Slide 1: Exchange filing cover letter
26th July 2024 BSE Limited National Stock Exchange of India Limited Listing Operations Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalai Street, Bandra Kurla Complex, Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Maharashtra, India Maharashtra, India BSE Script Code: 532864 NSE Sc
Slide 2: Investor Presentation Q1FY25 | July 2024
Investor Presentation Q1FY25 | July 2024 B S E : 5 3 2 8 6 4 | N S E : N E L C AS T | I S I N : I N E 1 8 9 I 0 1 0 2 4 www.nelcast.com ©2024 – All Rights Reserved | www.nelcast.com 1
Slide 3: Q1 FY25 Highlights
Q1 FY25 Highlights Key Developments & Outlook 03 Profit & Loss Highlights 04 Story in Charts 05 ©2024 – All Rights Reserved | www.nelcast.com 2
Slide 4: Key Developments & Outlook
Key Developments & Outlook PARTICULARS CURRENT (Q1 FY25) OUTLOOK (FY25) The market is expected to experience a demand resurgence in the The overall performance remained muted on topline amid subdued second half of FY25. Meanwhile, new products are in development and domestic and export demand for CV
Slide 5: Profit & Loss Highlights
Profit & Loss Highlights Consolidated (in INR Cr.) Q1FY25 Q1FY24 YoY % Q4FY24 QoQ % REVENUE Total Revenue 302.3 296.4 2.0% 299.2 1.04% ₹302 CR EBITDA 22.4 23.0 -2.29% 19.3 16.22% Revenue experienced subdued growth primarily due to a deliberate cutback in production aimed at reducing inventory levels
Slide 6: Story in Charts
Story in Charts TOTAL REVENUE (INR Cr.) SECTOR-WISE REVENUE (%) +2.0% 3% 2% 1% +1.0% 3% 0% 1% YoY QoQ 296.4 302.3 299.2 302.3 39% 38% 31% 33% 25% 25% Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q4FY24 Q1FY25 EBITDA/KG (INR) PROFIT AFTER TAX (INR Cr.) +0.5% +12.0% +10.8% +57.0% YoY QoQ YoY QoQ 11.7 11.8 11.8 8.0 8.0
Slide 7: Way Forward
Way Forward Deliver on our Strategy 07 ©2024 – All Rights Reserved | www.nelcast.com 6
Slide 8: Delivering on our Strategy
Delivering on our Strategy Manufacture Value Add Expand the Export Improving Capacity Utilization Cost Products Business Levels Optimization • A decade ago, Nelcast shifted • Continue to deliver quality at • Eliminate operational • Better capacity utilization levels focus from highly competitive low
Slide 9: Company Overview
Company Overview Company at a Glance 09 Key Products 10 Manufacturing Process & the Nelcast Advantage 11 Our Well-Equipped Plants 12 Our Journey 13 ©2024 – All Rights Reserved | www.nelcast.com 8
Slide 10: Company at a glance
Company at a glance Where do we stand today? Commercial Vehicles LARGEST TOP 10 PRODUCER PRODUCER Nelcast Limited is a leading producer of Ductile of Grey Iron Iron Castings Castings of Ductile & Grey Iron Castings in India with an installed capacity of 160,000 Metric Tons/Year. Passenger Tractors V
Slide 11: Key Products
Key Products Commercial Vehicles Tractors Off Highway Equipment Railways Passenger Vehicles Forward Differential Carrier Transmission Housing Trumpet Axle Housing Brake Disc Friction Ring Differential Carrier Rear Differential Carrier Rear Axle Housing Monolithic Axle Housing Bogie Suspension Bracke
Slide 12: Our Well-Equipped Plants
Our Well-Equipped Plants Gudur Ponneri Pedapariya I N S T AL L E D C AP AC I T Y I N S T AL L E D C AP AC I T Y I N S T AL L E D C AP AC I T Y 60,000 Metric Tons per Year 40,000 Metric Tons per Year 60,000 Metric Tons per Year MOULDING LINES MOULDING LINES MOULDING LINES ▪ Line 1: DISA Flex 70 with
Slide 13: Our Journey
Our Journey Commencement of Commencement of Commencement of Start of Production at the Nelcast Private Limited exports to the US exports to Europe exports to Thailand Pedapariya (AP) plant with Crossed the Rs.400 was established by P. fourth High Pressure Crores mark in exports Radhakrishna Reddy wi
Slide 14: Why Nelcast?
Why Nelcast? Diversified customer base with strong relationships 15 Strategic Location 16 Strong Business Foundation 17 Strong Export Growth Potential 18 Large Market Opportunity 19 Led by an Experienced Board 20 Focused on a Sustainable Future 21 ©2024 – All Rights Reserved | www.nelcast.com 13
Slide 15: Our Strengths
Our Strengths 1 2 3 Diversified Customer base with strong Strategic Strategic Business relationships Location Foundation 4 5 6 Strong Export Large Market Led by an Growth Potential Opportunity Experienced Board ©2024 – All Rights Reserved | www.nelcast.com 14
Slide 16: Diversified Customer Base with Strong Relationships
1 Diversified Customer Base with Strong Relationships ▪ Customers in Commercial Vehicle, Top OEM Customers Awards Tractor, Off-Highway Equipment, Railways and Passenger Vehicles ▪ Has a distinguished customer base of more than 40 customers that includes OEMs and Tier 1 companies ▪ Serves as a strate
Slide 17: Strategic Location
2 Strategic Location ▪ Plants are in close proximity (37-140 KM) to Chennai, a major manufacturing hub for automotive companies forms both a key customer base for Nelcast and a reliable source of steel scrap, a crucial raw material P L AN T I ▪ All 3 plants are within 15-110KM of Gudur India’s large
Slide 18: Strong Business Foundation
3 Strong Business Foundation Cash & Cash equivalents (in Rs. Cr.) 104.8 ▪ Received an investment grade rating for short term (A1) and long term (A) fund from ICRA on the back of adequate liquidity, strong relationship 84.9 with major OEMs and a diversified clientele ▪ Installed Capacity has been cre
Slide 19: Strong Export Growth Potential
4 Strong Export Growth Potential ▪ India is being viewed as a key cog in the global automotive supply chain and sourcing machined castings from India is now becoming an attractive option for global customers. ▪ Nelcast is among only a few companies in the industry capable of meeting the requirements
Slide 20: Large Market Opportunity
5 Large Market Opportunity Indian Tractor Industry Indian M&HCV Industry The Industry remained sluggish in FY2024; Domestic M&HCV sales crossed 3,50,000 units in FY2024 Anticipated to see an uptick in growth by 3-5% in FY25 945 3.7 899 3.6 874 Sale units (in Thousands) 842 Sale units (in Thousands)
Slide 21: Led by an Experienced Board
6 Led by an Experienced Board D. Sesha Reddy P. Deepak P. Divya R. Sridharan A. Balasubramanian Maheswari Mohan Vinod K Dasari Chairman Managing Director Director Director Director Director Director ▪ Chairman of Dodla ▪ MBA from Kellogg ▪ MS in Network ▪ Graduate from Madras ▪ Bachelors degree in ▪
Slide 22: Focussed on a Sustainable Future
Focussed on a Sustainable Future ▪ Renewable energy: About 60% of the power requirement ▪ Blood donation camps is met through renewable sources ▪ Providing medical support ▪ Plantation of trees Protecting the Giving back to to hospitals Environment the Community ▪ Core sand reclamation ▪ Supporting
Slide 23: Annual Financials
Annual Financials Profit & Loss Highlights 24 Balance Sheet Highlights 25 ©2024 – All Rights Reserved | www.nelcast.com 22
Slide 24: Profit & Loss Highlights
Profit & Loss Highlights Consolidated (in INR Cr.) FY20 FY21 FY22 FY23 FY24 Revenue from Operations 566.76 614.97 927.34 1,263.97 1,266.94 Total Income 580.35 619.85 936.74 1,280.12 1,281.22 Total Expenses 549.55 607.56 917.69 1,184.61 1,174.68 EBITDA 61.86 51.27 67.49 95.51 106.54 D&A 18.53 21.74 2
Slide 25: Balance Sheet Highlights
Balance Sheet Highlights Consolidated (in INR Cr.) Mar’20 Mar’21 Mar’22 Mar’23 Mar’24 Total non-current assets 474.03 474.28 483.96 488.10 524.61 Inventories 128.14 118.41 158.73 158.19 189.70 Trade receivables 112.62 164.19 240.35 255.92 300.89 Cash & cash equivalents 48.0 65.04 61.39 104.80 84.89
Slide 26: Thank You
Thank You For further details please contact: S.K. Sivakumar Abhishek Bhatt/Vikash Verma Corporate Office 159, TTK Road, Alwarpet, Chennai - 600 018 Nelcast Limited Ernst & Young LLP www.nelcast.com : +91 44 2498 4111 : +91-8080796083 : nelcast@nelcast.com : abhishek.bhatt3@in.ey.com : vikash.verma1