Sarthak Metals Ltd · NSE:SMLT
Sarthak Metals — Q2 FY2025 Earnings Presentation
31 slides from Sarthak Metals's earnings presentation, Nov 15, 2024
Slide 1: Exchange filing cover letter
Date: 15/11/2024 To, To, The Manager, Listing Department, Listing & Compliance, National Stock Exchange of India BSE Limited Limited, Phiroze Jeejeebhoy Towers, C-1, G-Block, Bandra-Kurla Dalal Street, Mumbai - 400 001. Complex Bandra (E), Mumbai – 400 051 Ref: Scrip Code - 540393 Ref: Scrip Symbol
Slide 2: Earnings Presentation Q2 FY25
EARNINGS MODERN METALLURGICAL SOLUTIONS FOR FINE TUNING STEEL PRESENTATION Q2 FY25
Slide 3: Topics
Q2 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 11 FINANCIAL TRENDS 24 SUSTAINABILITY INITIATIVES 29
Slide 4: Financial Results Topics
Q2 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 OPERATIONAL HIGHLIGHTS 04 P&L SUMMARY 05 MANAGEMENT COMMENTARY 06 BUSINESS UPDATE 07 COMPANY BACKGROUND 11 FINANCIAL TRENDS 24 SUSTAINABILITY INITIATIVES 29
Slide 5: Core Operational Highlights Q2 FY25
CORE OPERATIONAL 4 HIGHLIGHTS Q2 FY25 EARNINGS PRESENTATION Q2 FY25 VOLUMES & REALIZATIONS OPERATIONAL HIGHLIGHTS CORED WIRES ALUMINIUM FLIPPING COIL 1,400 2.90 1,600 2.35 34 8 2.29 CRORE CRORE 2.30 2.80 1,400 1,200 2.20 REVENUE REVENUE 2.25 1,000 2.77 2.70 1,200 2.20 -4% -76% 2.60 1,000 2.15 DECREA
Slide 6: P&L Summary
Q2 FY25 5 P&L SUMMARY S Q2 FY25 EARNINGS PRESENTATION PARTICULARS ( ₹ I N C R O R E S ) Q2FY25 Q1FY25 Q2FY24 YOY% change QOQ% change Revenue from Operations 45.72 40.61 77.42 -41 13 Total Income 46.47 41.20 77.88 -40 13 Operating Expenses 43.80 39.00 70.22 -38 12 EBITDA (Excluding OI & EI) 1.92 1.61
Slide 7: Management Commentary
“MANAGEMENT 6 COMMENTARY Q2 FY25 EARNINGS PRESENTATION COMMENTING ON THE Q2 FY25 "During the September quarter, global and regional conditions remained challenging for the steel industry. China’s economic PERFORMANCE, SANJAY SHAH, slowdown and an influx of cheap imports strained the local steel mark
Slide 8: Business Update Topics
Q2 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 WELDING 08 BIOTECHNOLOGY 09 COMPANY BACKGROUND 11 FINANCIAL TRENDS 24 SUSTAINABILITY INITIATIVES 29
Slide 9: Welding Business
8 OVERVIEW Flux Core Arc Welding is a type of welding process using INDIAN IMPORTS OF FLUX CORED WIRE consumable electrode that contains flux around it IN MT Q2 FY25 EARNINGS PRESENTATION Flux melts together with the electrode during the welding process and shields the joint Presently, India has lit
Slide 10: Biotechnology
9 WHAT IS Biotechnology is the branch of applied science that uses Q2 FY25 EARNINGS PRESENTATION living organisms and their derivatives to produce products BIOTECHNOLOGY? and processes. These products and processes feature in healthcare, medicine, biofuels, and environmental safety. India’s BioEcono
Slide 11: Biotech Three Pronged Approach
BIOTECH THREE PRONGED 10 Q2 FY25 EARNINGS PRESENTATION FOCUS AREAS & VISION APPROACH 01 WHAT IS AN ENZYME? FOCUS INDUSTRIAL Enzymes are biologically active proteins derived Alternate Energy: Biofuel production like biogas and ethanol ENZYMES from living organisms such as bacteria, fungi and due to i
Slide 12: Company Background Topics
Q2 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 11 DESRAJ BANSAL GROUP 12 CLIENTS 20 SARTHAK METALS SNAPSHOT 13 WAREHOUSING CAPABILITIES 21 MILESTONES 16 LEADERSHIP 22 PRODUCT CATEGORIES 18 BOARD OF DIRECTORS 23 INFRASTRUCTURE 19 FINANCIAL TR
Slide 13: Desraj Bansal Group
₹650+ Cr * Provisional Figure 12 Q2 FY25 EARNINGS PRESENTATION leading business group with interests in the Metals and Energy sector 5 3 state-of-the-art fully-functional Manufacturing facilities in Bhilai, GROUP Chhattisgarh housed under ENTITIES DESRAJ BANSAL GROUP SARTHAK METALS LTD SARTHAK ENERG
Slide 14: Sarthak Metals Snapshot
13 SARTHAK “SARTHAK” IS PART OF THE 650+ Cr DB GROUP Q2 FY25 EARNINGS PRESENTATION 01 METALS INDIA’S LEADING MANUFACTURER & EXPORTER OF CORED WIRES & ALUMINIUM FLIPPING COILS LTD Being an experienced and quality conscious manufacturer, Sarthak is the preferred supplier to some of India’s largest GRO
Slide 15: Sarthak Energy Pvt Ltd
14 Q2 FY25 EARNINGS PRESENTATION 02 SARTHAK ENERGY 2 MW PVT LTD SOLAR POWER PLANT GROUP ENTITIES SOLAR ENERGY DESRAJ BANSAL GROUP
Slide 16: Bansal Brothers
15 BANSAL Q2 FY25 EARNINGS PRESENTATION 03 BROTHERS GROUP ENTITIES FERROALLOYS 6,000 TPA FERROALLOYS CAPACITY DESRAJ BANSAL GROUP
Slide 17: Milestones
16 Q2 FY25 EARNINGS PRESENTATION 1995 INCORPORATED 2008 COMMENCED PRODUCTION with an industrial gases unit producing OF ALUMINIUM industrial oxygen and carbon dioxide FLIPPING COILS 2002 2012 catering to industries units in its vicinity with the first mill built in-house FIRST CORED WIRE MILL STARTE
Slide 18: Milestones
17 Q2 FY25 EARNINGS PRESENTATION 2017 IPO & BSE LISTING 2023 ENTERED FLUX CORED WIRE Raised funds through its initial public BUSINESS WITH HUGE offer and got listed on BSE SME IMPORT SUBSTITUTION OPPORTUNITY 2018 COMMENCED BACKWARD 2024 VENTURED INTO BIOTECH INTEGRATION FOR FLIPPING Starting with al
Slide 19: Product Categories
18 PRODUCT Q2 FY25 EARNINGS PRESENTATION CATEGORIES CORED WIRES ALUMINIUM WIRE FEEDER Cored Wires are a product of wire injection technology of steels. They consist of steel tubes (wires) filled with various alloys that are injected in molten metal for introducing FLIPPING COILS MACHINES different c
Slide 20: Infrastructure
19 Manufacturing Capacity (Double Shift) PRODUCTION TRENDS Q2 FY25 EARNINGS PRESENTATION CORED WIRES ALUMINIUM FLIPPING COILS IN TPA 10,000 TPA 15,000 TPA Expanded 9,925 in FY23 04 Manufacturing 02 Manufacturing 8,569 Lines Lines 7,196 6,381 Built in-house specific to company needs equipped with sop
Slide 21: Clients
20 INDIA Q2 FY25 EARNINGS PRESENTATION CLIENT PROFILE STEEL PLANTS FABRICATION UNITS FOUNDRIES & BEYOND 85% REPEAT BUSINESS MILESTONES SHADED IRON & STEEL CO. LLC 40% TOP 5 CLIENTS SALES CONTRIBUTION 20 10+ YEAR RELATIONSHIPS CLIENTS 05 5+ YEAR RELATIONSHIPS
Slide 22: Warehousing Capabilities
21 Q2 FY25 EARNINGS PRESENTATION CORED 1,500 SQ. MT. 2,000+ TONNES EQUIVALENT TO WIRES MATERIAL STORAGE SPACE 3 MONTHS’ BUFFER SUFFICIENT SPACE TO STOCK FINISHED PRODUCTS AS WELL ALUMINIUM 4,000+ TONNES FLIPPING 2,800 SQ. MT. EQUIVALENT TO MATERIAL STORAGE SPACE COILS 4 MONTHS’ BUFFER MILESTONES Sta
Slide 23: Leadership
LEADERSHIP 22 Q2 FY25 EARNINGS PRESENTATION ANOOP KUMAR BANSAL SANJAY SHAH MAYUR BHATT MANAGING DIRECTOR WHOLE-TIME DIRECTOR WHOLE-TIME DIRECTOR & CEO Mr Bansal has a Bachelors in Commerce degree Mr Shah is a Whole-Time Director and the head of Mr Bhatt is a Whole-Time Director and the Chief from Na
Slide 24: Board of Directors
BOARD OF 23 Q2 FY25 EARNINGS PRESENTATION DIRECTORS MR SUNIL KUMAR AGARWAL MS RAMA KOHLI MR SUNIL DUTT BHATT MR DWADASI VENKATA GIRI CHAIRMAN & NON- NON-EXECUTIVE, NON-EXECUTIVE, NON-EXECUTIVE, EXECUTIVE, NON- INDEPENDENT WOMAN INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR DIRECTOR
Slide 25: Financial Trends Topics
Q2 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 11 FINANCIAL TRENDS 24 5 YEAR FINANCIAL TRENDS 25 SHAREHOLDER VALUE CREATION 26 OPERATIONAL EFFICIENCY METRICS 27 SUSTAINABILITY INITIATIVES 29
Slide 26: 5 Year Financial Trends
5 YEAR 25 FINANCIAL Q2 FY25 EARNINGS PRESENTATION TRENDS REVENUE FROM PROFIT EBITDA & EQUITY & OPERATIONS AFTER TAX EBITDA MARGINS DEBT TO EQUITY (₹ IN CRORES) (₹ IN CRORES) (₹ IN CRORES & IN %) (₹ IN CRORES & TIMES) 50.0 12.0% 140 0.7 10.6% 0.59 45.0 9.1% 120 0.6 0.51 10.0% 40.0 116.09 35.0 7.3% 7.
Slide 27: Shareholder Value Creation
26 ROCE DIVIDEND SHARE PRICE SINCE LISTING* V/S BSE SENSEX SHAREHOLDING IN % PER SHARE PRICE (INDEXED) PERFORMANCE PATTERN 0.19% Q2 FY25 EARNINGS PRESENTATION SHARE FIIs IN ₹ Sarthak Metals Sensex 400 30.76% 300 PUBLIC 177 200 1 11.91% 69.05% 10.00% 14.89% 35.26% 28.35% 100 135 PROMOTERS 0.5 1 2 2 0
Slide 28: Operational Efficiency Metrics
OPERATIONAL 27 EFFICIENCY METRICS Q2 FY25 EARNINGS PRESENTATION OPERATIONAL EFFICIENCY METRICS WORKING CAPITAL INVENTORY DAYS ASSETS TURNOVER RATIO TRADE RECEIVABLES IN DAYS IN DAYS IN TIMES TURNOVER RATIO IN DAYS 3.6 3.2 2.7 4.4 2.7 42 57 48 68 79 32 49 23 13 24 41 47 46 48 48 FY20 FY21 FY22 FY23 F
Slide 29: Sustainability Initiatives Topics
Q2 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 11 FINANCIAL TRENDS 24 SUSTAINABILITY INITIATIVES 29
Slide 30: Sustainability Initiatives
SUSTAINABILITY 29 Q2 FY25 EARNINGS PRESENTATION INITIATIVES GOING GREEN WITH USAGE OF ALUMINIUM SCRAP SOLAR POWER BIOTECHNOLOGY Enzymes offer a sustainable alternative to traditional Production of about 75% of Aluminium Flipping Coil of With 400 KW of renewable energy used, chemical processes due to
Slide 31: Get in Touch
30 Q2 FY25 EARNINGS PRESENTATION GET IN ANIRUDH SINGHAL Sarthak Metals Limited cfo@sarthakmetals.com TOUCH PRATIK JAIN Sarthak Metals Limited cs@sarthakmetals.com MUTHUKUMAR K Wisdom IR muthukumar@wisdomsmith.com +91 9867191576 SAFE HARBOR This document which has been prepared by Sarthak Metals Limi