Maithan Alloys Ltd. · NSE:MAITHANALL
Maithan Alloys — Investor Presentation (September 2019)
27 slides from Maithan Alloys's investor presentation, September 2019
Slide 1: Investor Presentation
Investor Presentation September 2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Maithan Alloys Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 3: Mission, Vision & Values
Mission, Vision & Values Vision Mission To be India’s premiere Alloy Company by: To be India’s premiere Alloy Company that is built on • Promising excellent shareholder value: Guarantee a high ROC coupled with lower-than- the solid foundation of shareholder trust, customer market debt ratios commitm
Slide 4: Values
Values Commitment: is passion for us. We are extremely committed to serving our shareholders and customers to the best of our abilities. Our promise to our stakeholders is a hard-ironed commitment and we aim to exhibit this value in everything that we do. Loyalty: is the very fabric that runs beneat
Slide 5: Key Differentiators
Key Differentiators Optimising Facilities Diversified Efficiency Strong Credibility Expansion Plans for Maximising Customer Base Returns • Lowest in the Cost Curve • Strong credibility in the market • Sources raw materials when it • International clients across 35 • Inorganic Growth Opportunities •
Slide 6: The Leadership Team
The Leadership Team Mr. Subodh Agarwalla Mr. S. C. Agarwalla Mr. Sudhanshu Agarwalla (Whole Time Director and CEO) (Chairman and Managing Director) (President and CFO) ) Ferro Alloys industry • 30 years of rich experience in ) • A M.B.A. from XLRI Jamshedpur • A B.Tech from IIT BHU and M.B.A. from I
Slide 7: Experienced Board
Experienced Board Mr. Nand Kishore Agarwal Mr. Ashok Bhandari Mr. Vikash Kumar Jewrajka (Independent Director) (Independent Director) (Independent Director) Experienced in the field of Accounts, Finance and negotiation with banks, Experienced in the field of Monolithic Finance and Tax Laws governmen
Slide 8: Financials
Financials
Slide 9: Manufacturing vs Trading Revenues
Manufacturing - vs- Trading Revenues Manufacturing Revenue 465 476 492 429 423 422 422 443 398 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Trading Revenue 84 55 57 47 42 29 34 31 16 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Rs. Crs Financials
Slide 10: Maintaining Sustainable Margins
Maintaining Sustainable Margins Revenues EBITDA % 22.2% 22.5% Demand of our product continues to be robust 21.4% 19.1% 20.5% 19.0% 18.6% 19.2% 17.5% 1,988 18.3% 16.4% 1,879 12.4% Long-term sustainable 15.4% Manufacturing EBIT margin range 1,342 9.8% 14%-16% 1,151 9.0% 9.0% FY16 FY17^ FY18 FY19 Perfo
Slide 11: Doing Profitable Business is the key…
Doing Profitable Business is the key… Debt & Current Invts. Operating RoCE (%) 664 FINANCIAL FLEXIBILITY Higher Return Ratio is because of prudent capital allocation and superlative operating efficiency • Announced Greenfield project in West Bengal • Working on other expansion plans 22.6% 48.2% 65.4
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q1 FY20* FY19* FY18* FY17* FY16 Revenue (Net of Excise Duty/ GST) 486 1,988 1,879 1,342 1,151 Raw Material 285 1,126 970 628 597 Employee Expenses 11 44 45 33 23 Power 94 373 367 280 315 Other Expenses 28 122 121 130 89 Operating EBITDA 68
Slide 13: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. Crs.) Q1 FY20* FY19* FY18* FY17* FY16 Revenue (Net of Excise Duty/ GST) 486 1,988 1,879 1,342 1,151 Raw Material 285 1,126 970 628 597 Employee Expenses 10 44 45 33 23 Power 94 373 367 280 315 Other Expenses 28 122 121 124 89 Operating EBITDA 68 32
Slide 14: Consolidated Balance Sheet as on 31st March 2019
Consolidated Balance Sheet as on 31st March 2019 (As per IND AS) Particulars (Rs. Crs.) Mar-19 Mar-18 Particulars (Rs. Crs.) Mar-19 Mar-18 Equity 1,113 868 Non-Current Assets 278 280 Equity share capital 29 29 Property, plant and equipment 229 238 Other Equity 1,083 838 Intangible Assets 0 0 Non Con
Slide 15: Performance Snapshot
Performance Snapshot Operating Income (Rs. Crs.) EBITDA (Rs. Crs.) EBIT (Rs. Crs.) 988 1,026 201 208 201 962 188 903 793 169 166 161 159 156 148 604 547 549 64 63 50 52 52 38 H1FY16 H2FY16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19 H2FY19 H1FY16 H2FY16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19 H2FY19 H1FY16 H2FY16
Slide 16: Maintaining the Maithan Edge
Maintaining the Maithan Edge
Slide 17: The Maithan Edge
The Maithan Edge Largest 20 Years Rich Manufacturer Experience Stake Holder Return’s ▪ ROCE Increased by + 4,000 bps ▪ ROE Increased by + 1,800 bps . India’s largest Revenue Two decades of Manganese Alloy Increased by +19% CAGR experience and Producer and continuous growth Exporter EBIDTA Increased
Slide 18: Product Offerings
Product Offerings Ferro alloys enhance steel strength, durability, anti-corrosion and anti-stain properties and acts as de-oxidant for Steel Manufacturing Ferro Manganese Ferro Silicon Silicon Manganese • An alloy of iron and • An alloy of iron and silicon • An alloy of silicon and manganese • Silic
Slide 19: Capacity addition to support Growth
Capacity addition to support Growth Capacity Built-up Production Visakhapatnam 226 225 137 213 206 36 +15.0% Byrnihat, Meghalaya 158 149 141 36 Kalyaneshwari 82 89 24 16 76 66 70 25 42 2006 2007 2009 2012 2013 Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 In MVA Increase in
Slide 20: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities Installed Capacity of 137.25 MVA 72.0 48.75 MVA MVA 16.5 MVA Visakhapatnam Kalyaneshwari Byrnihat (SEZ) • Smelters: • Smelters: • 2 x 5.0 MVA • 4 x MVA 18.0 MVA • 1 x 6.5 MVA • Products: Ferro Manganese/ • 1 x 8.25 MVA • Smelters: Silicon Manganese • 2 x 12.
Slide 21: Self Sustaining Business Model
Self Sustaining Business Model We have an ability to Input of sized and graded Raw Material generate a Larger Throughput Feed in day bins through conveyors from our manufacturing facilities Automated Batch preparation and Charge into Furnace Reaction in furnace and discharge of Silico Manganese Slag
Slide 22: Strong Client Relationships
Strong Client Relationships 75% Repeat Clients “We are pleased to have formed a partnership with Shift of focus from ‘Stable’ Maithan Alloys and we truly appreciate their Europe to ‘Growing’ Asia commitment to quality and customer service. They helping in better realizations have put forth all effor
Slide 23: Asian Economies to drive the Global Steel Demand
Asian Economies to drive the Global Steel Demand Global Steel Demand 2018 : 1,548.5 Mn T EU 13% NAFTA CIS 9% 3% It caters 70% of Global Steel demand Avg. rate of growth is Asia, Oceania expected to be & Middle in the range East ~1%-~2% 70% AFRICA Central & 3% South America 3% Asia Ex-China Growth is
Slide 24: Advantage India
Advantage India Favourable Demand –Supply Dynamics in Indian Steel Industry 100 % FDI allowed in the mining 2017 Budget outlay of ~ Rs. 4 tn ‘Housing For All’ to drive housing sector & exploration of metal & non in infrastructure to drive demand thereby benefitting steel metal ores under the Automat
Slide 25: Support from Government of India
Support from Government of India Alloy Producers to benefit from NSP 2017 Capacity (Mn MT) Production (Mn MT) Per Capita Consumption (kg) CAGR +6% CAGR +7% CAGR +7% 300 255 158 122 92 61 2015-16 2030-31 2015-16 2030-31 2015-16 2030-31 National Steel Policy (NSP) 2017 Highlights Reduce dependence on
Slide 26: Advantage Maithan
Advantage Maithan World Crude Steel Demand (Mn MT) India Crude Steel Demand (Mn MT) 2,000 110 +3% 100 90 +7% 1,500 80 70 60 1,000 50 40 500 30 20 10 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Better Product Mix Strong C
Slide 27: For further information, please contact
For further information, please contact: Company Investor Relations Advisors: Maithan Alloys Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L27101WB1985PLC039503 CIN: U74140MH2010PTC204285 Ms. Neha Shroff/ Mr. Deven Dhruva Mr. Rajesh K. Shah neha.shroff@sgapl.net / deven.dhruva@sgapl.net rajesh@maith
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