Goodluck India Ltd. · NSE:GOODLUCK
Goodluck India — Investor Presentation (April 2015)
45 slides from Goodluck India's investor presentation, April 2015
Slide 1: Investor Presentation
Infinite are Possibilities INVESTOR PRESENTATION
Slide 2: Safe Harbor
SAFE HARBOR Some of the statements in this document that are not historical facts are forward-looking statements. These statements entail risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, th
Slide 3: Contents
CONTENTS 1) Fact sheet 2) Management Background 3) Key Milestones 4) Company Verticals 5) Location & Map 6) Core Product Offering 7) Product profile 8) Key Input Provider Of Auto Industry 9) New Product Profile 10) Key focus Sectors 11) List of clients & Raw material suppliers 12) Industry Highlight
Slide 4: Fact Sheet
FACT SHEET Incorporation 1986, Delhi NCR Products categories 1.CDW/AUTO Tubes, 2.Forged engineering products, Bright Bars 3.Transmission and distribution tower for power, solar structure solution, primary and secondary structure for boilers 4.Galvanized corrugated sheets ,(Black and GI ) 5. Structur
Slide 5: Management Background
MANAGEMENT BACKGROUND Mr. Mahesh Chandra Garg – Chairperson Graduated in the year 1967 (Indian Institute of Technology, Roorkee). Possesses more than 45 years experience. Took-up an overseas assignment with M/s Comcraft Ltd. Promoted by NRIs and erected many steel tube mills in Kenya and Niger
Slide 6: Management Background
MANAGEMENT BACKGROUND Mr. Nitin Garg – Whole Time Director 34 years of age, a qualified Mechanical Engineer from HBIT, Kanpur and an M.B.A. from Narsee Monjee Institute of Management. Worked with Yamaha Motors and Honda Motors. Joined the company as a production Engineer and currently looking
Slide 7: Management Background
MANAGEMENT BACKGROUND Mr. Manish Garg – COO 44 years of age, is an qualified engineer, handling over all the Export Business since last 22 years. Mr. Shyam Agarwal – COO 44 years old, is a qualified engineer and has more than 20 years of experience in steel Industry.
Slide 8: Key Milestones
KEY MILESTONES 2015: Production 1997: Capacity 1995: Launched capacity reached enhanced to first IPO for USD to 2Lacs MTPA 50000 MTPA 900000 2014: Commissioned new 1994: Converted 2003: Turnover plant for in to Public Ltd. ERW/Auto crossed 150 Cr. Co. Precision tubes 2006: 2013: Turnover 1992: Commi
Slide 9: Company Verticals
COMPANY VERTICALS TUBE SHEET STRUCTURE FORGING AUTO TUBES VERTICAL VERTICAL VERTICALS VERTICAL VERTICAL Welded Tubes & Forged flanges CDW/DO Cold rolled Galvanized M Tues Pipes structure coils & Precision Galvanized sheets for power Gear Rings Tubes Tubes & & telecom Pipes projects Bright Bars Engin
Slide 10: Location & Map
Location & Map Sikandrabad Parwanoo Pantnagar Ludhiana Haridwar Faridabad Gurgaon Nashik Manufacturing Plant Chennai Warehouse
Slide 11: Core Product Offering
CORE PRODUCT OFFERING Forged engineering products Transmission and CDW Tubes distribution towers for power CORE Annealed sheets Fabricated for white PRODUCT support structure goods(CRCA) solution OFFERING Galvanized Structure tubes corrugated (Black and GI ) sheets
Slide 12: Product Profile: Galvanized Pipes
PRODUCT PROFILE • GALVANIZED PIPES The galvanized pipes are mostly demanded for plumbing or tubing purpose, which can withstand corrosion from water and other elements. WELDED TUBES & PIPES BLACK PIPES HOT DIP GALVANISED PIPES PRE GALVANISED PIPES CASING & SCREEN PIPES
Slide 13: Product Profile: Square & Rectangular Pipes
PRODUCT PROFILE(CONTD) • SQUARE & RECTANGULAR PIPES Manufactured using finest quality of steel, Square and Rectangular Pipes are extensively used in welded steel frames which experience loads from multiple directions. SQUARE SECTIONS RECTANGULAR SECTIONS ROUND HOLLOW SECTIONS
Slide 14: Product Profile: CR Coils & Sheets
PRODUCT PROFILE(CONTD) • CR COILS & SHEETS These are demanded all over the country, chiefly in automobile components, consumer durables items, industrial goods and precision tubes. COLD ROLLED COILS & SHEETS GALVANISED COILS GALVANISED SHEETS CRCA HRPO
Slide 15: Product Profile: CDW Tubes
PRODUCT PROFILE(CONTD) • CDW TUBES These tubes are especially used in automotive and general industries. CDW/DOM TUBES PRECISION TUBES BICYCLE FRAME TUBES STEEL TUBES FOR AUTOMOBILES ENGINEERING TUBES BOILER TUBES HEAT EXCHANGER TUBES PROPELLER SHAFT TUBES TRANSFORMER TUBES FUE
Slide 16: Product Profile: Forgings
PRODUCT PROFILE(CONTD) • FORGINGS These products are bulk requirement in the market due to high quality and durability. FORGED FLANGES WELD NECK FLANGES SLIP ON FLANGES SOCKET WELDING FLANGES LAP JOINT FLANGES THREADED FLANGES BLIND FLANGES GEAR RINGS BLIND & TUBE SHEETS GEAR S
Slide 17: Product Profile: Bright Bars, Fabricated Steel Structure
PRODUCT PROFILE(CONTD) • BRIGHT BARS These are manufactured from impeccable quality steel that are completely corrosion free with a clean, smooth & bright surface. • FABRICATED STEEL STRUCTURE These are required in Infrastructure Projects in Bridges, Walkways, Girders, Rail Over Bridges, Foot Ov
Slide 18: Product Profile: Transmission & Telecom Towers
PRODUCT PROFILE(CONTD) • TRANSMISSION & TELECOM TOWERS These towers are widely used for electric power transmission. High Voltage transmission Towers Grid Towers Durable High Performance
Slide 19: Key Input Provider of Auto Industry
KEY INPUT PROVIDER OF AUTO INDUSTRY Anti-roll Bar Instrument Panel Frame Axle Shaft Power Steering System Corrugated Tube (steering column) Shock absorber Steering Column Cross-member Transverse Control Arm Engine mount Drive-Shaft Vibration damper (rubberised metal) Gas-filled Strut Engine
Slide 20: Key Input Provider for 2 Wheeler
KEY INPUT PROVIDER FOR 2 WHEELER Saree Guard Handle Bar Handle Bracket column Seat Rest Swing Arm Steering Head Tube Front Forks Shock Absorbers Side Stand Main Stand Exhaust Tubes Leg Guard Main Frame
Slide 21: New Products
NEW PRODUCTS CYCLINDER BORE DRIVE SHAFTS FRONT FORK TIE RODS FOR 4 TUBES TUBES WHEELER REAR AXLE TUBES RACK TUBES FOR FRONT STRUT 4 WHEELER FOR 4 WHEELER POWER STEERING TUBE CHASIS TUBE
Slide 22: New Products (Contd)
NEW PRODUCTS(CONTD) HYDRAULIC GROOVED FIR SOLAR STRUCTURE CYLINDRICAL FIGHTING PIPE SOLUTION TUBE
Slide 23: Key Focus Sectors
KEY FOCUS SECTORS SECTOR PRODUCTS MANUFACTURED • AUTOMOTIVE: A Sector driving Indian • CDW Tubes - for engine & body parts Economy for last 3 years and poised to of Two wheelers & four wheeler lead in next 5 years. • Structure Tubes – Used in Light Commercial Vehicle's body • Auto Forging – For Vari
Slide 24: Key Focus Sectors (Contd)
KEY FOCUS SECTORS(CONTD) SECTOR PRODUCTS MANUFACTURED • POWER( RENEWABLE & NON- • Structure for power generating boilers. RENEWABLE: • Forging-shafts & parts for • 67% Thermal (coal/gas) thermal/hydro. • 19% Hydropower • Solar Structure solutions for • 12% Renewable renewable energy. • 2% Nuclear •
Slide 25: Key Focus Sectors (Contd)
KEY FOCUS SECTORS(CONTD) SECTOR PRODUCT MANUFACTURED • OIL & GAS:A basic energy segments • Forges flanges & shafts to oil & because it energize the world. Gas companies, domestic as well as Global such as IOCL, GE Oil & Gas. Approved by EIL for flanges.
Slide 26: List of Clients
LIST OF CLIENTS ®) bl ALSTOM MOTORS Foner STERUNG AND WILSON G R onGcc Nose ® Ter ATATA Enterpri ise ll, "an" ail = From the house of STERLING AND WILSON Cf A. €c ix im @ GE Oil & Gas Q irate ee & (EIL) A MITSUBIS!| IEEE. (%) GOODLUCK
Slide 27: Raw Material Suppliers
RAW MATERIAL SUPPLIERS BHUSHAN BHUSHAN STEEL LIMITED (4) GOODLUCK
Slide 28: Global Associations
GLOBAL ASSOCIATIONS We are serving the most reputed names in the automotive sector through their associates/ our buyers in USA and Europe. Prominent buyers are M/s Voestalpine, M/s Thiel & Hoche, M/s Marubeni Australia etc.
Slide 29: Industry Highlights
INDUSTRY HIGHLIGHTS • Steel demand growth to start to improve from the second half of fiscal 2015- 16, supported by a pick-up in consumption. • India’s steel consumption to grow to 83 million tonnes by the end of 2015- 16. • The domestic steel demand is likely to grow at a faster pace in comparison
Slide 30: Global Steel Outlook
GLOBAL STEEL OUTLOOK • In 2015 structural reforms and improving confidence will support a further 6% growth in Indian steel demand but elevated inflation and fiscal consolidation remain key downside risks to the outlook. • Growth in Demand is expected to come from outside China as the Chinese Govern
Slide 31: Global Steel Outlook (Contd)
GLOBAL STEEL OUTLOOK(CONTD) • Director General of WSA, expects steel demand to increase to 2,000 million tonnes in 2030—up 25% from 1,600 million tonnes in 2014. • India’s per capita steel consumption is still below the global average. • India’s steel demand is expected to increase as the country ta
Slide 32: SWOT Analysis: Strengths and Weakness
SWOT ANALYSIS STRENGTHS: Diversified and right mix of products. Reshuffling of its products and market to adapt to the changing market scenario. Widespread presence in domestic and overseas markets. Consistent R&D and product modification. A visionary and committed management board. High
Slide 33: SWOT Analysis: Opportunity and Threat
SWOT ANALYSIS OPPORTUNITY Pro-development government policy. Increase in government investment in infrastructure such as roads, railway nuclear power, green energy (solar and wind). Increased international interest in India’s growth story. Due to cheap labor and skilled man power, India is b
Slide 34: Financial Highlights
FINANCIAL HIGHLIGHTS INR Cr. TOTAL INCOME EBITDA 1200 100 1000 1089 80 1002 800 85 600 693 60 71 40 400 490 49 200 261 342 20 11 27 39 0 0 2006 2008 2010 2012 2014 2015(P) 2006 2008 2010 2012 2014 2015(P) PAT ASSETS 35 600 526 567 30 500 25 29.23 400 20 20.1 300 380 15 17.7 16.1 200 10 234 100 5 4.7
Slide 35: Financial Highlights
FINANCIAL HIGLIGHTS INR Cr. TOTAL INCOME EPS 280 6 260 4 260.3 3.99 240 2 236.53 1.42 220 0 Q4FY14 Q4FY15 (P) Q4FY14 Q4FY15(P) INR Cr. PAT 10 8.54 5 2.67 0 Q4FY14 Q4FY15(P)
Slide 36: Financial Growth
FINANCIAL GROWTH 1200 INR Cr. 953 975 1062 1000 800 679 722 601 613 Export 600 496 Domestic 474 362 Total 400 352 340 321 183 200 153 0 2010-11 2011-12 2012-13 2013-14 2014-15P
Slide 37: Q4 Result Highlights
Q4 RESULT HIGHLIGHTS • Shift of focus from lower margin to high yield low volume. • Downtrend in raw material prices is to the tune of 18%. • Efficient use of current manufacturing facility. • Improved and better logistic management.
Slide 38: Shareholding Pattern
SHAREHOLDING PATTERN Promoters DII FII Others 80 71.73 71.73 70 67.41 63.93 60.46 60 50 39.12 40 32.09 28.4 30 23.81 23.81 20 10 4.46 4.46 4.19 3.98 0 0 0 0 0.42 0 0 Sep`13 Dec`13 March`14 June`14 March`15 An increase is observed in shareholding of Others with a decrease in Promoter shareholding due
Slide 39: Key Differentiators
KEY DIFFERENTIATORS Customized Engineering products from different verticals Strong Geographic Export Advantage Base KEY DIFFERENTIATORS CSR & R&D Clean Energy Elite Clientelle
Slide 40: Key Differentiators
KEY DIFFERENTIATORS Customized Engineering products from • Customized products ranging from different verticals auto tubes, forging products to tower and solar structure solution have made the company renowned. • Cheap labour Geographic advantage • Located at DMIC (Delhi Mumbai Industrial Corridor)
Slide 41: Key Differentiators (Contd)
KEY DIFFERENTIATORS (CONTD) • R&D Special R&D team of professionals for every product segment STRONG EXPORT BASE • Exports ~40% of its production to more than 100 countries across the globe including USA, Latin America and EU countries. • Free regular health checkup camps for CSR employees and local
Slide 42: Recent Developments
RECENT DEVELOPMENTS • Inaugurated its 96 crore, 30,000 MTPA manufacturing plant at Sikandrabad in Uttar Pradesh in November, 2014. It will be completely utilized by Q1FY16 and will add up to top line by `200 crore and & bottom line suitably. • Got Approved by Chittaranjan Locomotive Works (CLW) for
Slide 43: Expansion Outlook
EXPANSION OUTLOOK • After identifying the huge potential of fabricated support structure solutions in Railway, Defense and Power sector in India and overseas, the company is expanding its structure division with the new & modern facilities up to the tune 50 Cr to be completed in March 2016. • Expans
Slide 44: Advantage India
EXPANSION OUTLOOK(CONTD) Increasing investments Robust Demand Intended steel capacity build-up in India Demand would be supported by growth is set to result in investments in the range in domestic market. of USD 104.2 Billion to USD 208.3 billion Infrastructure, oil & gas and automotives by 2030 wou
Slide 45: Contact details for further information
• Contact details for further information and meeting request: • Mr Rishi K, Senior Consultant • Reliant Investor Relation Consultancy • research@rirc.in • +91 9582111450 • +91 75061 31222 • +9111 2244 4422