History

MTAR Technologies, founded in 1970, has evolved into a prominent player in India's precision engineering industry. Throughout its journey, MTAR has been at the forefront of manufacturing mission-critical precision components and assemblies, serving projects of national and global significance. Their commitment to precision machining, assembly, testing, and quality control is underscored by their remarkable capabilities, some of which have been developed in-house. In 1972, the First Order from HMT was received by MTAR. Over the years, MTAR has been at the forefront of precision engineering, serving clients such as ISRO, NPCIL, DRDO, Bloom Energy, Rafael, and Elbit. Throughout its journey, MTAR achieved several significant milestones. In the early years, it established key units to meet the growing demand, including those for BHEL, HMT, and ISRO. Notably, in 1986, MTAR made a strategic entry into the defence manufacturing sector, leading to collaborations with HAL, GTRE, and ADA. The company continued to expand, becoming a critical supplier for Indian nuclear, defence, and space sectors. In 2002, MTAR created Unit 2, dedicated to defence and space, showcasing its commitment to supporting these sectors. The company's global reach expanded in 2010 with the establishment of an Export-Oriented Unit (EOU). In 2011, it diversified into the clean energy sector by manufacturing power units for Bloom Energy. In 2018, MTAR initiated defence exports, marking a significant milestone in its journey. The year 2020 saw the commencement of developmental activities for roller screws, which are poised to become valuable import substitutes. MTAR has made strides in developing import substitutes, of special note ball screws and water-lubricated bearings, highly specialised products for the Nuclear, Space, and Defence sectors. MTAR Technologies stands among the top three suppliers meeting the precision engineering needs of India's nuclear, Defence, and Space sectors.

Business Segments

MTAR Technologies Limited (MTAR) has four main business segments:

• Civilian Nuclear Power:MTAR is one of the foremost supplier of specialised engineering products and services to the Indian civilian nuclear power sector. The company manufactures and supplies a wide range of products, including fuel machining heads, drive mechanisms, bridge and column and coolant channel assemblies for nuclear power plants. MTAR also supplies a range of services, such as precision machining, welding, and fabrication.
• Defence and Aerospace:MTAR is one of the foremost supplier of critical components and assemblies to the Indian defence and aerospace sectors. The company manufactures and supplies a wide range of products, including missile components, aircraft components, and defence electronics. MTAR also supplies a range of services, such as precision machining, welding, and assembly.
• Space:MTAR is one of the foremost supplier of components and assemblies to the Indian space program. The company manufactures and supplies a wide range of products, including satellite components, launch vehicle components, and ground support equipment. MTAR also supplies a range of services, such as precision machining, welding, and assembly.
• Others:MTAR also manufactures and supplies a range of products and services to other sectors, such as the automotive sector, the railways sector, and the power sector.

Subsidiaries of MTAR Technologies

• Magnatar Aero Systems Private Limited

Magnatar Aero Systems, based in India, specialises in the manufacturing of domestic appliances. The company, wholly owned (100%) by MTAR, core priorityes on producing a range of domestic appliances, catering to the Indian market. With an unwavering ownership interest retained by the group, Magnatar Aero Systems has continued its operations dedicated to providing quality domestic appliances, contributing to the company’s diverse portfolio.

• Gee Pee Aerospace and Defence Private Limited

Gee Pee Aerospace and Defence Private Limited, also a wholly owned subsidiary (100%) based in India, is strategically engaged in the manufacturing of high-precision components using advanced CNC machining techniques. The company plays a crucial role in the aerospace and defence sectors by producing intricate and high-quality components necessary for these industries. MTAR gained complete control of a 100% stake in Gee Pee in the fiscal year 2022-23.

Financial Performance

• In FY 2022-23, the organization achieved its highest-ever revenues of ₹573.34 crore, compared to ₹322 crore in FY 2021-22, representing a remarkable 78.05% increase, in line with their accelerated growth momentum.
• Net profit for FY 2022-23 stood at ₹104.07 crore, reflecting a substantial YoY increase of 70.95%, indicating healthy profit growth driven by increased revenues and work-in-progress levels as part of enterprise expansion.
• The organization's order book exhibited a CAGR of 36.92% over FY 2019-23, and it is anticipated to witness significant growth in the coming years. The organization closed the fiscal year with an order book worth ₹1,172.94 crore as of March 31, 2023.
• The organization successfully reduced Net Working Capital days to 230 from 275 in the financial year ending March 31, 2023, showcasing more efficient management of operational liquidity.
• MTAR Technologies aims for a revenue target of ₹3,000 crore over the next five years, indicating ambitious growth aspirations. The organization anticipates a significant surge in revenues, forecasting a 45%-50% increase compared to FY 2022-23.
• EBITDA levels are expected to remain at 28% +/-100 bps, reflecting a steady operational performance and profitability.
• Expectations include a robust growth trajectory in Clean Energy segments. Clean Energy - Fuel Cells and Hydel are predicted to witness healthy growth, whereas Clean Energy - Civil Nuclear Power is set for a substantial 40% growth, supported by a strong order book of around ₹193 crore by the end of FY 2022-23.
• The organization predicts a substantial revenue contribution of approximately ₹120 – 130 crore from the products division due to the addition of ASP assemblies, demonstrating diversification and product expansion initiatives.