e 31 Mar, Parent FY18A FY19A FY20ii FY21ii FY22ii
1.0 Pre prov. operating inc. (Rs bn) 13.3 19.4 26.0 35.1 47.8
0.8
0.6 Pre‐exceptional PAT (Rs bn) 6.4 8.7 12.3 16.8 23.3
0.4 Reported PAT (Rs bn) 6.4 8.7 12.3 16.8 23.3
0.2
0.0
Pre‐exceptional EPS (Rs) 15.1 20.3 25.7 35.2 48.7
FY18 FY19 FY20ii FY21ii FY22ii Growth (%) 27.5 34.1 26.5 37.2 38.3
Source: Company IIFL Research
IIFL vs consensus (%) (5.8) (1.2) NA
PER (x) 44.6 33.3 26.3 19.2 13.9

Abhishek Murarka
abhishek.murarka@iiflcap.com Book value (Rs) 159 177 256 287 330
91 22 4646 4645 PB (x) 4.2 3.8 2.6 2.4 2.0
Moving on in Life Consolidating & Expanding The rise and rise of private dairies India formulations market

CAR (%) 15.3 13.5 15.1 12.6 10.7
Arash Arethna
arash.arethna@iiflcap.com ROA (%) 1.1 1.2 1.3 1.4 1.5 1Q2019 3Q2018 3Q2018 3Q2018
91 22 4646 4655

ROE (%) 11.5 12.2 12.4 13.0 15.8
Source: Company, IIFL Research. Price as at close of business on 18 April 2019.
www.iiflcap.com
1 From ‘Save’ to ‘Protect’ Growing volumes amid a conducive cycle Milk the opportunity Source of sustainable cash generation
Detailed Detailed
India - Cement
report report
Biocon BUY India - Oil & Gas Institutional Equities
Motherson Sumi BUY India - NBFC
Institutional Equities Institutional Equities Institutional Equities
CMP
Target 12m
Rs533
Rs700 (31%)
The dark horse in biosimilars CMP Rs353 A behemoth in the making
Market cap (US$ m) 4,996 Target 12m Rs450 (28%)
Biocon-Mylan has established its credentials as a leading Motherson has grown into a USD7.3bn global auto parts
Enterprise value (US$ m) 5,086 Market cap (US$ m) 11,350
biosimilar player in the global markets, with the partnership major, helped by sound operating and financial principles. We
Bloomberg BIOS IN Enterprise value (US$ m) 11,855
having already received approval for Trastuzumab in US. We believe a good mix of businesses with steady growth
Sector Pharma

expect 2018 to be a year of approvals for Biocon-Mylan with Bloomberg MSS IN (standalone, SMR) and turnaround potential (SMP, PKC)

4-5 approvals coming up this year across US and EU. Addition Sector Auto would drive 28% EPS Cagr over FY17-20. Motherson is a
17 January 2018
of US/EU revenues from the first wave of biosimilars could

turnaround specialist with a highly credible history of value
52Wk High/Low (Rs) 564/295 potentially help Biocon’s profits to grow ~6x over the next creation through acquisitions. Motherson’s FY20 revenue

14 November 2017
Shares o/s (m) 600 five years. Biocon has also resolved its manufacturing issues, target of USD18bn entails acquisitions of USD6.2bn that
Daily volume (US$ m) 25 while growth in Syngene will continue to pick up. Maintain 52Wk High/Low (Rs) 374/185 would result in EPS accretion and offer sizeable upside risk.
Dividend yield FY18ii (%) 0.9 BUY with an upgraded TP of Rs700. Shares o/s (m) 2105
Free float (%) 39.3 A global giant built on sound operating/financial principles:
Daily volume (US$ m) 14
Clear runway for bagging regulated market approvals for the Starting out as a wiring harness (WH) supplier to Maruti in 1986,
Shareholding pattern (%) Dividend yield FY18ii (%) 0.7
first wave of biosimilars; potential to quintuple profits in five Motherson has grown to become the WH leader in India, the leader
Promoter 60.7 years: Biocon has continued to surprise us positively as it worked Free float (%) 36.9
in CV WH globally, the second largest auto mirror maker globally,
FII 15.4

toward putting together pieces for biosimilar approvals in the US/EU. Shareholding pattern (%) and a leading global supplier of plastic auto components.
DII 3.8 With Trastuzumab approval being the first in class, Biocon-Mylan has Motherson’s growth has been supported by sound operating/financial
Promoter 63.1
Others 20.1 established its credentials as a leading biosimilar player in the global principles: i) focus on quality, costs, ROCE; ii) increasing content per
FII 19.7
Price performance (%) markets. With 4-5 approvals coming up this year, we expect 2018 to DII 6.8 car to drive growth; iii) backward integration to increase value-
1M 3M 1Y be a year of approvals for Biocon-Mylan. These approvals will provide addition, cost/competitive advantage; and iv) making acquisitions
Others 10.4
Biocon 2.3 42.2 60.3 further visibility to earnings and continue to de-risk the business. with customer buy-ins, which significantly protects the downside.
Absolute (US$) 2.3 43.7 70.9 Addition of US/EU revenues from the first wave of biosimilars would Price performance (%)
Mix of businesses with steady growth and turnaround
Rel. to Sensex (1.6) 35.7 32.9 help Biocon’s profits to grow ~6x over the next five years. 1M 3M 1Y potential to drive 28% EPS Cagr: Motherson’s standalone
CAGR (%) 3 yrs 5 yrs Motherson (0.8) 9.1 75.5 operations (WH) and its subsidiary SMR (mirrors) are well established,
Strong execution aided by tailwinds: Biocon overcame
EPS 14.1 12.7 compliance challenges of USFDA inspections in April and June 2017 Absolute (US$) (1.5) 7.6 81.5 in terms of market standing, margins, and return ratios. We forecast
Rel. to Sensex (2.6) 3.3 52.3

Stock movement rather quickly. Pegfilgrastim (Neulasta) started as a competitive mid-to-high-teen earnings growth in standalone (led by volume and
Vol('000, LHS) Price (Rs., RHS) product. However, competition has whittled down further to only two CAGR (%) 3 yrs 5 yrs value) and SMR (led by market share gain, slight margin expansion).
60,000 600 projects looking at near-term approval. Insulin Glargine (Lantus) is EPS 28.0 36.1 On the other hand, SMP (plastics) and PKC (CV WH) are operating at
also expected to remain a low-competition product in the foreseeable
low margins (sub-2% net margin) and return ratios. We forecast
Stock movement 220bp/400bp Ebitda margin expansion for SMP/PKC by FY20. This
40,000 400 future, due to requirements of a dedicated manufacturing facility.
20,000 200
would result in multi-fold rise in earnings of these two subsidiaries.
Syngene back on track after an incidence of fire: About 20% of 40,000 400
0 0 Syngene’s business suffered due to a fire at one of its facilities in late History of value creation through acquisitions offers sizeable
30,000 300
FY17. However, the company regained lost ground, reflected in strong upside risk: Motherson’s stock is up ~19x in the past 10 years. We
Jan‐16
Mar‐16
May‐16
Jul‐16
Sep‐16
Nov‐16
Jan‐17
Mar‐17
May‐17
Jul‐17
Sep‐17
Nov‐17
Jan‐18
20,000 200
MH 06 2018
IND growth in recent quarters. Syngene remains an important value driver estimate ~40% of these returns have been generated through cheap
10,000 100 acquisitions and their subsequent turnaround. Motherson’s FY20 revenue
for Biocon. We believe that foray into large-scale manufacturing, client
Strong earnings visibility from FY20ii accretion in biology, and maturing of newly added dedicated centres 0 0 target of USD18bn implies acquisitions of USD6.2bn. Low cost of
Nov‐15
Jan‐16
Mar‐16
May‐16
Jul‐16
Sep‐16
Nov‐16
Jan‐17
Mar‐17
May‐17
Jul‐17
Sep‐17
Nov‐17
Revenue (USD mn) (LHS) are long-term growth drivers for Syngene, which would help it register borrowing (last debt raise was at 1.8%) and potential turnarounds
Ebitda margins (RHS)
1,600 40% ~20% revenue growth over the next five years. should make these acquisitions highly EPS-accretive.
1,400 35%
Financial summary (Rs m) Financial summary (Rs m)
1,200 30%
Y/e 31 Mar, Consolidated FY16A FY17A FY18ii FY19ii FY20ii Y/e 31 Mar, Consolidated FY16A FY17A FY18ii FY19ii FY20ii
1,000 25%
800 20% Revenues (Rs m) 33,372 38,763 39,049 45,868 74,311 Revenues (Rs m) 372,163 424,934 564,744 663,081 768,746
600 15%
400 10% Ebitda margins (%) 22.3 24.5 20.0 22.0 37.5 Ebitda margins (%) 9.5 10.1 9.7 10.7 11.3

200 5% Pre‐exceptional PAT (Rs m) 4,021 6,121 3,360 4,340 15,663 Pre‐exceptional PAT (Rs m) 12,276 16,517 19,259 26,920 35,388
0 0%
Reported PAT (Rs m) 5,504 6,121 3,360 4,340 15,663 Reported PAT (Rs m) 12,923 15,543 19,259 26,920 35,388
FY18ii
FY19ii
FY20ii
FY21ii
FY17

Pre‐exceptional EPS (Rs) 6.7 10.2 5.6 7.2 26.1 Pre‐exceptional EPS (Rs) 6.2 8.1 9.1 12.8 16.8
Source: Company IIFL Research
Growth (%) 0.1 52.2 (45.1) 29.1 260.9 Growth (%) 22.5 30.6 13.3 39.8 31.5

IIFL vs consensus (%) (29.4) (41.9) 63.6

Dr Abhishek Sharma Joseph George IIFL vs consensus (%) (13.9) (9.6) (3.7)

abhishek.sharma@iiflcap.com PER (x) 79.6 52.3 95.2 73.7 20.4 joseph.george@iiflcap.com PER (x) 57.0 43.7 38.6 27.6 21.0
91 22 4646 4668 ROE (%) 11.0 13.8 6.9 8.7 27.8 91 22 4646 4667 ROE (%) 31.8 26.1 21.6 25.6 28.0

Producers bitten by the capacity bug 2Q2018 High octane acceleration
Rahul Jeewani Net debt/equity (x) 0.0 0.0 0.0 0.1 0.1 Net debt/equity (x) 1.0 0.7 0.4 0.2 (0.1)
rahul.jeewani@iiflcap.com
91 22 4646 4673
EV/Ebitda (x)
Price/book (x)
43.4
7.4
34.2
6.1
41.8
5.9
32.7
5.8
11.9
4.6
4Q2017 Suraj Chheda
suraj.chheda@iiflcap.com
EV/Ebitda (x) 29.5 26.0 19.6 15.1 11.8 Choppy waters 4Q2017

91 22 4646 4656 Price/book (x) 15.9 8.7 7.8 6.5 5.4

www.iiflcap.com Source: Company, IIFL Research. Price as at close of business on 16 January 2018. Source: Company, IIFL Research. Price as at close of business on 13 November 2017.
www.iiflcap.com
Price deflation will cause earnings to flatline 1 Changing landscape of fuel retailing Adept swimmers pull ahead
1
Detailed
report
ITC BUY
CMP Rs272 Growth, re-ignited

Target 12m Rs350 (29%)
We expect growth to revive for ITC (FY17-19 EPS Cagr of
Market cap (US$ m) 50,821
13% vs. 5% for FY14-17) as tax regime turns more rational,
Enterprise value (US$ m) 49,466 non-tax issues are in the base and consumption revives. India
Bloomberg ITC IN has one of the most favourable industry structures (virtual
Sector FMCG monopoly, FDI ban), which reduces volatility in earnings

delivery. Moreover, ITC’s capital allocation has improved,
with FCF conversion of ~80%. In light of these factors ITC’s

09 May 2017
35% discount to HUL currently (vs. 12% prior to FY13) is set
52Wk High/Low (Rs) 293/209 to contract, driving 29% upside to our price target of Rs.350.
Shares o/s (m) 12147 A change in incidence or structure of tax under GST regime is
Daily volume (US$ m) 48 the main risk to our BUY rating.
Dividend yield FY17ii (%) 1.7 Growth is set to revive: In the past two budgets, average increase
Free float (%) 100.0 in excise duty has been 8% vs. 18% for the four years prior to that,

Shareholding pattern (%) possibly as the government realizes that a higher tax rate does not
Promoter 0.0 increase tax collections but encourages illegal trade. Non tax
FII 20.0 regulations such as pictorial warnings and ban on public smoking are
already in place and others such as banning loose cigarettes are hard
DII 35.7
to implement. Moreover, revival in consumption would benefit ITC
Others 44.2
just as it would benefit other FMCG companies.
Price performance (%) Best industry structure: ITC is a virtual monopoly accounting for
1M 3M 1Y 86% of cigarette industry sales and 96% of profits. Moreover, FDI in
ITC (0.4) (2.2) 26.1 cigarette manufacture is banned. Due to these factors ITC has high
Absolute (US$) (1.0) 1.9 35.1 Ebit margins of 66% in the cigarette division vs. global average of
Rel. to Sensex (1.2) (7.9) 9.6 33%. Absence of competition gives ITC pricing power and reduces
CAGR (%) 3 yrs 5 yrs the risk of market share loss or margin erosion. Moreover,
EPS 8.7 13.8 government officials have stated that GST is likely to be tax neutral
– thus GST is unlikely to materially alter the industry structure.
Stock movement
Reasonable valuation in the light of improved capital
allocation: ITC generates 75-80% of its net profit as FCF, vs. an
100,000 400
80,000
average of 55% over FY03-15. Moreover, ITC trades at a discount of
300
60,000 35% to HUL (with similar expected growth for FY17-19) vs. an
200 average of 12% prior to FY13 when ITC’s EPS growth faltered due to
40,000
20,000 100 an adverse tax regime. With growth reviving, we believe that this
0 0 discount would shrink, resulting in an attractive 29% return to our
TP. Our extended DCF (terminal FY39) suggests an even higher
Jul‐15
Jul‐16
Sep‐15
Jan‐16
Sep‐16
Jan‐17
May‐15
Nov‐15
May‐16
Nov‐16
May‐17
Mar‐16
Mar‐17
upside of 46%.
Financial summary (Rs bn)
Y/e 31 Mar, Consolidated FY15A FY16A FY17ii FY18ii FY19ii
Revenues (Rs bn) 384 391 413 463 519

Ebitda margins (%) 37.0 38.5 37.7 38.2 38.6
Pre‐exceptional PAT (Rs bn) 97 99 104 118 134

Percy Panthaki
percy.panthaki@iiflcap.com Reported PAT (Rs bn) 97 99 104 118 134
91 22 4646 4662 Pre‐exceptional EPS (Rs) 8.0 8.2 8.6 9.8 11.1
Growth (%) 8.2 2.3 5.2 13.4 13.2
Avi Mehta IIFL vs consensus (%) (1.6) (2.1) (1.5)
avi.mehta@iiflcap.com
PER (x) 33.9 33.2 31.5 27.8 24.6
91 22 4646 4650
ROE (%) 32.8 30.2 29.0 29.5 29.9
Sameer Gupta Net debt/equity (x) (0.2) (0.2) (0.1) (0.1) 0.0
sameer.gupta@iiflcap.com EV/Ebitda (x) 22.3 21.3 20.6 18.3 16.2
91 22 4646 4672

Price/book (x) 10.2 9.6 8.6 7.7 6.9
www.iiflcap.com Source: Company, IIFL Research. Price as at close of business on 09 May 2017.
IIFL - India IIFL - UK IIFL - USA

IIFL Securities Limited IIFL Wealth (UK) Limited IIFL Inc.
9th Floor, IIFL Centre, 41 Lothbury 1120 Avenue of the Americas
Kamala City, Senapati Bapat Marg, London EC2R 7HG, Suite 1505,
Lower Parel (W), United Kingdom New York,
Mumbai - 400013 Tel +44 (0) 20 707 87208 NY 10036
Tel +91-22-4646-4600 Tel +1-212-221-6800
Fax +91-22-4646-4700 Fax +1-646-417-5800

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MTAR001

MTAR TECHNOLOGIES LTD

CORPORATE RESEARCH Growth with Precision

2,500 Strong R&D and in-house capabilities: Focus on R&D has

developmental and volume-based production, customized to meet

Targeting growth with profitability: MTAR is targeting to diversify

MTAR TECHNOLOGIES LTD

THIS COMMUNICATION DOES NOT CONSTITUTE AN ADVERTISEMENT, A PROSPECTUS, A STATEMENT

MTAR TECHNOLOGIES LTD

PUBLICLY AVAILABLE SOURCES. NO REPRESENTATION OR WARRANTY IS BEING MADE ON BEHALF OF

MTAR TECHNOLOGIES LTD

Since inception, it has strived for continuous growth by contributing

MTAR has established long standing customer relationships with

Nuclear Space & Defence Clean Energy

4,000 21.34% 25.0%

MTAR TECHNOLOGIES LTD

Exports to international customers were 67.58% of revenue from

1HFY21 revenue mix (Rs Order Book mix as on Nov'20 (Rs mn) Order Book

The company was originally promoted by Late P. Ravinder Reddy,

MTAR TECHNOLOGIES LTD

manufacturing and the technical know-how to manufacture niche

It is also a key supplier of mission critical components to customers

MTAR TECHNOLOGIES LTD

relationships of over three decades and four decades with customers

Figure 8: Fuel Machining Head Assembly Figure 9: Fuel Machining Head operating in Nuclear Reactor

MTAR TECHNOLOGIES LTD

In addition, MTAR also focuses on clean energy and has been

Nuclear Sector revenues Space and Defence Sector Clean Energy Sector revenues

Nuclear Sector Space and Defence Sector Clean Energy Sector

Events and milestones

MTAR TECHNOLOGIES LTD

MTAR lays special emphasis on research and development (“R&D”)

Most of the manufacturing facilities, including the EOU have

Health, Safety and Environment: MTAR continually aims to

MTAR TECHNOLOGIES LTD

measures to ensure a safe working environment including general

MTAR has machining, assembly and testing, fabrication, surface

MTAR TECHNOLOGIES LTD

MTAR TECHNOLOGIES LTD

Wide product portfolio and long-term customer relationships

State-of-the-art manufacturing facilities equipped with

MTAR TECHNOLOGIES LTD

tests. Its specialized fabrication facilities are supported by

Strong and diversified supplier base for raw materials

Experienced and qualified management team

Each business vertical is being managed by experienced and hands-

MTAR TECHNOLOGIES LTD

Leverage on the domestic growth and indigenisation

Focus on deepening the relationships with existing customers

MTAR TECHNOLOGIES LTD

Energy, but also to develop new customer relationships, in India and

Expand international presence and increase exports

Increase manufacturing capacity and market share through

Focus on operational efficiencies

MTAR TECHNOLOGIES LTD

Financial highlights (Standalone)

Figure 20: Segmental revenue mix (%)

Nuclear Sector Space and Defence Sector Clean Energy Sector

40% 20.06 21.46