Shivalik Bimetal Controls Ltd · NSE:SBCL
Shivalik Bimetal Controls — Q4 & FY2023 Earnings Presentation
47 slides from Shivalik Bimetal Controls's earnings presentation, May 18, 2023
Slide 1: Submission of Analysts/Investors Presentation cover letter
SBCL/BSE & NSE /2023-24/15 18th May, 2023 To, To, BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Deptt. Exchange Plaza, Plot No.C/1, G-Block Bandra Kurla PJ Towers, 25th Floor, Dalal Street, Complex, Bandra (East), Mumbai – 400 051 Mumbai – 400 001 Code No. SBCL Code No. 51
Slide 2: Investor Presentation Q4 & FY2023
SHIVALIK BIMETAL CONTROLS LIMITED INVESTOR PRESENTATION Q4 & FY2023
Slide 3: Forward Looking Statements
SHIVALIK BIMETAL FORWARD LOOKING CONTROLS LIMITED STATEMENTS This presentation and the following discussion may contain “forward- looking statements” by “Shivalik Bimetal Controls Limited” that are not historical in nature. Such forward-looking statements are subject to certain risks and uncertainti
Slide 4: Investment Rationale
SHIVALIK BIMETAL INVESTMENT 07 01 CONTROLS LIMITED RATIONALE Enjoying strong Enjoying an ‘Relationship Capital” with R&D-centric limited domestic competition, Technological Moat where customers thriving on in a fast-growing the “Make in India” niche market opportunity 02 06 Riding the "Electrificati
Slide 5: Forging Ahead
SHIVALIK BIMETAL CONTROLS LIMITED FORGING AHEAD a niche technology pioneer at the tipping point of quantum growth LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL 1 BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION 2 PREPARED FOR SUSTAINED GROWTH 3 PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE 4 3
Slide 6: Leveraging Differentiated Intellectual Capital
SHIVALIK BIMETAL CONTROLS LIMITED LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL 1 4
Slide 7: Delivering Quantum & Quality Growth
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL DELIVERING QUANTUM & QUALITY GROWTH CONTROLS LIMITED We make state-of-the-art Over the past year, Shivalik has made significant strides in the evolving landscape of technological applications, achieving quantum growth through innovati
Slide 8: Key Milestones: A niche technology leader with global presence
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL KEY MILESTONES CONTROLS LIMITED 1984-1986 1994-2000 2002-2003 2005-2008 A niche technology leader with global • Incorporated as a private • Launch of a new product • The Company’s in House • Entered into a Joint presence limited compa
Slide 9: Key Milestones: A diversified product reengineering player
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL KEY MILESTONES CONTROLS LIMITED 2009-2011 2015-2020 2021-2023 A diversified product reengineering player • Acquired the equipment’s of • Launch new product line i.e, Shunt resistor • Commencement of New with global presence Sandvik He
Slide 10: Our Business Model Canvas
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL OUR BUSINESS MODEL CANVAS CONTROLS LIMITED 8
Slide 11: Advanced Manufacturing Capabilities
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL ADVANCED MANUFACTURING CONTROLS LIMITED CAPABILITIES People: Shivalik Bimetal Controls Ltd. (SBCL) Plant 1 Shivalik Bimetal 1 & 2 650 SEPPL Plant 3 Solan, HP, India Head Office Shivalik Bimetal Controls Ltd. (SBCL) Plant 2 5 main tech
Slide 12: State-of-the-Art Facilities
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL STATE-OF-THE-ART CONTROLS LIMITED FACILITIES Modern Manufacturing Facilities with unique capabilities • World’s Largest Capacity and Plant 1 Plant 2 Plant 3 Production of Strip Electronic Beam Welding • Inhouse stamping shop • Inhouse
Slide 13: Highly Specialized in Manufacturing Precision Engineered Solutions
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL HIGHLY SPECIALIZED IN MANUFACTURING CONTROLS LIMITED PRECISION ENGINEERED SOLUTIONS Our Technical know how is a moat reflected by our expertise in Bimetals and our first mover advantage for Shunt Resistors Shunt Resistors are manufact
Slide 14: Precision Engineered Solutions for Diversified End Applications
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL PRECISION ENGINEERED SOLUTIONS FOR CONTROLS LIMITED DIVERSIFIED END APPLICATIONS Only company in the world to provide a portfolio of Shunt Resistors, Thermostatic Bimetals and Electrical Contacts under one roof Shunt Resistors Thermos
Slide 15: A Glimpse of Traditional End-Applications
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 CONTROLS LIMITED INTELLECTUAL CAPITAL A GLIMPSE OF TRADITIONAL END-APPLICATIONS ICE & Electric Car -Energy Meters -Inverters UPS EB Welded -AC/DC Converters Frequency Converters Applications -Automotive BMS / -Low Inductance IBSElectric Power Charger Modu
Slide 16: Our Competitive Edge
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL OUR COMPETITIVE EDGE CONTROLS LIMITED Precision Engineered Long Standing Relationship 01 04 Manufacturing Solutions with Marquee Global Customers • Leading supplier of critical components for • 30+ years of customer relationships focu
Slide 17: Protected Through Strong Defensive Moats
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL PROTECTED THROUGH CONTROLS LIMITED STRONG DEFENSIVE MOATS Global pioneer in Differentiated through Cemented as a bonding & aggressive R&D technology leader in welding a difficult-to- enter industry The Company enjoys a culture of SBCL
Slide 18: Protected by R&D and Manufacturing Capabilities
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL PROTECTED BY R&D AND CONTROLS LIMITED MANUFACTURING CAPABILITIES A PIONEER USER OF CUTTING- EDGE PROCESSES WITH Highly trained and VETERAN CREDENTIALS experienced base of 650 07 01 Master in Diffusion bonding people • A leading suppli
Slide 19: Driven by Our Talented People Pool
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL DRIVEN BY OUR TALENTED CONTROLS LIMITED PEOPLE POOL Top-notch promoters Veteran Experience embedded into the company Professional Teams Investing in a diversity of capabilities Supporting our people to produce & skillsets Innovative o
Slide 20: Experienced Technocrat Promoters and Seasoned Management
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL EXPERIENCED TECHNOCRAT PROMOTERS CONTROLS LIMITED AND SEASONED MANAGEMENT First Generation Entrepreneurs Mr. S. S Sandhu Mr. N.S Ghumman Chairman and Whole Time Director Managing Director • 50 years of experience in the field of Banki
Slide 21: Well-Positioned for Future Growth
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL WELL-POSITIONED FOR CONTROLS LIMITED FUTURE GROWTH Global Presence with exports to over 30+ countries Domestic and Export Sales Mix Extending to a global scale with increase in Exports Russia USA Japan Italy/ EU South Korea 48% FY 201
Slide 22: Expanding Our Global Reach & Market Visibility
SHIVALIK BIMETAL LEVERAGING DIFFERENTIATED 1 INTELLECTUAL CAPITAL EXPANDING OUR GLOBAL REACH CONTROLS LIMITED & MARKET VISIBILITY being relevant to by being ambitious 1 market needs i.e. 3 in research and 5 Fostering deep EVs and smart technological metering innovation relationships with leading sys
Slide 23: Built for Sustainable Long-Term Value Creation
SHIVALIK BIMETAL CONTROLS LIMITED BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION 2 21
Slide 24: Risk Management Policy to Ensure Smooth Long-Term Continuity
SHIVALIK BIMETAL BUILT FOR SUSTAINABLE 2 LONG-TERM VALUE CREATION RISK MANAGEMENT POLICY TO ENSURE CONTROLS LIMITED SMOOTH LONG-TERM CONTINUITY Shivalik is exposed to various risks in daily conduct of its business. However, it has policies in place to ensure the company is insulated from any risk af
Slide 25: A Valuable Long-Term Player Shielded by a Network of Loyal Clients
SHIVALIK BIMETAL BUILT FOR SUSTAINABLE 2 LONG-TERM VALUE CREATION A VALUABLE LONG-TERM PLAYER SHIELDED CONTROLS LIMITED BY A NETWORK OF LOYAL CLIENTS Early-stage involvement 01 Engaging with clients at an early stage of their product Direct Long-Term OEM Engagement development cycle Studying OEM Ins
Slide 26: Supporting Long-Term Climate Change Commitments
SHIVALIK BIMETAL BUILT FOR SUSTAINABLE 2 LONG-TERM VALUE CREATION SUPPORTING LONG-TERM CLIMATE CONTROLS LIMITED CHANGE COMMITMENTS 01 SHIVALIK IS AT THE 04 Everything going the electrical way WAYPOINT FOR THE A huge global opportunity going is going to utilise Shivalik’s devices; ELECTRIFICATION OF
Slide 27: Applications of Shunt Resistors in Automobiles
SHIVALIK BIMETAL BUILT FOR SUSTAINABLE 2 LONG-TERM VALUE CREATION APPLICATIONS OF SHUNT RESISTORS IN CONTROLS LIMITED AUTOMOBILES Battery Management Systems EPS Electric Power Steering SBF, SBG, SBI SBA, SBC Door/Mirror Control Modules Autonomous Driving Air Conditioning Systems SBA, SBF, SBB SBF, S
Slide 28: Sizeable Global Addressable Market
SHIVALIK BIMETAL BUILT FOR SUSTAINABLE 2 LONG-TERM VALUE CREATION SIZEABLE GLOBAL ADDRESSABLE MARKET CONTROLS LIMITED Total Global Addressable Market of the company was $1.23 Bn as of FY 2022 which is expected to grow at a CAGR of ~9% to $2.4 Bn by FY 2030 Shunt Resistors Thermostatic Bimetals Elect
Slide 29: Prepared for Sustained Growth
SHIVALIK BIMETAL CONTROLS LIMITED PREPARED FOR SUSTAINED GROWTH 3 27
Slide 30: Catalysing Growth Through Strategic Acquisitions & Alliances
SHIVALIK BIMETAL PREPARED FOR 3 SUSTAINED GROWTH CATALYSING GROWTH THROUGH A SERIES OF CONTROLS LIMITED STRATEGIC ACQUISITIONS & ALLIANCES • Shivalik’s strategic acquisition of CHECON’s (USA) stake in SEPPL In partnership expands the Company’s offerings to with Arcleor manufacture and design Silver
Slide 31: While Staying Friendly to the Environment
SHIVALIK BIMETAL PREPARED FOR 3 SUSTAINED GROWTH WHILE STAYING FRIENDLY TO CONTROLS LIMITED THE ENVIRONMENT The technology required for Committed to combating climate these products is not energy- change by improving energy guzzling and is sustainability efficiency and the use of renewable friendly
Slide 32: And by Sustaining Shivalik's Core Advantages
SHIVALIK BIMETAL PREPARED FOR 3 SUSTAINED GROWTH AND BY SUSTAINING SHIVALIK’S CONTROLS LIMITED CORE ADVANTAGES Economic Moats: i. Highly differentiated Intellectual POSITIONED FOR ROBUST capital = niche industry value Future Ready GROWTH creation ii. 20+ years of experience iii. Extensive Investment
Slide 33: Persistent Financial & Operational Performance
SHIVALIK BIMETAL CONTROLS LIMITED PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE 4 31
Slide 34: FY23: Key Financial Highlights (Standalone)
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE FY23: KEY FINANCIAL HIGHLIGHTS (Standalone) CONTROLS LIMITED In ₹ crore Revenue & GM EBITDA & EBITDA Margin PBT & PBT Margin Pat & Pat Margin 450.00 51.20 120.00 25.50 120.00 23.50 80.00 17.40 17.28 400.00 25.00 23.13 70.00 17.20 50.9
Slide 35: Q4 & FY23: Segmentwise Highlights
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE Q4 & FY23: SEGMENTWISE HIGHLIGHTS CONTROLS LIMITED Performance by Revenue (In ₹ crore) 450 29.70% 400 350 209.34 300 250 152.88 200 23.30% 150 100 56.96 45.09 50 44.23 53.18 171.11 210.89 0 Q4FY21-22 Q4FY22-23 FY22 FY23 Shunt Bimetal
Slide 36: FY23: Segment Share
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE FY23: SEGMENT SHARE CONTROLS LIMITED Segment Share by Volume (Kgs) Segment Share by Revenue (In ₹ crore) FY23 (Vol-Kgs) FY23 (Value in Cr.) Bimetal Bimetal Shunt 50% Shunt 52% 48% 50% Shunt Bimetal Shunt Bimetal While the Bimetals seg
Slide 37: FY23: Working Capital
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE FY23: WORKING CAPITAL CONTROLS LIMITED Calculated on average inventory, receivables and creditors Working Capital Efficiency Ratios For FY23 300 260 44 252 22 250 230 216 200 150 100 74 67 69 56 50 0 Accounts Payable (Days) Collection
Slide 38: Q4 FY23: Bimetals/Trimetals + Shunt Resistor Business Deep Dive
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE Q4 FY23: BIMETALS/TRIMETALS + CONTROLS LIMITED SHUNT RESISTOR BUSINESS DEEP DIVE In ₹ crore Thermostatic Bimetals/Trimetals Shunt Resistor 45 [14%] 45.00% 35 60.00% 31.29 40 39.42% [%] 38.3 40.00% 52.11% [34%] 30 50.00% 35.00% 35 [10%
Slide 39: FY23: Bimetals/Trimetals + Shunt Resistor Business Deep Dive
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE FY23: BIMETALS/TRIMETALS + CONTROLS LIMITED SHUNT RESISTOR BUSINESS DEEP DIVE In ₹ crore Thermostatic Bimetals/Trimetals Shunt Resistor 140 180.00% 140 25.00% 24.68% 121.34 160.00% 120 155.34% [26%] [32%] 120 114.83 24.00% 104.21 140.
Slide 40: Q4 & FY23: Consolidated Profit & Loss Statement
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE Q4 & FY23: CONSOLIDATED PROFIT & CONTROLS LIMITED LOSS STATEMENT Particulars Q4FY23 Q4FY22 YOY FY23 FY22 YOY Revenue From Operation 123.60 89.32 38.38% 470.37 323.99 45.18% COGS 64.55 44.54 44.93% 245.16 161.06 52.22% Gross Profit 59.
Slide 41: Consolidated Balance Sheet
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE CONSOLIDATED BALANCE SHEET CONTROLS LIMITED In ₹ crore Particulars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Assets Tangible Fixed Assets 49 50 60 67 83 115 Intangible Assets 1 1 1 1 1 7 Non-Current Financial Assets 8 11 13 15 1
Slide 42: Consolidated Cash Flow Statement
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE CONSOLIDATED CASH FLOW STATEMENT Figures given below are in INR Crores CONTROLS LIMITED Figures given below are in INR crores Particulars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Cash flow from Operating Activities Net Profit B
Slide 43: Q4 & FY23: Standalone Profit & Loss Statement
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE Q4 & FY23: STANDALONE PROFIT & CONTROLS LIMITED LOSS STATEMENT Particulars Q4FY23 Q4FY22 YOY FY23 FY22 YOY Revenue From Operation 110.13 89.32 23.30% 420.23 323.99 29.70% COGS 53.78 44.53 20.77% 205.99 161.06 27.90% Gross Profit 56.35
Slide 44: Standalone Balance Sheet
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE STANDALONE BALANCE SHEET CONTROLS LIMITED In ₹ crore Particulars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Assets Tangible Fixed Assets 49 50 60 67 83 102 Intangible Assets 1 1 1 1 1 2 Non-Financial Assets 8 11 13 15 12 26 Other
Slide 45: Standalone Cash Flow Statement
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE STANDALONE CASH FLOW STATEMENT Figures given below are in INR Crores CONTROLS LIMITED Figures given below are in INR crores Particulars FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Cash flow from Operating Activities Net Profit bef
Slide 46: Business Strategy & Outlook
SHIVALIK BIMETAL PERSISTENT FINANCIAL & 4 OPERATIONAL PERFORMANCE BUSINESS STRATEGY & OUTLOOK CONTROLS LIMITED Building strength in new niche applications and markets • Continue to build niche value added products for high-growth market segments 01 • Charting strategies to penetrate new geographies
Slide 47: Thank You
SHIVALIK BIMETAL CONTROLS LIMITED THANK YOU Rajeev Ranjan rranjan@shivalikbimetals.com Shankhini Saha www.shivalikbimetals.com shivalik@dickensonworld.com
Shivalik Bimetal Controls — Q4 & FY2023 Earnings Presentation on 6ix