Steel Strips Wheels Ltd · NSE:SSWL
Steel Strips Wheels — Q3 FY2024 Earnings Presentation
34 slides from Steel Strips Wheels's earnings presentation, Jan 17, 2024
Slide 1: Analysts/Institutional Investors Meet Intimation
STEEL STRIPS WHEELS LTD. GIN : L271 07P81 985PLG0061 59 Head Office : 150/T516949 Certified SCO 49-50, Sector 26, Madhya Marg, Chandigarh 160 019 (lNDlA) Tel : +91 172-2793112, 2790979, 2792385 Fax ; +91 172-2794834 | 2790887 Website : www.sswlindia.com Date: t7.0t.2O24 BSE Limited The National Stoc
Slide 2: SMIFS Conference Call Invitation
www.smifs.com SMIFS SMIFS Cordially Invites You to the mvieyey =§=C@NFERENCE CALL LEGACY | TRUST | GROWTH SMIFS with Steel Strips Wheels Ltd. oy monpay | 22 [01] 2024 AGENDA Q3FY24 Earnings conference call to discuss results & future outlook of business Company Management Mr. Dheeraj Garg Managing D
Slide 3: Steel Strips Wheels Limited Investor Presentation
STEEL STRIPS WHEELS LIMITED Delivering Value; Seeking Excellence Investor Presentation January 2024
Slide 4: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Steel Strips Wheels Limited (the “Company”), have bee n prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 5: Company Overview
Cee Strips Wheels Limited Company Overview
Slide 6: Company Overview
Company Overview SSWL is a leader in designing & manufacturing Automotive wheels – both Steel & Alloy Wheels category SSWL aspires to be the Preferred Global Brand of Wheel Solution provider committed to excellence Wheel Plants Strategic * Partnerships - 5 Operations Founded Excellence Operational F
Slide 7: Our Journey
Our Journey Commencement of First Steel Wheels Commercial Production at Dappar Plant, Punjab 1991 Start of 2W & Tractor Wheels Production 2002 Start of LCV Wheels Commercial Production 2006 Start of Commercial Production for Exports Market by supplies of PV to PSA 2007 Peugeot Citroen, France & HCV
Slide 8: Strategic Partnerships
Strategic Partnerships • Tata Steel Limited (through its then wholly -owned subsidiary Company namely Kalimati Investment Company Ltd, which has now merged with Tata Steel Ltd) had TATA Steel Limited, India entered into a Strategic Alliance Agreement in January 2008 with SSWL • Through this relation
Slide 9: Our Products
Our Products I n c l . E xp o r t s Steel Wheels – Rs. 2,375 crores (~72%) (9M FY24 Revenues) Competitive Pricing Suitability Quick Maintenance Robust Wheel More flexible, absorbs Competitively priced; Requires nothing more Steel Wheels are robust, more shock, thus suitable have higher acceptance in
Slide 10: Product Capacities & Utilization
Product Capacities & Utilization 90% 80% 73% 77% 72% 65% STEEL WHEELS • Phased addition of 70 lakh steel wheel operational capacity 270 • Resolution plan 179 186 186 205 205 205 successfully implemented in January 2024 by payment of ~Rs FY19 FY20 FY21 FY22 FY23 9M FY24* FY24E 138 crores 96% 100% A L
Slide 11: State-of-the-Art Facilities
State-of-the-Art Facilities Wheel Capac ity (Mn) Catering to PV, MUV, Dappar, Punjab 10.8 Tractor & OTR Corporate Office, Chandigarh Dappar, Punjab 6+1.5 Chennai, Tamil Nadu PV & CV 7.5 Bhuj, Gujarat* Jamshedpur, Jharkhand 2.2 HCV / LCV Jamshedpur, Jharkhand Mehsana, Gujarat Saraikela, Jharkhand HCV
Slide 12: Clientele
Clientele 10 T h e B r a n d Na m e s a n d L o g o s m e n t i o n e d a r e t h e p r o p e r t y o f t h e i r r e s p e c t i v e o w n e r s a n d a r e u s e d h e r e f o r i d e n t i f i c a t i o n p u r p o s e s o n l y .
Slide 13: Steel Wheels
Steel Wheels Domestic Market Share Key Customers Key Platforms Share of Business Maruti Suzuki Ciaz, Baleno, Scross, Brezza, Celerio 40% S t e e l W h e e l S a l e s Vo l u m e 42% Hyundai Mahindra Honda MG Motors Venue, Xcent, Grandi10, Verna KUV, TUV, XUV Elevate, Amaze, City Hector 40% 64% 95% 1
Slide 14: Export Profile
Export Profile Exports Revenue (Rs. Crs.) FY23 FY24 +179% +130% Russia UK Germany Poland 174 505 Canada Netherlands Slovakia USA France Romania Japan Austria Hungary 62 220 Spain S Korea Italy Morocco Q3 9M Egypt U.A.E. Thailand Region Wise Export Revenue Colombia Contribution % Brazil 74% 69% 64% 5
Slide 15: Growth Drivers
Cee Strips Wheels Limited Growth Drivers
Slide 16: Growth Drivers
Growth Drivers Sales Mix Shift Shift of Sales Mix towards High Margin Accretive Segments – Alloy Wheel & Exports Operations Optimization Development of Robotic Automated Operation process for Operating Cost Rationalization Foray into EV Segment Exploring various avenues to foray into EV Segment Indu
Slide 17: Shift of Sales Mix to High Margin Alloy Wheels Segment
Shift of Sales Mix to High Margin Alloy Wheels Segment I n c r e a s e d Vo l u m e s f r o m A l l o y W h e e l S a l e s Leading to Increased Contribution to Sales (in Lakh Units) I n c l . E xp o r t s 28 Volume Contribution to Total Sales Volume Value Contribution to Total Sales Contribution 31
Slide 18: Shift of Sales Mix to High Margin Exports Segment
Shift of Sales Mix to High Margin Exports Segment I n c r e a s e d Vo l u m e s f r o m E x p o r t s Increased Revenues from Exports (in Lakh Units) (Rs. Crs.) 9M FY24 Alloy Wheel Volume 9M FY24 Alloy Wheel Revenue 1.74 Lakhs unit Rs. 61.0 Crs. 55 829 +51% +61% 505 31 30 23 294 270 16 15 222 198 F
Slide 19: Strengthening Balance Sheet
Strengthening Balance Sheet Cash Accruals (Rs. in Crs.) Long Term Debt (Rs. in Crs.) RoCE RoE Alloy Wheel Capacity Addition 282 274 544 548 Preponed to Q3 FY24 22.9% 25.9% 24.0% 17.9% 374 382 22.7% 17.0% 145 122 222 10.7% 95 8.7% 7.1% 3.6% FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 FY20
Slide 20: Dividend Payout History
Dividend Payout History Dividend 15 % 15 % 15 % 20 % 30 % 30 % 40 % 40 % 0% 20 % 75 % 100 % Declared % 15.7 11.7 6.2 6.2 4.7 4.7 Dividend 3.1 3.1 Paid (Rs in Cr) 2.3 2.3 2.3 0.0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20^ FY21 FY22 FY23 C o n s i ste nt D i v i d e n d p a i d b y t h e C o m p a
Slide 21: Q3 & 9M FY24 Financials
Cee Strips Wheels Limited Q3 & 9M FY24 Financials
Slide 22: Financial Performance Snapshot
Financial Performance Snapshot Revenues from EBITDA (Rs. Crs.) PAT (Rs. Crs.) Volumes operations Revenue Mix EBITDA Margins % PAT Margins % (in Lakh units) (Rs. Crs.) 11.5 % 10.5 % 4.7 % 5.4 % Alloy Wheel Steel Wheel +18.3% +8.2% +35.7% +13% 1,110 117 59 46 Q3 FY24 108 41 938 7 44 8 35% 27% 33 39 73
Slide 23: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. in Crs) Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y Revenue from Operations 1,110.3 938.4 18.3% 3,288.4 3,035.6 8.3% Cost of Materials Consumed 741.5 658.4 2,178.0 2,074.3 Changes in Inventory -25.5 -68.3 -39.9 -69.4 Gross Profit 394.3 348.4 13.2% 1150.4 1
Slide 24: Historical Financials
Cee Strips Wheels Limited Historical Financials
Slide 25: Strengthening Balance Sheet
Strengthening Balance Sheet Cash Conversion Cycle Inventory Debtors Creditors In Days 98 103 56 48 55 167 123 108 106 100 84 90 77 63 67 37 43 33 25 32 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 RoCE* RoE* Cash & Cash Equivalents* 23% 17% Rs. 36.7 Crs. 23 * As o n 3 0 t h S e p t e m b e r 2 0 2 3
Slide 26: Performance Ratios
Performance Ratios Return on Equity (RoE) Return on Capital Employed (RoCE) Fixed Asset Turnover Ratio Increased from 13% in FY19 to 17% Increased from 15% in FY19 to 23% Improved from 1.5 in FY19 to 3.3 in H1 FY24 in H1 FY24 in H1 FY24 23% 26% 3.3 24% 23% 3.0 18% 17% 2.6 13 15 11% 1.5 1.4 7% 9% 1.2
Slide 27: Historical Profit and Loss
Historical Profit and Loss Profit and Loss (Rs in Crs) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 4,040.5 3,560.0 1,749.4 1,563.3 2,041.2 Cost of Materials Consumed 2,688.3 2,221.6 1,082.4 973.3 1,353.7 Changes in Inventory -24.7 -34.5 16.7 -7.1 -49.8 Gross Profit 1,376.9 1,372.8 650.3 597.1 7
Slide 28: Balance Sheet
Balance Sheet Assets (Rs. in Crs) FY23 FY22 FY21 FY20 FY19 Equity & Liabilities (Rs. in Crs) FY23 FY22 FY21 FY20 FY19 Non - Current Assets 1,603.1 1,497.0 1,425.9 1,412.8 1,400.7 Total Equity 1,134.7 951.8 749.3 698.0 659.9 Share Capital 15.7 15.6 15.6 15.6 15.6 Property Plant & Equipments 1,347.3 1
Slide 29: Cash Flow - Snapshot
Cash Flow - Snapshot Particulars (Rs. in Crs) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 288.6 300.9 63.9 32.3 108.7 Adjustments for: Non -Cash Items / Other Investment or Financial Items 154.8 150.9 144.5 152.3 148.1 Operating profit before working capital changes 443.4 451.8 208.4 184.7 256.8
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. in Crs) Sep-23 Mar-23 Equity & Liabilities (Rs. in Crs) Sep-23 Mar-23 Non - Current Assets 1,749.8 1,603.1 Total Equity 1,223.1 1,134.7 Share Capital 15.7 15.7 Property Plant & Equipments 1,301.6 1,347.3 Other Equity 1,207.4 1,119.1 CWIP 353.3 163.4 Share appli
Slide 31: CSR & Awards
Cee Strips Wheels Limited CSR & Awards
Slide 32: CSR
CSR Promotion of Education by strengthening government schools & helping poor students by providing Financial Assistance & providing access to education to Orphan Children who lost their parents due to Covid -19 Providing help to the Mentally Strengthening Community Health Challenged Children in get
Slide 33: Awards
Awards Best Quality Performance Best Localization Award for the Year 2022 - JCB - Hyundai Motor India Limited 31
Slide 34: Thank You
THANK YOU Company: Steel Strips Wheels Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L2710PB1985PLC006159 CIN: U74140MH2010PTC204285 Mr. Naveen Sorot (CFO)/ Mr. Mohan Joshi (ED) Mr. Harsh Shah / Mr. Deven Dhruva info@sswlindia.com harsh.shah@sgapl.net / deven.dhruva@sgapl.net Tel:
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