Steel Strips Wheels Ltd · NSE:SSWL
Steel Strips Wheels — Investor Presentation (July 2023)
30 slides from Steel Strips Wheels's investor presentation, Jul 17, 2023
Slide 1: Intimation under Regulation 30: Presentation of the Company
STEEL STRIPS WHEELS LTD. CIN: L27107P81985pLC0061 59 SIEEL STRIPS GROUP Head Office : ISO/TS16949 Certified SCO 49-50, Sector-26, Madhya Marg, Chandigarh-160 019 (tNDtA) Tel. : +91 -172-2793112, 2790579, 27923A5 Fax: +91-172-2794834 I 27gOA87 Website : www.sswlindia.com Datedt 17 .07 .2023 BSE Limit
Slide 2: Steel Strips Wheels Limited Presentation July 2023
STEEL STRIPS WHEELS LIMITED Delivering Value; Seeking Excellence Presentation July 2023
Slide 3: 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 4: Company Overview
see Strips Wheels Limited Company Overview
Slide 5: 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 - 4 Operations Founded Excellence Foraying into E
Slide 6: 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 7: 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 8: Our Products
Our Products Steel Wheels – Rs. 750 crores (~72%) (Q1 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 than hammering the bent
Slide 9: Product Capacities & Utilization
Product Capacities & Utilization 90% 73% 77% 72% 76% 65% STEEL WHEELS By FY24, 70 Lakhs Steel Wheel capacity to be added in phased manner, post 275 acquisition of AMW Auto 179 186 186 205 205 205 Components Limited FY19 FY20 FY21 FY22 FY23 Q1 FY24* FY24E 96% 98% 75% 64% A L L OY W H E E L S 15% 23%
Slide 10: 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 Mehsana, Gujarat Jamshedpur, Jharkhand Jamshedpur, Jharkhand 2.2 HCV / LCV Saraikela, Jharkhand Mehsana, Gujarat 3
Slide 11: 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 12: Steel Wheels
Steel Wheels Domestic Market Share Key Customers Key Platforms Share of Business Maruti Suzuki Ciaz, Baleno, Scross, Brezza, Celerio 50% S t e e l W h e e l S a l e s Vo l u m e 50% Hyundai Mahindra Honda MG Motors Venue, Xcent, Grandi10, Verna KUV, TUV, XUV Mobilio, WRV, Jazz Amaze, City Hector 45%
Slide 13: Export Profile
Export Profile Quarterly Exports Revenue (Rs. Crs.) FY23 +113% FY24 154 Russia UK Germany Poland Canada Netherlands Slovakia 72 USA France Romania Japan Austria Hungary Spain S Korea Italy Morocco Q1 Egypt U.A.E. Thailand Region Wise Export Revenue Colombia Contribution Brazil 74% 64% 53% 56% Argent
Slide 14: Growth Drivers
see Strips Wheels Limited Growth Drivers
Slide 15: 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 16: 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) 28 Volume Contribution to Total Sales Volume 31% Value Contribution to Total Sales Contribution 28% 19 19% 20% Va l u
Slide 17: 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.) 55 829 +51% +61% 31 23 294 270 16 15 222 198 10 154 FY19 FY20 FY21 FY22 FY23 Q1 FY24 FY19 FY20 FY21 FY22 FY23 Q1 FY24 16
Slide 18: Strengthening Balance Sheet
Strengthening Balance Sheet Cash Accruals (Rs. in Crs.) Long Term Debt (Rs. in Crs.) RoCE RoE 282 274 595 544 548 40.9% 25.9% 24.0% 29.5% 33.0% 374 144 15.0% 19.7% 122 17.3% 222 10.7% 95 8.7% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 I n c re
Slide 19: Financials
see Strips Wheels Limited Financials
Slide 20: Q1 FY24 Financial Performance Snapshot
Q1 FY24 Financial Performance Snapshot Revenues (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +2.8% +3.4% -1.5% 1,016 1,044 109 113 48 47 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Volumes (in Lakh units) Revenue Mix Alloy Wheel Steel Wheel +8% 46 43 6 7 27% 28% 36 39 73% 72% Q1FY23 Q1FY24 Q1FY23 Q1FY2
Slide 21: Profit & Loss Snapshot
Profit & Loss Snapshot Particulars (Rs. in Crs) Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 Q-o-Q FY23 Revenue from Operations 1,044.4 1,016.1 2.8% 1,004.9 3.9% 4,040.5 Cost of Materials Consumed 688.4 697.0 614.0 2,688.3 Changes in Inventory -13.5 -17.6 44.7 -24.7 Gross Profit 369.6 336.6 9.8% 346.2 6.7% 1,376.9
Slide 22: Performance Ratios
Performance Ratios Return on Equity (RoE) Return on Capital Employed (RoCE) Asset Turnover Ratio Increased from 30% in FY19 to 33% Increased from 15% in FY19 to 24% Improved from 1.5 in FY19 to 3.0 in FY23 in FY23 in FY23 41% 26% 3.0 24% 2.6 33% 30% 15% 1.5 17% 20% 11% 1.4 9% 1.2 FY19 FY20 FY21 FY22
Slide 23: Strengthening Balance Sheet
Strengthening Balance Sheet Cash Conversion Cycle In Days Inventory Debtors Creditors 61 98 103 56 48 167 123 108 106 100 91 84 77 58 63 37 43 28 33 25 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 RoCE* RoE* Cash & Cash Equivalents* 24% 33% Rs. 44.0 Crs. 22 * As o n 3 1 s t M a r c h 2 0 2 3
Slide 24: 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 d e c l a re d b y t h e C o
Slide 25: 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 26: 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 27: 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 28: 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 29: Awards
Awards Best Quality Performance Best Localization Award for the Year 2022 - JCB - Hyundai Motor India Limited 28
Slide 30: 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 / Ms. Deven Dhruva info@sswlindia.com harsh.shah@sgapl.net / deven.dhruva@sgapl.net Tel:
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