Slide 1: Exchange filing cover letter
Salasar Techno Engineering Limited Date: August 09th 2022 Listing Department, Department of Corporate Services, The National Stock Exchange of India, The BSE Limited, Exchange Plaza, C-1 Bandra Krla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai- 400051, Dalal Street, Mumbai- 400001, NSE Sym
Slide 2: Investor Presentation – Q1 FY23
www.salasartechno.com SALASAR TECHNO ENGINEERING LIMITED INVESTOR PRESENTATION – Q1 FY23 August 2022 A Seasoned, Expert, Dependable and Agile Infrastructure Enabler
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Salasar Techno Engineering Limited (“Salasar” or the company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operatio
Slide 4: Discussion Summary
DISCUSSION SUMMARY 01 Business Overview 02 Q1 FY23 Highlights 03 Competitive Advantage 04 Financial Summary 3
Slide 5: Business Overview
BUSINESS OVERVIEW Broadening Horizons For Sustainable Growth 4
Slide 6: Salasar At Glance
Salasar At Glance Salasar is one of the leading companies in India, providing customized steel structures and EPC solutions to diverse range of industries including telecom, power, railways and others 1,15,000 MT 50,000+ 568+ KM Annual Telecom Tower Power Production Supplies Transmission Capacity Li
Slide 7: Salasar Journey
SALASAR JOURNEY Started as tower manufacturing company; Revenue by Segments – FY22 * currently provides whole range of steel infrastructure solutions to its clients Manufacturing - Steel Structures Incorporated In the year 2006, Salasar started out as a tower 18% and Others manufacturer company with
Slide 8: State-of-the-Art Manufacturing Facilities
STATE-OF-THE-ART MANUFACTURING FACILITIES Strong base of operations with technology-driven facilities for efficient steel structure manufacturing and galvanizing Plant Unit – I Unit – II Unit - III Jindal Nagar, Distt. Location Khera, Distt. Hapur, Uttar Pradesh Hapur, Uttar Pradesh Tower/structure
Slide 9: Strong & Experienced Leadership Team
STRONG & EXPERIENCED LEADERSHIP TEAM Board of Directors Mr. Alok Kumar B.Sc from Punjab University, 1 Mr. Shalabh Agarwal 4 Mr. Mukesh Kumar Garg Chandigarh Director Non-Executive Independent Director • Wide experience spanning over 4 decades in trading, manufacturing 2 Ms. Tripti Gupta Mr. Sanjay C
Slide 10: Q1 FY23 Highlights
Q1 FY23 HIGHLIGHTS Delivering Consistent Performance 9
Slide 11: Management Comment
MANAGEMENT COMMENT Mr Shashank Agarwal, Joint Managing Director, Salasar Techno Engineering Ltd: “The performance for the quarter was very encouraging as we have reported 59% revenue growth YoY mainly driven by our steel structure business. However, the profitability was kept under check due to the
Slide 12: Consolidated P&L Statement – Q1 FY23
CONSOLIDATED P&L STATEMENT – Q1 FY23 Particulars (INR Cr) Q1 FY23 Q1 FY22 YoY Q4 FY22 QoQ Net Sales 210.7 132.8 58.6% 212.3 (0.8%) Cost of Goods Sold 176.2 102.2 72.4% 175.3 0.5% Employee Cost 10.1 8.3 20.5% 10.0 1.0% Other Indirect Expenses 7.5 7.5 0.8% 11.0 (31.4%) Total Expenditure 193.8 118.0 64
Slide 13: Order Book Position
ORDER BOOK POSITION Particulars Value Orders EPC outstanding as on 30 th June 2022 Rs. 809 crore + L-1 EPC orders for which LOI awaited Rs. 89 crore + Manufacturing orders outstanding under new heavy steel structure plant Rs. 233 crore as on 30th June 2022 + Export order in hand Rs. 62 crore Total R
Slide 14: Growth Strategy
GROWTH STRATEGY Unlocking Value, Delivering Results 13
Slide 15: Growth Strategy
GROWTH STRATEGY Offering 360-degree solution to diverse industries; Adding innovative products regularly like camouflaged towers, monopoles, etc. to provide for the evolving infrastructural needs of the society Expanding tower designs and leveraging on their tie-ups with Ramboll to provide value to
Slide 16: Offering 360-Degree Solutions to Clients
OFFERING 360-DEGREE SOLUTIONS TO CLIENTS Providing whole range of services including Engineering, Strengthening, Designing, Procurement, Fabrication, Galvanization and Repair & Maintenance services along with entire EPC works to its clients Business Verticals Telecommunication Power Renewables Poles
Slide 17: Foray into Fast Growing Steel Structure Division
FORAY INTO FAST GROWING STEEL STRUCTURE DIVISION New Heavy Steel Structure Division enables Salasar to cater to growing demand of high-end infrastructure for refineries, steel plants, power plants, rail and roadways Heavy & Complex Bridges Buildings Structures Categories: Categories: Categories: R
Slide 18: Collaboration with Ramboll, Denmark
COLLABORATION WITH RAMBOLL, DENMARK Strong tie-up with Industry Leader “RAMBOLL” helping Salasar to deliver superior quality products as compared to its peers Salasar has a long-standing technical tie-up with Ramboll (Denmark) to manufacture lighter and lower costing tower structures and high mast p
Slide 19: Select Marquee Clients
SELECT MARQUEE CLIENTS Salasar has a strong and diverse client base which has helped us establish ourselves in a leading position in the industry Telecom Sector Power Sector Others/ EPC Approved vendor for Power Qualified to bid for rural Qualified by CORE (Central Grid Corporation Ltd. electrificat
Slide 20: Backed by Strong Triggers in Major Industries (1)
BACKED BY STRONG TRIGGERS IN MAJOR INDUSTRIES (1) India is the second largest telecom market in the world with a subscriber base of 1.17 billion Yearly growth of towers and base stations (BTS) Key Facts and Developments (‘000s) • Leading player in the Telecom Tower manufacturing segment with market
Slide 21: Backed by Strong Triggers in Major Industries (2)
BACKED BY STRONG TRIGGERS IN MAJOR INDUSTRIES (2) Increased Demand For Power Transmission Infrastructure Development Supported By Strong Policy Support Historical Generation and Transmission Investment Key Facts and Developments • Design and Construction of Power Transmission lines % Growth in Gener
Slide 22: Backed by Strong Triggers in Major Industries (3)
BACKED BY STRONG TRIGGERS IN MAJOR INDUSTRIES (3) Government has an ambitious plan to secure infrastructure for 100% electrification of the railway network by 2024 Growth of Railway Electrification (Route Km, RKM) Key Facts and Developments • Government of India plans to fully electrify the * 6,886
Slide 23: Structured Plant Expansion to Cater High Industry Demand
STRUCTURED PLANT EXPANSION TO CATER HIGH INDUSTRY DEMAND Expanding product portfolio with optimal utilization of existing capacity Unit III, Khera, Distt. Hapur, Uttar Location Bhilai, Chhattisgarh Pradesh Heavy Steel Structure Division Facility New Galvanization Plant (HSD)– II Annual Capacity 96,0
Slide 24: Financial Summary
FINANCIAL SUMMARY Gaining Strengths 23
Slide 25: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Sales Volume (MT) Revenue (Rs Crore) 719 74,993 655 597 58,619 58,776 495 526 55,657 51,829 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA (Rs Crore) / EBITDA Margin (%) PAT (Rs Crore) / PAT Margin (%) 11.2% 40 6.0% 7% 80 10.9% 12% 9.8% 9.6% 9.6% 5.1% 5.0% 4.4% 6%
Slide 26: Key Financial Ratios
KEY FINANCIAL RATIOS ROCE (%) ROE (%) 23% 23% 23% 19% 19% 15% 16% 11% 12% 11% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Debt to Equity (x) 0.9 0.8 0.8 0.7 0.7 FY18 FY19 FY20 FY21 FY22 RoCE – EBIT/ Average Capital Employed, ROE – Profit/Average Shareholders Funds, D/E – Average Debt/ Average
Slide 27: Consolidated P&L Statement
CONSOLIDATED P&L STATEMENT Particulars (INR Cr) FY22 FY21 FY20 Domestic 643.3 561.1 498.5 Exports 75.6 35.5 27.8 Net Sales 718.9 596.6 526.3 Cost of Goods Sold 570.8 473.0 415.1 Employee Cost 40.0 30.9 31.0 Other Indirect Expenses 39.1 35.7 28.3 Total Expenditure 649.9 539.6 474.5 EBITDA 68.9 57.0 5
Slide 28: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (INR Cr) Mar-22 Mar-21 Mar-20 Particulars (INR Cr) Mar-22 Mar-21 Mar-20 EQUITY & LIABILITY ASSETS Share Capital 28.6 14.3 13.3 Non-Current Assets: Other Equity 253.4 238.4 193.9 Net Block 124.9 112.4 91.1 Non- Controlling 0.3 0.3 - Interest Capital Work in Prog
Slide 29: Thank You
Salasar Techno Engineering Ernst & Young LLP Thank You Pramod Kala, CFO pramod.kala@salasartechno.com Vikash Verma I Rohit Anand Vikash.verma1@in.ey.com I Rohit.anand4@in.ey.com © 2022 – All Rights Reserved | www.salasartechno.com