💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 15.10% YoY to INR 388.74 Cr in FY25, primarily driven by the automotive plastic injection moulding segment which caters to Maruti Suzuki India Ltd (MSIL).

Geographic Revenue Split

The company operates primarily in Northern India with manufacturing plants strategically located in proximity to MSIL’s units in Gurgaon and Manesar to optimize logistics for bulky components.

Profitability Margins

Net Profit Ratio improved significantly by 101.19%, rising from 1.09% in FY24 to 2.20% in FY25. Pre-tax profit increased from INR 5.24 Cr to INR 11.46 Cr.

EBITDA Margin

Operating profitability is targeted at 8-9% for credit rating upgrades; current cash profit stands at INR 21.53 Cr, a 10.76% increase from INR 19.44 Cr in the previous year.

Capital Expenditure

The company is undertaking a major capital expenditure of INR 125 Cr for a new manufacturing facility at IMT Kharkhoda, Haryana, to align with MSIL's expansion plans.

Credit Rating & Borrowing

Assigned [ICRA]BBB- (Stable) and [ICRA]A3 in January 2025; CRISIL reaffirmed BBB-/Stable in December 2024. Borrowing includes an INR 85 Cr term loan from Bank of India for the Kharkhoda project.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Polypropylene, Iron, and Steel; these constitute the bulk of the manufacturing cost for plastic-molded components.

Import Sources

Not specifically disclosed, though materials like Polypropylene are typically sourced from major domestic petrochemical refineries or global markets.

Key Suppliers

Not specifically named in the documents, but the company maintains a raw material price pass-through mechanism with its OEM customers.

Capacity Expansion

Currently operating two plants; expanding with a third unit at IMT Kharkhoda with a project cost of INR 125 Cr, expected to commence commercial operations by mid-FY2026.

Raw Material Costs

Profitability is vulnerable to raw material price volatility; however, a pass-through mechanism exists with a one-quarter lag, mitigating long-term margin erosion.

Manufacturing Efficiency

The company uses versatile machines capable of processing various polymers and changing moulds to cater to diverse automotive and non-automotive requirements.

Logistics & Distribution

Logistics costs are optimized by the 'Joint Venture Complex' model, where plants are located near the customer's assembly lines to facilitate just-in-time delivery.

📈 Strategic Growth

Expected Growth Rate

4.6%

Growth Strategy

Growth is driven by the INR 125 Cr Kharkhoda plant expansion to serve MSIL's new capacity, diversification into non-passenger vehicle segments, and expanding the product range to include moulds and other plastic goods.

Products & Services

Plastic-molded auto components including Bumpers, Instrument Panels (IP), Radiator Grills, and specialized manufacturing moulds.

Brand Portfolio

Machino Plastics Limited (primarily a B2B supplier to Maruti Suzuki and Suzuki Motor Corporation).

New Products/Services

Added products such as moulds and components for new car models; exploring business possibilities in non-automotive plastic goods.

Market Expansion

Targeting the IMT Kharkhoda industrial hub with a new facility to be operational by FY2026, following MSIL's relocation/expansion strategy.

Market Share & Ranking

Single-source supplier status for specific components like bumpers and instrument panels for various MSIL models.

Strategic Alliances

Established as a Joint Venture between the Jindal family, Maruti Suzuki India Limited (MSIL), and Suzuki Motor Corporation (SMC), Japan.

🌍 External Factors

Industry Trends

The industry is shifting toward Electric Vehicles (EVs) and lightweighting; Machino is positioning itself by investing in versatile machinery and R&D for new polymer applications.

Competitive Landscape

Faces competition from other tier-1 plastic component manufacturers and the potential for OEMs to bring production in-house.

Competitive Moat

Sustainable moat derived from its JV status with MSIL/Suzuki, single-source supplier status for critical large-scale parts, and high entry barriers due to the capital-intensive nature of large-mould injection moulding.

Macro Economic Sensitivity

Highly sensitive to the Indian automotive cycle and passenger vehicle (PV) demand; also impacted by monsoon performance which affects rural auto sales.

Consumer Behavior

Shift toward SUVs and premium vehicles by consumers increases the demand for larger, more complex plastic moulded interiors and exteriors.

Geopolitical Risks

Vulnerable to global supply chain disruptions and fluctuations in international prices of polymers and steel.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by automotive safety standards and plastic waste management rules; must meet stringent OEM quality standards (ISO/TS 16949).

Environmental Compliance

Compliant with ISO 14001 and OHSAS 18001; exposed to indirect risks from tightening emission norms for its OEM customers.

Taxation Policy Impact

Subject to standard Indian corporate tax rates; benefits from certain tax exemptions and subsidies are monitored as part of financial risk.

⚠️ Risk Analysis

Key Uncertainties

Potential for MSIL to insource bumper production and the high leverage (Gearing 3.4-3.6x) from the INR 125 Cr debt-funded capex.

Geographic Concentration Risk

High concentration in the Haryana automotive belt (Gurgaon/Manesar/Kharkhoda).

Third Party Dependencies

84% revenue dependency on a single client (MSIL) and reliance on Bank of India for project financing.

Technology Obsolescence Risk

Risk from the transition to EVs and new materials; requires continuous upgrading of injection moulding technology and mould designs.

Credit & Counterparty Risk

Low credit risk for receivables as the primary customer is MSIL, ensuring timely payments and efficient working capital cycles.