Slide 1: Cover letter to stock exchanges: Strategy Presentation
Date: 15-05-2024 To, To, The Manager The Manager Listing Department Listing Department BSE Limited The Calcutta Stock Exchange Limited Phiroze Jeejeebhoy Towers Lyons Range, Dalal Street, Mumbai- 400001 Kolkata – 700 001 Scrip Code: 542669 Scrip Code: 12141- CSE Dear Sir / Madam, Subject: Strategy P
Slide 2: BMW Industries Ltd. FY24 Strategy Presentation
BMW Industries Ltd. FY24 Strategy Presentation
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation may contain certain “forward-looking statements” within the meaning of applicable securities laws and regulations, which may include those describing the Company’s strategies, strategic direction, objectives, future projects and/or prospects, estimates etc. In
Slide 4: Inside this Presentation
Inside this Presentation ABOUT THE COMPANY 04 – 08 OPERATIONAL HIGHLIGHTS 09 – 10 MANAGEMENT 11 – 12 KEY INVESTMENT HIGHLIGHTS 13 – 20 GROWTH STRATEGIES 21 – 24 FINANCIAL HIGHLIGHTS 25 – 30 SHAREHOLDING ANALYSIS 31 3
Slide 5: About the Company
BMWIL BMW Industries Ltd. @ ~ S Fy oO. E 3 O Y cc =) =) =| ° O <
Slide 6: Company Snapshot
Company Snapshot ABOUT US ▪ BMW Industries Limited (BMWIL), incorporated in 1981, is one of the largest steel processing companies in India ▪ Engaged in the manufacture & processing of HRPO Coils, CR Coils, GP Coils, GC Sheets, MS & GI pipes, TMT rebars, etc. for marquee steel manufacturers ▪ Proces
Slide 7: Key Milestones
Key Milestones 1980-1990 Ventured into Logistics Solutions; Positioned to offer end-to-end Services to customers 2015 2023 1981 BMWIL Incorporated Formation of Steel Service Center Commissioned CRM Complex Facility to manufacture LPG 2013 for TATA Steel in Jamshedpur Commissioned new Cylinders Sheet
Slide 8: Steel Manufacturing Value Chain
Steel Manufacturing Value Chain PRODUCT PORTFOLIO TMT GP COILS HR SLIT COILS HRPO COILS GC SHEETS MS PIPES UPSTREAM PROCESS DOWNSTREAM PROCESS MINING IRON STEEL REFINING MANUFACTURING FINAL PRODUCT DELIVERY PRODUCTION PRODUCTION BMWIL PRESENCE IN STEEL PROCESSING 7
Slide 9: Key Annual Highlights
Key Annual Highlights CAGR 15.6% CAGR 19.2% 15000.0 CAGR 22.0% 68.7% 13000.0 23.6% 26.3% 64.7% 11000.0 60.6% 9000.0 23.1% ₹ LACS ₹ LACS ₹ LACS 7000.0 5000.0 3000.0 44,738 56,234 59,819 28,926 34,070 41,091 1000.0 10,546 12,968 15,706 FY22 FY23 FY24 FY22 FY23 FY24 -1000.0 FY22 FY23 FY24 Operating Inc
Slide 10: Operational Highlights
Operational Highlights #2 BMWIL BMW Industries Ltd.
Slide 11: Operational Update
Operational Update Installed Actual Annualized Particulars Capacity (MT) Production (MT) Utilization CRM Complex 10,14,000 8,24,132 81.3% Rolling Mill (TMT Bars) 3,00,000 1,79,139 59.7% Pipes & Tubes 4,14,000 1,13,849 27.5% Others 4,10,000 2,03,073 49.5% Revenue by Business Verticals Others 8% 13% L
Slide 12: Management
Management & BMWIL BMW Industries Ltd.
Slide 13: Experienced Board & Senior Management Team
Experienced Board & Senior Management Team Ram Gopal Bansal Rampriya Sharan Chairman and Whole Time Director Independent Director ▪ Founder, with 50 + years of experience in the Steel Industry ▪ A retired Senior Income Tax bureaucrat with 40+ ▪ Successfully led the SAIL JV & collaborated with Tata S
Slide 14: Key Investment Highlights
Key Investment Highlights Stable margins despite Established strong relationships volatile steel prices with key customers Efficient service environment Strong Cashflow built to serve its customers Strong Industry growth Proximity to major customers drivers and raw material suppliers 13
Slide 15: Stable Margins despite volatile Steel Prices
Stable Margins despite volatile Steel Prices Operating EBIDTA Margin % 24.00% 23.60% 24.5% 23.06% ▪ BMWIL has strategically positioned itself within the Peer Average steel industry's value chain, aiming to attain stability BMWIL and resilience against industry cycles 10.75% 10.09% 9.93% 9.61% ▪ This
Slide 16: Built an efficient Service Environment
Built an efficient Service Environment LOGISTICS SUPPORT ▪ Over the years invested to develop its own logistics fleet of 100+ trucks/long haul trailers 1 ▪ Invested to build ample storage/warehousing space to support customer demand ▪ This helps to provide the customer end-to-end services PROCESSING
Slide 17: Location Advantage
Location Advantage 5 BMWIL Plants in Jharkhand, 2 in Bokaro Strategically located in a region where raw material is readily available 1 BMWIL Plant & H.O. in West Bengal Proximity to major buyers of finished and converted products helps in delivering goods in cost efficient manner 16
Slide 18: Industry Growth Factors (1/2)
Industry Growth Factors (1/2) ▪ India is the 2nd largest producer of Crude & Finished Steel worldwide. India’s Production and Consumption of Finished Steel (MMT) ▪ India has also been the 2nd largest consumer of Finished Steel as of FY21. 127 127 ▪ India ranks low, in terms of per capita steel consu
Slide 19: Industry Growth Factors (2/2)
Industry Growth Factors (2/2) ROBUST DEMAND Indian Steel Demand by Sector² Construction Sector: Infrastructure:23% ▪ GVA from Construction is expected to grow by ~9% in FY24(E)¹ ▪ Construction GVA grew at 10% in FY23, well above the long-run annualized rate of 5.3% (FY12-FY23)* Capital Goods:10% ▪ A
Slide 20: Strong Cashflow
Strong Cashflow ▪ The company has strong and consistent operating cash flow. NCOA/Operating EBITDA is PAT & Dividend Payout at healthy levels 16.0% ▪ Due to strong Cashflow from Operations, Net Debt/Equity as well as Net 15.2% ₹ LACS 14.0% Debt/Operating EBITDA has been falling. Net Debt/Equity is a
Slide 21: Staying true to our ESG commitments
Staying true to our ESG commitments E S G ▪ Installed Solar ▪ Support for ▪ Consistently Panels across all cancer patients, endeavor to facilities, to especially practice good reduce carbon women Corporate footprint ▪ 1,300+ Governance ▪ Achieved Zero beneficiaries of ▪ Believe that such Liquid Disc
Slide 22: Growth Strategies
Growth Strategies #2 BMWIL BMW Industries Ltd.
Slide 23: Stepping-up the existing capacity
Stepping – up the existing capacity Pipes & Tubes Capacity Expansion Plans Increased Pipes & Tubes Capacity/Production (MT) 10,02,000 ▪ Expansion of Pipes & Tubes Production Capacity at existing plants in Kolkata & Jamshedpur 6,69,500 5,34,000 ▪ Out of the proposed capacity of 5,34,000 MT by the end
Slide 24: Strong Revenue Visibility
Strong Revenue Visibility Agreement for conversion of GP/GC sheets through the CRM Complex has been extended up to Expected Revenue of Rs. 2,000 Cr. over 1 September 2024 and is currently undergoing negotiation for the long-term contract the contracted period of 5 years KEY ENTRY BARRIERS: Capital R
Slide 25: Building our own Brand
Building our own Brand ASSET LIGHT MODEL ▪ Efficiently outsourcing manufacturing facilities FOCUS ON POSITIVE CASHFLOW ▪ Conversion Agreement for own brand in place ESTABLISH BRAND VALUE ▪ Introduction of adjacent product categories DISTRIBUTION IN PLACE & GROWING ▪ Cautious spending on building a r
Slide 26: Financial Highlights
Financial Highlights #2 BMWIL BMW Industries Ltd.
Slide 27: Profit & Loss Summary
Profit & Loss Summary ₹ Lacs Particulars FY21 FY22 FY23 FY24 Revenue from Operation 39,771 44,738 56,234 59,819 Gross Profit 23,763 28,926 34,070 41,091 Gross Profit Margin 59.7% 64.7% 60.6% 68.7% Operating EBITDA 9,547 10,546 12,968 15,706 Operating EBITDA Margin 24.0% 23.6% 23.1% 26.3% Other Incom
Slide 28: Revenue Breakup
Revenue Breakup ₹ Lacs Particulars FY21 FY22 FY23 FY24 CRM Complex 30,111 31,899 38,889 38,911 Rolling Mill (TMT Bars) 3,346 5,750 8,047 9,399 Pipes & Tubes 2,082 2,810 2,950 4,929 Logistics 3,323 3,526 3,921 4,683 Others 909 753 2,426 1,897 Total Revenue 39,771 44,738 56,234 59,819 27
Slide 29: Balance Sheet Summary
Balance Sheet Summary ₹ Lacs Particulars FY21 FY22 FY23 FY24 Net Worth 52,002 55,435 60,373 66,247 Net Debt 27,832 25,553 22,998 9,937 Capital Employed* 81,476 83,601 88,464 80,999 Net Fixed Assets 48,764 46,758 47,677 58,300 Net Current Assets 6,787 12,163 14,371 9,648 Total Assets 90,025 90,684 96
Slide 30: Key Ratios
Key Ratios Particulars FY21 FY22 FY23 FY24 Operational Ratios Current Ratio 1.30 1.59 1.72 2.05 Fixed Asset Turnover Ratio 0.76 0.94 1.19 1.13 Sales/Capital Employed 0.44 0.54 0.65 0.71 Cash Conversion Cycle* 231 162 142 96 Solvency Ratios Net Debt/ Equity 0.54 0.46 0.38 0.15 Net Debt/ Operating EBI
Slide 31: Shareholding Pattern
Shareholding Pattern As on March 2024 0.2% 11.1% Promoter & Promoter Group 14.7% Bodies Corporate Resident Individuals NRIs 74.0% 30
Slide 32: Thank You
Thank You For further details please contact: Chief Financial Officer Investor Relations Advisor Abhishek Agarwal Sanjeev Sancheti Email: abhishekagarwal@bmwil.co.in Email: ir@uirtus.in Phone No.: +91 8420555215 Website: www.uirtus.in 31