Gravita India Limited · NSE:GRAVITA
Gravita India — Q4 FY23 Earnings Presentation
31 slides from Gravita India's earnings presentation, May 1, 2023
Slide 1: Regulation 30 intimation cover letter
GRAVITA INDIA LTD. Corp. Office :Gravita Tower, A-27 B, Shanti Path, Tilak Nagar, JAIPUR-302004, Rajasthan (INDIA) Phone : +91-141-2623266, 2622697 FAX : +91-141-2621491 Web : www.gravitaindia.com CIN:- L29308RJ1992PLC006870 01st May, 2023 GIL/2023-24/015 To, To The Listing Department The BSE Ltd. T
Slide 2: Investor Presentation May 2023
INVESTOR PRESENTATION May 2023 Towards Clean, Green & Sustainable Future
Slide 3: Gravita, started in 1992 by first generation entrepreneur Rajat Agrawal
GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2
Slide 4: Amazing Journey
We are on an AMAZING JOURNEY 2022 Added Rubber 2021 New recycling facility at Recycling Mundra port 2019 Started Aluminium & Plastic recycling in Africa 2016 Added Aluminium Recycling 2015 Diversified in 2013 Plastic recycling Value added products in Jaipur 2010 Listed on 2007 1st recycling NSE & BS
Slide 5: Business Verticals
Business VERTICALS Lead Recycling 1 2 Aluminium Recycling 3 Plastic Recycling 4 Rubber Recycling 5 Turnkey Solutions Phagi Plant’s Full Ariel View 4
Slide 6: Financial Highlights
FINANCIAL Highlights 22 % 9-10% A Revenue CAGR - 5 Yrs Consistent EBITDA margins External credit rating from ICRA 35 % Locking the margins 12 Years PAT CAGR - 5 Yrs Back-to-back hedging mechanism in place History of sustainable dividend payouts 40% 40 Cr + Reduction in Debt PAT (Cr) and PAT Margin (
Slide 7: Quarterly Highlights - Q4 FY23
QUARTERLY HIGHLIGHTS - Q4 FY23 REVENUE (Cr) Rising Higher - VISION 2027 789 749 11%+ 12%+ 17%+ 54%+ 666 Volume Revenue EBITDA PAT Q4FY22 Q3FY23 Q4FY23 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 100.00EBITDA* (Cr) 85.32 11.39% 12.00% 80.0010.95%72.99 70.91 11.00% 45% 38% 60.00 10.00% Revenue from Value added products R
Slide 8: Project Updates
Project Updates • Gravita signed MOU to establish Battery Recycling Plant through JV Oman • Capacity of 6,000 MTPA in Phase 1 • Gravita’s first recycling facility in Middle East • Started Aluminium Recycling Senegal • Capacity of 4,000 MTPA • Capex – Rs.3.5 Cr. from internal accruals • Started Alumi
Slide 9: Vision 2027
VISION 2027 New recycling verticals 25%+ Rubber, Lithium, ROCE Steel & Paper 25% + 50%+ Revenue CAGR Value added products 35% + 25%+ Profitability Growth Non-Lead business ● ● ● Our Priorities Shareholder value Return accretive Judicious use of creation growth capital 8
Slide 10: Capacity Expansion & Capex over the Years
Capacity Expansion & CAPEX over the Years Capacity (MT) CAPEX (Rs Cr.) 4,34,319 159 3,95,319 148 3,24,319 110 110 105 100 2,33,919 2,04,919 73 45 FY22 FY23 FY24E FY25E FY26E FY22 FY23 FY24E FY25E FY26E Lead Aluminium Plastic Rubber Total Existing Verticals New Verticals 4,25,000 MTPA Capacity planne
Slide 11: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED Target ROCE 25% + 29% 29% Consolidated Drivers of ROCE ● Improving industry 18% dynamics 16% ● Resultant reduction in 12% working capital ● Improving demand- supply ● Value added products FY19 FY20 FY21 FY22 FY23 *on Average Capital Employed ● 3 Years ● 25% + ● 8+ Capital
Slide 12: Reducing Net Working Capital Cycle
Reducing NET WORKING CAPITAL CYCLE • More domestic scrap & Lower imports reduces transit inventory • Retail scrap collection through OEM’s - Zero working capital 83 Days* 65 Days 95 Days March’26 March’22 March’23 15 14 11 34 27 24 46 41 30 Receivables Receivables Receivables Paid Plant Inventory *
Slide 13: Leveraging existing Gravita's Strengths
Leveraging existing GRAVITA’S STRENGTHS Our Entry into new verticals is based on proven, existing Gravita’s Strengths. Deep Routed Diversified procurement Customer network network Operation Excellence 12
Slide 14: Industry Specific Entry Barrier
Import License OEM in India Approvals Multinational Specialist Procurement Knowledge Network Time & Cost Capability to of Entry Industry Specific Develop Customized Products ENTRY BARRIER 13
Slide 15: Global & Pan India Operations
GLOBAL & PAN INDIA Operations ● Global spread helps reduce logistics costs and procure material cheaper. ● Start small > grow volumes > establish new plants close to procurement sources. ● Increased flexibility in recycling closest to raw material access and consuming markets. Head Quarters India (J
Slide 16: Deep Routed Procurement Network
Deep Routed PROCUREMENT NETWORK 27 1500+ 2,05,000 MT+ Own yards Touch points Scrap collection Europe Touch Points- 15+ Scrap collection(MT) - 5,500+ Americas Touch Points- 75+ Scrap collection (MT) -19,000+ Africa Asia Own Yards - 26 Own Yards - 1 Touch Points- 450+ Touch Points- 1000+ Scrap collect
Slide 17: Diversified Customer Network - Global
Diversified CUSTOMER NETWORK - GLOBAL 38 + 375 + 1,55,000 MT + Countries Customers Recycled products delivered Europe Countries - 10 Customers -18 Delivered- 17,500 MT+ Americas Countries - 9 Customers -27 Middle East Delivered- 6,000 MT + Countries - 5 Customers -26 Asia Delivered- 24,000 MT+ Count
Slide 18: Diversified Customer Network - India
Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : ● 230+ domestic customers in 22 states in India ● 90+ overseas customers in 36 countries. 17
Slide 19: Operational Excellence
OPERATIONAL EXCELLENCE 4 11 1500+ Recycling Recycling Touch Points Verticals Plants Globally 43% 2.51Lac+ 67% 30% Customized & MT Production Capacity Overseas Value added Capacity* Utilzation Capacity* products 2.05 Lac+ ILA 60000 MT+ MT Scrap India’s only Healthy Collection Accredited Orderbook Pla
Slide 20: Our Partners
OUR PARTNERS (Strong Partnering Capability) 19
Slide 21: Turnkey Solutions for Recycling
TURNKEY SOLUTIONS for Recycling ● In house Recycling Technology ● Technical Consultancy & Services for Recycling & Smelting ● PLC based Control & Monitor System for advanced set-ups ● Annual Maintenance Contracts ● Executed more than 50 turnkey projects globally including Qatar, UAE, Saudi Arabia, P
Slide 22: Robust Management
ROBUST MANAGEMENT Rajat Agrawal Yogesh Malhotra Vijay Pareek Naveen Sharma Rajeev Surana Sunil Kansal Managing Director Whole Time Director & CEO Executive Director Executive Director Executive Director Chief Financial Officer 27 Yrs + 625 + 175+ Avg Management Experience in diversified Employees Pr
Slide 23: Customized and Value Added Products
CUSTOMIZED AND VALUE ADDED PRODUCTS Our Capability to produce customized and value added products for diversified customer segments gives us better contributions and larger pie of Customized Lead Alloys Lead Sheets Lead Bricks customer's product mix. Value Added Products % in revenue 55% 50% 50% 44%
Slide 24: Risk Mitigation by Back to Back Hedging Mechanism
Risk Mitigation by BACK TO BACK HEDGING mechanism Back-to-Back Hedging Core Inventory +Back-to-Back Hedging • To mitigate the risk of commodity prices fluctuation from June. 2016 $ 2379 $ 2283 $ 2105 • Metal equivalent of the scrap bought, is sold on the same $ 1867 day $ 2122 10.21% $1947 9.70% • P
Slide 25: Improving Market Dynamics in Recycling - Paradigm Shift
Improving MARKET DYNAMICS IN RECYCLING - Paradigm Shift Vehicle BWMR EPR Scrappage GST Policy PARADIGM SHIFT More Shift from Tie-ups Reduced Better Improved availability informal to with working capacity logistics of domestic formal OEM's capital cycle utilizations scrap 24
Slide 26: Shift from Informal to Formal
Shift from INFORMAL TO FORMAL With redefining of Battery Waste Management Rules (BWMR) , Extended producers responsibility (EPR) and stricter implementation of GST, the scrap availability for formal recycling sector has increased and is further expected to grow. Informal Lead recycling trend in Indi
Slide 27: More Availability of Domestic Scrap
More availability of DOMESTIC SCRAP Battery Scrap collected within India ● With shift of scrap from Informal to formal for processing (MT) through a authorized recycler. 13,146 ● Contracts with battery manufacturers ● PAN India collection of scrap from corporates ● Contracts with various chains of w
Slide 28: Environment, Social & Corporate Governance: Capturing Value from Waste
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Focused on Capturing Value from Waste Through Modern Recycling and Recovery Recycling Waste: • Uses scrap of lead, aluminum ,plastic and rubber in manufacturing of finished goods and has a process in place to collect the scrap and recycle the same 4 Recycli
Slide 29: Environment, Social & Corporate Governance: Contributions to Society
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Involved in Making Holistic & Meaningful Contributions to Society 4 • Engagement Platforms of Customers & Partners: Customers: Regular business meetings, Round of ESOPs Customer satisfaction survey 2% • Product/Service Safety and Quality: Identify areas for
Slide 30: Environment, Social & Corporate Governance: Ethical Standards
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Fosters a Culture of High Ethical Standards, Accountability and Transparency • Business Ethics: Always worked towards building trust with shareholders, employees, 50% customers, suppliers and other stakeholders based on the principles of good corporate Inde
Slide 31: Thank You
Thank You SAVE THE PLANET Company Contact: Investor Relations Contact: Mr. Nitin Gupta (Company Secretary) Sana Kapoor Sheetal Khanduja Gravita India Limited Go India Advisors Go India Advisors companysecretary@gravitaindia.com sana@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com M:+91 98870 82051 M