Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q3 FY19 Earnings Presentation
32 slides from Vardhman Special Steels's earnings presentation, Feb 2, 2019
Slide 1: Vardhman Special Steels Q3 & 9M FY19 Result Update Presentation
Q l Vardhmin VARDHMAN SPECIAL STEELS LIMITED Vardhmin ' Delivering Excellence. Since I965. CHANDIGARH ROAD LUDHIANA-HIOIO. PUNJAB T: +9l-l6l-2228943-48 F: +9l-l6l-260l048, 22226l6, 260|040 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:FEB:2018-19 DATED: 02.02.2019 The Deputy General Manager, The Nat
Slide 2: Slide 2
Slide 3: Disclaimer
Q VARDHMAN SPECIAL STEELS LTD. Disclaimer v A -3C-|W.‘i|TMENT T0 QUAJT‘i 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,
Slide 4: Table of Contents
6) VARDHMAN SPECIAL STEELS LTD. Table of Contents 1:7 A COMMITMENT T0 QUALITY Q3 & 9M FY19 Financial Highlights Company Overview Business Overview Way Ahead
Slide 5: Q3 & 9M FY19 Financial Highlights
' Q3 & 9M FY19 Financial Highlights
Slide 6: Management's Message
Q VARDHMAN SPECIAL STEELS LTD. v A SCI‘AMITMEN' TO OUR. W Management’s Message - Commenting on the results Mr. Sachit .Iain, Vice Chairman and Managing Director said — ”During the nine-month ended FY19, we have registered good volume growth of around 12%. Although there is a temporary slowdown in th
Slide 7: Financial Highlights Q3 FY19 (YoY)
Q VARDHMAN SPECIAL STEELS LTD. Financial Highlights V — o3 FY19 (YoY) 13% 43% Volume (MT) Revenue from Operations* 43,258 tons Rs. 312.52 crore 13% 1% EBTIDA# PBT Rs. 22.38 crore Rs. 9.64 crore ..........................................................................................................
Slide 8: Financial Highlights Q3 FY19
Q VARDHMAN SPECIAL STEELS LTD. Financial Highlights ‘0 — Q3 FY19 I I I Sales Volumes (MT) I Revenue from Operations (Rs. Crore) I I I 43,258 : 42,469 312-52 I 295.49 41,586 : 269.50 218.42 231.36 I 38,275 38,455 I I I I I I I I I I I | I I I Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 I Q3 FY18 Q4 FY18
Slide 9: Financial Highlights Q3 FY19
Q VARDHMAN SPECIAL STEELS LTD. Financial Highlights v AGC-MMITI.1ENT T0 QUAJT‘I‘ — Q3 FY19 Revenue from Operations 312.52* 218.42 43.08% 295.49* Excise Duty 0.00 0.00 0.00 Other Income 0.40 0.98 1.23 Total Income 312.92 219.40 42.63% 296.72 Cost of Materials Consumed 235.67 123.61 183.15 Purchases o
Slide 10: Financial Highlights 9M FY19
Q VARDHMAN SPECIAL STEELS LTD. Financial Highlights — 9M FY19 V 12% 40% 21% Volume (MT) Revenue from Operations* EBTIDA# 1,27,313 MT Rs. 877.51 crore Rs. 58.54 crore 25% 6% PAT Basic EPS Rs. 22.36 crore Rs. 6.26 vs. Rs. 5.93 9M FY18 lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
Slide 11: Financial Highlights 9M FY19
Q VARDHMAN SPECIAL STEELS LTD. Financial Highlights — 9M FY19 ‘0 0 Income from Operations 877.51* 646.53 Excise Duty 0.00 18.93 Revenue from Operations 877.51 627.60 39.82% Other Income 1.33 3.81 Total Income 878.84 631.41 39.19% Cost of Materials Consumed 588.65 341.27 Purchases of Stocks 31.76 0.0
Slide 12: Balance Sheet as on 30th Sept'18
Q VARDHMAN SPECIAL STEELS LTD. fl GCMlillTlilEN— TIII (JUL T'i‘ Balance Sheet as on 30th Sept’18 355.35 339.32 Non Current Assets 316.26 278.83 Equity* 35.70 Property Plant & Equipment 281.15 24927 Equity Share Capital 3570 15.37 6.99 Other Equity 319.65 303.62 Capital Other workin progress 0'36 0-2
Slide 13: Company Overview
= Company Overview = nes a en ps ti =r eT
Slide 14: Company Overview
Company Overview “Q7 VARDHMAN SPECIAL STEELS LTD. W t l I Amongst India’s Leading Steel Bar Reputed and long term customers Producer for Automotive Application I Toyota, Hero Moto Corp, I Incorporated in May 2010 Caterpillar, Hino Motors, Maruti, I Headquartered in Ludhiana, 3313] and Hyundai, among
Slide 15: Journey So Far
( Q VARDHMAN SPECIAL STEELS LTD. L :1: 'Il.-'|Tl E'I' ‘III "_|.-—_ T'\ - Journey So Far I 2010 Incorporated as independent 1973 Commissioning of Oswal - I - Steels at Faridabad, with initial identity under Vardhman Group - earlier unit of Vardhman Textiles capacity to produce 50,000 TPA of special &
Slide 16: Strong & Experienced Board of Directors
I G be VARDHMAN SPECIAL STEELS LTD. v A COMMITMENT T0 QUALITY Strong & Experienced Board of Directors o Illlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll. IIlllllllllllllllllllllllIIlllllllllllllllllllllllllllllllllllllllllll. Mr. Rajeev Gupta — Chairman & Independent Director E
Slide 17: Business Overview
Business Overview =Ss 2
Slide 18: Wide Range of Sizes for Rolled Products
Wide Range of Sizes for Rolled Products 6:?) VARDHMAN SPECIAL STEELS LTD. A 33l-lMlTMEl-l— T0 CUA. T‘r’ Hot Rolled Bars Bright Bars . Diameter Size : Increased from 25-70 Size: 14.66 to 78 mm (Peeled), 21.35 to MM in 2012 to 16-120 MM in 2017-18 50 mm (Drawn) /
Slide 19: With State-of-the-art manufacturing facilities
With State-of-the-art manufacturing facilities “Q7 YARDHMAN SPECIAL STEELS LTD. ' ‘ ' Steel Melting Shop Rolling Mill Bright Bars Annual Capacity : 2,00,000 TPA I Annual Capacity : 1,80,000 TPA I Annual Capacity : 36,000 TPA 30 MT Ultra High Power (UHP) Eccentric I Rolling Mill installed in 2013—14
Slide 20: Process Flow
Q VARDHMAN SPECIAL STEELS LTD. Process Flow v A COMMITMENT T0 QUALITY Sponge. ORI, PIG IRON, l Shredded Scrap ’ —> Exports Domestic Shipment I Final Inspection and Dispatch ’— Bright Bar Shop _ NDT Line mom sucmc ARC FURNACE SphEI’Odile Annealing Vm‘l'“ “8‘9“"! 0"“ uddle Refining Um! Connnous Castin
Slide 21: Steel Melting Shop
/ Steel Melting Shop e7 VfiRDHMAN SPECIAL STEELS LTD. w . , . I Electric Arc Furnace Ladle Refining Furnace
Slide 22: Rolling Mill & Bright Bars
Q VARDHMAN SPECIAL STEELS LTD. v A SClAi‘JITlAEr-l' TO OUR. W Rolling Mill & Bright Bars Rolling Mill Bright Bar Shop Rolling Mill
Slide 23: Automatic Line of Bar Inspection
Automatic Line of Bar Inspection - NDT Line £9 VARDHMAN SPECIAL STEELS LTD. A COMMITMENT T0 QUALITY MFLT . Acceptance Criteria: Chamfermg 0_2X10mm Bar ends free from BU" Straightening Straightness : 2mm / meter Acceptance Criteria: SDH — Shot Blasting 0.8x10mm, FBH 0.8 & 1.2mm — A
Slide 24: With best in class R&D Facility
G VARDHMAN SPECIAL STEELS LTD. With best in class R&D Facility W7 I Spectrometer : ARL 4460:1454 for Chemical Analysis. It can check 32 different elements I CS — 230 : Analyzer for Carbon & Sulfur content in steel I LECO gas analyzer — TC 600 Hz, N2, 02 Analyzer I Mobile Spectro and XRF for Mix up T
Slide 25: Strategically located Warehousing Facilities
Strategically located Warehousing Facilities £9 VARDHMAN SPECIAL STEELS LTD. A COMMITMENT T0 QUAJTY 0 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII If = I One Owned Warehouse 5 I Bilaspur Haryana E I Five Leased Warehouses in India I Bangalore I Chennai I Rudrapur I Pune I Aurangabad - IIIIIIIIIIIII
Slide 26: Key Strengths
Q VARDHMAN SPECIAL STEELS LTD. v ACOMMITMENT To QUMW Key St re n gt h s State of Art Manufacturing Facilities and advanced R&D Capabilities I Well equipped with latest upgraded Technology Machines o Diversified Product offerings I Manufactures diverse range of products with wide applications across
Slide 27: Strong Global Customer Base
Strong Global Customer Base £20) VARDHMAN SPECIAL STEELS LTD. A COMMITMENT TU QUALITY
Slide 28: Reputed & long term customers
Q VARDHMAN SPECIAL STEELS LTD. v A CCMMITMEN— T0 GUA. 'I'v’ Reputed & long term customers Cars Two wheelers HCL/LCV e uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuo o . o ‘ o m ‘/‘\/\ ’ Q99 @ MARUTI £2. YAMAHA ‘ TOYOTA Hvunnnl Ms‘SUZUK' @HJ/ Hero BAJAJ ASHCIK LEYLAND SLIJaRaJ mazna
Slide 29: Quality Certifications
Q VARDHMAN SPECIAL STEELS LTD. v A COMMITMENT T0 QUAJTV Quality Certifications nnnnnn ququququ MANAGEMENT SYSTEM MANAGEMENT SYSTEM CERTIFICATE CERTIFICATE INDIA'S BEST COMPANIES TO WORK FOR 2012 Vardhman Special Steels Limited Ranked among Top 50 Companies having upro 1000 employees ISO 9001 : 2008
Slide 30: Way Ahead
d an
Slide 31: Way Ahead
G VARDHMAN SPECIAL STEELS LTD. v AGC-Ml.‘HTMENT T0 QUAJT‘l Way Ah ea d A Capacity Expansion I Increase melting capacity to 2,40,000 TPA and Rolling Capacity to 2,20,000 TPA BY FY21 - expected capex of approx. Rs. 200 Cr. I Target of achieving full capacity utilization soon after completing capex Joi
Slide 32: Thank You
Q VARDHMAN SPECIAL STEELS LTD. Th a n k Yo u v ACOMMITMENTTU QUALITY SSE 534392 @NSE VSSL BIoomberg VSSLIN RENE-“=59 VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt. Ltd. CIN:L27100PBZOlOPLC033930
Vardhman Special Steels — Q3 FY19 Earnings Presentation on 6ix