Steel Strips Wheels Ltd · NSE:SSWL
Steel Strips Wheels — Investor Presentation (May 2024)
34 slides from Steel Strips Wheels's investor presentation, May 27, 2024
Slide 1: Steel Strips Wheels Limited Investor Presentation
STEEL STRIPS WHEELS LIMITED Delivering Value; Seeking Excellence Investor Presentation May 2024
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Steel Strips Wheels Limited (the “Company”), have bee n prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 3: Company Overview
Cee Strips Wheels Limited Company Overview
Slide 4: Company Overview
Company Overview SSWL is a leader in designing & manufacturing Automotive wheels – both Steel & Alloy Wheels category SSWL aspires to be the Preferred Global Brand of Wheel Solution provider committed to excellence Wheel Plants Strategic Partnerships - 5 Operations Founded Excellence Operational For
Slide 5: Our Journey
Our Journey Commencement of First Steel Wheels Commercial Production at Dappar Plant, Punjab 1991 Start of 2W & Tractor Wheels Production 2002 Start of LCV Wheels Commercial Production 2006 Start of Commercial Production for Exports Market by supplies of PV to PSA 2007 Peugeot Citroen, France & HCV
Slide 6: Milestones Achieved in FY24
Milestones Achieved in FY24 1 2 3 Highest Ever Highest Ever Highest Ever Yearly Net Revenues Yearly EBITDA Net Profit Rs. 4,357 Crores Rs. 481 Crores Rs. 220 Crores 4 5 6 Highest Ever Highest Ever Alloy Wheel Volume Highest Ever Domestic CV Wheel Volume 29.83 Lakhs Total Sales Volume 190.29 Lakhs Tr
Slide 7: Strategic Partnerships
Strategic Partnerships • Tata Steel Limited (through its then wholly -owned subsidiary Company namely Kalimati Investment Company Ltd, which has now merged with Tata Steel Ltd) had TATA Steel Limited, India entered into a Strategic Alliance Agreement in January 2008 with SSWL • Through this relation
Slide 8: Our Products
Our Products I n c l . E xp o r t s Steel Wheels – Rs. 3,131 crores (~72%) (FY24 Revenues) Competitive Pricing Suitability Quick Maintenance Robust Wheel More flexible, absorbs Competitively priced; Requires nothing more Steel Wheels are robust, more shock, thus suitable have higher acceptance in th
Slide 9: Product Capacities & Utilization
Product Capacities & Utilization 90% 73% 77% 72% 78% 65% • STEEL WHEELS Phased addition of 70 lakh steel wheel operational capacity • Resolution plan 270 successfully 179 186 186 205 205 205 implemented in January 2024 by payment of ~Rs 138.15 crores (Rs 5 Cr FY19 FY20 FY21 FY22 FY23 FY24 FY25E Equi
Slide 10: State-of-the-Art Facilities
State-of-the-Art Facilities Wheel Capac ity (Mn) Catering to PV, MUV, Dappar, Punjab 10.8 Tractor & OTR Corporate Office, Chandigarh Dappar, Punjab 6+1.5 Chennai, Tamil Nadu PV & CV 7.5 Bhuj, Gujarat* Jamshedpur, Jharkhand 2.2 HCV / LCV Jamshedpur, Jharkhand Mehsana, Gujarat Saraikela, Jharkhand HCV
Slide 11: Clientele
Clientele 11 T h e B r a n d Na m e s a n d L o g o s m e n t i o n e d a r e t h e p r o p e r t y o f t h e i r r e s p e c t i v e o w n e r s a n d a r e u s e d h e r e f o r i d e n t i f i c a t i o n p u r p o s e s o n l y .
Slide 12: Steel Wheels
Steel Wheels Domestic Market Share Key Customers Key Platforms Share of Business Maruti Suzuki Ciaz, Baleno, Scross, Brezza, Celerio 40% S t e e l W h e e l S a l e s Vo l u m e 42% Hyundai Mahindra Honda MG Motors Venue, Xcent, Grandi10, Verna KUV, TUV, XUV Elevate, Amaze, City Hector 40% 64% 95% 1
Slide 13: Export Profile
Export Profile Exports Revenue (Rs. Crs.) FY23 FY24 +75% +116% Russia UK Germany Poland 129 634 Canada Netherlands Slovakia USA France Romania Japan 74 Austria Hungary 293 Spain S Korea Italy Morocco Q4 12M Egypt U.A.E. Thailand Region Wise Export Revenue Colombia Contribution % Brazil 74% 71% 64% 5
Slide 14: Growth Drivers
Cee Strips Wheels Limited Growth Drivers
Slide 15: Growth Drivers
Growth Drivers Sales Mix Shift Shift of Sales Mix towards High Margin Accretive Segments – Alloy Wheel & Exports Operations Optimization Development of Robotic Automated Operation process for Operating Cost Rationalization Foray into EV Segment Exploring various avenues to foray into EV Segment Indu
Slide 16: Shift of Sales Mix to High Margin Alloy Wheels Segment
Shift of Sales Mix to High Margin Alloy Wheels Segment I n c r e a s e d Vo l u m e s f r o m A l l o y W h e e l S a l e s Leading to Increased Contribution to Sales (in Lakh Units) I n c l . E xp o r t s 30 Volume Contribution to Total Sales Volume 28 Value Contribution to Total Sales Contribution
Slide 17: Shift of Sales Mix to High Margin Exports Segment
Shift of Sales Mix to High Margin Exports Segment I n c r e a s e d Vo l u m e s f r o m E x p o r t s Increased Revenues from Exports (in Lakh Units) (Rs. Crs.) FY24 Alloy Wheel Volume FY24 Alloy Wheel Revenue 2.13 Lakhs unit Rs. 77.8 Crs. 55 829 +116% +147% 634 +51% +61% 37 31 23 294 270 16 15 222
Slide 18: Balance Sheet KPIs
Balance Sheet KPIs Cash Accruals (Rs. in Crs.) Long Term Debt (Rs. in Crs.) RoCE RoE Due to Incremental Capex 310 544 548 22.9% 282 274 487 25.9% 24.0% 17.9% 374 20.3% 17.0% 122 222 10.7% 95 8.7% 7.1% 3.6% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 19: Dividend Payout History
Dividend Payout History Dividend 15 % 15 % 20 % 30 % 30 % 40 % 40 % 0% 20 % 75 % 100 % 100 % Declared % 15.7 15.7 11.7 6.2 6.2 4.7 4.7 Dividend 3.1 3.1 Paid (Rs in Cr) 2.3 2.3 0.0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 ^ FY21 FY22 FY23 FY24 C o n s i ste nt D i v i d e n d p a i d b y t h e C o m p
Slide 20: Q4 & FY24 Financials
Cee Strips Wheels Limited Q4 & FY24 Financials
Slide 21: Financial Performance Snapshot
Financial Performance Snapshot Revenues from EBITDA (Rs. Crs.) PAT (Rs. Crs.) Volumes operations Revenue Mix EBITDA Margins % PAT Margins % (in Lakh units) (Rs. Crs.) 10.8 % 10.4 % 4.7 % 5.6 % Alloy Wheel Steel Wheel +6.3% +2.4% +27.6% +3% 1,069 108 111 60 45 46 Q4 FY24 1,005 47 7 8 29% 29% 38 39 71
Slide 22: Profit & Loss
Profit & Loss Particulars (Rs. in Crs) Q4 FY24 Q4 FY23 Y-o-Y FY24 FY23 Y-o-Y Revenue from Operations 1,068.7 1,004.9 6.3% 4,357.1 4,040.5 7.8% Cost of Materials Consumed 676.3 614.0 2,854.3 2,688.3 Changes in Inventory 21.7 44.7 -18.3 -24.7 Gross Profit 370.7 346.2 7.1% 1,521.0 1,376.9 10.5% Gross P
Slide 23: Balance Sheet
Balance Sheet Assets (Rs. in Crs) FY24 FY23 Equity & Liabilities (Rs. in Crs) FY24 FY23 Non - Current Assets 1,919.4 1,603.1 Total Equity 1,345.7 1,134.7 Share Capital 15.7 15.7 Property Plant & Equipments 1,454.8 1,347.3 Other Equity 1,330.0 1,119.1 CWIP 345.8 163.4 Share application money pending
Slide 24: Cash Flow - Snapshot
Cash Flow - Snapshot Particulars (Rs. in Crs) FY24 FY23 Net Profit Before Tax 288.6 291.2 Adjustments for: Non -Cash Items / Other Investment or Financial Items 183.1 152.1 Operating profit before working capital changes 471.7 443.4 Changes in working capital -344.7* -47.6 Cash generated from Operat
Slide 25: Strengthening Balance Sheet
Strengthening Balance Sheet Cash Conversion Cycle Inventory Debtors Creditors In Days 98 103 56 48 57 167 123 108 106 100 84 89 77 63 62 37 43 33 25 30 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 RoCE* RoE* Cash & Cash Equivalents* 20.3% 17.0% Rs. 30.9 Crs. 25 * As o n 3 1 s t M a r c h 2 0 2 4
Slide 26: Performance Ratios
Performance Ratios Return on Equity (RoE) Return on Capital Employed (RoCE) Fixed Asset Turnover Ratio Increased from 13% in FY19 to 17% Increased from 15% in FY19 to 20% Improved from 1.5 in FY19 to 3.0 in FY24 in FY24 in FY24 23% 26% 3.0 3.0 24% 2.6 18% 17% 20% 13 15 1.5 1.4 11% 1.2 7% 9% 4% FY19
Slide 27: Historical Financials
Cee Strips Wheels Limited Historical Financials
Slide 28: Historical Profit and Loss
Historical Profit and Loss Profit and Loss (Rs in Crs) FY24 FY23 FY22 FY21 FY20 Revenue from Operations 4,357.1 4,040.5 3,560.0 1,749.4 1,563.3 Cost of Materials Consumed 2,854.3 2,688.3 2,221.6 1,082.4 973.3 Changes in Inventory -18.3 -24.7 -34.5 16.7 -7.1 Gross Profit 1,521.0 1,376.9 1,372.8 650.3
Slide 29: Balance Sheet
Balance Sheet Assets (Rs. in Crs) FY24 FY23 FY22 FY21 FY20 Equity & Liabilities (Rs. in Crs) FY24 FY23 FY22 FY21 FY20 Non - Current Assets 1,919.4 1,603.1 1,497.0 1,425.9 1,412.8 Total Equity 1345.7 1,134.7 951.8 749.3 698.0 Share Capital 15.7 15.7 15.6 15.6 15.6 Property Plant & Equipments 1,454.8
Slide 30: Cash Flow - Snapshot
Cash Flow - Snapshot Particulars (Rs. in Crs) FY24 FY23 FY22 FY21 FY20 Net Profit Before Tax 288.6 291.2 300.9 63.9 32.3 Adjustments for: Non -Cash Items / Other Investment or Financial Items 183.1 152.1 150.9 144.5 152.3 Operating profit before working capital changes 471.7 443.4 451.8 208.4 184.7
Slide 31: CSR & Awards
Cee Strips Wheels Limited CSR & Awards
Slide 32: CSR
CSR Promotion of Education by strengthening government schools & helping poor students by providing Financial Assistance & providing access to education to Orphan Children who lost their parents due to Covid -19 Providing help to the Mentally Strengthening Community Health Challenged Children in get
Slide 33: Awards
Gus Strips Wheels Limited
Slide 34: Thank You
Steel Strips Wheels Limited THANK YOU Company: Steel Strips Wheels Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L2710PB1985PLC006159 CIN: U74140MH2010PTC204285 Mr. Naveen Sorot (CFO)/ Mr. Mohan Joshi (ED) Mr. Harsh Shah / Mr. Deven Dhruva info@sswlindia.com harsh.shah@sgapl.net /
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