Magna Electro Castings Ltd

Magna Electro Castings Limited - Trading Window Closure from 1 October 2026 until 48 hours after the declaration of the unaudited financial results for the quarter and half year ending 30 September 2026.

AGM Details

• AGM date/time/mode: 9 Sep 2026, 4:00 PM IST, via VC/OAVM.
• Voting conducted via remote e-voting and AGM e-voting.

Key Resolutions

• Item 1: Adoption of audited financial statements for year ended 31 March 2026.
• Item 2: Dividend of Rs 5 per equity share approved.
• Item 3: Re-appointment of M. Malmarugan as Director on retirement by rotation.
• Item 4: Re-appointment of VKS Aiyer & Co as Statutory Auditors.
• Item 5: Approval for material related party transactions with Samrajyaa Precision Machining Private Limited.
• Item 6: Ratification of remuneration to SBK & Associates, Cost Auditors for FY ending 31 March 2027.
• Item 7: Re-appointment of N. Krishnasamaraj as Managing Director and remuneration.
• Item 8: Re-appointment of M. Malmarugan as Whole-time Director – Operations and remuneration.
• Item 9: Continuation of J. Vijayakumar as Non-Executive Director.

Voting Results

• Item 1 passed unanimously; no dissent.
• Item 2 passed unanimously; dividend approved.
• Item 3 passed unanimously as rotation-based re-appointment.
• Item 4 passed unanimously; auditor re-appointment.
• Item 5 approved; 89.13% assent, 10.87% dissent.
• Item 6 passed unanimously; cost auditor remuneration ratified.
• Item 7 passed unanimously; MD remuneration approved.
• Item 8 passed unanimously; WTD remuneration approved.
• Item 9 passed with 1 dissent; continuation of Non-Executive Director.

Dividend

• Dividend of Rs 5 per equity share approved.

Director Changes

• M. Malmarugan re-appointed as Director (retirement by rotation).
• N. Krishnasamaraj re-appointed as Managing Director with remuneration.
• M. Malmarugan re-appointed as Whole-time Director – Operations with remuneration.
• J. Vijayakumar continued as Non-Executive Director.

Auditors

• VKS Aiyer & Co re-appointed as Statutory Auditors.
• SBK & Associates remuneration ratified for Cost Audit for FY ending 31 March 2027.

Material Related Party Transactions

• Approval for material related party transactions with Samrajyaa Precision Machining Private Limited.

AGM Details

• 36th AGM held on 9 September 2026 at 4:00 PM IST via VC/OAVM.

Ordinary Business

• Adoption of audited financial statements for the year ended 31 March 2026.
• Dividend of Rs.5 per equity share approved.
• Reappointment of M. Malmarugan as Director on retirement by rotation.
• Reappointment of M/s VKS Aiyer & Co. as Statutory Auditors for a second five-year term.

Special/Other Resolutions

• Approval for related party transactions with Samrajyaa Precision Machining Private Limited.
• Ratification of remuneration to Cost Auditors for the year ending 31 March 2027.
• Re-appointment of N. Krishnasamaraj as Managing Director; remuneration to be fixed.
• Re-appointment of M. Malmarugan as Executive Director – Operations; remuneration to be fixed.
• Continuation of J. Vijayakumar as Non-Executive Director.

Voting Status

• Consolidated voting results to be declared later with Scrutinizer's report.

Financials

• Revenue from operations Rs 5,081.48 lakhs in Q1 FY27; up about 4.8% YoY.
• Total income Rs 5,130.36 lakhs; YoY growth about 4.8%.
• PAT Rs 372.55 lakhs; down ~44% YoY from Rs 665.55.
• PBT Rs 503.06 lakhs; down ~43.6% YoY from Rs 892.11.
• Basic and diluted EPS Rs 8.80; down from Rs 15.73.

M&A & capacity plan

• In-principle merger approval with Samrajyaa Precision Machining Private Limited.
• Valuation report and fairness opinion to determine share exchange ratio.
• Transaction to be at arms' length; approvals from independent directors, Audit Committee, shareholders, creditors, NCLT.

Capex & capacity expansion

• New in-house machining division planned; 7 CNC machines.
• Commissioning target by January 2027; investment approx Rs 17 crore.
• Funding through internal accruals.

Capacity & operations

• Existing capacity: moulding 2000 MT/yr; melting 1500 MT/yr; no in-house machining.
• Machining to be integrated; current outsourcing to job-workers.

M&A financials & shareholding

• Transferee turnover for quarter ended 30.06.2026: Rs 5,081.48 lakhs.
• Transferor turnover for quarter ended 30.06.2026: Rs 379.98 lakhs.
• Transferee net worth Rs 14,872.53 lakhs; paid-up capital Rs 423.21.
• Transferor net worth Rs 2,512.04 lakhs; paid-up capital Rs 2,488.50.

Other notes

• Transferee engaged in manufacturing and selling ductile iron components.
• Company operates a single operating segment; standalone results.

Financial performance

• Total revenue stood at 19,833.64 lakh, up from 17,817.49.
• PAT was 1,847.45 lakh; EPS 43.65.
• PBT before tax: 2,517.84 lakh; tax 629.88 (current), 40.51 (deferred).
• Export revenue: 9,283.18 lakh; domestic revenue: 9,675.21 lakh.
• Export share amounted to 47.3% of total revenue.
• Dividend proposed: Rs 5 per equity share.
• Net profit margin: 9.4%.
• AGM to approve final financials; date 9 September 2026 via VC/OAVM.

Capex & operations

• Third Moulding Line commissioned 27 Jun 2025; capacity 2,000 MT/month.
• Project cost Rs 51.87 crore; term loan Rs 15 crore.
• Other capex: Cold Box Core Shooter, Eirich sand plant, Inductotherm, Wesman; 6,480 sq ft warehouse.
• Melting capacity remains 1,500 MT/month; expansion aligned to production scale.
• Total moulding capacity now 2,000 MT/month; machining capacity to grow with demand.

Energy & sustainability

• 73% of energy from green sources via wind and captive solar.
• Wind/solar income 1,004.01 lakh; up 38.9%.
• Green energy capacity stands at 8.35 MW total; 3.25 MW wind, 5.1 MW solar.
• Certifications maintained: PED, PESR, LR, BV; IATF 16949; ISO 9001; ISO 14001.
• GHG/PCF reporting ongoing; sand reclamation and sustainability measures implemented.

Debt & liquidity

• Net debt position negative at year-end; cash balance 198.57 lakh.
• Debt equity ratio 0.103; total equity 14,499.97; reserves 14,076.76.
• Current ratio 2.52; maturities spread across 0-5 years.
• Cash flow: operating 2,127.72; investing -1,924.73; financing -42.77.
• No equity fund-raising; dividend record date 2 Sep 2026; payout within 30 days after AGM.

Governance & board

• Board comprises nine directors; 3 Executive, 6 Non-Executive; 5 Independent (incl. one woman).
• MD: N. Krishnasamaraj; EDs: M. Malmarugan and Ajeya Vel Narayanaswamy (Marketing).
• Item 7: continuation of Sri J. Vijayakumar as Non-Executive Director after 75.
• Item 9: Special Resolution for continuation as director post-75.
• Audit Committee met five times; members include Sudarsan Varadaraj, G. D. Rajkumar, Vijayakumar, etc.
• Statutory Auditors: VKS Aiyer & Co; Secretarial: MDS & Associates LLP; Cost: SBK & Associates.
• Remuneration policy and independent director familiarisation program disclosed.

Related party transactions

• Material RPT with Samrajyaa Precision Machining Private Limited (SPMPL) up to Rs 3,000 lakh.
• FY25-26 SPML-related transactions: Rs 2,028.70 lakh; Unit-1 acquired from Samrajyaa.
• Relatives of MD hold 23.27% in SPML; SPML is promoter-group member.
• RPT terms: arm's length; prices aligned with market; omnibus approvals in place.
• Audit Committee and Board recommend shareholders' ordinary approval for SPML transactions.

CSR & policy

• CSR policy and projects disclosed on company website; CSR Committee in place.
• CSR expenditure: 41.39 lakh; CSR obligation 38.78 lakh; excess 2.61 lakh carried forward.
• Impact assessment not applicable; CSR policy posted publicly.

Risks & outlook

• Growth opportunities in autos, rail, defence, and renewables; export expansion potential.
• Key risks: high raw material and energy costs, skilled-labour shortage, tariffs, currency volatility.
• Plan to expand capacity and adopt automation; energy initiatives reduce grid exposure.

AGM Details

• AGM on 9 September 2026 at 4:00 PM IST via VC/OAVM.
• Deemed venue is the Company's registered office.
• Record date for e-voting is 2 September 2026.
• Register of Members closes 3–9 September 2026.

Dividend

• Final dividend of Rs 5 per equity share proposed, subject to approval.
• Dividend record date fixed as 2 September 2026.

Key Resolutions

• Item 1 Ordinary: adopt annual financial statements and reports.
• Item 2 Ordinary: declare dividend of Rs 5 per share.
• Item 3 Ordinary: re-appoint director retiring by rotation.
• Item 4 Ordinary: re-appoint Statutory Auditors for second five-year term.
• Item 5 Ordinary: approve material RPT with Samrajyaa Precision Machining up to Rs 3,000 Lakhs.
• Item 6 Ordinary: ratify remuneration of Cost Auditors Rs 1.70 Lakh.
• Item 7 Special: re-appoint N. Krishnasamaraj as MD for five years.
• Item 8 Special: re-appoint M. Malmarugan as Whole-time Director – Operations.
• Item 9 Special: continue J. Vijayakumar as Non-Executive Director beyond age 75.

Auditors & Directors

• Statutory Auditor: M/s VKS Aiyer & Co. re-appointed for 2026–2031 at Rs 15 Lakh per annum.
• Cost Auditor: SBK & Associates to audit 2026–27, remuneration Rs 1.70 Lakh.
• Remuneration details for MD and Whole-time Director outlined in respective items.
• Continuation of J. Vijayakumar as Non-Executive Director beyond 75 discussed.
• Remuneration terms subject to Board/Audit Committee approvals.

Material Related Party Transactions (RPT)

• Related party: Samrajyaa Precision Machining Private Limited; machining services; limit Rs 3,000 Lakhs; term 36th to 37th AGM.
• Proposed Rs 3,000 Lakhs exceeds 10% of turnover; approvals sought.
• Auditor Committee and Board approved the RPT; shareholders to approve.