Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q4 FY20 Earnings Presentation
33 slides from Vardhman Special Steels's earnings presentation, Jun 16, 2020
Slide 1: Cover letter to stock exchanges
@ | Vardhman w VARDHMAN SPECIAL STEELS LIMITED Delivering Excellence. Since 1965. CHANDIGARH ROAD LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048, 2222616, 2601040 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:JUN:2020-21 DATED: -Jun-2020 The Deputy General Manager, The National Sto
Slide 2: Result Update Presentation Q4 & FY20
Vardhman Special Steels Limited Result Update Presentation Q4 & FY20
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection wi
Slide 4: Table of Contents
Table of Contents Financial Highlights Company Overview Business Overview Way Ahead 3
Slide 5: Financial Highlights
Financial Highlights
Slide 6: Management's Message
Management’s Message Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said – “During the full year we have registered a revenue of Rs. 846.20 crore with EBITDA and PAT of Rs. 49.12 crore and Rs. 3.34 crore. The full year performance has been impacted by the continued an
Slide 7: Recent Developments
Recent Developments • On 27th August 2019, Company executed following – • Share subscription and investment agreement with Aichi Steel Corporation (ASC), Japan in relation to investment in Company by ASC • Technical assistance agreement with ASC in relation to technology and know-how to be provided
Slide 8: Financial Highlights - Quarterly
Financial Highlights - Quarterly Sales Volumes (tonnes) Revenue from Operations* (Rs. Crore) 36,658 35,715 34,363 33,203 31,616 243.25 240.78 211.82 205.66 187.94 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 EBITDA (Rs. Crore)# PAT (Rs. Crore) 3.57 17.27 16.04 1.81
Slide 9: Financial Highlights – Q4 FY20
Financial Highlights – Q4 FY20 INR Crore Q4 FY20 Q4 FY19 Y-o-Y % Q3 FY20 Revenue From Operations* 205.66 243.25 (15.45%) 187.94 • Q4 FY20 volumes stood at 35,715 tons YoY increase of Other Income 1.46 0.55 1.91 3.93% Total Income 207.12 243.79 (15.04%) 189.85 Cost of Materials Consumed 109.33 210.61
Slide 10: Financial Highlights – FY20
Financial Highlights – FY20 INR Crore FY20 FY19 Y-o-Y % • FY20 volumes stood at 1,37,192 tons YoY decline of Revenue From Operations 846.20 1,120.76 (24.50%) 15.14% mainly on account of Other Income 9.40 1.87 significant continued slowdown and lower demand Total Income 855.60 1,122.63 (23.79%) from
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights INR Crore As on 31st Mar’20 As on 31st Mar’19 INR Crore As on 31st Mar’20 As on 31st Mar’19 Equity* 413.63 361.99 Non-Current Assets 409.37 343.52 Equity Share Capital 40.39 35.76 Property Plant & Equipment 308.31 279.54 Other Equity 373.24 326.23 Capital work in progress 12
Slide 12: Company Overview
Company Overview
Slide 13: About Us
About Us Amongst India’s Leading Steel Bar Producers for Automotive Applications ▪ Incorporated in May 2010 ▪ Headquartered in Ludhiana, Punjab State-of- art manufacturing ▪ Caters to sectors such as Engineering, facilities Automotive, Tractor, Bearing and Allied ▪ Cutting-edge manufacturing Industr
Slide 14: Journey So Far
Journey So Far What We were… ▪ Feb. 2018 – QIP of Rs 50 Cr. ▪ June 2018 – CRISIL upgraded credit rating ▪ 1973 – Started as Oswal ▪ 2012 - Listed on BSE & ▪ August 2018 – Change in Statutory Steels - 50,000 TPA NSE Auditors to M/s B. S. R. & Co. LLP capacity of special & alloy ▪ 2013 – Installed ful
Slide 15: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Independent Director Vice Chairman & MD ▪ B. Tech from BHU/IIT, Varanasi and MBA (IIM, ▪ B. Tech (Electrical) - IIT, New Delhi, MBA (Gold Ahmedabad) medallist) - IIM, Ahmedabad and Owner/President ▪ Rich exper
Slide 16: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... Mr. B.K. Choudhary Mr. Rakesh Jain Non-Executive Director Independent Director ▪ Degree in B.Sc., M.Com & MBA ▪ Ph.d in Polymers from the University of Akron ▪ Rich experience of more than 44 years in Steel ▪ Worked in the Advanced Technology Group at G
Slide 17: Business Overview
Business Overview
Slide 18: Wide Range of Rolled & Bright Bars Products
Wide Range of Rolled & Bright Bars Products Hot Rolled Bars Bright Bars ▪ Diameter Size : Increased from 25-70 ▪ Size : 14.66 to 78 mm (Peeled), 18 to MM in 2012 to 16-120 MM 55.25 mm (Drawn) 17
Slide 19: Diverse applications of our products
Diverse applications of our products Axle Gears Transmission Gear Stabilizer Bar Drive-Shaft Knuckle Spindle Tie-Rod Piston Bearings Connecting Rod Companion-flange Camshaft Axle Shaft Center Velocity Joint Piston-Pin Crankshaft Steering-Yoke Differential Gears Steering Shaft 18
Slide 20: State-of-art Manufacturing facilities
State-of-art Manufacturing facilities Steel Melting Shop Rolling Mill Bright Bars ▪ Annual Capacity : 2,00,000 TPA ▪ Annual Capacity : 2,00,000 TPA ▪ Annual Capacity : 36,000 TPA ▪ 30 MT Ultra High Power (UHP) Eccentric ▪ Rolling Mill installed in 2013-14 ▪ Bar Peeling & Centreless Grinding Bottom T
Slide 21: Process Flow
ACONMTNENTTO QUALITY Process Flow O) VARDHMAN SPECIAL STEELS LTD. eo Ww ‘Sponge, ORI, PIG IRON, Shredded Scrap } oe all Exports Domestic Shipment ) rr” Final Inspection and Dispatch Bright Bar Shop 30 TON ELECTRIC ARC FURNACE Spherodize Annealing = Vaccum Degassing Unit —_Laddle Refining Unit Contin
Slide 22: In-House Steel Melting Shop
In-House Steel Melting Shop Electric Arc Furnace Two Ladle Refining Furnace Continuous Casting Machine Vacuum Degassing 21
Slide 23: Rolling Mill & Bright Bars
Rolling Mill & Bright Bars Rolling Mill Bright Bar Shop Reheating Furnace Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop 22
Slide 24: Automatic Line of Bar Inspection - NDT Line
Automatic Line of Bar Inspection - NDT Line MFLT Acceptance Criteria: Chamfering 0.2x10mm Bar ends free from Straightening Burr Straightness : 2mm / meter UST Acceptance Criteria: SDH - Shot Blasting 0.8x10mm, FBH - 0.8 & 1.2mm 23
Slide 25: Best in class R&D Facility
Best in class R&D Facility ▪ Spectrometer : ARL 4460:1454 for Chemical Analysis. Can check 32 different elements ▪ CS - 230 : Analyzer for Carbon & Sulfur content in steel ▪ LECO gas analyzer – TC 600 H2, N2, O2 Analyzer ▪ Mobile Spectro and XRF for Mix up Testing of Bars ▪ Mechanical and Metallurgi
Slide 26: Strategically located Warehousing Facilities
Strategically located Warehousing Facilities Bilaspur ▪ One Owned Warehouse ▪ Bilaspur Haryana Rudrapur ▪ Five Leased Warehouses in India Aurangabad ▪ Bangalore ▪ Chennai Pune ▪ Rudrapur Bangalore ▪ Pune Chennai ▪ Aurangabad 25
Slide 27: Key Strengths
Key Strengths State of Art Manufacturing Facilities and advanced R&D Capabilities ▪ Well equipped with latest upgraded Technology Machines 01 Diversified Product offerings ▪ Manufactures diverse range of products with wide applications across sectors ▪ Further expanding product offerings to increase
Slide 28: 200+ Reputed & Long term customers
200+ Reputed & Long term customers.... Cars Two Wheelers HCL/LCVs Auto Components Tractors Off Highway Vehicles 27
Slide 29: Across Globe with Customer Base
... Across Globe with Customer Base Russia Germany Italy Japan Turkey Vietnam Taiwan Thailand FY20 Export contributes 3% 28
Slide 30: Way Ahead
Way Ahead
Slide 31: Investing in Our Real Assets
Investing in Our Real Assets Centre for Creative Leadership ‘Manav Vikas Kendra’ ‘EKLAVYA - B.Sc. to B. Tech.’ ▪ CCL - US based Organisation – ▪ Training programs – ▪ New Initiative undertaken offers leadership programs functional, attitudinal, skill ▪ Formalized training programs across 160 countri
Slide 32: Way Ahead
Way Ahead Capacity Expansion & Utilization ▪ Increase melting capacity to 2,40,000 TPA and Rolling Capacity to 2,20,000 TPA by FY22 ▪ Target of achieving full capacity utilization, quality improvement, cost reduction & product mix enrichment in consultation with Aichi Steel Corporation Joint Venture
Slide 33: Thank You
Thank You 534392 VSSL VSSL IN VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt. Ltd. Mr. Sanjeev Singla Mr. Amit Sharma sanjeevsingla@vardhman.com amit@bridge-ir.com www.vardhmansteel.com Mr. Smit S
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