Gravita India Limited · NSE:GRAVITA
Gravita India — Q3 FY23 Earnings Presentation
30 slides from Gravita India's earnings presentation, Jan 23, 2023
Slide 1: Regulation 30 intimation cover letter to stock exchanges
GRAVITA INDIA LTD. ~~ GRAVITA Corp. Office :GraVJla Tower, A-27 B, Shanll Path, T1lak Nagar, JAJPUR-30200'1, RajastJ1an (INDIA) Phone ; i9l- 14J -2623266, 2622697 FAX : i9l - 141 -2621491 Web : www.cravjt,1lttdi,1.ro.m CIN:- L29308RJ1992PLC006870 23"'1 January, 2023 GIL/2022-23178 To, To The Listing
Slide 2: Investor Presentation Jan 2023
INVESTOR PRESENTATION Jan 2023 Towards Clean, Green & Sustainable Future
Slide 3: Started in 1992 by first generation entrepreneur Rajat Agrawal
GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2
Slide 4: Amazing Journey
We are on an AMAZING JOURNEY 2022 Added Rubber 2021 New recycling facility at Recycling Mundra port 2019 Started Aluminium & Plastic recycling in Africa 2016 Added Aluminium Recycling 2015 Diversified in 2013 Plastic recycling Value added products in Jaipur 2010 Listed on 2007 1st recycling NSE & BS
Slide 5: Vision 2026
VISION 2026 New recycling verticals 25%+ Rubber, Lithium, ROCE Copper & Paper 25% + 50%+ Revenue CAGR Value added products 35% + 25%+ Profitability Growth Non-Lead business ● ● ● Our Priorities Shareholder value Return accretive Judicious use of creation growth capital 4
Slide 6: Financial Highlights
FINANCIAL Highlights 26 % ~ 9% A Revenue CAGR - 5 Yrs Consistent EBITDA margins External credit rating from ICRA 34 % Locking the margins 11 Years PAT CAGR - 5 Yrs Back-to-back hedging mechanism in place History of sustainable dividend payouts 75% Profit from overseas business with only 30% of the c
Slide 7: Quarterly Highlights - Q3 FY23
QUARTERLY HIGHLIGHTS - Q3 FY23 REVENUE (Cr) Changing gears - VISION 2026 789 683 557 34%+ 42%+ 31%+ 28%+ Volume Revenue EBITDA PAT Q3FY22 Q2FY23 Q3FY23 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 80.00 EBITDA* (Cr) 70.91 12.00% 65.06 60.00 54.21 11.00% 9.53% 8.98%10.00% 45% 30% 40.009.74% 9.00% Revenue from Value added
Slide 8: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED 30% Target ROCE 25% + 29% Consolidated 21% Drivers of ROCE 19% ● Improving industry 18% dynamics 16% ● Resultant reduction in 12% working capital ● Improving demand- supply ● Value added products FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 *on Average Capital Employed ● 3 Years
Slide 9: Capacity Expansion over the Years
Capacity Expansion over the Years 2,40,000 24,600 4,25,000 MTPA 2,20,000 23,400 30,000 2,00,000 22,000 Capacity expected by FY 2026 1,80,000 1,73,119 26,400 26,400 1,59,519 1,60,000 26,400 19,200 19,200 1,40,000 13,200 1,21,819 1,21,819 1,20,000 1,12,819 1,00,000 FY19 FY20 FY21 FY22 9MFY23 Lead Alum
Slide 10: CAPEX Trend over the years and project updates
CAPEX Trend over the years Project Updates Senegal -started Aluminium Recycling ● Annual capacity – 4,000 MTPA ● Investment made – Rs.3.5Cr. (from internal accruals) 88.12 ● Expectation of Rs.60 Cr. additional revenues and gross margin of 20% 72.8 67.74 Ghana -started Plastic Recycling ● Annual capa
Slide 11: Leveraging existing Gravita's strengths
Leveraging existing GRAVITA’S STRENGTHS Our Entry into new verticals is based on proven, existing Gravita’s Strengths. Deep Routed Diversified procurement Customer network network Operation Excellence 10
Slide 12: Industry Specific Entry Barrier
Import License OEM in India Approvals Multinational Specialist Procurement Knowledge Network Time & Cost Capability to of Entry Industry Specific Develop Customized Products ENTRY BARRIER 11
Slide 13: Global & Pan India Operations
GLOBAL & PAN INDIA Operations ● Global spread helps reduce logistics costs and procure material cheaper. ● Start small > grow volumes > establish new plants close to procurement sources. ● Increased flexibility in recycling closest to raw material access and consuming markets. Head Quarters India (J
Slide 14: Deep Routed Procurement Network
Deep Routed PROCUREMENT NETWORK 29 1400+ 1,80,000 MT+ Own yards Touch points Scrap collection Europe Touch Points- 20+ Scrap collection(MT) - 7,000+ Americas Own Yards - 4 Touch Points- 80+ Scrap collection (MT) -13,000+ Africa Own Yards - 24 Asia Touch Points- 300+ Own Yards - 1 Scrap collection (M
Slide 15: Diversified Customer Network - Global
Diversified CUSTOMER NETWORK - GLOBAL 35 + 300 + 1,30,000 MT + Countries Customers Recycled products delivered Europe Countries - 5 Customers -8 Delivered- 10,000 MT+ Americas Countries - 10 Customers -37 Delivered- 11,000 MT + Middle East Countries - 6 Customers -23 Delivered- 19,000 MT+ Asia Count
Slide 16: Diversified Customer Network - India
Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : ● 200+ domestic customers in 22 states in India ● 75 + overseas customers in 31 countries. 15
Slide 17: Operational Excellence
OPERATIONAL EXCELLENCE 4 13 1400+ Recycling Recycling Touch Points Verticals Plants Globally 43% 2.27Lac+ 63% 37% Customized & MT Production Capacity Overseas Value added Capacity Utilzation Capacity products 1.80 Lac+ ILA 60000 MT+ MT Scrap India’s only Healthy Collection Accredited Orderbook Plant
Slide 18: Our Partners
OUR PARTNERS (Strong Partnering Capability) 17
Slide 19: Turnkey Solutions for Lead Acid Battery Recycling
Gravita offers TURNKEY SOLUTIONS for Lead Acid Battery Recycling ● In house Lead Acid Battery Recycling Technology ● Technical Consultancy & Services for Lead Recycling & Smelting ● PLC based Control & Monitor System for advanced set-ups ● Annual Maintenance Contracts ● Executed more than 50 turnkey
Slide 20: Robust Management
ROBUST MANAGEMENT Dr. M. P. Agarwal Rajat Agrawal Chairman Managing Director OTHER SALIENT FEATURES • Top management with an average experience of 400 + 150+ more than 26 Yrs in diversified industries Employees Professionals (CA’s, MBA’s, Engineers) • Separate SBU heads for all verticals • Incentive
Slide 21: Customized and Value Added Products
CUSTOMIZED AND VALUE ADDED PRODUCTS Our Capability to produce customized and value added products for diversified customer segments gives us better contributions and larger pie of Customized Lead Alloys Lead Sheets Lead Bricks customer's product mix. Value Added Products % in revenue 50% 44% 43% 45%
Slide 22: Risk Mitigation by Back to Back Hedging mechanism
Risk Mitigation by BACK TO BACK HEDGING mechanism Back-to-Back Hedging Core Inventory +Back-to-Back Hedging • To mitigate the risk of commodity prices fluctuation from June. 2016 $ 2379 $ 2283 $ 2093 • Metal equivalent of the scrap bought, is sold on the same $ 1867 day $ 2122 9.78% $ 1947 9.70% • P
Slide 23: Improving Market Dynamics in Recycling - Paradigm Shift
Improving MARKET DYNAMICS IN RECYCLING - Paradigm Shift Vehicle BWMR EPR Scrappage GST Policy PARADIGM SHIFT More Shift from Tie-ups Reduced Better Improved availability informal to with working capacity logistics of domestic formal OEM's capital cycle utilizations scrap 22
Slide 24: Shift from Informal to Formal
Shift from INFORMAL TO FORMAL With redefining of Battery Waste Management Rules (BWMR) , Extended producers responsibility (EPR) and stricter implementation of GST, the scrap availability for formal recycling sector has increased and is further expected to grow. Informal Lead recycling trend in Indi
Slide 25: More availability of Domestic Scrap
More availability of DOMESTIC SCRAP % of Raw materials domestically ● With shift of scrap from Informal to formal for processing collected within India through a authorized recycler. 54% ● Contracts with battery manufacturers ● PAN India collection of scrap from corporates 45% ● Contracts with vario
Slide 26: Reducing Net Working Capital Cycle
Reducing NET WORKING CAPITAL CYCLE • More domestic scrap & Lower imports reduces transit inventory • Retail scrap collection through OEM’s - Zero working capital 80 Days* 65 Days 95 Days March’26 March’22 Sept’22 9 15 11 34 24 36 35 46 30 Receivables Receivables Receivables Paid Plant Inventory * Pa
Slide 27: ESG: Capturing Value from Waste
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Focused on Capturing Value from Waste Through Modern Recycling and Recovery Recycling Waste: 4 Recycling verticals • Uses scrap of lead, aluminum ,plastic and rubber in manufacturing of finished goods and has a process in place to collect the scrap and recy
Slide 28: ESG: Social Contributions
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Involved in Making Holistic & Meaningful Contributions to Society 4 • Engagement Platforms of Customers & Partners: Customers: Regular business meetings, Customer Round of ESOPs satisfaction survey 2% • Product/Service Safety and Quality: Identify areas for
Slide 29: ESG: Governance and Ethical Standards
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Fosters a Culture of High Ethical Standards, Accountability and Transparency 50% • Business Ethics: Always worked towards building trust with shareholders, employees, customers, suppliers Independent directors and other stakeholders based on the principles
Slide 30: Thank You - Save the Planet
Thank You SAVE THE PLANET