Sarthak Metals Ltd · NSE:SMLT
Sarthak Metals — Q1 FY2025 Earnings Presentation
33 slides from Sarthak Metals's earnings presentation, Aug 24, 2024
Slide 1: Stock exchange filing cover letter
Date: 24/08/2024 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 Q1 FY25
EARNINGS MODERN METALLURGICAL SOLUTIONS FOR FINE TUNING STEEL PRESENTATION Q1 FY25
Slide 3: Topics
Q1 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 SUSTAINABILITY INITIATIVES 31
Slide 4: Topics: Financial Results
Q1 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 OPERATIONAL HIGHLIGHTS 04 P&L SUMMARY 05 MANAGEMENT COMMENTARY 06 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 SUSTAINABILITY INITIATIVES 31
Slide 5: Operational Highlights Q1 FY25
OPERATIONAL 4 HIGHLIGHTS Q1 FY25 EARNINGS PRESENTATION Q1 FY25 VOLUMES & REALIZATIONS OPERATIONAL HIGHLIGHTS CORED WIRES ALUMINIUM FLIPPING COIL 1,400 2.60 3,000 2.22 2.20 25 CRORE 9 CRORE 2.20 1,200 2.55 2,500 REVENUE 2.56 REVENUE 2.18 1,000 2.16 2.50 2,000 2.13 8% -84% 2.14 INCREASE IN VOLUME DECR
Slide 6: P&L Summary
Q1 FY25 5 P&L SUMMARY S Q1 FY25 EARNINGS PRESENTATION PARTICULARS ( ₹ I N C R O R E S ) Q1FY25 Q4FY24 Q1FY24 YOY% change QOQ% change Revenue from Operations 40.61 70.65 81.80 -50 -43 Total Income 41.20 71.20 82.04 -50 -42 Operating Expenses 39.00 68.01 74.24 -47 -43 EBITDA (Excluding OI & EI) 1.62 2
Slide 7: Management Commentary
“MANAGEMENT 6 COMMENTARY Q1 FY25 EARNINGS PRESENTATION COMMENTING ON THE Q1 FY25 "With the slowdown in major steel-consuming nations like China, steel trade has shifted towards India. Consequently, cheap PERFORMANCE, SANJAY SHAH, steel imports have surged since FY23, transforming India into a net im
Slide 8: Topics: Business Update
Q1 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 FLUX CORED WIRE 08 VENTURING INTO BIOTECHNOLOGY 09 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 SUSTAINABILITY INITIATIVES 31
Slide 9: Flux Cored 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 Q1 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 Q1 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: Focus Areas and Three-Pronged Approach
BIOTECH THREE PRONGED 10 Q1 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: Biotech Opportunities in Industrial Enzymes
BIOTECH $10.2 BN 11 Q1 FY25 EARNINGS PRESENTATION OPPORTUNITIES IN Global Enzymes INDUSTRIAL ENZYMES Market 2023 DIETARY ANIMAL FOOD SUPPLEMENTS BAKERY 1.02 BN 0.3 BN 0.3 BN FOOD & BEVERAGE (F&B) HUMAN NUTRITION BIO CATALYSTS OTHER TECHNICAL ENZYMES 3.57 BN 0.4 BN 0.4 BN 3 BN BUSINESS UPDATE PROFIT
Slide 13: Biotech Opportunities in Industrial Enzymes
BIOTECH 12 SARTHAK METALS Q1 FY25 EARNINGS PRESENTATION OPPORTUNITIES IN INDUSTRIAL ENZYMES GROWING ASIAN CLEAN POPULATION LABEL High demand in F&B, pharma and Rising demand for clean label & detergent industries due to large natural ingredient in convenience & APAC & Indian population processed foo
Slide 14: Topics: Company Background
Q1 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 DESRAJ BANSAL GROUP 14 CLIENTS 22 SARTHAK METALS SNAPSHOT 15 WAREHOUSING CAPABILITIES 23 MILESTONES 18 LEADERSHIP 24 PRODUCT CATEGORIES 20 BOARD OF DIRECTORS 25 INFRASTRUCTURE 21 FINANCIAL TR
Slide 15: Desraj Bansal Group
₹650+ Cr * Provisional Figure 14 Q1 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 16: Sarthak Metals Snapshot
15 SARTHAK “SARTHAK” IS PART OF THE 650+ Cr DB GROUP Q1 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 17: Sarthak Energy Pvt Ltd
16 Q1 FY25 EARNINGS PRESENTATION 02 SARTHAK ENERGY 2 MW PVT LTD SOLAR POWER PLANT GROUP ENTITIES SOLAR ENERGY DESRAJ BANSAL GROUP
Slide 18: Bansal Brothers
17 BANSAL Q1 FY25 EARNINGS PRESENTATION 03 BROTHERS GROUP ENTITIES FERROALLOYS 6,000 TPA FERROALLOYS CAPACITY DESRAJ BANSAL GROUP
Slide 19: Milestones
18 Q1 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 20: Milestones
19 Q1 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 21: Core Product Categories
20 CORE PRODUCT Q1 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 differ
Slide 22: Infrastructure
21 Manufacturing Capacity (Double Shift) PRODUCTION TRENDS Q1 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 23: Clients
22 INDIA Q1 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 24: Warehousing Capabilities
23 Q1 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 25: Leadership
LEADERSHIP 24 Q1 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 26: Board of Directors
BOARD OF 25 Q1 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 27: Topics: Financial Trends
Q1 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 5 YEAR FINANCIAL TRENDS 27 SHAREHOLDER VALUE CREATION 28 OPERATIONAL EFFICIENCY METRICS 29 SUSTAINABILITY INITIATIVES 31
Slide 28: 5 Year Financial Trends
5 YEAR 27 FINANCIAL Q1 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 29: Shareholder Value Creation
28 ROCE DIVIDEND SHARE PRICE SINCE LISTING* V/S BSE SENSEX SHAREHOLDING IN % PER SHARE PRICE (INDEXED) PERFORMANCE PATTERN 0.69% Q1 FY25 EARNINGS PRESENTATION SHARE FIIs IN ₹ Sarthak Metals Sensex 400 30.24% 300 PUBLIC 200 1 11.91% 69.15% 10.00% 14.89% 35.26% 28.35% 100 PROMOTERS 0.5 1 2 2 0 FY20 FY
Slide 30: Operational Efficiency Metrics
OPERATIONAL 29 EFFICIENCY METRICS Q1 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 31: Topics: Sustainability Initiatives
Q1 FY25 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 SUSTAINABILITY INITIATIVES 31
Slide 32: Sustainability Initiatives
SUSTAINABILITY 31 Q1 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 33: Get in Touch
32 Q1 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