Walchandnagar Industries Limited · NSE:WALCHANNAG
Walchandnagar Industries — Investor Presentation (October 2018)
22 slides from Walchandnagar Industries's investor presentation, October 2018
Slide 1: Corporate Presentation
Corporate Presentation October 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Walchandnagar Industries Limited (the “Company”) solely for information purposes without regard to any specific objectives, financial situations or informational needs of any particular person. The information in this presentation has been prepared f
Slide 3: Company Overview
Company Overview Pedigree: Renowned engineering company known for its design, Walchandnagar Industries engineering & high complex precision manufacturing capabilities with operational legacy of more than 100 years. Strong Execution Capabilities: Manufacturer and supplier of critical components t
Slide 4: Company History
Company History Supplied components for Delivered 750+ India’s first moon motor casings for mission the Akash Missile (Chandrayaan-I) Program till date Started working with ISRO, NPCIL & BARC Ventured into Supplied Organized Farming components for the and Sugar first missile of the manufacturing Agn
Slide 5: Transformation from EPC to High-End Manufacturing
Transformation from EPC to High-End Manufacturing Successful business transformation over last 5 years has led to a significant uplift in Company’s margin profile Revenue Mix & EBITDA Margins (%) 100% 20.0% 90% 18% 30% 80% 15.0% 50% EBITDA Margins (%) 70% 54% Revenue Mix (%) 73% 60% 10.0% 50% 40% 82
Slide 6: High Barriers to Entry: WIL's Key Competitive Strengths
High Barriers to Entry : WIL’s Key Competitive Strengths High barriers to entry in the Core business segments lead to limited competition Strategic vendor to ISRO, NPCIL, BARC & DRDO for 40+ years Vendor to ISRO since 1970s Working with DRDO since 1980s Contributor to first missile of Agni ser
Slide 7: Strong Manufacturing Capabilities
Strong Manufacturing Capabilities Heavy Engineering at Walchandnagar (Pune, Maharashtra) Precision Instruments at Dharwad (Karnataka) Foundry at Satara (Maharashtra) ~200 acres of land (incl. ~4 acres under the crane space) available for expansion Area under crane: 56,000 sq. mtr. at Walchandnag
Slide 8: Business Division Overview
Business Division Overview Defence & Industrial Gearboxes EPC & Foundry Missile Centrifugal Aerospace Cement Spares Nuclear Instrumentation FY 2018 : INR 261 cr FY 2018 : INR 63 cr FY 2018 : INR 74 cr Nuclear Cement 5% Spares Aerospace 10% 19% EPC Missiles Instrument Centrifugal 39% 40% ation 44% 26
Slide 9: Defence
Defence Existing Products: Missiles Containers & Launchers for Nuclear Marine Gearboxes Mobile Launcher Systems Submarines Supplier to Indian Navy & Coast Guard Supplier to DRDO Supplier to DRDO (Advanced Technology Vessel Supplied gearboxes to the following projects: Executing surface lau
Slide 10: Missile
Missile Existing Products: Motor Casings for Successful track-record of delivering 750+ motor casing sets No. of Akash Missile Motor Casing Sets Delivered 350 330 300 250 200 200 150 133 100 50 0 2016 2018 Mid Term Potential Akash Missile (Surface To Air Tactical Missile) AGNI V (Intercontinental
Slide 11: Aerospace
Aerospace Existing Products: Booster & Core End Segment motor casings for PSLV ISRO’s GSLV Mk III Maiden Launch (2017) & GSLV launch vehicles Booster Head End Segment ISRO aims to launch 22 missions in 2019 (Source: Times of Booster India - 12 August, 2018 ) Nozzle End Segment 1 2 ISRO : a low-cost
Slide 12: Nuclear
Nuclear Existing Products: Offerings include core nuclear island components such as End, Shields, Calandria, Heat Exchangers, Scrubber tanks, etc. Calandria, 700 MWe Reactor End shield for 220 MWe Reactor Moderator Heat Exchanger Description: a tank which is reactor core Description: Used to pre
Slide 13: Industrial Gearbox
Industrial Gearbox Products Overview Large Market Potential: Opportunity to grow at-least 4x Gearboxes used in Industrial end-markets such as sugar, cement and WIL is currently a sub-scale player in this market, but has significant power plants. Products include Parallel shaft high speed turbo poten
Slide 14: Centrifugal Machines
Centrifugal Machines Products Overview Domestic Market Opportunity Centrifugal machines are used in sugar factories, to separate sugar crystals FY18 Domestic Market Share from molasses. This is a critical process in the manufacturing of raw sugar. 11% Domestic growth drivers 50% 39% Replacement De
Slide 15: EPC Overview
EPC Overview Pioneer in providing turnkey solutions to sugar factories in India and had proven EPC capabilities for power and cement plants Around 2010, received 2 large EPC (the only two pending contracts in the EPC space for the Company today) from – 1. Tamil Nadu Electricity Board – TNEB proj
Slide 16: Financial Snapshot
Financial Snapshot Page 16
Slide 17: Historical Segmental Financials
Historical Segmental Financials Core Business Segments Non-Core Business Segments 400 600 350 324 311 514 291 500 300 Revenues (INR Cr) 265 Revenues (INR Cr) 250 213 400 327 200 300 270 150 100 200 107 50 100 74 - - FY 2013 FY 2014 FY 2016 FY 2017 FY 2018 FY 2013 FY 2014 FY 2016 FY 2017 FY 2018 OEM
Slide 18: Strong Visibility From Current Order Book
Strong Visibility From Current Order Book Order-Book (INR Cr) Sl. No. Segment (1st Sept ’18) Some Key Industry Development News: 1 Aerospace 75.6 26 September, 2018: Indigenously developed air-to-air missile Astra 2 Missile 36.8 successfully test fired (Source: Hindustan Times) 3 Defence 214.0 4 N
Slide 19: Income Statement
Income Statement Particulars (In INR Cr) FY13 FY14 FY16 (18 M) FY17 FY18 Core Revenue 213.1 311.0 397.8 291.3 324.0 Non-Core Revenue 513.5 327.2 404.3 106.9 74.4 Total Operating Revenue 726.5 638.3 802.1 398.2 398.4 Other Income 5.6 7.9 5.2 3.2 8.9 Total Revenue 732.2 646.1 807.3 401.4 407.3 Cost of
Slide 20: Balance Sheet
Balance Sheet Particulars (in INR Cr) FY 16 FY 17 FY 18 Shareholder’s Equity: Equity 7.6 7.6 7.6 Reserves & Surplus 436.6 356.8 331.4 Net Worth 444.2 364.4 339.0 Non-Current Liabilities: KKR Debt (Principal & Accrued Interest) - - 248.5 Other Long-Term Debt 121.4 139.3 6.9 Total Non-Current Debt 121
Slide 21: Cash Flow Statement
Cash Flow Statement Particulars (in INR Cr) 2016 (18 M) FY 17 FY 18 EBITDA 65.2 51.0 83.8 Adjustments for: Exceptional Items & Non-Operating Income (21.7) (1.7) (6.9) Non-Cash Adjustments 1 20.5 9.5 0.3 Income Tax Refund / (Paid) (net) (12.4) 1.8 3.4 Operating Profit before Working Capital Changes 5
Slide 22: Thank You
Thank You (D2 1908-2008 WALCHANDNAGAR A Orabdition of Engineering Excellence
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