Gravita India Limited · NSE:GRAVITA
Gravita India — Q4 FY24 Earnings Presentation
34 slides from Gravita India's earnings presentation, Apr 30, 2024
Slide 1: Regulation 30 intimation cover letter to exchanges
GRAVITA INDIA LTD. Corp. Office :Gravita Tower, A-27 B, Shanti Path, Tilak Nagar, JAIPUR-302004, Rajasthan (INDIA) Phone : +91-141-2623266, 2622697 FAX : +91-141-2621491 Web : www.gravitaindia.com CIN:- L29308RJ1992PLC006870 30th April, 2024 GIL/2024-25/021 To The BSE Limited The Listing Department
Slide 2: Investor Presentation April 2024: Towards Clean, Green & Sustainable Future
INVESTOR PRESENTATION Jan APR2024 2024 Towards Clean, Green & Sustainable Future Towards Clean, Green & Sustainable Future
Slide 3: Gravita started in 1992 by first generation entrepreneur Rajat Agrawal
GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2
Slide 4: We are on an Amazing Journey
We are on an AMAZING JOURNEY 2023 Added Value Added Added Rubber Recycling, products in Africa 2022 2021 New recycling facility at Became MCX empaneled Mundra port brand 2019 Started Aluminium & Plastic 2016 Added Aluminium recycling in Africa Recycling 2015 Diversified in Plastic recycling 2013 Val
Slide 5: Building a Green World through Recycling
Building a Green World through Recycling Unwavering commitment to sustainability- driven values continues to light the growth path. Vision Core Values Business Verticals To be the most valuable company in the Fairness recycling space globally. Trust Existing: Respect Lead Passion Aluminium Nurturing
Slide 6: Management Commentary & Business Outlook
Management Commentary & Business Outlook “Gravita being one of the largest Recycling Company in India is vigorously advancing towards the attainment of its vision to be the most valuable company in the recycling space globally. Tremendous progress has been realized as we work towards our Vision 2028
Slide 7: Vision 2028
New recycling VISION 2028 Verticals 25%+ Lithium, Steel, Rubber & Paper ROCE 25% + 50%+ Revenue CAGR Value added products 35% + 30%+ Profitability Growth Non-Lead business 30% + 10%+ Renewable Power usage Reduction in Energy consumption ● ● ● Our Priorities Shareholder value Return accretive Judicio
Slide 8: Financial Highlights
FINANCIAL Highlights 21 % 9-10% A+ Revenue CAGR - 5 Yrs Consistent EBITDA margins External credit rating from ICRA 74% Locking the margins 13 Years PAT CAGR - 5 Yrs Back-to-back hedging mechanism in place History of sustainable dividend payouts Revenue PAT (Cr) and PAT Margin (%) Capital Employed (C
Slide 9: Quarterly Highlights - Q4 FY24
QUARTERLY HIGHLIGHTS - Q4 FY24 REVENUE (Cr) Breaking Barriers - VISION 2028 863 14% 15% 9%+ 8%+ 749 758 Volume Revenue EBITDA PAT Q4FY23 Q3FY24 Q4FY24 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 94.00 EBITDA* (Cr) 92.88 13.00% 92.00 89.68 11.83% 12.00% 90.00 44% 37% 88.00 11.39% 86.00 85.32 10.76%11.00% Revenue from Va
Slide 10: Project Updates
Project Updates • Increased capacity of Lead recycling to 12,000 MTPA, with an additional capex of 3.33 Cr Tanzania • • Started Plastic recycling of a capacity of 1,800 MTPA with a capex of 2.25 Cr Started Rubber recycling of a capacity of 3,000 MTPA with a capex of 3.86 Cr • Started commercial prod
Slide 11: Capacity Expansion & CAPEX over the Years
Capacity Expansion & CAPEX over the Years Capacity (MT) CAPEX (Rs Cr.) 182 5,05,459 4,38,859 149 139 3,52,859 110 3,02,859 98 100 2,33,919 70 40 FY23 FY24 FY25E FY26E FY27E FY23 FY24 FY25E FY26E FY27E Lead Aluminium Plastic Rubber Total Existing Verticals New Verticals 5,00,000+ MTPA Capacity planne
Slide 12: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED Target ROCE 25% + 29% 29% Consolidated 25% Drivers of ROCE ● Improving industry 18% dynamics 16% ● Resultant reduction in working capital ● Improving demand- supply ● Value added products FY20 FY21 FY22 FY23 FY24 *on Average Capital Employed ● 3 Years ● 25% + ● 8+ Capital
Slide 13: Leveraging existing Gravita's strengths
Leveraging existing GRAVITA’S STRENGTHS Our Entry into new verticals is based on proven, existing Gravita’s Strengths. Deep Routed Diversified procurement Customer network network Operation Excellence 12
Slide 14: Industry Specific Entry Barrier
Import License in India OEM Approvals Based on past years performance Takes time to get products approved from OEM’s Multinational Specialist Knowledge Procurement Network Experience & Technical Know- how Global Presence Time & Cost of Entry Capability to Customer Base, Capacity Industry Specific De
Slide 15: Global & Pan India Operations
GLOBAL & PAN INDIA Operations ● Global spread helps reduce logistics costs and procure material cheaper. ● Start small > grow volumes > establish new plants close to procurement sources. ● Increased flexibility in recycling closest to raw material access and consuming markets. Head Quarters India (J
Slide 16: Deep Routed Procurement Network
Deep Routed PROCUREMENT NETWORK P 31 1700+ 2,50,000 MT+ Own yards Touch points Scrap collection Europe Touch Points- 17+ Scrap collection(MT) - 3,200+ Americas Touch Points- 34+ Scrap collection (MT) -28,500+ Africa Asia Own Yards - 26 Own Yards - 5 Touch Points- 660+ Touch Points- 1000+ Scrap colle
Slide 17: Diversified Customer Network - Global
Diversified CUSTOMER NETWORK - GLOBAL 32 + 350 + 1,69,000 MT + Countries Customers Recycled products delivered Europe Countries - 10 Customers -19 Delivered- 12,000 MT+ Americas Countries - 3 Customers -6 Middle East Delivered- 14,500 MT + Countries - 6 Customers -29 Asia Delivered- 22,000 MT+ Count
Slide 18: Diversified Customer Network - India
Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : ● 240+ domestic customers in 22 states in India ● 125+ overseas customers in 36 countries. 17
Slide 19: Operational Excellence
OPERATIONAL EXCELLENCE 4 11 1700+ Recycling Recycling Touch Points Verticals Plants Globally 45% 2.91Lac+ 58% 30% Customized & MT Production Capacity Overseas Value added Capacity* Utilization Capacity* products 2.50 Lac+ ILA 60000 MT+ MT Scrap India’s only Healthy Collection Accredited Orderbook Pl
Slide 20: Our Partners
OUR PARTNERS (Strong Partnering Capability) 19
Slide 21: Turnkey Solutions for Recycling
TURNKEY SOLUTIONS for Recycling Executed more than 70+ turnkey projects In house Recycling Technology globally including Qatar, UAE, Saudi Arabia, Poland, Chile Turnkey Technical Consultancy & Solutions Annual Maintenance Contracts Services for Recycling PLC based Control & Monitor Regular R&D for c
Slide 22: Robust Management & focus on Human Capital
ROBUST MANAGEMENT & focus on Human Capital 28 Yrs + 200+ Avg Management Experience Professionals in diversified Industries (CA’s, MBA’s, Engineers) Rajat Agrawal Yogesh Malhotra Managing Director Whole Time Director & CEO 100% 5 Yrs Employees covered under Average Employee incentive schemes Associat
Slide 23: Customized and Value-Added Products
CUSTOMIZED AND VALUE-ADDED PRODUCTS 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 55% 50% 50% 44%
Slide 24: Risk Mitigation by Back-to-Back Hedging mechanism
Risk Mitigation by BACK-TO-BACK HEDGING mechanism Back-to-Back Hedging Core Inventory +Back-to-Back Hedging • To mitigate the risk of commodity prices fluctuation $ 2379 from June. 2016 $ 2283 $ 2105 $ 2105 $ 2121 • Metal equivalent of the scrap bought, is sold on the $ 1867 10.21% 10.47% same day $
Slide 25: Improving Market Dynamics in Recycling - Paradigm Shift
Improving MARKET DYNAMICS IN RECYCLING - Paradigm Shift Vehicle BWMR EPR Scrappage GST Policy PARADIGM SHIFT More Shift from Tie-ups Reduced Better Improved availability informal to with working capacity logistics of domestic formal OEM's capital cycle utilizations scrap 24
Slide 26: Shift from Informal to Formal
Shift from INFORMAL TO FORMAL With redefining of Battery Waste Management Rules (BWMR) , Extended producers responsibility (EPR) and stricter implementation of GST, the scrap availability for formal recycling sector has increased and is further expected to grow. Informal Lead recycling trend in Indi
Slide 27: Sustainable Circular Business Model
Sustainable Circular Business Model Lead, Aluminium, Plastic, and Rubber Last mile scrap from various sources. Procurement Segregation / Continuous engagement to ensure customer Customer Sorting / Segregation and sorting of scrap materials Satisfaction / satisfaction along with continual R&D. R&D Qu
Slide 28: Environment, Social & Corporate Governance
ENVIRONMENT, Social & Corporate Governance Deriving Value from Waste through Modern Recycling and Recovery 4 11 2.50Lac+ 1.69Lac+ ISO 14001:2015 Recycling Recycling MT Scrap MT Products Certified Verticals Plants Collection Delivered Alternate Energy Source Clean Technology Recycled Products Conserv
Slide 29: Environment, Social & Corporate Governance
Environment, SOCIAL & Corporate Governance Aiming to make Holistic & Meaningful Contributions to Society ISO 4 ~6.4% ~1.6 Cr 45001:2018 Rounds of Women CSR Spend Certified ESOPs Employees Zero fatalities for FY24 Euro 34Mn Loan from Fire fighting system development funds for Africa LTIFR- 3.8* opera
Slide 30: Environment, Social & Corporate Governance
Environment, Social & CORPORATE GOVERNANCE Weaving a Culture Rich in Ethics, Accountability and Transparency Board Composition 50% • 50% Independent Directors on board & 16% board diversity Independent Directors Zero Ethical Breaches A+ ▪ Zero complaints of ethical breaches and non-compliance with s
Slide 31: Environment, Social, Governance Roadmap
Environment, Social, Governance ROADMAP Our ESG roadmap is the guide for an effective integration of our ESG priorities into the company's strategy & decision-making process Key Area Performance Indicator Short Term Targets (FY27) Energy Energy Intensity 10% reduction RE Power RE Power Usage 30% of
Slide 32: Environment, Social, Governance Roadmap
Environment, Social, Governance ROADMAP Key ESG Targets sets by Gravita India with timelines Key Area Performance Indicator Mid term Targets (FY34) Energy Energy Intensity 20% Reduction RE Power RE Power Usage 50% RE power usage Strategy and execution for scope 3 GHG emissions (scope 3) Scope 3 emis
Slide 33: Environment, Social, Governance Roadmap
Environment, Social, Governance ROADMAP Key ESG Targets sets by Gravita India with timelines Key Area Performance Indicator Long Term Targets (FY50) GHG Emissions (Scope 1+2) Emissions reduction Net Zero emissions Water Neutrality for Gravita Group by Water Management Water Neutrality 2040 Zero wast
Slide 34: Thank You - Save the Planet
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 CIN:L29308RJ1992PLC006870 sana@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com companysecretary@gravitaind