International Conveyors Ltd. · NSE:INTLCONV
International Conveyors — Q2 FY24 Earnings Presentation
37 slides from International Conveyors's earnings presentation, Nov 24, 2023
Slide 1: Exchange filing letter: Investor Presentation Q2 FY24
ICL/DS/2023-24/457 November 24, 2023 The Manager The General Manager Listing Department Dept. Of Corporate Services National Stock Exchange of BSE Ltd. India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street, Plot No C-1, G Block, Mumbai-400001 Bandra- Kurla Complex, Scrip Code-509709 Bandr
Slide 2: International Conveyors Ltd
International Conveyors Ltd
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of International Conveyors Limited (the “ By accessing this presentation, you are agreeing to be bound by the trailing restrictions This presentation does not constitute or form part of any offer or invitation or induc
Slide 4: Overview
Overview High Entry Barriers : Long ICL : India’s only Listed player Gestation Period, Dual Experiencee of Four in PVC Conveyor Belting Regulatory Approvals & Depth Decades of Customer Engagement A critical consumable for High Fully Integrated Manufacturing Marquee International & Growth Mining & Bu
Slide 5: Our Evolution
Our Evolution Building the company with incredible people, competent processes and innovating high-quality products that are long-lasting. Four Decades Of Business ICL was set up to address the key Diversification into New Customer Entered International Markets to Guided By pain point for coal miner
Slide 6: We manufacture belting which is critical for mining
We manufacture belting which is critical for mining… Conveyor’s belting intended for mining must be engineered to minimize downtime and operate reliably long term, despite tough conditions Mining Operations • Conveyor belting is critical for bulk transportation of materials like, coal, potash salt e
Slide 7: With an extensive product range serving diversified industries
…with an extensive product range serving Diversified Industries Products of International quality, superior technology and testing capability Tailored Products To Different Customers POTASH PHOSPHATE FERTILIZER COAL CEMENT CLAY GYPSUM SALT AGGREGATE We manufacture the most extensive range of product
Slide 8: We have fully integrated manufacturing
We have fully integrated manufacturing … ICL is one of the largest manufacturer of solid woven belting in the world and has a complete product range with the ability to make conveyors up to 3150 kN/m (type 18 width in strength and belt widths up to 1800 mm) Excellence Is Not Just Twisting and doubli
Slide 9: At our plants in Aurangabad & Falta
…at our plants in Aurangabad & Falta We deploy wide-ranging engineering capabilities to complete manufacturing of products on schedule realizing that our products drive our customer's business ahead. Cost Competitiveness Aurangabad Plant : Total annual installed Falta SEZ Plant : Total annual instal
Slide 10: At our plants in Aurangabad & Falta
…at our plants in Aurangabad & Falta Complete integrated in-house manufacturing - from yarn preparation, fabric weaving, compound mixing to finishing - to ensure total process and quality control at each step of manufacturing activity Safety By Safety Testing Choice, Not By Chance ICL cares for huma
Slide 11: We have approvals meeting international quality benchmarks
We have approvals meeting international quality benchmarks We are an ISO 9001:2015 certified Company meeting international quality benchmarks. We also enjoy several certifications and endorsements from stringent global regulatory bodies. Long Gestation Global – ISO 9001:2015 Certification Period A
Slide 12: We have approvals meeting international quality benchmarks
We have approvals meeting international quality benchmarks We are an ISO 9001:2015 certified Company meeting international quality benchmarks. We also enjoy several certifications and endorsements from stringent global regulatory bodies. Customers International Customers First Domestic Customers 11
Slide 13: We have approvals meeting international quality benchmarks
We have approvals meeting international quality benchmarks Enables the company to continually invest in leading edge equipment, processes and employee training in order to improve the quality of its products. Customer Stickiness Brand Resonates Well With High Entry Barriers High Revenue Visibility C
Slide 14: We produce more green energy than we consume
We produce more green energy than we consume All our Windmills are generating green energy in the states of Karnataka, Maharashtra, Gujarat and Andhra Pradesh. Rs. 9.6 Million Energy consumed for operations in H1FY24 Renewable Energy generated in H1FY24 is At ICL we produce more Green energy than Re
Slide 15: Mining Industry at an Inflection Point
MINING INDUSTRY AT AN INFLECTION POINT
Slide 16: Potash Production in Selected Regions
Potash Production in Selected Regions Source :- Nutrien 15
Slide 17: Global Potash Deliveries by Region
Global Potash Deliveries by Region • Improved potash demand is witnessed in early 2023. • Estimate for global potash shipments in 2023 is 63-67 million tonnes. • Belarus potash shipments in 2023 are projected to be down 40 to 60 percent and Russian shipments down 15 to 30 percent compared to 2021.Re
Slide 18: Global Potash Demand
Global Potash Demand Global potash demand is expected to grow ~7Mmt in the next three years, with medium term growth rates at historic levels. Significant demand growth potential beyond historic rates Previous 5 year CAGR ~1.5-2% Estimated 5 year CAGR ~3.5-4.5% Estimated 100% increase in growth rate
Slide 19: Favorable Mining Policies & Regulations
Favorable Mining Policies & Regulations… Advantageous Policies & Regulations Salient Features of National Mineral Relaxed Investment MMDR Policy 2019 FDI Norms Incentives Amendment Act, 2015 • Introduction of appropriate incentives for • Auctions for allocation of mining leases • FDI of up to 100 pe
Slide 20: Supporting growth across Indian Mining Industry
…supporting growth across Indian Mining Industry Mining Sector Growth Drives Key Sectors India is at an early stage in terms of per capita mineral consumption and has a significant potential to grow at accelerated growth than historical growth • High reserve share of beach sand minerals (35%) presen
Slide 21: Well placed to benefit from rising growth in Mining Activities
…making us well placed to benefit from rising growth in Mining Activities We are ready to deliver the most Efficient, Reliable & Safe Conveyor Belting and Material handling systems to significantly enhance the Efficiency and Productivity of Modern Mining operations. Incredible Competent Long-lasting
Slide 22: We are Future Ready
We are Future Ready… Our Aim : Zero Defects,Zero Waste, Zero Accidents, Zero Breakdowns Learn Today Lead Tomorrow Expand Customer Base Penetrate New Markets • Penetrate further into Australia • Enhance customer base in the USA and underground coal mine segment Canada, where ICL already enjoys • Grow
Slide 23: With Growth Drivers in place
…with Growth Drivers in place High entry barriers & revival of capex cycle gives us visibility of huge replacement demand Addition of newer products & customers has strengthened our order book giving revenue visibility Planned Capex To Address The Growing Demand Capex in Mining Automation across Red
Slide 24: Experienced Leadership Team
Experienced Leadership Team Mr. R K Dabriwala | Managing Director Mr. Surbhit Dabriwala | Director • JEDP – IIM (Calcutta) & Harvard Alumni • Bachelor of Arts and Science from University of Pennsylvania • Having more than 5 decades of experience in diversified business and been • Holds senior level
Slide 25: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 26: Consolidated Quarterly Financial Performance
Consolidated Quarterly Financial Performance Revenue (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +15.0% -30% +161% 121.9 15.5 +12.7% 13.5 37.0 85.4 +217% -35% 9.5 66.0 8.4 22.9 42.8 14.2 7.2 Q2FY23 Q2FY24 H1 FY23 H1 FY24 Q2FY23 Q2FY24 H1 FY23 H1 FY24 Q2FY23 Q2FY24 H1 FY23 H1 FY24 EBIDTA Margins (%)
Slide 27: Historical Financial Performance (Consolidated)
Historical Financial Performance (Consolidated) Revenues (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +13% 205.2 215.0 +21% 29.4 169.3 +31% 28.7 19.9 19.6 16.6 16.2 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 EPS growth EBIDTA Margins (%) PAT Margins (%) 13.7% 13.4% 11.8% +32% 4.3 9.5% 9.8% 7.9% 2.5
Slide 28: Domestic Revenue Break-up
Domestic Revenue Break-up Rs. Crs Industry Wise 7.1% Coal 20.6% Others -5% 36.6 34.7 Q2FY24 Q2FY23 79.4% 92.9% +58% 19.0 29.8% 28.7% 12.0 FY22 FY23 70.2% 71.3% Q2FY23 Q2FY24 FY22 FY23 Coal Others Figures on Consolidated basis 27
Slide 29: Exports Revenue Break-up
Exports Revenue Break-up Rs. Crs Industry Wise Potash Coal Others 2.7% Potash Others 16.0% 7% 24.4% 25.9% 180.3 168.6 Q2FY23 Q2FY24 71.4% 59.5% Coal Geography Wise -56% 54.0 Canada 15.5% 26.4% 24.4% USA 23.8 R.o.W Q2FY23 Q2FY24 5.9% Q2FY23 Q2FY24 FY22 FY23 67.7% 60.1% Figures on Consolidated basis D
Slide 30: Q2 FY24 Consolidated Profit & Loss
Q2 FY24 Consolidated Profit & Loss Particulars (Rs. Crs.) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1 FY23 Y-o-Y Revenue from Operations 42.8 66.0 -35.2% 42.7 0.2% 85.4 121.9 -29.9% Cost of Materials Consumed 15.8 32.4 20.1 36.0 67.4 Purchase of Traded Goods -0.5 2.1 1.6 1.1 4.8 Changes in Invent
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY & LIABILITIES (Rs. Crs.) Sep-23 Mar-23 ASSETS (Rs. Crs.) Sep-23 Mar-23 Equity Share Capital 6.3 6.5 Property, Plant and Equipment 13.9 14.7 Other Equity 246.7 208.5 Capital Work-in-progress 0.2 0.0 Total Equity 253.1 215.0 Goodwill on consolidation 1.0 1.0 Finan
Slide 32: Consolidated Cash Flow
Consolidated Cash Flow Cash Flow Statement (Rs. Crs.) Sep-23 Mar-23 Sep-22 Cash Flow from Operating Activities Profit before Tax 45.8 37.2 17.3 Adjustment for Non-Operating Items -26.2 -0.6 -2.2 Operating Profit before Working Capital Changes 19.6 36.6 15.1 Changes in Working Capital 2.9 -24.1 -27.4
Slide 33: Consolidated Historical Profit & Loss
Consolidated Historical Profit & Loss Particulars (Rs. Crs.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Revenue from Operations 215.0 205.2 169.3 98.7 85.6 Cost of Materials Consumed 120.0 126.6 84.6 49.9 42.1 Purchase of Traded Goods 8.7 8.0 5.9 8.9 10.2 Changes in Inventories of Finished Goods and Work in
Slide 34: Strengthening Balance Sheet
Strengthening Balance Sheet Borrowings & Cash and Cash Equivalents (Rs. Crs.) Investments^ Net Debt to Equity 180.9 0.7 101.8 139.2 0.5 62.9 64.1 45.7 0.3 0.3 19.3 11.1 0.1 1.6 1.8 1.8 2.0 FY19 FY20 FY21 FY22 FY23 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Borrowings Cash & Cash Equivalents Figures on conso
Slide 35: Efficient Working Capital Management
Efficient Working Capital Management Receivable Days Payable Days 110 107 87 78 70 70 42 45 36 29 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Inventory Days Net Working Capital days 72 110 56 83 52 49 48 35 24 6 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Figures on consolidated basis 34
Slide 36: Key Takeaways
Key Takeaways Value Creation for Stakeholders New avenues for Growth 5 1 Entry into newer customers & geography Revenue and Profitability Growth with new products developed over the period Global & Domestic mining growth Strong Order book Visibility & along with industry diversification 4 2 Replacem
Slide 37: Thank You
International Conveyors Limited Mr. Udit Sethia, Director CIN : L21300WB1973PLC028854 THANK YOU E: investors@iclbelting.com www.iclbelting.com Investor Relations : Orient Capital Mr. Ronak Jain:+91 9820950544 Email: ronak.jain@linkintime.co.in Mr. Rajesh Agrawal : +91 9967491495 Email : rajesh.agraw
International Conveyors — Q2 FY24 Earnings Presentation on 6ix