Gravita India Limited · NSE:GRAVITA
Gravita India — Q1 FY24 Earnings Presentation
30 slides from Gravita India's earnings presentation, Jul 24, 2023
Slide 1: Regulation 30 intimation cover letter
GRAVITA INDIA LTD. D G RAVI I A Corp. Office :Gravita Tower, A-27 B, Shanti Path, q, Tilak Nagar, JAIPUR-302004, Rajasthan (INDIA) Phone :+91-141-2623266, 2622697 FAX : +91-141-2621491 ‘Web : www.gravitaindia.com CIN:- L29308R] 1992PLC006870 24" July, 2023 GIL/2023-24/061 To, The BSE Limited The Lis
Slide 2: Investor Presentation July 2023
INVESTOR PRESENTATION £ GRAVITA July 2023 We recycle to save environment Towards Clean, Green & Sustainable Future
Slide 3: Gravita, started in 1992 by first generation entrepreneur
- <> GRAVITA flWe recycle to save environment Y EARS & N rfi GRAVITA, Started In 1992 by First Generation Entrepreneur
Slide 4: Amazing Journey
£ GRAVITA We areon an . We recycle to save environment AMAZING JOURNEY New recycling facility at E Mundra port E:arted Aluminium & Value added ws in Jaipur B, Listedon J ) '\V:‘ 1t recycling NSE & BS j unitin Ghana ; ' = 1%t Overseas recycling Lead recycling unit at Sri- plant in Jaipur —— B = S e o
Slide 5: Business Verticals
€ GRAVITA Business VERTICALS fiWe recycle to save environment Lead Recycling Aluminium Recycling Turnkey Solutions Phagi Plant’s Full Ariel View
Slide 6: Financial Highlights - FY23
FINANCIAL Highlights - Fv23 € GRAVITA €9 We recycle to save environment @ 9-10% © 22% Revenue CAGR-5 Yrs Consistent EBITDA margins @ External credit rating from ICRA © 35% PAT CAGR-5Yrs © Locking the margins Back-to-back hedging mechanism in place @ 12 Years History of sustainable dividend payouts 4
Slide 7: Quarterly Highlights - Q1 FY24
QUARTERLY HIGHLIGHTS - Q1 Fy24 € GRAVITA €9 We recycle to save environment Rising Higher - VISION 2027 REVENUE (Cr), 21 %+ 24+ I I I 1800+ Volume Revenue EBITDA QIFY23 Q4FY23 QIFY24 Y-o-Y Y-o-Y Y-o-Y EBITDA* (Cr) gs3p 80.23-1141% 11.16%, 11.39%) 64.69 © 49% Q@ 39% Revenue from Value added products R
Slide 8: Project Updates
Project Updates € GRAVITA €9 We recycle to save environment Ch tt « Increased capacity of Lead recycling to 64,640 MTPA I OOI’ « Capex - Rs.21 Cr. from internal accruals - Started Rubber Recycling Ta Nnzan ia - Capacity of 3,000 MTPA « Capex — Rs.3.86 Cr. from internal accruals « Increased capacity
Slide 9: Vision 2027
€ GRAVITA VISION 2027 New recycling verticals . . 25%+ Rubber, Lithium, ROCE Steel & Paper 25% + . 50%+ 0, Revenue CAGR & Value added products 35% + . ' z? ’ ‘:‘,7". A \\\‘J“\ o . 25%+ Profitability Growth Non-Lead business ® Shareholder value ® Return accretive ® Judicious use of O ur P ri o riti e
Slide 10: Capacity Expansion & CAPEX over the Years
Capacity Expansion & CAPEX over the Years € GRAVITA SHwe recycle to save environment Capacity (MT) CAPEX (Rs Cr.) 4,34,319 159 148 110 110 100 105 2,33,9, 2,04,919 73 I 45 FY22 FY23 FY24E FY25E FY26E FY22 FY23 FY24E FY25E FY26E | ead = Ajuminium = Plastic Rubber —e=Total m Existing Verticals New Ver
Slide 11: Return on Capital Employed
RETURN ON CAPITAL © GRAVITA EMPLOYED Target ROCE 25% + Consolidated Drivers of ROCE Improving industry dynamics Resultant reduction in working capital Improving demand- supply Value added products FY19 FY20 FY21 FY22 FY23 *on Average Capital Employed e 3Years e 25%+ 8+ Capital Allocation policy for
Slide 12: Reducing Net Working Capital Cycle
Reducinz NET WORKING CAPITAL CYCLE © GRAVITA + More domestic scrap & Lower imports reduces transit inventory + Retail scrap collection through OEM’s - Zero working capital 83 Davs* 65 Days 95 Days March¥3 March'26 March’'22 = Receivables = Receivables = Receivables = Paid Plant Inventory * = Paid Pl
Slide 13: Leveraging existing Gravita's Strengths
GRAVITA Leveraging existing GRAVITA’S STRENGTHS ?i,m,.m Our Entry into new verticals is based on proven, existing Gravita’s Strengths. Barriers to Entry @ Turnkey Recycling Technology Solutions Global Operations & Integrated Supply Chain Robust @ Management Deep Routed Diversified procurement Custom
Slide 14: Barriers to Entry
Barriers to =ntry "hdle GaWe recycle to save environment Import License OEM E, A <y inindia " Approvals 1 o T i _i Fi e s @ —_ - “‘@ ‘ ' Multinational ~ Specialist @ i . Procurement | - Knowledge /‘( Rt t Network {1 ¢ i ¥ v \ : 35 i | ¥ \ i :‘Y g 1 ’ { ! | i il i Time & Cost LR R } ; Capability to .
Slide 15: Global & Pan India Operations
GLOBAL & PAN INDIA Operations 9 GRAVITA e Globalspread helps reduce logistics costs and procure material cheaper. e Start small> grow volumes > establish new plants close to procurement sources. e Increased flexibility in recycling closest to raw material access and consuming markets. Head Quarters
Slide 16: Deep Routed Procurement Network
Deep Routed PROCUREMENT NETWORK © GRAVITA =N Deep presence in Asia , Africa , Middle East, Europe & America ensures raw material at competitive prices
Slide 17: Diversified Customer Network - Global
Diversified CUSTOMER NETWORK - GLOBAL © GRAVITA 38+ 375+ 1,55,000 MT + Countries Customers Recycled products delivered Americas _. Countries-9 . ';ustomers -27 Delivered- 6,000 MT +
Slide 18: Diversified Customer Network - India
Diversified CUSTOMER NETWORK- INDIA < © GRAVITA Gravita with pan India presence enjoys the logistic benefits by serving: e 230+ domestic customers in 22 states in India WV e | Chittoor o 90+ overseas customers in B Gandhidham 36 countries. vz~ M Kathua M Phagi Mundra ©
Slide 19: Operational Excellence
OPERATIONAL EXCELLENCE © GRAVITA 4 11 1500+ Recycling Recycling Touch Points Verticals Plants Globally 49% 2.78Lac+ 51% 27% Customized & MT Production Capacity Overseas Value added Capacity* Utilzation Capacity* products 2.05 Lac+ | A 60000 mT+ MT Scrap India’s only Healthy Collection Accredited Ord
Slide 20: Our Partners
& GRAVIT OUR PARTNERS G)W ecycle to environment (Strong Partnering Capability) J oussrte LUMINOUS| ==cLarios QEXIDE AMA:%AJA S (G e DOHA Panasonic OCTAL ool CABLES Nilkamal TRAFIGURA lerD~OrlgA~MrAs Ga Korea Zinc.Co. Ltd. ;‘tl;‘:g: SANDHAR e e © POLYCAB .aa,,p. HITACHI @) thyssenkrupp GLENCORE TVS e
Slide 21: Turnkey Solutions for Recycling
TURNKEY SOLUTIONS for Recycling © GRAVITA e In house Recycling Technology e Technical Consultancy & Services for Recycling & Smelting ® PLC based Control & Monitor System for advanced set-ups e Annual Maintenance Contracts e Executed more than 50 turnkey projects globally including Qatar, UAE, Saudi
Slide 22: Robust Management
ROBUST MANAGEMENT © GRAVITA Rajat Agrawal Yogesh Malhotra Vijay Pareek Naveen Sharma Rajeev Surana Sunil Kansal Managing Director ~ Whole Time Director & CEO Executive Director Executive Director Executive Director Chief Financial Officer 27 Yrs + 625 + 175+ Avg Management Experience in diversified
Slide 23: Customized and Value Added Products
CUSTOMIZED AND VALUE ADDED PRODUCTS ?;SBAWIAM Our Capability to produce customized and value added products for diversified customer segments gives us better contributions and larger pie of Customized Lead Alloys Lead Sheets Lead Bricks customer's product mix. Value Added Products % in revenue 50% 4
Slide 24: Risk Mitigation by Back to Back Hedging mechanism
GRAVITA Risk Mitigation by BACK TO BACK HEDGING mechanism ?\;uqdmmmmmm. Back-to-Back Hedging Core Inventory +Back-to-Back A Hedging )\ * To mitigate the risk of commodity prices fluctuation from June. 2016 « Metal equivalent of the scrap bought, is sold on the same day « Pricing against Customer con
Slide 25: Improving Market Dynamics in Recycling - Paradigm Shift
4> GRAVITA Improving MARKET DYNAMICS IN RECYCLING - Paradigm Shift ewemocstosme enronment Vehicle Scrappage Policy PARADIGM SHIFT- Shift from pore Reduced Better (g EIRT JBroved i =ility working capacity formal Rdistics R estic capital cycle utilizations scrap
Slide 26: Shift from Informal to Formal
Shift from INFORMAL TO FORMAL © GRAVITA With redefining of Battery Waste Management Rules (BWMR) , Extended producers responsibility R (EPR) and stricter implementation of GST, the scrap availability for formal recycling sector has — Battery soio increased and is further expected to grow. Manufa(tuv
Slide 27: Environment, Social & Corporate Governance
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE & GRAVITA Sowe recycle to save environment Focused on Capturing Value from Waste Through Modern Recycling and Recovery Recycling Waste: + Uses scrap of lead, aluminum ,plastic and rubber in manufacturing of finished goods and has a 4 process in place to col
Slide 28: Environment, Social & Corporate Governance
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE € GRAVITA Sowe recycle to save environment Involved in Making Holistic & Meaningful Contributions to Society 4 Round of ESOPs Engagement Platforms of Customers & Partners: Customers: Regular business meetings, Customer satisfaction survey 2% Product/Service
Slide 29: Environment, Social & Corporate Governance
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE € GRAVITA Sowe recycle to save environment Fosters a Culture of High Ethical Standards, Accountability and Transparency Business Ethics: Always worked towards building trust with shareholders, employees, 50% customers, suppliers and other stakeholders based
Slide 30: Thank You
Thank You SAVE THE PLANET Company Contact: Investor Relations Contact: Mr. Nitin Gupta (Company Secretary) Sana Kapoor Sheetal Khanduja Gravita India Limited Go India Advisors Go India Advisors companysecretary@gravitaindia.com sana@GolndiaAdvisors.com sheetal@GolndiaAdvisors.com M:+91 98870 82051 M