Gravita India Limited · NSE:GRAVITA
Gravita India — Q3 FY24 Earnings Presentation
32 slides from Gravita India's earnings presentation, Jan 23, 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 23rd January, 2024 GIL/2023-24/132 To, The BSE Limited The Listing Departme
Slide 2: Investor Presentation Jan 2024
INVESTOR PRESENTATION Jan 2024 Towards Clean, Green & Sustainable Future
Slide 3: Gravita, started in 1992 by first generation entrepreneur
GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2
Slide 4: Amazing Journey
We are on an AMAZING JOURNEY Added Rubber 2022 Recycling, 2021 New recycling facility at Became MCX Mundra port empaneled brand 2019 Started Aluminium & Plastic recycling in Africa 2016 Added Aluminium Recycling 2015 Diversified in 2013 Plastic recycling Value added products in Jaipur 2010 Listed on
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 ❖ Fairness company in the recycling ❖ Trust Existing: space globally. ❖ Respect ❖ Lead ❖ Passion ❖ Alumini
Slide 6: Management Commentary & Business Outlook
Management Commentary & Business Outlook "Gravita is strongly progressing towards achieving its ambitious Clear Vision 2027 focusing on diversifying into new business verticals, attaining a revenue cagr and profitability growth of 25%+ and 35%+. Our strategies of expanding the capacities, increasing
Slide 7: Financial Highlights
FINANCIAL Highlights 22 % 9-10% A+ Revenue CAGR - 5 Yrs Consistent EBITDA margins External credit rating from ICRA 35 % Locking the margins 12 Years PAT CAGR - 5 Yrs Back-to-back hedging mechanism in place History of sustainable dividend payouts 40% 40 Cr + Reduction in Debt in FY 2023 PAT (Cr) and
Slide 8: Quarterly Highlights - Q3 FY24
QUARTERLY HIGHLIGHTS - Q3 FY24 REVENUE (Cr) Riding Higher - VISION 2027 836 789 -7% -4% 26%+ 20%+ 758 Volume Revenue EBITDA PAT Q3FY23 Q2FY24 Q3FY24 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 89.68 100.00EBITDA* (Cr) 12.00% 11.82% 79.84 80.00 70.91 11.00% 42% 36% 17% 60.00 40.00 8.98% 9.56% 10.00% 9.00% Revenue from V
Slide 9: Project Updates
Project Updates • Started commercial production of plastic at its existing recycling plant Tanzania • • Capacity – 1,800 MTPA Capex – Rs. 2.25 Cr. From internal accruals • Started commercial production of lead from its existing recycling plant Togo • • Capacity – 6000 MTPA Capex – Rs. 3.61 Cr. From
Slide 10: Vision 2027
VISION 2027 New recycling Verticals 25%+ Lithium, Steel & Paper ROCE 25% + 50%+ Revenue CAGR Value added products 35% + 25%+ Profitability Growth Non-Lead business ● ● ● Our Priorities Shareholder value Return accretive Judicious use of creation growth capital 9
Slide 11: Capacity Expansion & CAPEX over the Years
Capacity Expansion & CAPEX over the Years Capacity (MT) CAPEX (Rs Cr.) 4,34,319 159 3,95,319 148 3,24,319 110 110 105 100 2,33,919 2,04,919 73 45 FY22 FY23 FY24E FY25E FY26E FY22 FY23 FY24E FY25E FY26E Lead Aluminium Plastic Rubber Total Existing Verticals New Verticals 4,25,000 MTPA Capacity planne
Slide 12: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED Target ROCE 25% + 29% 29% Consolidated 26% Drivers of ROCE ● Improving industry 18% dynamics 16% ● Resultant reduction in working capital ● Improving demand- supply ● Value added products FY20 FY21 FY22 FY23 H1 FY24 *on Average Capital Employed ● 3 Years ● 25% + ● 8+ Capit
Slide 13: Reducing Net Working Capital Cycle
Reducing NET WORKING CAPITAL CYCLE • Processing of Scrap near to the source – Avoid Transits • Retail scrap collection through OEM’s - Zero working capital 86 Days* 65 Days 95 Days March’26 March’22 Sep’23 15 17 15 15 21 34 46 48 35 Receivables Receivables Receivables Paid Plant Inventory * Paid Pla
Slide 14: 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 13
Slide 15: 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 16: 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 17: Deep Routed Procurement Network
Deep Routed PROCUREMENT NETWORK 31 1500+ 2,05,000 MT+ Own yards Touch points Scrap collection Europe Touch Points- 15+ Scrap collection(MT) - 5,500+ Americas Touch Points- 75+ Scrap collection (MT) -19,000+ Africa Asia Own Yards - 26 Own Yards - 5 Touch Points- 450+ Touch Points- 1000+ Scrap collect
Slide 18: Diversified Customer Network - Global
Diversified CUSTOMER NETWORK - GLOBAL 38 + 375 + 1,55,000 MT + Countries Customers Recycled products delivered Europe Countries - 10 Customers -18 Delivered- 17,500 MT+ Americas Countries - 9 Customers -27 Middle East Delivered- 6,000 MT + Countries - 5 Customers -26 Asia Delivered- 24,000 MT+ Count
Slide 19: Diversified Customer Network - India
Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : ● 230+ domestic customers in 22 states in India ● 90+ overseas customers in 36 countries. 18
Slide 20: Operational Excellence
OPERATIONAL EXCELLENCE 4 11 1500+ Recycling Recycling Touch Points Verticals Plants Globally 47% 2.86Lac+ 57% 29% Customized & MT Production Capacity Overseas Value added Capacity* Utilization Capacity* products 2.05 Lac+ ILA 60000 MT+ MT Scrap India’s only Healthy Collection Accredited Orderbook Pl
Slide 21: Our Partners
OUR PARTNERS (Strong Partnering Capability) 20
Slide 22: Turnkey Solutions for Recycling
TURNKEY SOLUTIONS for Recycling Executed more than 50 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 co
Slide 23: Robust Management & Focus on Human Capital
ROBUST MANAGEMENT & focus on Human Capital 27 Yrs + 175+ 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 24: 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% 47%
Slide 25: 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 • Metal equivalent of the scrap bought, is sold on the $ 1867 10.21% same day $ 2122 $1947 9.70% 10.
Slide 26: 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 25
Slide 27: 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 28: 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 29: Environment, Social & Corporate Governance
ENVIRONMENT, Social & Corporate Governance Deriving Value from Waste through Modern Recycling and Recovery 4 11 2.05Lac+ 1.55Lac+ ISO 14001:2015 Recycling Recycling MT Scrap MT Products Certified Verticals Plants Collection* Delivered Alternate Energy Source - Clean Technology Waste Recycling Conser
Slide 30: Environment, Social & Corporate Governance
Environment, SOCIAL & Corporate Governance Aiming to make Holistic & Meaningful Contributions to Society 4 6% ₹1.02 CR ISO 45001:2018 Rounds of Women CSR Spending Certified ESOPs Employees Received Euro 34Mn Loan 100% Health insurance Zero fatalities for FY23 from development funds for coverage for
Slide 31: 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 Complaints A+ ▪ Zero complaints of ethical breaches and non-compliance with statuto
Slide 32: 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