MTAR Technologies: Information Analysis

Incorporated in 1999, MTAR Technologies is a leading precision-engineering solutions company, engaged in manufacturing mission-critical precision components with close tolerance. This means that these products are manufactured with high accuracy and perform critical tasks and precision movements consistently over longer repeat cycles. Since its products and components are mainly used for critical applications, such as aviation, aerospace, space, defence and nuclear power plants where errors can cause severe damage, the company needs to ensure all its products and components are high-quality and error-proof. The company primarily caters to customers in the nuclear, space and defence and clean-energy sectors. With its biggest customer, Bloom Energy, in the US involved in generating power through renewable energy sources, the company has a major focus on the clean-energy sector. MTAR Technologies derived around 50 per cent of its revenue in the nine months ending December 31, 2020, from Bloom Energy. Nuclear Power Corporation of India Ltd. (NPCIL) is another major customer. Customers from the nuclear segment accounted for 27 per cent of its revenues as of December 31, 2020. Besides, the company is also a key supplier of mission-critical assemblies and components to the Defence Research and Development Organisation (DRDO) and Indian Space Research Organisation (ISRO). Strengths The company lays great emphasis on research and development of its manufacturing processes in order to achieve design specifications with accuracy irrespective of product sizes. As on December 31, 2020, the company had an aggregate order book of Rs 336.1 crore. Out of this, 80.1 crore, 93.1 crore and 160.6 crore were from the clean-energy, nuclear and space and defence sector, respectively. Its client base includes some of India's leading organisations in the nuclear, space and defence sectors, such as the NPCIL, Indira Gandhi Centre for Atomic Research, ISRO and DRDO. Its expertise in designing critical and customised products for its clients has enabled it to establish long-lasting relationships with them, thereby leading to business growth. The 'Make in India' and 'Atmanirbhar Bharat' initiatives and an import ban on certain defence items have paved the way for the development of the domestic defenc