Megatherm Induction Ltd is a specialized manufacturer of induction heating and melting solutions utilizing electric induction technology. Incorporated in 2010, the company's product range includes induction melting furnaces, heating equipment, transformers, ladle refining furnaces, continuous casting machines, and fume extraction systems. MIL is in the field of induction heating and melting solutions using electrical induction.
The company originally sparked off in 1989, building on a team of Electro Thermal Processing experts and extensive experience gathered since the 1970s. Today, Megatherm is a diversified group recognized and preferred by an ever-expanding list of domestic and international clientele, with installations spread across 42 countries around the globe.
Megatherm Induction has demonstrated robust financial performance and significant growth. As of recent reporting periods, the company has a market capitalization of ₹650 crore and an operating revenue of ₹773.64 crore on a trailing 12-month basis. The company has shown an outstanding annual revenue growth of 15% and a pre-tax margin of 9%. Its Return on Equity (ROE) has been exceptional, standing at 17% with ROE percentages for fiscal years FY21, FY22, and FY23 at 8.80%, 3.00%, and 27.65% respectively. The company maintains a healthy balance sheet with a reasonable debt-to-equity ratio of 5%.
The company's latest financial reports indicate a profit of ₹21.3 crore for the TTM (Trailing Twelve Months) and ₹20.72 crore for March 2024, showing consistent profitability. Key metrics highlight a remarkable revenue CAGR of 56.17% and a Profit After Tax CAGR of 112.84% for the period ended March 31, 2023, compared to previous years.
- Market Capitalization: ₹650 Crore (2024)
- Revenue (TTM): ₹773.64 Crore
- Profit (TTM): ₹21.3 Crore
- Profit (FY Mar 2024): ₹20.72 Crore
- Revenue CAGR (FY2023): 56.17%
- PAT CAGR (FY2023): 112.84%
- Return on Equity (ROE): Exceptional (e.g., 27.65% in FY23)
- Debt to Equity Ratio: 5%
- Promoter Holding: 72.79% (as of Sep 2024)
Megatherm Induction operates its state-of-the-art manufacturing facilities under WBEIDCL at Vidyasagar Industrial Park in Kharagpur. This integrated facility is equipped with advanced machinery and infrastructure to handle end-to-end metal heating and melting equipment manufacturing, ensuring high product quality, efficiency, and cost advantages. The company employs 285 people and operates a facility in Kharagpur with an annual production capacity of approximately 300 furnaces.
The company specializes in complex manufacturing processes, producing items like induction furnaces and transformers with precision and engineering competence. Raw materials are sourced from trusted vendors, and all products undergo stringent quality control at every stage to meet customers' specific requirements across various industries.
Megatherm Induction's core business revolves around the manufacturing and selling of Capital Equipments. Its product range includes:
- Induction Melting Furnaces
- Induction Heating Equipment
- Transformers
- Ladle Refining Furnaces
- Continuous Casting Machines
- Fume Extraction Systems
- Electric Arc Furnaces (customized for alloys and steel production)
The company provides comprehensive solutions for steel plants, covering design, engineering, supply, erection, commissioning, and after-sales services, including maintenance contracts and spare parts.
Megatherm Induction's products cater to diverse market segments. This includes secondary steel producers focused on scrap recycling and primary steel producers involved in converting iron ore into sponge iron and subsequent steel production via induction melting. The company also serves auto ancillaries, ordnance factories, railways, and DI pipe producers, as well as various engineering industries requiring captive casting, forging, and metalworking units.
The company maintains a well-diversified customer base across India and globally. Key domestic clients include Ordinance Factory, BHEL, and Tata Motors. Internationally, Megatherm's installations are present in South America, Africa, Gulf countries, Europe, SAARC nations, and Southeast Asia. The focus on delivering quality, cost-effective, and energy-efficient products has fostered long-term relationships with its clientele.
Megatherm Induction is strategically positioned for further growth. The company anticipates continued expansion, supported by an order book exceeding ₹290 crores as of July 31, 2023. Megatherm targets achieving ₹500 Crore in revenue with an 8-9% margin. A significant strategic initiative is the joint venture with Cyprium USA, aimed at entering the North American market, indicating strong international growth ambitions.
The company has also been actively utilizing IPO proceeds for its expansion plans. As of March 31, 2025, a substantial portion of the IPO proceeds had been utilized for capital expenditure, with ongoing deployment of the remaining funds. Recent developments include the appointment of Mr. Arunava Bhowmick as VP - Finance & Accounts, further strengthening the company's financial management capabilities. These initiatives collectively position Megatherm Induction for sustained growth in the industrial equipment manufacturing sector.
Megatherm Induction's Initial Public Offering (IPO) witnessed strong investor interest, with bidding commencing on January 29, 2024, and concluding on January 31, 2024. The shares were successfully listed on the NSE SME platform on February 5, 2024. The IPO price band was set at ₹108 per share. The offering closed successfully, attracting over 2.7 lakh applications and subscriptions totaling more than ₹7000 crores, demonstrating significant faith from retail, institutional, and international investors.
