Maithan Alloys Ltd. · NSE:MAITHANALL
Maithan Alloys — Q1 FY18 Earnings Presentation
31 slides from Maithan Alloys's earnings presentation, August 2017
Slide 1: Cover letter to stock exchanges
ISO 9001 : 2008COMPANY Registered pffice : ldeal Centre,4th Floor 9,A.J.C. Bose Road, Kotkata -lOOOll T (033) 6450 2228 F (033) 22sO 0383 E ofFice@maithanalloys. com W www. maithanalloys.com c I N - L27 101W81 985P1C039503 12th August,2017 1l 2l The Secretary Listing Department The Calcutta Stock Ex
Slide 2: Maithan Alloys Limited Investor Presentation – August 2017
MAITHAN ALLOYS LIMITED Investor Presentation – August 2017
Slide 3: Safe Harbour
Safe Harbour 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 secur
Slide 4: Strong Performance Continues…
Strong Performance Continues… ₹ Crs +64% +152% 445 79 271 31 Q1FY17 Q1FY18 Q1FY17 Q1FY18 +212% 59 EBITDA Margins PAT Margins 17.7% 13.3% 11.5% 19 7.0% Q1FY17 Q1FY18 Q1FY17 Q1FY18 3
Slide 5: Strong Performance Continues…
Strong Performance Continues… ₹ Crs 1,363 276 198 445 79 59 FY17* Q1FY18 FY17* Q1FY18 FY17* Q1FY18 ➢ Q1FY18 Revenue, EBITDA and PAT has already achieved ~30% of FY17 Revenue, EBITDA and PAT ➢ Better price realizations due to rebounding of the metal industry and controlled cost measures contributed t
Slide 6: Standalone Profit & Loss
Standalone Profit & Loss* Particulars (₹ Crs) Q1 FY18 Q1 FY17 YoY Revenue 445 271 64% Raw Material 224 120 Excise Duty 14 16 Power 92 72 Employee Expenses 10 6 Other Expenses 26 26 EBITDA 79 31 152% EBITDA Margin 17.7% 11.5% Other Income 2 2 Depreciation 4 7 EBIT 77 27 185% EBIT Margin 17.3% 10.0% F
Slide 7: The Maithan Edge
The Maithan Edge Largest Rich Niche Robust Manufacturer Experience Products Balance Sheet India’s largest Two decades of Basket of the most Net Cash Manganese experience and Techno-Commercial Credit Rating: Alloy Producer continuous growth Products CARE A+ and Exporter CARE A1+ 6
Slide 8: 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 - An alloy of iron and manganese • Used in steel products wherein silicon content needs to be controlled at low levels • Used in
Slide 9: Capacity addition to support Growth
Capacity addition to support Growth Capacity Built-up Visakhapatnam MVA 137 Meghalaya also has Captive Power 36 Generation unit Byrnihat, Meghalaya Kalyaneshwari 36 Fine-tuned furnace operations, 17 lowered costs, reached optimum capacity utilisation, gained market share and became one of the 24 ind
Slide 10: State-of-Art Manufacturing Facilities
State-of-Art Manufacturing Facilities Installed Capacity of 137.25 MVA Smelters: Smelters: Smelters: • 2 x 5.0 MVA • 2 x 8.25 MVA • 4 x MVA 18.0 MVA • 1 x 6.5 MVA • 1 x 8.25 MVA • 2 x 12.0 MVA Products: Ferro Products: Ferro Silicon Products: Ferro Manganese/ Silicon Manganese/ Silicon Manganese Man
Slide 11: Manufacturing Excellence
Manufacturing Excellence Input of sized and graded Raw We have an ability to generate a Material Larger Throughput from our manufacturing facilities Feed in day bins through conveyors Batch preparation and Charge into Furnace Ferro Manganese Slag Reaction in furnace and Discharge of Slag discharge o
Slide 12: Strong Client Relationships
Strong Client Relationships Shift of focus from ‘Stable’ Europe to ‘Growing’ Asia helping in better realizations ~100% of Domestic clients are associated with the Company for over 7 years Long term relationships with clients offers Competitive Advantage Low Concentration Risk in export markets with
Slide 13: 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 • A B. Tech from IIT Varanasi and M.B.A from IIM • Over 35 years of rich experience in Ferro Alloys • A M.B.A from XLRI Jamshedpur. Bangal
Slide 14: Experienced Board
Experienced Board Mr. Nand Kishore Agarwal Mr. Biswajit Choudhuri Independent Director Independent Director Experienced in the field of Accounts, Finance and Tax Laws Experienced in the field of Engineering, Banking, Finance and Management Mr. Vikash Kumar Jewrajka Mr. Ashok Bhandari Independent Dir
Slide 15: Vision, Mission and Values
Vision, Mission and Values Vision To be India’s premiere Alloy Company that is built on the solid foundation of shareholder trust, customer commitment, employee satisfaction and sustainable communities. Consistently delivering on our promises backed by meticulous hard work is our motto for ensuring
Slide 16: Values
Values Commitment is a passion for us. We are extremely committed to serving our shareholders and customers to Loyalty is the very fabric the best of our abilities. Our promise that runs beneath our to our stakeholders is a hard-ironed organization. We strive to We not only believe but commitment an
Slide 17: Outperformance in 2017…
Outperformance in 2017…* Growing Revenue (₹ Crs) Rising Production Volume (‘000 MT) 1,342 206 213 1,107 1,151 158 FY15 FY16 FY17 FY15 FY16 FY17 EBITDA Margins improved even in uncertain times 300 273 30% Led by our Efficiency 250 25% 200 20.3% 20% 150 127 109 15% Proving our 100 50 9.9% 11.1% 10% Cr
Slide 18: Maintaining the Maithan Edge
Maintaining the Maithan Edge
Slide 19: Key Growth Drivers
Key Growth Drivers Low Debt Brand Value Addition Sustainability Low Cost Curve Margin Driven Asset Light Model Efficiency Discipline Expanding the Market Integrity From Vendor-ship to Partnership Relationship Driven Solutions Manufacturing and Marketing Efficiencies Customized 18
Slide 20: Key Differentiators
Key Differentiators Asset Light Model Efficiency • Sources raw materials when it • Lowest in the Cost Curve gets contracts • Optimum Capacity Utilization • PPA agreement with power plants • Higher Tonnage product • Stable Asset turnover ratios and low debt-equity ratio Strong Credibility • Strong cr
Slide 21: Asset Light Model
Asset Light Model* In-house end- Long Term No significant to-end project PPAs with Asset Light Model mining assets capability Power Utilities Return on Asset has improved Fixed Assets Turnover (x) Debt to Equity (x) 5.5 21% 0.7 4.3 3.9 0.4 10% 7% 0.1 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 20 *
Slide 22: Industry Tailwinds
maithan Itd Industry Tailwinds
Slide 23: Advantage India
Advantage India 100 % FDI allowed in the India’s GDP to grow by +7 % mining sector & exploration of (IMF) over the next two years metal & non metal ores under the Automatic Route 2017 Budget outlay of ~ ₹ 4 tn in infrastructure to drive domestic steel consumption Steel Industry’s Outlook to Favourab
Slide 24: Alloy Producers to benefit from NSP 2017
Alloy Producers to benefit from NSP 2017 Per capita Capacity (Mn T) Production (Mn T) consumption (kg) 255 300 158 122 91.9 61 2015-16 2030-31 2015-16 2030-31 2015-16 2030-31 ~1.5% of Manganese Alloy is required to produce each tonne of Steel National Steel Policy (NSP) 2017 Highlights • Reduce depe
Slide 25: 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 CIS EU 3% Asia & Oceania 13% form 66% of NAFTA Global Steel 9% demand Middle East 4% Asia & Oceania 66% Central & South AFRICA America 3% 3% Maithan already has a strong foothold in the growing Asian economies S
Slide 26: Financials
maithan Itd Financials
Slide 27: Financial Highlights (As per IGAAP)
Financial Highlights (As per IGAAP) ₹ Crs 1,342 273 1,107 1,151 127 109 FY15 FY16 FY17 FY15 FY16 FY17 191 EBITDA Margins PAT Margins 20.3% 14.3% 79 9.9% 11.1% 53 6.9% 4.8% FY15 FY16 FY17 FY15 FY16 FY17 26
Slide 28: Financial Highlights (As per IGAAP)
Financial Highlights (As per IGAAP) ₹ Crs 576 214 393 139 323 77 FY15 FY16 FY17 FY15 FY16 FY17 39.5 44.8 22.0 17.6 20.2 16.3 FY15 FY16 FY17 FY15 FY16 FY17 27 *RoE = PAT after Minority Interest / Avg. Shareholders Fund ^ RoCE = EBIT / Avg. Capital Employed
Slide 29: Consolidated Profit & Loss (As per IGAAP)
Consolidated Profit & Loss (As per IGAAP) Particulars (₹ Crs) FY17 FY16 YoY Revenue 1,342 1,151 17% Raw Material 628 597 Power 280 315 Employee Expenses 33 23 Other Expenses 128 89 EBITDA 273 127 115% EBITDA Margin 20.3% 11.1% Other Income 21 4 Depreciation 28 23 EBIT 265 108 146% EBIT Margin 19.8%
Slide 30: Consolidated Balance Sheet (As per IGAAP)
Consolidated Balance Sheet (As per IGAAP) Equity and Liabilities (₹ Crs) Mar-17 Mar-16 Assets (₹ Crs) Mar-17 Mar-16 Shareholder’s Fund 585 393 Non-Current Assets 270 287 Share capital 29 29 Fixed assets 242 267 Reserves & Surplus 555 364 Long Term Loan and Advances 28 19 Minority Interest 1 4 Non-Cu
Slide 31: 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 Mr. Rajesh K. Shah Ms. Chanchal Bachhawat/ Mr. Viraj Shah rajesh@maithanalloys.com chanchal.bachhawat@sgapl.net