Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q4 FY22 Earnings Presentation
36 slides from Vardhman Special Steels's earnings presentation, Apr 30, 2022
Slide 1: Vardhman Special Steels filing cover letter
Vardhman VARDHMAN SPECIAL STEELS LIMITED Delivering Excellence. Since 1965. CHANDIGARH ROAD Vardhmln LUDHIANA-141 0 I 0, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048,2222616,2601040 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:APR:2022-23 Dated: 30-Apr-2022 BSE Limited, The National Stock Exchan
Slide 2: Result Update Presentation Q4 & FY22
Vardhman Special Steels Limited Result Update Presentation Q4 & FY22
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection wi
Slide 4: Table of Contents
Table of Contents Financial Highlights Company Overview Business Overview Way Ahead 3
Slide 5: Financial Highlights
Financial Highlights
Slide 6: Management's Message
Management’s Message Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said – “We are happy to share that our financial & operational performance for Q4 FY22 has been a bit better than our guidance due to couple of one-off items. Due to a massive increase in raw material
Slide 7: Financial Highlights - Quarterly
Financial Highlights - Quarterly Sales Volumes (tonnes) Revenue from Operations (Rs. Crore) 334.48 330.14 335.65 359.32 343.35 47,828 43,705 43,283 44,723 41,596 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21* Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 EBITDA (Rs. Crore)# PAT (Rs. Crore) 29.19 59.56 27.80 54.
Slide 8: Financial Highlights – Q4 FY22
Financial Highlights – Q4 FY22 INR Crore Q4 FY22 Q4 FY21 Y-o-Y % Q3 FY22 Revenue From Operations 343.35 334.48 2.65% 359.32 • Q4 FY22 volumes stood at Other Income 21.51 2.41 2.00 41,596 tonnes Total Income 364.86 336.89 361.32 • Increase in Revenue of Cost of Materials Consumed 233.21 194.07 201.50
Slide 9: Financial Highlights – FY22
Financial Highlights – FY22 INR Crore FY22 FY21 Y-o-Y % Revenue From Operations* 1,368.46 937.08 46.03% • Volumes for the full year Other Income 28.89 12.96 stood at 1,73,308 tonnes – 1,397.35 950.04 YoY growth of 15.33% Total Income Cost of Materials Consumed 896.53 537.41 • EBITDA growth of 74.17%
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights INR Crore As on 31st Mar’22 As on 31st Mar’21 INR Crore As on 31st Mar’22 As on 31st Mar’21 Equity* 554.96 459.36 Non-Current Assets 324.15 320.45 Equity Share Capital 40.56 40.51 Property Plant & Equipment 288.22 281.49 Other Equity 514.40 418.86 Capital work in progress 12
Slide 11: Company Overview
Company Overview
Slide 12: About Us
About Us Amongst India’s Leading Steel Bar Producers for Automotive Applications ▪ Incorporated in May 2010 ▪ Headquartered in Ludhiana, Punjab State-of- art manufacturing ▪ Caters to sectors such as Engineering, facilities Automotive, Tractor, Bearing and Allied ▪ Cutting-edge manufacturing Industr
Slide 13: Journey So Far
Journey So Far What We were… ▪ Feb. 2018 – QIP of Rs 50 Cr. ▪ June 2018 – CRISIL upgraded credit rating ▪ 1973 – Started as Oswal ▪ 2012 - Listed on BSE & ▪ August 2018 – Change in Statutory Steels - 50,000 TPA NSE Auditors to M/s B. S. R. & Co. LLP capacity of special & alloy ▪ 2013 – Installed ful
Slide 14: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Independent Director Vice Chairman & MD ▪ B. Tech from BHU/IIT, Varanasi and MBA (IIM, ▪ B. Tech (Electrical) - IIT, New Delhi, MBA (Gold Ahmedabad) medallist) - IIM, Ahmedabad and Owner/President ▪ Rich exper
Slide 15: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... Mr. B.K. Choudhary Mr. Rakesh Jain Non-Executive Director Independent Director ▪ Degree in B.Sc., M.Com & MBA ▪ Ph.d in Polymers from the University of Akron ▪ Rich experience of more than 44 years in Steel ▪ Worked in the Advanced Technology Group at G
Slide 16: Business Overview
Business Overview
Slide 17: Wide Range of Rolled & Bright Bars Products
Wide Range of Rolled & Bright Bars Products Hot Rolled Bars Bright Bars ▪ Diameter Size : Increased from 25-70 ▪ Size : 14.66 to 78 mm (Peeled), 18 to MM in 2012 to 16-120 MM 55.25 mm (Drawn) 16
Slide 18: Diverse applications of our products
Diverse applications of our products Axle Gears Transmission Gear Stabilizer Bar Drive-Shaft Knuckle Spindle Tie-Rod Piston Bearings Connecting Rod Companion-flange Camshaft Axle Shaft Center Velocity Joint Piston-Pin Crankshaft Steering-Yoke Differential Gears Steering Shaft 17
Slide 19: State-of-art Manufacturing facilities
State-of-art Manufacturing facilities Steel Melting Shop Rolling Mill Bright Bars ▪ Annual Capacity : 2,00,000 TPA ▪ Annual Capacity : 2,00,000 TPA ▪ Annual Capacity : 36,000 TPA ▪ 30 MT Ultra High Power (UHP) Eccentric ▪ Rolling Mill installed in 2013-14 ▪ Bar Peeling & Centreless Grinding Bottom T
Slide 20: Process Flow
ACONMTNENTTO QUALITY Process Flow O) VARDHMAN SPECIAL STEELS LTD. eo Ww ‘Sponge, ORI, PIG IRON, Shredded Scrap } oe all Exports Domestic Shipment ) rr” Final Inspection and Dispatch Bright Bar Shop 30 TON ELECTRIC ARC FURNACE Spherodize Annealing = Vaccum Degassing Unit —_Laddle Refining Unit Contin
Slide 21: In-House Steel Melting Shop
In-House Steel Melting Shop Electric Arc Furnace Two Ladle Refining Furnace Continuous Casting Machine Vacuum Degassing 20
Slide 22: Rolling Mill & Bright Bars
Rolling Mill & Bright Bars Rolling Mill Bright Bar Shop Reheating Furnace Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop 21
Slide 23: Automatic Line of Bar Inspection - NDT Line
Automatic Line of Bar Inspection - NDT Line MFLT Acceptance Criteria: Chamfering 0.2x10mm Bar ends free from Straightening Burr Straightness : 2mm / meter UST Acceptance Criteria: SDH - Shot Blasting 0.8x10mm, FBH - 0.8 & 1.2mm 22
Slide 24: Best in class R&D Facility
Best in class R&D Facility ▪ Spectrometer : ARL 4460:1454 for Chemical Analysis. Can check 32 different elements ▪ CS - 230 : Analyzer for Carbon & Sulfur content in steel ▪ LECO gas analyzer – TC 600 H2, N2, O2 Analyzer ▪ Mobile Spectro and XRF for Mix up Testing of Bars ▪ Mechanical and Metallurgi
Slide 25: Strategically located Warehousing Facilities
Strategically located Warehousing Facilities Bilaspur ▪ One Owned Warehouse ▪ Bilaspur Haryana Rudrapur ▪ Five Leased Warehouses in India Aurangabad ▪ Bangalore ▪ Chennai Pune ▪ Rudrapur Bangalore ▪ Pune Chennai ▪ Aurangabad 24
Slide 26: Key Strengths
Key Strengths State of Art Manufacturing Facilities and advanced R&D Capabilities ▪ Well equipped with latest upgraded Technology Machines 01 Diversified Product offerings ▪ Manufactures diverse range of products with wide applications across sectors ▪ Further expanding product offerings to increase
Slide 27: 200+ Reputed & Long term customers....
200+ Reputed & Long term customers.... Cars Two Wheelers HCL/LCVs Auto Components Tractors Off Highway Vehicles 26
Slide 28: ... Across Globe with Customer Base
... Across Globe with Customer Base Russia Germany Italy Japan Turkey Vietnam Taiwan Thailand 5% of FY22 sales from exports 27
Slide 29: Way Ahead
Way Ahead
Slide 30: Investing in Our Real Assets
Investing in Our Real Assets Centre for Creative Leadership ‘Manav Vikas Kendra’ ‘EKLAVYA - B.Sc. to B. Tech.’ ▪ CCL - US based Organisation – ▪ Training programs – ▪ New Initiative undertaken offers leadership programs functional, attitudinal, skill ▪ Formalized training programs across 160 countri
Slide 31: Strategic alliance with Aichi Steel Corporation Japan
VSSL entered a strategic alliance with Aichi Steel Corporation (ASC) Japan. (Main material maker for Toyota) Gasoline ▪ Technology and technical know how shared with VSSL to make steel for Toyota companies and other Phase - 1 OEM’s ▪ To raise quality of steel of VSSL to be supplied to future ready c
Slide 32: What advantage for VSSL after alliance with Aichi
What advantage for VSSL after alliance with Aichi Possibilities ▪ Future Ready products - Patent steel grades developed for special application in EV’s, hybrid and conventional Cars ▪ Own In House R&D – Toyota Car Company takes input from Aichi on special steel to be developed car parts. It means we
Slide 33: Timeline for activities
Timeline for activities Production 300,000MT / year Export 60,000 MT / year Phase 3 ▪ Vardhman may look forward to • Initiate CAPEX to increase Forging business in India production capacity to 250,000 MT in first phase Phase 2 • FY 2022-23: Year of manufacturing ▪ Time for Aichi to Invest more in of
Slide 34: ESG Initiatives
ESG Initiatives Environment: • Committed towards a cleaner, greener and healthier environment by implementing stringent standards & policies for Environment in our unit • Making steel through Electric Arc Furnace route which is significantly more environment friendly than Blast Furnace route. Most o
Slide 35: ESG Initiatives
ESG Initiatives • Have an In-house oxygen generation plants for our captive consumption. During Covid time, we had served the society by supplying oxygen cylinders. During 2nd wave of Covid, we have been able to serve for 50% requirement of oxygen of Ludhiana city • Employee well being: ✓ We hadn’t
Slide 36: Thank You
Thank You 534392 VSSL VSSL IN VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt. Ltd. Mr. Sanjeev Singla Mr. Amit Sharma sanjeevsingla@vardhman.com +91 9867726686 amit@bridge-ir.com www.vardhmansteel
Vardhman Special Steels — Q4 FY22 Earnings Presentation on 6ix