BMW Industries Ltd · BSE:BMW
BMW Industries — Investor Presentation (December 2022)
37 slides from BMW Industries's investor presentation, Dec 7, 2022
Slide 1: Submission of Investor Presentation cover letter to exchanges
Date: 07-12-2022 To, To, The Manager The Manager Listing Department Listing Department BSE Limited The Calcutta Stock Exchange Limited Phiroze Jeejeebhoy Towers Lyons Range, Dalal Street, Mumbai- 400001 Kolkata – 700 001 Scrip Code: 542669 Scrip Code: 12141- CSE Dear Sir / Madam, Subject: Submission
Slide 2: BMW Industries Limited Investor Presentation December 2022
BMW Industries Limited TRUST | CONSISTENCY | STABILITY INVESTOR PRESENTATION | DECEMBER 2022
Slide 3: Contents
Contents Page No. Particulars 3 About BMW Industries 8 Capacities & Process 17 Business and Positioning 24 Growth Drivers 30 Financials 2
Slide 4: BMWIL – One of the listed Steel Manufacturing & Processing players in India
BMWIL – One of the listed Steel Manufacturing & Processing players in India ▪ Incorporated in 1981; has units in West Bengal and Jharkhand ▪ The key role of Steel Service Centres is to deliver customized materials to manufacturers as per their requirements ▪ Engages in manufacturing, marketing & sal
Slide 5: The journey of becoming a trusted partner
The journey of becoming a trusted partner • Commissioned Continuous Galvanizing Line (CGL) in the year 2013 • Ventured into providing Logistic Solutions to customers (TSL) • Installed a new TMT Mill of 1,20,000 MT in the year February 2018 2011- 2022 Becoming Future Ready • Set up High-Speed Tube Mi
Slide 6: Steel Manufacturing Value Chain
Steel Manufacturing Value Chain Steel Delivery to Mining Iron Production Refining Manufacturing Final Product Production Customers Upstream Processes Downstream Processes BMWIL: Presence in Steel Processing Services by BMWIL SLITTING / SHEARING SECONDARY SCRAP MS & GALVANIZED COLD ROLLING PICKLING R
Slide 7: Key Managerial personnel
Key Managerial personnel Mr. Ram Gopal Bansal, Mr. Harsh Bansal, Mr. Vivek Bansal, Mr. Abhishek Agarwal, Chairman & WTD Managing Director Managing Director Chief Financial Officer MBA from Harvard Business Bcom from Calcutta university with Qualified Chartered Accounted Founder Member having more Sc
Slide 8: Business Verticals
Business Verticals Product Lines: Steel Processing Processing of Continuous Galvanized Lines, slitting, shearing, leveling, pickling, & Secondary Scrap Recovery, MS and GI Tubes, TMT Bars Business Verticals Transportation of Processed Products to the Client’s Customers. Transportation Currently owns
Slide 9: Capacities & Process
Capacities & Process 8
Slide 10: Current Capacity at Glance
Current Capacity at Glance Manufacturing Capacity Units Products Manifit, Jamshedpur Slitting & Shearing- 4,50,000 TPA Adityapur, Jamshedpur Secondary Scrap Recovery – 60,000 TPA Adityapur, Jamshedpur Galvanised Corrugated Sheets – 1,50,000 TPA (Nippon Cryo Pvt Ltd) (100% step down subsidiary) Adity
Slide 11: Manufacturing Facilities - Jamshedpur
Manufacturing Facilities - Jamshedpur Facility - Gamharia Capacity HR PO Coils 4,00,000 TPA Cold Rolling Mill 2,20,000 TPA 5 Total Number of Plants in Continuous Galvanization 2,00,000 TPA Jamshedpur Facility - Adityapur Capacity MS Black Pipe 48,000 TPA Galvanized Pipe 60,000 TPA Secondary Scrap Re
Slide 12: Manufacturing Facilities - Kolkata
Manufacturing Facilities - Kolkata Facility - Argori Capacity Slitting 1,22,000 TPA Rolling Mill (TMT) 3,30,000 TPA MS Black Pipe (CWIP) 96,000 MTPA 2 Total Number of Plants in Kolkata Facility - Ghusuri Capacity MS Black Pipe 40,000 TPA 11
Slide 13: Key Process/Services Delivered
Key Process/Services Delivered 1 2 3 4 5 CONTINUOUS TUBE TMT REBARS TRANSPORTAION/ SLITTING GALVANIZED LINE MANUFACTURING MANUFACTURING DELIVERY TO CUTOMER 12
Slide 14: Continuous Galvanized Line (CGL)
1 Continuous Galvanized Line (CGL) • Known as CGL#3 Complex in Gamharia, Jamshedpur • State of Art Continuous Galvanizing Line with a capacity of 2,00,000 TPA • The Project has been commissioned in December 2013 HRPO Coils | FHCR Coils | Galvanized Hard/Soft Coil | Corrugated Sheet • Currently, the
Slide 15: Slitting of HR Coils
2 Slitting of HR Coils Roll slitting is a shearing operation that cuts a large roll of material into narrower rolls • BMWIL has its slitting facilities at Jamshedpur (Manifit, Jamshedpur and Argori, Howrah) • The total capacity stands at 5,72,000 tonnes per annum • Major customer for the process is
Slide 16: Tube manufacturing and Galvanizing services
3 Tube manufacturing and Galvanizing services • BMWIL has its M.S. Pipe manufacturing facility at Ghusuri, Howrah, and Adityapur, Jamshedpur. Besides this have an MS Pipe capacity at Argori, for which a trial run is pending. Have GI Pipe facility at Jamshedpur. • Operational Pipe Capacity of 1,48,00
Slide 17: TMT bars manufacturing Services
4 TMT bars manufacturing Services • TMT processing facility of 3,30,000 MT tonnes per annum • Secured long term orders of 3,00,000 MT per annum from TATA steel TMT Bars manufacturing Process 1 MS Billet Cutting billets Heating/Furnace Roughing Mill Intermediate Mill Coiler Dispatch to Cutting, Inspe
Slide 18: Business and Positioning
Business and Positioning 17
Slide 19: Unique position in value chain of steel industry
Unique position in value chain of steel industry Industry Primary Players EBITDA Margin Trend BMWIL EBITDA Margin % 25% 20% 15% 10% 5% 0% * FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Source: Cube Report Less volatility during the sector down cycle BWMIL’s nature of business is such that prevents the bu
Slide 20: Built an efficient service environment to serve its customers
Built an efficient service environment to serve its customers • Over the years invested to develop its own logistics fleet • Provides best-in-class services to the customers • This helps the customer to give end-to-end services • Equipped with the required capabilities to provide diversified service
Slide 21: Strategically Located to Serve the Customers
Strategically Located to Serve the Customers • Strategically Located close to the raw material availability • Raw materials are readily available, allowing for significant cost savings • Because the plant is close to raw materials, only finished goods are transferred to clients in diverse regions, r
Slide 22: Established Strong Relationship with customers (1/2)
Established Strong Relationship with customers (1/2) ESTABLISHED CLIENT RELATIONSHIPS OF +30 YEARS WITH MARQUEE STEEL MANUFACTURING PLAYERS STRATEGIC PARTNERSHIP WITH BUILDING CAPABILITIES TO SERVICE ADDITION OF CAPABILITIES TO INITIATION SAIL & TATA STEEL CUSTOMERS CONTINUE SERVICING CUSTOMERS Comm
Slide 23: Established Strong Relationship with Key Customers (2/2)
Established Strong Relationship with Key Customers (2/2) Conversion Income (₹ crores) 30+ Years of Long association of over 3 decades with Tata Steel Limited (TSL) and during this Association journey, has set up many processing/manufacturing facilities for TSL 385 387 387 355 346 328 One of its uniq
Slide 24: BMWIL’s Business Proposition
BMWIL’s Business Proposition Aspire to become a leading outsourced manufacturing solution in the steel industry DEEP SECTOR/ READY LONG LASTING PROCESS KNOWLEDGE INFRASTRUCTURE PARTNERSHIP Over the period of time built Create an excellent Maintain existing relationships efficient capabilities to ser
Slide 25: Growth Drivers
Growth Drivers 24
Slide 26: Growth Drivers
Growth Drivers Cash-flow Industry Growth Generation Revenue Visibility Building Own Brand 25
Slide 27: Revenue Visibility
Revenue Visibility 1 Agreement for conversion of GP/GC sheets through the continuous galvanizing line, Expected Revenue of Rs. 2,000 crores over the renewed in till 2024 entire contracted period of 5 years* Key Entry Barriers: GEOGRAPHICAL COMPETITIVE COST OF CAPITAL REQUIREMENT RELATIONSHIP PRODUCT
Slide 28: Strong Cashflow Generation
Strong Cashflow Generation Cashflow Movement • Invested Rs. 400 crores in 2014 for Continuous Galvanized Line 145 128 123 110 • Debt Repaid ~Rs. 300 crores over 6+ years (Debt was at Rs. 538 109 92 crores as on FY15) 70 64 56 37 • No Major CAPEX under planning, utilization of underlined capex FY18 F
Slide 29: Future Plans to build an own brand
Future Plans to build an own brand Asset Light Model Distribution in Place Establish Brand Value and Growing The current Facility of TMT The distribution network is Engaged Rebars is under-utilized. strong & already in place Goldratt as advisors Conversion agreement for own BMWIL cautiously spending
Slide 30: Harnessing Green Energy
Harnessing Green Energy Green Energy to contribute to environmental safety and fulfill the commitment toward its stakeholders. Green energy protecting against long-term power cost increases Invest ~Rs. 22 crores for the installation of 4 MW roof-top solar energy panels at NH-6 in Kolkata Panels - li
Slide 31: Financials
Financials 30
Slide 32: Key Financial Highlights (Consolidated) (1/2)
Key Financial Highlights (Consolidated) (1/2) Total Revenue* (₹ crores) EBITDA (excl Other Income) (₹ crores) Profit After Tax (₹ crores) 948 829 51 42 151 22 35 141 615 109 105 425 95 FY18 FY19 FY20 FY21 # FY22 420 -175 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Revenue Mix (%) Gross Profit
Slide 33: Key Financial Highlights (Consolidated) (2/2)
Key Financial Highlights (Consolidated) (2/2) Total Debt (₹ crores) Total Debt to Equity (x) Gross Property, Plant & Equipment (₹ crores) 375 0.61 771 784 755 312 634 648 0.47 244 0.40 0.40 224 210 0.35 # Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 # FY18 FY19 FY20 FY21 FY2
Slide 34: P&L Highlights (1/2)
P&L Highlights (1/2) Consolidated (Rs. Crores) FY18 FY19 FY20 FY21 FY22 H1FY23 Revenue from operations 948 829 615 398 447 285 YoY Change (%) -13% -26% -35% 12% 32% Raw Material Cost 604 480 312 160 158 123 Gross Profit 345 348 303 238 289 163 Gross Profit Margin (%) 36% 42% 49% 60% 65% 57% YoY Chan
Slide 35: P&L Highlights (2/2)
P&L Highlights (2/2) Common Size FY18 FY19 FY20 FY21 FY22 H1FY23 Revenue from operations 100% 100% 100% 100% 100% 100% Expenses Break up Raw Material Cost 64% 58% 51% 40% 35% 43% 18.0% 22.0% Gross Profit 36% 42% 49% 60% 65% 57% 27.0% 3.0% 31.0% 36.0% 32.0% Employee Expenses 3% 3% 4% 5% 5% 4% 3.0% 4.
Slide 36: Balance Sheet Highlights (Consolidated)
Balance Sheet Highlights (Consolidated) Assets (Rs. Mn) Sep-22 Mar-22 Mar-21 Liabilities (Rs. Mn) Sep-22 Mar-22 Mar-21 Assets Equity Non-current Assets Equity Share Capital 22.5 22.5 22.5 Property, Plant and Equipment 426.3 432.2 450.1 Other Equity 551.5 530.6 496.5 Non-controlling interest 1.3 1.2
Slide 37: Let’s Connect
Let’s Connect Contact Us: BMW Industries Limited Ernst & Young LLP Abhishek Agarwal, CFO Vikash Verma: vikash.verma1@in.ey.com investorrelations@bmwil.co.in Abhishek Bhatt: abhishek.bhatt3@in.ey.com 36
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