Crescent Steel & Allied Products Ltd · PSX:CSAP
Crescent Steel & Allied Products — Investor Presentation (2024)
27 slides from Crescent Steel & Allied Products's investor presentation, 2024
Slide 1: Crescent Steel & Allied Products Limited
CRESCENT STEEL & ALLIED PRODUCTS LIMITED 1
Slide 2: Our Profile
Our Profile Incorporated in 1983. Operates businesses in 4 industry segments: engineering, capital markets, textiles and power. Five independent Business Units divisions: Line pipe manufacturing, line pipe coating and fabrication Billet manufacturing Capital markets Spinning Power ge
Slide 3: Our Vision & Mission
Our Vision & Mission VISION To excel across all our operations and deliver sustainable value to all stakeholders. MISSION Grow and enhance company value, and pursue new growth opportunities. Maintain cost and quality leadership in an internationally competitive environment. Promote best use
Slide 4: Our Core Values
Our Core Values Consistently Acting with Leveraging Continuous Social doing the stewardship relationships for improvement responsibility is at right thing out- gives us the performance competitive heart of our advantage business Being ethically To build a Delivering value Fostering Enabling change i
Slide 5: Our Governing Principles
Our Governing Principles Conduct our business in a responsible manner; with honesty, transparency and integrity. “Giving something back” by addressing issues of education, healthcare, public safety, environmental health etc. Compliance with workplace health and safety standards. Provide equa
Slide 6: Our flagship operation: Steel Segment
Our flagship operation: Steel Segment Steel segment is the major driver of operational activity, volumes and performance at Crescent Steel. Specializes in manufacturing large diameter spiral welded pipes and various line pipe coatings. Contributed 3,964 km to Pakistan’s gas transmission networ
Slide 7: Steel Division: Manufacturing Capability
Steel Division: Manufacturing Capability Line pipe Operations Industry leader in Pakistan for large diameter Submerged Arc Welded Helical steel pipe. Authorized to use API monogram of the American Petroleum Institute (API). Manufacturing range of 8”-120” dia in wall thickness from 4 mm – 25 mm
Slide 8: Steel Division: Manufacturing Capability
Steel Division: Manufacturing Capability COATING OPERATIONS • Multi-layered external and internal coating. • Annual capacity of 600,000 m2 based on a notional size of 14” in diameter on single shift working. FABRICATION SERVICES • Capability to fabricate and erect machinery. 8
Slide 9: Investment & Infrastructure Development Division
Investment & Infrastructure Development Division • Manages investment portfolios in securities and investment properties having market values of approx. Rs. 4.71 billion including strategic equity investments of Rs. 3.04 billion on consolidated basis. • In year 2011, Crescent Steel acquired CS Capit
Slide 10: Cotton Division: Manufacturing Capability
Cotton Division: Manufacturing Capability YARN OPERATIONS • One spinning unit with 19,680 spindles. • Daily production capacity of 385 Bags. • Counts ranging from 10s to 31s. • Equipped with European and Japanese machinery located at Jaranwala, Punjab. 10
Slide 11: Billet Division: Manufacturing Capability
Billet Division: Manufacturing Capability BILLET OPERATIONS • State of art melt shop with two induction melting furnaces and a continuous casting machine. • Annual production capacity of 85,000 MT of steel billets. • Located at Bhone, Punjab. • Billets are used by re-rolling mills. 11
Slide 12: Energy Division: Generation Capability
Energy Division: Generation Capability ELECTRICITY OPERATIONS • Provide electricity internally to Billet manufacturing unit and other customers. • Equipped with a 15 MW thermal co-generation power plant and a 16.5 MW condensing and extraction turbines both on bagasse fired combustion process. • Stra
Slide 13: Our Performance
Our Performance 13
Slide 14: Performance Indicators
Performance Indicators 9MFY2024 FY2023 FY 2022 FY2021 Profitability Ratios Return on equity (%)* 19.9 2.9 6.0 5.9 Return on capital employed (RoCE) (%)* 15.7 2.3 4.9 4.3 Return on average assets (%)* 12.9 1.9 4.3 3.8 Liquidity Ratios Current ratio 1.5 : 1 1.3 : 1 1.4 : 1 1.4 : 1 Activity / Turnover
Slide 15: 10 Year Performance – Company Sales, Profit after tax & EPS
10 Year Performance – Company Sales, Profit after tax & EPS 12,000 16.00 10,209 13.44 14.00 10,000 12.97 13.05 12.00 8,000 7,412 7,090 7,043 7,259 10.00 9.68 Rupees in Million 6,000 5,661 8.00 In Rupees 5.16 4,516 4,032 4,066 3,822 4.53 6.00 4,000 4.72 2,101 4.00 2,000 1.85 1.53 967 1,012 144 2.28 1
Slide 16: 10 Year Performance – Group Sales & Profit after tax
10 Year Performance – Group Sales & Profit after tax 14,000 12,286 12,000 11,463 10,000 7,575 7,285 8,000 Rupees in Million 7,259 7,090 5,661 6,000 5,002 3,943 4,030 4,516 3,822 4,000 2,303 1,044 2,000 1,122 1,187 890 553 791 471 200 591 8.34 15.77 8.91 3.22 15.05 15.29 (61) (419) (20) 10.19 7.61 (6
Slide 17: 10-year PBT Division wise
10-year PBT Division wise 2,000 1,500 1,000 RS. IN MILLION 500 0 (500) (1,000) Steel Cotton Energy Hadeed IID 17
Slide 18: Breakup Value & Market Value
Breakup Value & Market Value 250.0 200.0 Rupees per share 150.0 100.0 50.0 - FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MF Y24 Breakup Value Unconsolidated 64.5 65.2 74.8 87.8 86.6 69.5 70.2 76.9 76.9 78.8 90.3 Market Value 43.51 51.97 114.61 238.57 91.17 37.78 45.50 83.90 41.67 21.50 63.98
Slide 19: Gearing & Financial Leverage Ratio
Gearing & Financial Leverage Ratio 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% FY19 FY20 FY21 FY22 FY23 9MFY24 Gearing Ratio 27.0% 35.5% 24.2% 14.8% 24.9% 24.7% Financial Leverage Ratio 37.4% 55.5% 32.0% 17.5% 33.7% 35.9% 19
Slide 20: Steel Segment Performance
Steel Segment Performance 20
Slide 21: 10 Year Performance - Steel Segment Revenue & Profit/(Loss) before tax
10 Year Performance - Steel Segment Revenue & Profit/(Loss) before tax 8,920 9,000 8,000 7,378 7,000 6,136 Rs. In MILLION 6,000 5605 5,000 4,000 3,396 3,000 2,740 2,381 2,000 1,122 1,371 1,392 1,025 1,282 1,291 1,000 609 498 92 307 85 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 -1,000
Slide 22: Investment & Infrastructure Segment Performance
Investment & Infrastructure Segment Performance 22
Slide 23: 10 Year Performance – IID Segment Income & Profit/(Loss) before tax
10 Year Performance – IID Segment Income & Profit/(Loss) before tax 1,000 970 950 900 800 778 800 Rs. In MILLION 700 600 496 500 465 440 393 389 400 363 341 309 316 268 247 300 233 192 203 184 200 153 83 100 43 - FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 Income from investments Profti
Slide 24: Challenges and Future Outlook
Challenges and Future Outlook Geopolitical situation of the region (Palestine – Israel) creating supply chain disruptions. Challenges in opening an LC and may required an upfront cash margin in few imports. Inflation averaging 27% for the 9MFY24. Rising utilities costs, higher financing cost
Slide 25: Challenges and Future Outlook (Cont.)
Challenges and Future Outlook (Cont.) Mixed-dia bare pipe production during the 9MFY24 was 43,220.2 tons (9MFY23: 24,581.4 tons). During 9MFY24 Line-pipe coating was recorded at 362,693 square meters (9MFY23: 166,548 square meters). In Q4FY24, we shall continue manufacturing balance quantities
Slide 26: Questions & Answers
Questions & Answers 26
Slide 27: Thanks
Thanks 27
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