Maithan Alloys Ltd. · NSE:MAITHANALL
Maithan Alloys — Investor Presentation (May 2018)
32 slides from Maithan Alloys's investor presentation, May 2018
Slide 1: Maithan Alloys Limited Investor Presentation – May 2018
MAITHAN ALLOYS LIMITED Investor Presentation – May 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Maithan Alloys Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 3: Growth Momentum Continues
Growth Momentum Continues ₹ Crs +40% +69% +91% 1,879 377 376 1,342 223 197 FY17 FY18 FY17^ FY18 FY17^ FY18 Manufacturing Revenue* Manufacturing EBITDA +35% +67% 1,704 365 1,264 219 FY17 FY18 FY17^ FY18 Board of Directors of the Company have recommended a dividend of Rs. 3 per equity share of Face Va
Slide 4: Manufacturing –vs- Trading
Manufacturing –vs- Trading Manufacturing Sales Trading Sales TOTAL SALES -3% -57% -7% 439 425 36 475 440 15 Q4FY17 Q4FY18 Q4FY17 Q4FY18 Q4FY17 Q4FY18 The drop in sales by 7% was predominantly due to a significant drop in trading sales. The manufacturing business remains intact. 4 Financials are as p
Slide 5: Adjusted Profitability
Adjusted Profitability ₹ Crs 146 43 103 103 Flattish growth Q4FY17 Power Subsidy Q4FY17 Q4FY18 EBITDA (Incl. received EBITDA (Excl. Power subsidy) Power subsidy) 127 108 43 84 29% Growth Q4FY17 PBT (Incl. Power Subsidy Q4FY17 PBT (Excl. Q4FY18 Power subsidy) received Power subsidy) 5 *One-time Power
Slide 6: Future Outlook
Future Outlook Cash & Cash Future Internal War Chest of Cash Equivalents of Accruals ₹ 400 Crs Inorganic Expansion Organic Expansion Approved to set up a Greenfield Ferro Authorised the Executive Directors and Alloy manufacturing unit in West Chief Financial Officer of the Company Bengal with an est
Slide 7: The Maithan Edge…
The Maithan Edge… Largest Rich Niche Robust Manufacturer Experience Products Balance Sheet India’s largest Two decades of Basket of the most Net Cash Manganese experience and valuable Techno- Credit Rating: Alloy Producer continuous growth Commercial Products CARE AA- and Exporter CARE A1+ CRISIL AA
Slide 8: Visible in Financial Performance
Visible in Financial Performance “A Culture of Outperformance” CAGR from FY2012 to FY2018 Increase in Stake Holder Return’s ▪ ROCE Increased by + 3,290 bps ▪ ROE Increased by + 2,390 bps Revenue increased by +21% CAGR EBIDTA increased by +34% CAGR PAT increased by +37% CAGR Debt Reduction of Rs. 160
Slide 9: Product Offerings
Product Offerings Ferro alloys enhance steel strength, durability, anti-corrosion and anti-stain properties and acts as de-oxidant for Steel Manufacturing Ferro Manganese - An alloy of iron and manganese • Used in steel products wherein silicon content needs to be controlled at low levels • Used in
Slide 10: Capacity addition to support Growth
Capacity addition to support Growth Capacity Built-up Production Volume (MT) - ‘000 Visakhapatnam MVA 137 225 213 Byrnihat, 36 206 Meghalaya +16% CAGR 158 149 36 141 Kalyaneshwari 16 89 76 82 66 70 24 25 42 2006 2007 2009 2012 2013 Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 In
Slide 11: State-of-Art Manufacturing Facilities
State-of-Art Manufacturing Facilities Installed Capacity of 137.25 MVA Smelters: Smelters: Smelters: • 2 x 5.0 MVA • 2 x 8.25 MVA • 4 x MVA 18.0 MVA • 1 x 6.5 MVA • 1 x 8.25 MVA • 2 x 12.0 MVA Products: Ferro Products: Ferro Silicon Products: Ferro Manganese/ Silicon Manganese/ Silicon Manganese Man
Slide 12: Self-Sustaining Business Model
Self-Sustaining Business Model Input of sized and graded Raw We have an ability to generate a Material Larger Throughput Feed in day bins through from our manufacturing facilities conveyors Automated Batch preparation and Charge into Furnace Ferro Manganese Slag Reaction in furnace and discharge of
Slide 13: Strong Client Relationships
Strong Client Relationships Shift of focus from ‘Stable’ Europe to ‘Growing’ Asia helping in better realizations ~100% of Domestic clients are associated with the Company for over 7 years Long term relationships with clients offers Competitive Advantage Low Concentration Risk in export markets with
Slide 14: The Leadership Team
The Leadership Team Mr. Subodh Agarwalla Mr. S. C. Agarwalla Mr. Sudhanshu Agarwalla Whole Time Director and CEO Chairman and Managing Director President and CFO • A B. Tech from IIT BHU and M.B.A from IIM • Over 25 years of rich experience in Ferro Alloys • A M.B.A from XLRI Jamshedpur. Bangalore i
Slide 15: Experienced Board
Experienced Board Mr. Nand Kishore Agarwal Mr. Biswajit Choudhuri Independent Director Independent Director Experienced in the field of Accounts, Finance and Tax Laws Experienced in the field of Engineering, Banking, Finance and Management Mr. Vikash Kumar Jewrajka Mr. Ashok Bhandari Independent Dir
Slide 16: Vision, Mission and Values
Vision, Mission and Values Vision To be India’s premiere Alloy Company that is built on the solid foundation of shareholder trust, customer commitment, employee satisfaction and sustainable communities. Consistently delivering on our promises backed by meticulous hard work is our motto for ensuring
Slide 17: Values
Values Commitment is a passion for us. We are extremely committed to serving our shareholders and customers to Loyalty is the very fabric the best of our abilities. Our promise that runs beneath our to our stakeholders is a hard-ironed organization. We strive to We not only believe but commitment an
Slide 18: Maintaining the Maithan Edge
Maintaining the Maithan Edge
Slide 19: Key Growth Drivers
Key Growth Drivers Low Debt Brand Value Addition Sustainability Low Cost Curve Margin Driven Asset Light Model Efficiency Discipline Expanding the Market Integrity From Vendor-ship to Partnership Relationship Driven Solutions Manufacturing and Marketing Efficiencies Customized 19
Slide 20: Key Differentiators
Key Differentiators Optimising Facilities for Efficiency Maximising Returns • Lowest in the Cost Curve • Sources raw materials when it • Optimum Capacity Utilization gets contracts • Higher Tonnage product • PPA agreement with power plants • Stable Asset turnover ratios and low debt-equity ratio Str
Slide 21: Industry Tailwinds
maithan ltd Industry Tailwinds
Slide 22: Asian Economies to drive the Global Steel Demand
Asian Economies to drive the Global Steel Demand Global Steel Demand 2018 : 1,548.5 Mn T CIS EU 3% It caters 70% of 13% NAFTA Global Steel 9% demand Asia, Oceania Avg. rate of & Middle growth is East expected to be 70% in the range ~1%-~2% Central & South AFRICA America 3% 3% Asia Ex-China Growth is
Slide 23: Advantage India
Advantage India 100 % FDI allowed in the India’s GDP to grow by +7 % mining sector & exploration of (IMF) over the next two years metal & non metal ores under the Automatic Route 2017 Budget outlay of ~ ₹ 4 tn in infrastructure to drive domestic steel consumption Steel Industry’s Outlook to Favourab
Slide 24: Support from Government of India
Support from Government of India Alloy Producers to benefit from NSP 2017 Capacity (Mn MT) Production (Mn MT) Per Capita Consumption (kg) CAGR +6% CAGR +7% CAGR +7% 300 255 158 122 92 61 2015-16 2030-31 2015-16 2030-31 2015-16 2030-31 National Steel Policy (NSP) 2017 Highlights • Reduce dependence o
Slide 25: Advantage Maithan
Advantage Maithan World Crude Steel Demand (Mn MT) India Crude Steel Demand (Mn MT) 1,800 100 +2% 1,600 90 +7% 1,400 80 70 1,200 60 1,000 50 800 40 600 30 400 20 200 10 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162017* 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162017* Gaining Market Sh
Slide 26: Financials
maithan ltd Financials
Slide 27: Led by our Efficiency Proving our Credibility
Outperformance in 2018… Growing Revenue (₹ Crs) Margins improved even in uncertain times (₹ Crs) 1,879 400 377 300 25% 223 20.1% 200 16.6% 109 127 15% 1,342 Ø 1,370 100 9.9% 11.1% 1,151 0 5% 1,107 FY15 FY16 FY17* FY18 EBIDTA Operating EBIDTA Margins 400 292 300 22% 200 132 15.5% 79 9.9% 12% 100 53 4
Slide 28: Proven Track Record
Proven Track Record 7.9 0.7 5.5 0.4 4.3 3.9 0.1 0.0 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 40.4% 47.7% 37.8% 44.8% 22.0% 17.6% 20.2% 16.3% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Higher Return Ratio is because of prudent capital allocation and superlative operating efficiency 28 *RoE = PAT after Mi
Slide 29: Standalone Profit & Loss (As per IND AS)
Standalone Profit & Loss (As per IND AS) Particulars (₹ Crs) Q4 FY18 Q4 FY17 YoY FY18 FY17 YoY Revenue (Net of Excise Duty/ GST) 440 475 -7% 1,879 1,342 40% Raw Material 207 236 970 628 Power 86 46 367 280 Employee Expenses 12 13 45 33 Other Expenses 32 34 121 124 Operating EBITDA 103 146* -29% 377
Slide 30: Consolidated Profit & Loss (As per IND AS)
Consolidated Profit & Loss (As per IND AS) Particulars (₹ Crs) FY18 FY17 YoY Revenue 1,879 1,342 40% Raw Material 970 628 Power 367 280 Employee Expenses 45 33 Other Expenses 121 128 Operating EBITDA 377 273* 38% Other Income 18 9 Depreciation 15 25 EBIT 380 257 Finance costs 4 10 PBT 376 247 Tax 84
Slide 31: Consolidated Balance Sheet (As per IND AS)
Consolidated Balance Sheet (As per IND AS) Particulars (₹ Crs) March-18 March-17 Particulars (₹ Crs) March-18 March-17 Non-Current Assets 277 281 Equity 868 586 Property, plant and Equity share capital 29 29 238 242 equipment Other Equity 839 557 Intangible Assets 0 0 Non-current Liabilities 32 48 F
Slide 32: For further information, please contact
For further information, please contact: Company Investor Relations Advisors: Maithan Alloys Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L27101WB1985PLC039503 CIN: U74140MH2010PTC204285 Ms. Neha Shroff/ Mr. Deven Dhruva Mr. Rajesh K. Shah neha.shroff@sgapl.net / deven.dhruva@sgapl.net rajesh@maith