Steelcast Ltd. · NSE:STEELCAS
Steelcast — Investor Presentation (July 2021)
29 slides from Steelcast's investor presentation, July 2021
Slide 1: Steelcast Limited submission letter to BSE
STEELCAST L'IMITED READ. OFFICE RUVAPARIROAD &WORKS BHAVNAGAR,GUJARAT INDIA364005 PHONE (91) (278)2519a62 FAX (91) (278)251 9831 E-MAIL info@steelcast.net WEBSITE www.steelcast.net CIN L27310GJ1972PLC002033 AC/2079 By ListingCentre 30.07.2021 To Listing Compliance Department BSE Limited Phiroze Jeej
Slide 2: Investor Presentation - July 2021
Investor Presentation - July 2021
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Steelcast 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 invitation or induceme
Slide 4: Company Overview
Company Overview One of the few companies in India and Globally manufacturing Steelcastings based on Sand and Shell Casting Process Premier Position Diverse Industrial Sectors Catering to diverse Industrial sectors like Earth Moving, Company enjoys a Premier Position in the Steel Casting Mining & Mi
Slide 5: Key Strengths
Key Strengths Experienced Board back by a strong management team Diversified Business Model, catering to varied sectors Well Experienced Unique Business Team Model Strong R&D and Technological Capabilities. These also are entry barriers in the Recognitions & Technology business Certifications and R&
Slide 6: Diversified Business Model catering to Varied Industries
1. Diversified Business Model catering to Varied Industries Existing Segments* Mineral Processing Earth Moving Industry Mining Steel Plants Cement Construction Industry Foray into New Segments Railways Electro Locomotive Ground Engaging Tools (GETs) 5 * Business done is with all OEMs
Slide 7: Focus on Research & Development
2. Focus on Research & Development… Cost Reduction De-Sulphorise and De-Phosphorise • R&D team constantly involved in Cost • Our R&D Team has developed successfully a process to reduction techniques and activities De-Sulphorise and De-Phosphorise the liquid metal In Induction Furnace Product Develop
Slide 8: Continuous Technology Upgradation
… with continuous Technology Upgradation State of the Art mechanical and thermal reclamation Plants for ensuring consistent quality of mold backing and facing sand; one 1 of vital element for producing quality castings, at both the plants Benefits from newer Processes & Conversion of all heat treatm
Slide 9: Locational Advantage
3. Locational Advantage Situated in Bhavnagar, Gujarat, which is a power Skilled manpower is easily available with surplus state minimal labor cost Availability of Natural Gas by Gujarat Gas Company’s own 66KV power transmission Limited for all fuel requirements through station with 10MW power avail
Slide 10: Best in Class Manufacturing Capabilities
4. Best in Class Manufacturing Capabilities… Company manufactures steel casting products by adopting sand-based manufacturing process by using No Bake and Shell Molding techniques Capacity expansion to 30,000 MTPA from 13,000 MTPA and simultaneously upgraded its production processes and introduced n
Slide 11: Focus on Design & Engineering
… with focus on Design & Engineering Design & Engineering No Bake Molding Shell Molding Process Heat Treatment In house magma software for pouring simulation • Use resin coated quartz sand • Battery of Gas fired furnaces having capacities of 3 to Fully automated flaskless molding line with flood pro
Slide 12: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities P1 P2 P5 12,000 tonnes per annum 6,000 tonnes per annum 12,000 tonnes per annum Process Type : Sand Molding - Mold box Process Type : Shell Molding (Corning) Process Type : Sand Molding - Automated based molding facility Process loop line and Flask less Molding
Slide 13: Presence across the Globe
5. Presence across the Globe Denmark Germany USA China Japan India - South Headquartered Korea Mexico Thailand Singapore Brazil Export Presence “One-Star Export House Status holder” Expected to increase the presence 15+ countries in the next 5 years 12
Slide 14: Marquee Customer Brands
6. Marquee Customer Brands 13
Slide 15: Recognitions & Certifications
7. Recognitions & Certifications ✓ 1st Steel Foundry in India to get ISO:9002 ✓ An EN 9100:2018 certified by TUV NORD, Certification Germany (for Aerospace). ✓ An ISO:9001-2015 Company certified by TUV ✓ Class A approved foundry by Ministry of NORD, Germany (for Quality) Railways, India ✓ An ISO:140
Slide 16: Recognitions & Certifications (contd)
7. Recognitions & Certifications (contd…) Company’s Products, Processes, Safety Standards and Environment Friendly Mechanism meets with Global standards and certification Recipient of Recipient of Award for Shri Laxmanrao Kirloskar achieving Highest Rating Approved Foundry Best Foundry Award from in
Slide 17: Experienced Board of Directors
8. Experienced Board of Directors Mr. Chetan M. Tamboli, Managing Director & CEO • Aged 60 years, a third-generation entrepreneur, is a commerce graduate armed with an MBA Finance from USA • Serving as a CEO since 2003 with total experience of more than 30 years. Looks after strategy, policy making
Slide 18: Future Strategy
see > Future Strategy
Slide 19: Clear Focus on De-Risking Business
Clear Focus on De-Risking Business Strategy for THEN NOW Steelcast 2.0 De-risking Business Strategies Capacity Expansion 13,000 MTPA 30,000 MTPA No. of Parts manufactured 104 300+ No. of Customers 11 36 Geography presence 2 15 End-user Industry presence 3 9 Mining sector: Revenue contribution 80% 54
Slide 20: Strategy 1.0: Rationalization Measures
Strategy 1.0 : Rationalization Measures Product Development Business Development Initiated a rationalization plan since last 2 years Introduced purchase of power through open Reduced manpower cost per unit by Reduced demand for power from market access. saving in cost from Re. 0.35 increasing produc
Slide 21: Strategy 2.0: De-Risking Business
Strategy 2.0 : De-Risking Business Industry-wise Revenue Mining Industry Earth Moving Equipment +100% +60% (y-o-y) (y-o-y) 5.4% 4.3% 3.1% Construction Equipment Locomotive & Railways +60% +300% (y-o-y) (y-o-y) FY21 49.8% 26.9% Rs. 158 Crs Cement & Steel sector Ground Engaging Tools (GET) Flattish De
Slide 22: Financial Performance
Financial Performance 21
Slide 23: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs.) FY21 FY20 FY19 FY18 FY17 Total Revenue 157.7 200.6 317.9 231.2 134.0 Cost of Material Consumed 36.3 46.3 73.7 54.7 25.1 Change in Inventories -2.3 0.4 14.3 -12.4 -4.9 Total Raw Material 34.0 46.7 88.0 42.3 20.2 Value Addition 123.8 153.9 229.9 188.9 113
Slide 24: Revenue Breakup (FY21)
Revenue Breakup (FY21) Industry-wise Revenue Segment-wise Revenue Geography-wise Revenue 1.0% 35.4% 48.7% 51.3% 54.0% 10.6% 99.0% Mining OEM Sales Domestic Earth Moving Replacement Market Exports Others Others include Agricultural Equipment, Manufacturing, Steel Plants, Construction Equipment, Cemen
Slide 25: Balance Sheet - Assets
Balance Sheet - Assets ASSET (Rs. Crs.) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Non ‐ Current Assets Property, plant and equipment 97.1 105.1 114.5 120.1 123.4 Capital work‐in‐progress 0.8 0.0 0.4 2.3 0.5 Intangible Assets 1.1 1.7 2.3 2.9 1.9 Financial Assets (i) Investments 0.1 0.1 0.1 0.1 0.1 (ii) Loan
Slide 26: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities EQUITY & LIABILITIES (Rs. Crs.) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Equity Equity Share Capital 10.1 10.1 10.1 10.1 10.1 Other Equity 118.7 107.8 104.8 83.2 63.9 Total Equity 128.8 117.9 115.0 93.3 74.0 Liabilities Non ‐ Current Liabilities Financial Liabilities (
Slide 27: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs.) FY21 FY20 FY19 FY18 FY17 Profit before Tax 15.6 17.0 35.1 19.0 4.2 Adjustment for Non-Operating Items 16.4 20.3 22.7 22.1 20.0 Operating Profit before Working Capital Changes 32.1 37.4 57.8 41.1 24.2 Changes in Working Capital -6.6 6.7 7.1 -26.5 -3.
Slide 28: Balance Sheet Ratios
Balance Sheet Ratios Total Debt (Rs. Crs.) Debt to Equity Cash Flow from Operations (Rs. Crs.) 84.5 1.01 54.1 74.8 0.91 52.1 34.4 0.45 23.7 29.7 19.5 0.25 13.2 13.8 0.11 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 RoCE RoE Working Capital
Slide 29: Thank You
THANK YOU Company: CIN: L27310GJ1972PLC002033 Name: Mr. Subhash Sharma, CFO Email ID: ss@steelcast.com Investor Relations Advisors: Ms. Neha Shroff Mr. Deven Dhruva +91 77380 73466 +91 98333 73300 neha.shroff@linkintime.co.in deven.dhruva@linkintime.co.in 28