Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q3 FY20 Earnings Presentation
34 slides from Vardhman Special Steels's earnings presentation, Feb 8, 2020
Slide 1: Exchange filing cover letter
Q I Vardhmfin VARDHMAN SPECIAL STEELS LIMITED Vardhmin Delivering Excellence. Since 1965. CHANDIGARH ROAD LUDHIANA-HIOIO. PUNJAB T: +9l-l6l-2228943-48 F: +9l-l6l~260|048. 22226I6. 260l040 E: secretarial.|ud@vardhman.com Ref. VSSL:SCY:FEB:201Q-20 DATED: 08-Feb-2020 The Deputy General Manager, The Nati
Slide 2: Result Update Presentation Q3 & 9M FY20
A VARDHMAN SPECIAL STEELS LTD. ; W Pee ere Vardhman Special Steels Limited Result Update Presentation Q3 & 9M FY20
Slide 3: Disclaimer
Disclaimer @) VARDHMAN SPECIAL STEELS LTD. 2 CONMINEMT To GUAT 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
Slide 4: Table of Contents
Ta b e of Co ntents @) VARDHMAN SPECIAL STEELS LTD. oo W fr Financial Highlights fr Company Overview fr Business Overview fr Way Ahead
Slide 5: Financial Highlights
= ete nnn Financial Highlights
Slide 6: Management's Message
Management’s Message @) VARDHMAN SPECIAL STEELS LTD. oo W Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said — “In the nine months of the current financial year, we continue to witness slowdown in the auto industry which has impacted our business as well. Our 9M FY20
Slide 7: Recent Developments
<p> Rece nt Deve O p ments VARDHMAN SPECIAL STEELS LTD. ¢ On 27th August 2019, Company executed following — e Share subscription and investment agreement with Aichi Steel Corporation (ASC), Japan in relation to investment in Company by ASC ¢ Technical assistance agreement with ASC in relation to tec
Slide 8: Financial Highlights - Quarterly
Financial Highlights - Quarterly @) VAROHMAN SPECIAL STEELSLTD oo W Sales Volumes (tonnes) Revenue from Operations* (Rs. Crore) 312.52 243.25 240.78 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 EBITDA (Rs. Crore)# PAT (Rs. Crore) 6.21 1.81 1.14 -0.15 bf Q3 FY19 Q4
Slide 9: Financial Highlights — Q3 FY20
Financial Highlights — Q3 FY20 A VARDHMAN SPECIAL STEELS LTD. ese W SURE RPPRPPPP °Q3 FY20 volumes stood at Revenue From Operations* 187.94 312.52 (39.86%) 211.82 31,616 tons YoY decline of Other Income 1.91 0.40 5.37 27% mainly on account of Total Income 189.85 312.92 (39.33%) 217.19 continued and
Slide 10: Financial Highlights — 9M FY20
Financial Highlights — 9M FY20 @) VARDHMAN SPECIAL STEELS LTD. 2 CONMINEMT To GUAT ese Revenue From Operations 640.54 877.51 (27.00%) Other Income 7.94 1.33 Total Income 648.48 878.84 (26.21%) Cost of Materials Consumed 279.96 588.65 Purchases of Stocks 4.30 31.76 Changes In Inventory 130.01 (89.33)
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights @ VARDHMAN SPECIAL STEELS LTD. Equity* 360.01 361.99 Non-Current Assets 359.43 343.51 Equity Share Capital 35.76 35.76 Property Plant & Equipment 312.38 279.53 Other Equity 324.24 326.23 Right of Use Asset 1.27 0.00 Non-current liabilities 130.54 136.53 Capital work in progr
Slide 12: Company Overview
ete nnn Company Overview
Slide 13: About Us
About Us a) — 7 STEELS LTD. oo WY « Amongst India’s Leading Steel Bar Producers for Automotive Applications = Incorporated in May 2010 State-of- art manufacturing =" Headquartered in Ludhiana, Punjab =" Caters to sectors such as Engineering, facilities Automotive, Tractor, Bearing and Allied =" Cutt
Slide 14: Journey So Far
Journey So Far @) ¥ VARDHMAN SPECIAL STEELS LTD. ese 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 capa
Slide 15: Clear focus on long term Value Creation
Clear focus on long term Value Creation a) wou ron ses £CONNET WENT TO eTbr ( (cexer\ Ioana (<oooon (oN =r 1,121 1,61,676 2,00,000 1,80,000 0.92 Tons TPA Crore Listed on Stock Exchange \ MTN Lett > \ (ns. 93,169 1,00,000 80,400 (“so 527 Crore Tons TPA TPA Revenue Sales Installed Installed Debt to Vo
Slide 16: Strong Experienced Board of Directors
Strong Experienced Board of Directors contd... a) VARDHMAN SPECIAL STEELS LTD. W = Ahmedabad) Mr. Rajeev Gupta Chairman & Independent Director B. Tech from BHU/IIT, Varanasi and MBA (IIM, Rich experience of more than 35 years - One I Mr. Sachit Jain Vice Chairman & MD B. Tech (Electrical) - IIT, New
Slide 17: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... ) VAROHMAN SPECIAL STEELS LD oo W 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
Slide 18: Business Overview
== ete nnn Business Overview
Slide 19: Wide Range of Rolled & Bright Bars Products
Wide Range of Rolled & Bright Bars Products ese 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) 18
Slide 20: Diverse applications of our products
Diverse applications of our products @) VARDHMAN SPECIAL STEELS LTD. W £ CONMOIWENT TD GUAuT Axle Gears Drive-Shaft Knuckle Spindle Bearings Connecting Rod Axle Shaft | Center Velocity Joint | Steering-Yoke Differential Gears
Slide 21: State-of-art Manufacturing facilities
State-of-art Manufacturing facilities @) VARDAMAN SPECIAL STEED W = T Rolling Mill 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 Tapping (
Slide 22: Process Flow
Process Flow @) VARDHMAN SPECIAL STEELS LTD. e<-e W £ CONMETNENT TO QUALITY = «a Sponge, ORI, PIG IRON, Shredded Scrap EXpOnts Domestic Shipment Final Inspection and Dispatch ——_—_—_—— EEE, Bright Bar Shop ema FNDT Line 30 TON ELECTRIC ARC FURNACE Spherodize Annealing Sl Vaccum Degassing UNIT = Ladd
Slide 23: In-House Steel Melting Shop
In-House Steel Melting Shop @) VARDHMAN SPECIAL STEELS LTD. Two Ladle Refining Furnace
Slide 24: Rolling Mill & Bright Bars
Rolling Mill & Bright Bars Rolling Mill Bright Bar Shop
Slide 25: Automatic Line of Bar Inspection - NDT Line
Automatic Line of Bar Inspection - NDT Line eae W A CONMTNENT TO QUALIT <-e MIFLT Chamfering secs’ omens Bar ends free from ear Straightening Straightness : 2mm/ meter Acceptance Criteria: SDH - 0.8x10mm, FBH - 0.8 & 1.2mm | | } Shot Blasting 24
Slide 26: Best in class R&D Facility
Best in class R&D Facility seaiausianaried eso] £D oS-O & CONMTNENT T2) QUALITY = 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 H,, N,, O, Analyzer = Mobile Spectro and XRF
Slide 27: Strategically located Warehousing Facilities
Strategically located Warehousing Facilities OP ceeeceenen 05-0 W WOWENT TD Gaui SPP r a 7 = One Owned Warehouse = Bilaspur Haryana ; = Five Leased Warehouses in India = Bangalore =» Chennai =" Rudrapur = Pune =» Aurangabad 26
Slide 28: Key Strengths
Key Strengths @) VARDHMAN SPECIAL STEELS LTD. oso W State of Art Manufacturing Facilities and advanced R&D Capabilities oO. = Well equipped with latest upgraded Technology Machines Diversified Product offerings = Manufactures diverse range of products with wide applications across sectors =" Further
Slide 29: 200+ Reputed & Long term customers
200+ Reputed & Long term customers.... @) VAROHMAN SPECALSTELS LTD ese W Mey . ae ae oo 2 ee ey, ®, %e, a of %. * °* %, % %. 2 % o *, ‘. :: * 2: * p > * 9* * . .. * . @YAMAHA ‘ qb © Fees youriee Hero BAIA TATA ASHOK LEYLAND SWdaRal TVS »<& RENAULT HONDA ,, DAIMLER Auto Components Tractors Off Highwa
Slide 30: Across Globe with Customer Base
... Across Globe with Customer Base a anniiinenies widen a ; W ACONMINENT TD QUALITY t _o@ Vapan A am / £ Aaiwan
Slide 31: Way Ahead
Slide 32: Investing in Our Real Assets
Investing in Our Real Assets 9 Vardhman Leadership Development Program Park Plaza,Ludhiana -16" to 20° January 2019 TOP " = CCL - US based Organisation — = Training programs — : : = New Initiative undertaken offers leadership programs functional, attitudinal, skill i Formalized training programs acr
Slide 33: Way Ahead
Way woe Ahea d Yer @) VARDHMAN SPECIAL STEELS LTD. Capacity Expansion & Utilization = Increase melting capacity to 2,40,000 TPA and Rolling Capacity to 2,20,000 TPA by FY21 " Target of achieving full capacity utilization, quality improvement, cost reduction & product mix enrichment in consultation w
Slide 34: Thank You
Th an k Yo u @) VARDHMAN SPECIAL STEELS LTD. W £ CONMITNENT T) QUAL ee 3SE 534392 | © NSE vsst | Bloomberg VSSLIN Aeteud Srect Latoege ef! REUTERS —» VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt
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