Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q4 FY19 Earnings Presentation
36 slides from Vardhman Special Steels's earnings presentation, May 6, 2019
Slide 1: Regulation 30 compliance cover letter to exchanges
G) l Vardhmén VARDHMAN SPECIAL STEELS LIMITED Vafdhmin I Delivering Excellence. Since I965. CHANDIGARH ROAD LUDHIANA-I4IOIO. PUNJAB T: +9l-I6I-2228943-48 F: +9I-I6l-260I048, 22226I6. 260l040 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:MAY:2019-_29 DATED: 06-May-2019 The Deputy General Manager, The
Slide 2: Vardhman Special Steels Limited Investor Presentation Q4 & FY19
a») / VARDKMAN SPEC‘AL STEE‘LS LYD Vardhman Special Steels Limited Investor Presentation Q4 & FY19
Slide 3: Disclaimer
Disclaimer Q mm N SPECIAl STEELS ll'l'i. 0-9-0 v” . i v This presentatian has been prepared by Vardhman Special Steels Limited (the ”Campany”) sale/y far infarmatian purpases and daes nat canstitute any affer, recammendatian ar invitatian ta purchase ar subscribe far any securities, and shall natfar
Slide 4: Table of Contents
Table of Contents 65 VMDHMAN SPECIAL STEELS “D, 0-9-0 ‘7 n 1 g: u .CompanyOverview . Business Overview . Financial Highlights . Way Ahead
Slide 5: Company Overview
Slide 6: About Us
About Us 60 VARDHMAN SPECIAL STEELS til). V « . , . r I Amongst India’s Leading Steel Bar Producers for Automotive Applications I Incorporated in May 2010 State-of— art manufacturing I Headquartered in Ludhiana. Punjab I Caters to sectors such as Engineering. facilities Automotive. Tractor. Bearing
Slide 7: Journey So Far
Journey So Far (:0 VARDHMAN SPECIAL STEELS lTD, ‘7 . \ r 0-9-0 at We were I April 2017 7 Rights Issue of Rs 67.85 Cr. 1973 7 Started as Oswal I Oct. 2017 7 Purchased ~8 acres of Steels I July 2015 7 Installed 7 50.000 TPA 0 adjoining land for Rs. 36 Cr. Fume Extraction system capacity of special & a
Slide 8: Clear focus on long term value creation
Clear focus on long term Value Creation Q m V mmwmmmml FY19 1,121 ‘ 1, 61, 676 Tons 2,00,000 TPA 1,80,000 TPA ‘ Q Crore . E Listed on Stock . E I I I I I a“ Exc-h-a-n-gf-"I. ‘ m| m 527 Crore 93169 Tons m‘ 1,00,000 TPA Q 80400 ‘ m 128 Revenue Sales Installed Installed Debt to Volume Capacity - Capaci
Slide 9: Strong Experienced Board of Directors
Strong Experienced Board of Directors contd... G) vaMANspEmuerELsunl Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Independent Director Vice Chairman & MD B. Tech from BHU/IIT. Varanasi and MBA (IIM. B. Tech (Electrical) » IlT. New Delhi. MBA (Gold Ahmedabad) medallist) » IIM. Ahmedabad and Owner/Pres
Slide 10: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... Q m V WHWSPMSEELSUDI Mr. B.K. Choudhary Mr. Rakesh Jain Non-Executive Director Independent Director Degree in B.Sc., M.Com & MBA Ph.d in Polymers from the University ofAkron Rich experience of more than 44 years in Steel Worked in the Advanced Technolog
Slide 11: Business Overview
Slide 12: Wide Range of Rolled & Bright Bars Products
Wide Range of Rolled & Bright Bars Products 0-9-0 Hot Rolled Bars Bright Bars I Diameter Size : Increased from 25-70 I Size : 14.66 to 78 mm (Peeled), 21.35 to MM in 2012 to 16-120 MM 50 mm (Drawn) 11
Slide 13: Diverse applications of our products
Diverse applications of our products Q VMDHMAN SPECIAL SIEELS ll'l'l. 0-9-0 Axle Gears E Knuckle Spindle Q/Afic’ r!) Drive-Shaft Bearings Connecting Rod Axle Shaft Center Velocity Joint Steering-Yoke Differential Gears 12
Slide 14: State-of-art Manufacturing facilities
State-of-art Manufacturing facilities (.3 VARDHMAN SPECIAL SYEELS LTD V « i , i r I Rol mg Mil Annual Capacity : 2,00,000 TPA . Annual Capacity :1,80,000TPA Annual Capacity : 36,000 TPA 30 MT Uitra High Power (UHF) Eccentric ' RoHing MiHinstaHedin 2013-14 Bar Peeling E. Centreless Grinding Bottom Ta
Slide 15: Process Flow
Process Flow 0-9-0 Wu, om. ma mm. smeam scua » Domestic Shipmenl ’ Final Inspection and Dispalch 3‘ I ’— Bright Bar Shop 'vuxum Beam“ W! nadle Rel-um; mm mom mm: m mama Spherodize Annealing (unllnous mm. mm As Rolled Bar "Hot Rolled" mun / Reheat Furnace Rolling Mill 14
Slide 16: In-House Steel Melting Shop
ln-House Steal MElting Shop Q VARDHMANSPECIALSTEELSLTD, Ladle Refining Furnace
Slide 17: Rolling Mill & Bright Bars
Rolling Mill & Bright Bars .9. y l7 Rolling Mill Bright Bar Shop Reheating Furnace
Slide 18: Automatic Line of Bar Inspection - NDT Line
Automatic Line of Bar Inspection - NDT Line Q vtaowmspecmsmasunI MFLT Acce tance Criteria: S‘leomm , Chamferlng Bar ends free from 3“” Straightening Straightness : 2mm/ meter Acceptance Criteria: SDH — Shot Blasting 0.8x10mm, FBH 0.8 & 1.2mm — 17
Slide 19: Best in class R&D Facility
Best in class R&D Facility 0-9-0 I Spectrometer : ARL 4460:1454 for Chemical Analysis. Can check 32 different elements I CS , 230 : Analyzer for Carbon & Sulfur content in steel I LECO gas analyzer — TC 600 H1, M, 01 Analyzer I Mobile Spectro and XRF for Mix up Testing of Bars I Mechanical and Metal
Slide 20: Strategically located Warehousing Facilities
Strategically located Warehousing Facilities Q mumspmmmm 0-9-0 v r unit'wsl i..............................................= I One Owned Warehouse I Bilaspur Haryana I Five Leased Warehouses in India I Bangalore I Chennai I Rudrapur I Pune I Aurangabad '. ............................................
Slide 21: Key Strengths
Key Strengths Q VARDHMAN SPEClAL STEE'LS LTD 0-9-0 v State of Art Manufacturing Facilities and advanced R&D Capabilities I Well equipped with latest upgraded Technology Machines Diversified Product offerings I Manufactures diverse range of products with wide applications across sectors I Further exp
Slide 22: 200+ Reputed & Long term customers
200+ Reputed & Long term customers.... Q 0-9-- ‘7 vaMANspEmuerELsunl Two Wheelers HCL/LCVs ..... ‘\ ....\\ /.. (m f? i W‘ «EU ‘M:MARUTI SUZUKI @YAMAHJI I ‘ I‘fi @ TOYOTA HVUI'IEIFII 1&2th ASHflK LEVI—AND Hero mm TATA SLIJaRaJ "m“ TVS 3-2: HONDA DAIMLER " am Amman I”. JOHN DEERE um: 23/ MERITOR 'I'AF
Slide 23: Across Globe with Customer Base
Across Globe with Customer Base 0-9-0 ev‘mwwmmflm' | Anmrmum
Slide 24: Financial Highlights
Slide 25: Management's Message
Management’s Message (:0 VARDHMAN SPECIAL STEELS lTD, ‘7 . \ v 0-9-0 Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said — ”In FY19, we faced two significant changes — in the first half there was an increase in the basic raw materials costs and in the second half the
Slide 26: Financial Highlights - Quarterly
Financial Highlights - Quarterly Q Wflmspmmm Sales Volumes (tonnes) Revenue from Operations (Rs. Crore) “2'52 295.49 269 50 ' 41,586 42,469 43,253 243.25 23136 38,455 . 34,363 : : I I . I i . i i i i i i i i i i i i Q4 FV18 Q1 FV19 Q2 FV19 Q3 FV19 Q4 FV19 Q4 FV18 Q1 FV19 Q2 FV19‘ Q3 nus" Q4 FV19‘ EB
Slide 27: Financial Highlights - Q4 FY19
Financial Highlights — Q4 FY19 Q VARDHMAN SPECIAL STEELS lTD, ‘7 , , . \ r o—e—u Income from Operations 243.25“ 231.36 312.52“ . . ' Increase In revenue mainly Excise Duty 0‘00 0‘00 000 E on 0f better Revenue From Operations 243.25 231.36 312.52 a.“°.”"t realizations and sale 0f Other Income 0.54 2.
Slide 28: Financial Highlights - FY19 vs FY18
Financial Highlights — FY19 vs FY18 Q mommspzcmsmstm v V ‘ 7, _ 0-9-0 6.25% 30.48% 2.47% Volume (tonnes) Revenue from 0perations* EBITDA# 1,61,676 tonnes Rs; 1,120476 crore Rs; 69471 crore ° Higher sales volumes, better realizations and sale of outsourced goods and raw materials resulting in increas
Slide 29: Financial Highlights - Annual
Financial Highlights - Annual Q VMDHMAN SPECIAL STEELS [10, 0-9-0 v ., NHVJ'TLLLJ- Sales Volumes (tonnes) Revenue from Operations (Rs. Crore) 1, 61, 676 1,120.76 1 52 162 '636 858.96 1, 16, 401 1 21 451 656.34 652.74 673-31 FV15 1I31 I I FV16 FV17 FV18 FV19 ‘ FV15 ‘ I I FV16 ‘ FV17 ‘ I FV18 ‘ FV19“
Slide 30: Revenue Break up - Sector Wise
Revenue Break up — Sector Wise Q WW "SPECIMEN rea ‘0 LMV FY18 _, Two Wheelers, Commercial Two Wheelers, 32% Commercual Vehicles, 32% Vehicles, 20% 16% Eng. & Off. Highway, 14% Engg. & Off. Highway, 10% Bearings, 4% Passenger Vehicles, Bearings, 0% Passenger Vehicles, 33% 34%
Slide 31: Financial Highlights - FY19
Financial Highlights — FY19 Q o—e—u ‘7 vWWgamma";I Income from Operations 1,120.76* 877.89 Excise Duty 0.00 18.93 Revenue From Operations 1,120.76 858.96 Other Income 1.87 6.10 Total Income 1,122.63 865.06 29.77% Cost of Materials Consumed 799.27 488.90 Purchases of Stocks 34.88 0.00 Changes In Inve
Slide 32: Balance Sheet as on 31st March 2019
Balance Sheet as on 315t March 2019 Q VARDHMANSPEWMSUD Equity” 361.99 339.32 Non Current Assets 343.51 288.56 Equity Share Capital 35.76 35.70 Property Plant 81 Equipment 279.53 249.27 Other Equity 326.23 303.62 Capitai work in progress 32.57 6.99 Non-current liabilities 136.53 102.33 Other intangib
Slide 33: Way Ahead
Slide 34: Investing in Our Real Assets
Investing in Our Real Assets I Q7 Vardh man Leadership Development Program Park mmwmana 15‘ m zo'imnwzms CCL - US based Organisation — :' . . -. : . . . . : a I TraInIng programs — : a I New InItIatIve undertaken offers leadership programs 5 E 5 functional ' attitudinal ' skill across 160 E ' Formal
Slide 35: Way Ahead
Way Ahead Q VARDHMAN SPEClAL STEELS LTD 0-9-0 v 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 Joint Venture & Technical All
Slide 36: Thank You
Th 3 n k Y0 U Q VARDHMAN SPECIAL STEELS LTD, u—e—o V LL v ESE 534392 ENSE VSSL v-I-wll‘urm-n .u Bloornborg VSSLIN “mam; VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt. Ltd. CIN:L27100PB2010PLC0339
Vardhman Special Steels — Q4 FY19 Earnings Presentation on 6ix