Sarthak Metals Ltd · NSE:SMLT
Sarthak Metals — Q4 FY2024 Earnings Presentation
33 slides from Sarthak Metals's earnings presentation, May 27, 2024
Slide 1: Exchange filing cover letter
Date: 27/05/2024 To, To, The Manager, Listing Department, Listing & Compliance, National Stock Exchange of India BSE Limited Limited, Phiroze Jeejeebhoy Towers, C-1, G-Block, Bandra-Kurla Dalal Street, Mumbai - 400 001. Complex Bandra (E), Mumbai – 400 051 Ref: Scrip Code - 540393 Ref: Scrip Symbol
Slide 2: Earnings Presentation Q4 FY24
EARNINGS MODERN METALLURGICAL SOLUTIONS FOR FINE TUNING STEEL PRESENTATION Q4 FY24
Slide 3: Topics
Q4 FY24 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 SUSTAINABILITY INITIATIVES 31
Slide 4: Financial Results topics
Q4 FY24 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 OPERATIONAL HIGHLIGHTS 04 P&L SUMMARY 05 MANAGEMENT COMMENTARY 06 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 SUSTAINABILITY INITIATIVES 31
Slide 5: Operational Highlights Q4 FY24
OPERATIONAL 4 HIGHLIGHTS Q4 FY24 EARNINGS PRESENTATION Q4 FY24 VOLUMES & REALIZATIONS OPERATIONAL HIGHLIGHTS CORED WIRES ALUMINIUM FLIPPING COIL 1,600 2.70 1,800 2.30 2.28 29 CRORE 32 CRORE 2.65 1,400 1,750 2.25 REVENUE 1,200 2.64 2.60 REVENUE 1,700 2.20 2.55 -17% -9% 1,000 1,650 INCREASE IN VOLUME
Slide 6: P&L Summary
Q4 FY24 5 P&L SUMMARY S Q4 FY24 EARNINGS PRESENTATION PARTICULARS ( ₹ I N C R O R E S ) Q4FY24 Q3FY24 Q4FY23 YOY% change QOQ% change Revenue from Operations 70.65 75.30 80.82 -13 -6 Total Income 71.20 75.98 81.45 -13 -6 Operating Expenses 68.01 72.84 72.98 -7 -7 EBITDA (Excluding OI & EI) 2.64 2.46
Slide 7: Management Commentary
“MANAGEMENT 6 COMMENTARY Q4 FY24 EARNINGS PRESENTATION COMMENTING ON THE Q4 FY24 “In face of continuing challenging environment, we managed to slightly improve our margins during the fourth quarter of PERFORMANCE, SANJAY SHAH, 2023-24 as compared to a quarter back. Chinese steel producers have been
Slide 8: Business Update topics
Q4 FY24 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 FLUX CORED WIRE 08 VENTURING INTO BIOTECHNOLOGY 09 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 SUSTAINABILITY INITIATIVES 31
Slide 9: Flux Cored Business
8 OVERVIEW Flux Core Arc Welding is a type of welding process using INDIAN IMPORTS OF FLUX CORED WIRE consumable electrode that contains flux around it IN MT Q4 FY24 EARNINGS PRESENTATION Flux melts together with the electrode during the welding process and shields the joint Presently, India has lit
Slide 10: Biotechnology
9 WHAT IS Biotechnology is the branch of applied science that uses Q4 FY24 EARNINGS PRESENTATION living organisms and their derivatives to produce products BIOTECHNOLOGY? and processes. These products and processes feature in healthcare, medicine, biofuels, and environmental safety. India’s BioEcono
Slide 11: Biotech Three Pronged Approach
BIOTECH THREE PRONGED 10 Q4 FY24 EARNINGS PRESENTATION FOCUS AREAS & VISION APPROACH 01 WHAT IS AN ENZYME? FOCUS INDUSTRIAL Enzymes are biologically active proteins derived Alternate Energy: Biofuel production like biogas and ethanol ENZYMES from living organisms such as bacteria, fungi and due to i
Slide 12: Biotech Opportunities in Industrial Enzymes
BIOTECH $10.2 BN 11 Q4 FY24 EARNINGS PRESENTATION OPPORTUNITIES IN Global Enzymes INDUSTRIAL ENZYMES Market 2023 DIETARY ANIMAL FOOD SUPPLEMENTS BAKERY 1.02 BN 0.3 BN 0.3 BN FOOD & BEVERAGE (F&B) HUMAN NUTRITION BIO CATALYSTS OTHER TECHNICAL ENZYMES 3.57 BN 0.4 BN 0.4 BN 3 BN BUSINESS UPDATE PROFIT
Slide 13: Biotech Opportunities in Industrial Enzymes
BIOTECH 12 SARTHAK METALS Q4 FY24 EARNINGS PRESENTATION OPPORTUNITIES IN INDUSTRIAL ENZYMES GROWING ASIAN CLEAN POPULATION LABEL High demand in F&B, pharma and Rising demand for clean label & detergent industries due to large natural ingredient in convenience & APAC & Indian population processed foo
Slide 14: Company Background topics
Q4 FY24 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 DESRAJ BANSAL GROUP 14 CLIENTS 22 SARTHAK METALS SNAPSHOT 15 WAREHOUSING CAPABILITIES 23 MILESTONES 18 LEADERSHIP 24 PRODUCT CATEGORIES 20 BOARD OF DIRECTORS 25 INFRASTRUCTURE 21 FINANCIAL TR
Slide 15: Desraj Bansal Group
₹650+ Cr * Provisional Figure 14 Q4 FY24 EARNINGS PRESENTATION leading business group with interests in the Metals and Energy sector 5 3 state-of-the-art fully-functional Manufacturing facilities in Bhilai, GROUP Chhattisgarh housed under ENTITIES DESRAJ BANSAL GROUP SARTHAK METALS LTD SARTHAK ENERG
Slide 16: Sarthak Metals Ltd
15 SARTHAK “SARTHAK” IS PART OF THE 650+ Cr DB GROUP Q4 FY24 EARNINGS PRESENTATION 01 METALS INDIA’S LEADING MANUFACTURER & EXPORTER OF CORED WIRES & ALUMINIUM FLIPPING COILS LTD Being an experienced and quality conscious manufacturer, Sarthak is the preferred supplier to some of India’s largest GRO
Slide 17: Sarthak Energy Pvt Ltd
16 Q4 FY24 EARNINGS PRESENTATION 02 SARTHAK ENERGY 2 MW PVT LTD SOLAR POWER PLANT GROUP ENTITIES SOLAR ENERGY DESRAJ BANSAL GROUP
Slide 18: Bansal Brothers
17 BANSAL Q4 FY24 EARNINGS PRESENTATION 03 BROTHERS GROUP ENTITIES FERROALLOYS 6,000 TPA FERROALLOYS CAPACITY DESRAJ BANSAL GROUP
Slide 19: Milestones
18 Q4 FY24 EARNINGS PRESENTATION 1995 INCORPORATED 2008 COMMENCED PRODUCTION with an industrial gases unit producing OF ALUMINIUM industrial oxygen and carbon dioxide FLIPPING COILS 2002 2012 catering to industries units in its vicinity with the first mill built in-house FIRST CORED WIRE MILL STARTE
Slide 20: Milestones
19 Q4 FY24 EARNINGS PRESENTATION 2017 IPO & BSE LISTING 2023 ENTERED FLUX CORED WIRE Raised funds through its initial public BUSINESS WITH HUGE offer and got listed on BSE SME IMPORT SUBSTITUTION OPPORTUNITY 2018 COMMENCED BACKWARD 2024 VENTURED INTO BIOTECH INTEGRATION FOR FLIPPING Starting with al
Slide 21: Core Product Categories
20 CORE PRODUCT Q4 FY24 EARNINGS PRESENTATION CATEGORIES CORED WIRES ALUMINIUM WIRE FEEDER Cored Wires are a product of wire injection technology of steels. They consist of steel tubes (wires) filled with various alloys that are injected in molten metal for introducing FLIPPING COILS MACHINES differ
Slide 22: Infrastructure
21 Manufacturing Capacity (Double Shift) PRODUCTION TRENDS Q4 FY24 EARNINGS PRESENTATION CORED WIRES ALUMINIUM FLIPPING COILS IN TPA 10,000 TPA 15,000 TPA Expanded 9,925 in FY23 04 Manufacturing 02 Manufacturing 8,569 Lines Lines 7,196 6,381 Built in-house specific to company needs equipped with sop
Slide 23: Clients
22 INDIA Q4 FY24 EARNINGS PRESENTATION CLIENT PROFILE STEEL PLANTS FABRICATION UNITS FOUNDRIES & BEYOND 85% REPEAT BUSINESS MILESTONES SHADED IRON & STEEL CO. LLC 40% TOP 5 CLIENTS SALES CONTRIBUTION 20 10+ YEAR RELATIONSHIPS CLIENTS 05 5+ YEAR RELATIONSHIPS
Slide 24: Warehousing Capabilities
23 Q4 FY24 EARNINGS PRESENTATION CORED 1,500 SQ. MT. 2,000+ TONNES EQUIVALENT TO WIRES MATERIAL STORAGE SPACE 3 MONTHS’ BUFFER SUFFICIENT SPACE TO STOCK FINISHED PRODUCTS AS WELL ALUMINIUM 4,000+ TONNES FLIPPING 2,800 SQ. MT. EQUIVALENT TO MATERIAL STORAGE SPACE COILS 4 MONTHS’ BUFFER MILESTONES Sta
Slide 25: Leadership
LEADERSHIP 24 Q4 FY24 EARNINGS PRESENTATION ANOOP KUMAR BANSAL SANJAY SHAH MAYUR BHATT MANAGING DIRECTOR WHOLE-TIME DIRECTOR WHOLE-TIME DIRECTOR & CEO Mr Bansal has a Bachelors in Commerce degree Mr Shah is a Whole-Time Director and the head of Mr Bhatt is a Whole-Time Director and the Chief from Na
Slide 26: Board of Directors
BOARD OF 25 Q4 FY24 EARNINGS PRESENTATION DIRECTORS MR SUNIL KUMAR AGARWAL MS RAMA KOHLI MR SUNIL DUTT BHATT MR DWADASI VENKATA GIRI CHAIRMAN & NON- NON-EXECUTIVE, NON-EXECUTIVE, NON-EXECUTIVE, EXECUTIVE, NON- INDEPENDENT WOMAN INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR DIRECTOR
Slide 27: Financial Trends topics
Q4 FY24 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 5 YEAR FINANCIAL TRENDS 27 SHAREHOLDER VALUE CREATION 28 OPERATIONAL EFFICIENCY METRICS 29 SUSTAINABILITY INITIATIVES 31
Slide 28: 5 Year Financial Trends
5 YEAR 27 FINANCIAL Q4 FY24 EARNINGS PRESENTATION TRENDS REVENUE FROM PROFIT EBITDA & EQUITY & OPERATIONS AFTER TAX EBITDA MARGINS DEBT TO EQUITY (₹ IN CRORES) (₹ IN CRORES) (₹ IN CRORES & IN %) (₹ IN CRORES & TIMES) 50.0 12.0% 140 0.7 10.6% 0.59 45.0 9.1% 120 0.6 0.51 10.0% 40.0 116.09 35.0 7.3% 7.
Slide 29: Shareholder Value Creation
28 ROCE DIVIDEND SHARE PRICE SINCE LISTING* V/S BSE SENSEX SHAREHOLDING IN % PER SHARE PRICE (INDEXED) PERFORMANCE PATTERN 0.69% Q4 FY24 EARNINGS PRESENTATION SHARE FIIs IN ₹ Sarthak Metals Sensex 400 30.11% 300 PUBLIC 200 11.91% 69.29% 10.00% 14.89% 35.26% 28.35% 100 PROMOTERS 0.5 0.5 2 1 2 0 FY20
Slide 30: Operational Efficiency Metrics
OPERATIONAL 29 EFFICIENCY METRICS Q4 FY24 EARNINGS PRESENTATION OPERATIONAL EFFICIENCY METRICS WORKING CAPITAL INVENTORY DAYS ASSETS TURNOVER RATIO TRADE RECEIVABLES IN DAYS IN DAYS IN TIMES TURNOVER RATIO IN DAYS 3.6 3.2 2.7 4.4 2.7 42 57 48 68 79 32 49 23 13 24 41 47 46 48 48 FY20 FY21 FY22 FY23 F
Slide 31: Sustainability Initiatives topics
Q4 FY24 EARNINGS PRESENTATION TOPICS SLIDE NO. FINANCIAL RESULTS 03 BUSINESS UPDATE 07 COMPANY BACKGROUND 13 FINANCIAL TRENDS 26 SUSTAINABILITY INITIATIVES 31
Slide 32: Sustainability Initiatives
SUSTAINABILITY 31 Q4 FY24 EARNINGS PRESENTATION INITIATIVES GOING GREEN WITH USAGE OF ALUMINIUM SCRAP SOLAR POWER BIOTECHNOLOGY Enzymes offer a sustainable alternative to traditional Production of about 75% of Aluminium Flipping Coil of With 400 KW of renewable energy used, chemical processes due to
Slide 33: Get in Touch
32 Q4 FY24 EARNINGS PRESENTATION GET IN ANIRUDH SINGHAL Sarthak Metals Limited cfo@sarthakmetals.com TOUCH PRATIK JAIN Sarthak Metals Limited cs@sarthakmetals.com MUTHUKUMAR K Wisdom IR muthukumar@wisdomsmith.com +91 9867191576 SAFE HARBOR This document which has been prepared by Sarthak Metals Limi