International Conveyors Ltd. · NSE:INTLCONV
International Conveyors — Q3 FY23 Earnings Presentation
33 slides from International Conveyors's earnings presentation, Feb 18, 2023
Slide 1: Investor Presentation Q3 FY23 cover letter to exchanges
ICL/DS/2022-23/894 February 18, 2023 The Manager The General Manager Listing Department Dept. Of Corporate Services National Stock Exchange of BSE Ltd. India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street, Plot No C-1, G Block, Mumbai-400001 Bandra- Kurla Complex, Scrip Code-509709 Bandr
Slide 2: International Conveyors Ltd - Belts That Trough
INTERNATIONAL CONVEYORS LTD BELTS THAT TROUGH COMPETENT DEPENDABLE SAFE CONVEYER BELTING February 2023
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of International Conveyors Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitati
Slide 4: ICL: India's only Listed player in PVC Conveyor Belting
ICL : India’s only Listed player in PVC Conveyor Belting Experience of Marquee International & Four Decades Domestic Customers A critical consumable for High Growth Fully integrated Mining & Bulk Transportation Manufacturing Plants High Entry Barriers : Long Gestation At an inflection point to parti
Slide 5: Our Evolution
Our Evolution 1979-2001 2002-2014 2014-2019 FOUR DECADES OF ICL was set up to address the key pain Diversification into New Customer BUSINESS GUIDED BY point for coal miners - Long waiting period for conveyor belting Entered International Markets explore multiple growth avenues to Segments, New Prod
Slide 6: We manufacture belting which is critical for mining
We manufacture belting which is critical for mining… ▪ Conveyor belting is critical for bulk transportation of materials like, coal, potash salt MINING OPERATIONS etc and no substitute has been found. RELIES HEAVILY ON ▪ ICL design team can undertake full in-house design starting from preliminary de
Slide 7: Extensive product range serving diversified industries
…with an extensive product range serving Diversified Industries ▪ We provide several value-added products in our sales mix and count several TAILORED PRODUCTS TO demanding multinationals as clients DIFFERENT CUSTOMERS ▪ Our products are used for conveying : Coal Potash Phosphate Fertilizer Cement Pr
Slide 8: We have fully integrated manufacturing
We have fully integrated manufacturing … ▪ Twisting and doubling machines, capable ▪ Widest and heaviest belting fabric weaving EXCELLENCE IS NOT JUST of handling up to 20 Tons of yarn at a looms (working on principal of shuttle time. weaving) up to 2100mm reed space and each GOAL, BUT PRIORITY weig
Slide 9: Plants at Aurangabad & Falta
…at our plants in Aurangabad & Falta Aurangabad Plant : Total annual Falta SEZ Plant : Total annual installed COST COMPETITIVENESS installed capacity of 700,000 meters capacity of 4,25,000 meters Area Area (Sq. Facility Details Facility Details (Sq. Mtrs) Mtrs) Fully-integrated plant, Falta SEZ 1 fu
Slide 10: Only Indian player delivering global quality standards
We are only Indian player delivering global quality standards SAFETY BY CHOICE, ICL cares for human life and that is why our high-performance belting are a result of integrated in- house development - from yarn preparation, fabric weaving, and compound mixing to finishing NOT BY CHANCE • The high st
Slide 11: Approvals meeting international quality benchmarks
We have approvals meeting international quality benchmarks ▪ Global – Dun and Bradstreet assigned D&B D-U-N-S Number: 65-066-9146 LONG GESTATION PERIOD ▪ Global – ISO 9001:2015 Certification ACTS AS HUGE ENTRY BARRIER Country specific Mine Safety Approval (Fire Retardant Antistatic – FRAS) for produ
Slide 12: Marquee International and Domestic Clientele
We have marquee International and Domestic Clientele International Customers CUSTOMERS FIRST Over 80% of our Revenues are generated from Exports Our products meet the highest international standards and ICL prides itself in not having a warranty claim Domestic Clients 11
Slide 13: Depth of engagement leading to Customer Stickiness
We have depth of engagement leading to ‘Customer Stickiness’ 1 High Entry Barriers CUSTOMER STICKINESS ✓ High entry barrier due to Dual Stage Approval process to be an approved supplier BRAND RESONATES ✓ Product Approval by regulatory authorities of importing countries WELL WITH CUSTOMERS ✓ Approval
Slide 14: We produce more green energy than we consume
We produce more green energy than we consume ▪ We have in total 5 Windmills Rs. 21.9 MILLION OF ▪ All these Windmills are generating green energy in the states of Karnataka, Maharashtra, REVENUES FROM Gujarat and Andhra Pradesh and the same is supplied to respective state consumers through state gri
Slide 15: Mining Industry at an Inflection Point
MINING INDUSTRY AT AN INFLECTION POINT
Slide 16: Favorable Mining Policies & Regulations
Favorable Mining Policies & Regulations… • Introduction of appropriate incentives for exploration • Encouragement of merger and acquisition of mining entities • Creation of dedicated mineral corridors to boost private sector mining National Mineral • Encouraging technology for mineral administration
Slide 17: Supporting growth across Indian Mining Industry
…supporting growth across Indian Mining Industry Mining Sector Growth Drives India is at an early stage in terms of per capita mineral consumption and has India remains an oasis of growth amongst a significant potential to grow at accelerated growth than historical growth slowing global outlook Stro
Slide 18: Growth in Global Potash Demand
… along with growth in Global Potash Demand Global potash demand is expected to grow ~7Mmt in the next three years, with medium term growth rates at historic levels. Significant demand growth potential beyond historic rates Mine Production Countries 2019 2020E Previous 5 year CAGR Estimated 5 year C
Slide 19: Well placed to benefit from rising growth in Mining Activities
…making us well placed to benefit from rising growth in Mining Activities INCREDIBLE Economic life cycle of the belting is FRAS PVC Conveyor Belting from Type COMPETENT ~3 years depending on conditions and 3 to 18 catering to various customer loads being handled requirements LONG-LASTING CONVEYOR BE
Slide 20: We are Future Ready
We are Future Ready… LEARN TODAY Expand Customer Base Penetrate New Markets ▪ Enhance customer base in the USA and ▪ Penetrate LEAD TOMORROW Canada, where ICL already enjoys further into underground coal mine segment Australia significant customer Relationships ▪ Grow South Africa market. ▪ Start Su
Slide 21: With Growth Drivers in place
…with Growth Drivers in place Capex in Mining Sector Automation across Facilities PLANNED CAPEX Continuous investments in the mining Our in-house R & D team working on TO ADDRESS THE sector in line with growing demand from automation and upgradation of the end user industries gives us long run machi
Slide 22: Guided by experienced Leadership Team
…guided by experienced Leadership Team Mr. R K Dabriwala | Managing Director Mr. Surbhit Dabriwala | Director • Bachelor of Arts and Science from University of Pennsylvania • JEDP – IIM (Calcutta) & Harvard Alumni • Holds senior level board positions including PNB Metlife India Insurance Co; Elpro •
Slide 23: Financial Highlights
INTERNATIONAL CONVEYORS LIMITED FINANCIALJHIGHLIGHTS i
Slide 24: Consolidated Financial Performance
Consolidated Financial Performance Revenue (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +48.4% +55.4% +12.7% 166.2 20.2 20.9 147.4 13.6 -16.5% 13.4 -30.6% -6.3% 8.0 63.9 6.7 7.2 6.7 44.3 Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 EBIDTA Margins (%) PAT Margins
Slide 25: Historical Financial Performance (Consolidated)
Historical Financial Performance (Consolidated) Revenues Revenues(Rs. (Rs.Crs.) Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +71% +59% +44% 205.2 19.9 16.6 16.2 169.3 19.6 98.7 6.4 6.7 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 EPS EPSgrowth growth EBIDTA Margins (%) PAT Margins (%) +63% 11.8% 9.8% 9.5%
Slide 26: Domestic Revenue Break-up
Domestic Revenue Break-up Rs. Crs Industry Wise Coal 10.5% Others 25% 38.5% 36.6 Q3FY22 Q3FY23 61.5% 29.3 89.5% -38% 20.1% 13.3 29.8% 8.2 FY21 FY22 70.2% 79.9% Q3FY22 Q3FY23 FY21 FY22 Coal Others Figures on Consolidated basis 25
Slide 27: Exports Revenue Break-up
Exports Revenue Break-up Rs. Crs Industry Wise Potash Coal 7.1% 1.8% 4.5% Others 21% 7.0% 168.6 Q3FY22 Q3FY23 139.9 91.1% 88.5% Geography Wise -29% 50.6 8.6% Canada 0.3% 7.0% 36.1 4.5% USA R.o.W Q3FY22 Q3FY23 Q3FY22 Q3FY23 FY21 FY22 91.1% 88.5% Figures on Consolidated basis 26
Slide 28: Q3FY23 Consolidated Profit & Loss
Q3FY23 Consolidated Profit & Loss Particulars (Rs. Crs.) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y Revenue from Operations 44.3 63.9 -30.6% 66.0 -32.9% 166.2 147.4 12.7% Cost of Materials Consumed 24.7 35.0 32.4 92.0 88.7 Purchases of stock –in-trade 2.0 -1.1 2.1 6.8 2.2 Changes in Invent
Slide 29: Consolidated Historical Profit & Loss
Consolidated Historical Profit & Loss Particulars (Rs. Crs.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Revenue from Operations 205.2 169.3 98.7 85.6 56.2 Cost of Materials Consumed 126.6 84.6 46.2 52.3 33.8 Purchase of Traded Goods 8.0 5.9 8.9 0 0 Changes in Inventories of Finished Goods and Work in Progre
Slide 30: Strengthening Balance Sheet
Strengthening Balance Sheet Borrowings & Cash and Cash Equivalents (Rs. Crs.) Net Debt to Equity 0.7 101.8 Borrowings Cash & Cash Equivalents 0.5 65.0 62.9 0.4 45.7 0.3 19.3 0.1 2.5 1.6 1.8 1.8 2.0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Figures on consolidated basis 29
Slide 31: Efficient Working Capital Management
Efficient Working Capital Management Receivable Receivable Days Days Payable Days 134 132 110 107 100 87 78 70 45 36 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Inventory Days Net Working Capital days 110 90 93 83 72 52 56 49 6 -6 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Figures on co
Slide 32: Key Takeaways
Key Takeaways Value Creation for Stakeholders New avenues for Growth 5 1 Entry into newer customers & geography with Revenue and Profitability Growth new products developed over the period Global & Domestic mining growth along Strong Order book Visibility & with industry diversification 4 2 Replacem
Slide 33: Thank You
THANK YOU International Conveyors Limited Investor Relations : Orient Capital Mr. Udit Sethia, Director Mr. Faraz Ahmed :+91 9619705150 CIN : L21300WB1973PLC028854 Email: faraz.ahmed@linkintime.co.in E: investors@iclbelting.com Mr. Rajesh Agrawal : +91 9967491495 www.iclbelting.com Email : rajesh.ag
International Conveyors — Q3 FY23 Earnings Presentation on 6ix