Slide 1: Earnings Presentation
Earnings Presentation S A R T H A K M E TA L S L I M I T E D Mode r n m e t allur g ic al solut ions for fine t u nin g st e e l
Slide 2: H1FY22 Result Summary
H1FY22 Result Summary 01 OPERATIONAL HIGHLIGHTS 02 P&L SUMMARY 03 BALANCE SHEET SUMMARY S ART HAK 04 MANAGEMENT COMMENTARY M ET AL S L IM IT ED
Slide 3: H1FY22 Operational Highlights
H1FY22 Operational Highlights Cored Wire Aluminium Flipping Coil Volumes & Realizations Volumes & Realizations (IN TONNES & ₹/TONNE) 4 ,0 0 3 ,0 ,0 0 (IN TONNES & ₹/TONNE) 6 ,0 0 2 ,5 0 ,0 0 2,62,272 2,12,725 3 ,5 0 0 2,28,434 2 ,5 0 ,0 0 5 ,0 0 Revenue – Cored Wire 1,66,588 2 ,0 ,0 0 Revenue – Alum
Slide 4: H1FY22 P&L Summary
H1FY22 P&L Summary PARTICULARS ( ₹ I N C R O R E S ) H1FY22 H2FY21 H1FY21 YoY % Change QoQ % Change Revenue from Operations 203.1 123.2 98.4 107% 65% Total Income 203.7 123.3 98.8 106% 65% Operating Expenses 188.2 112.0 94.2 100% 68% EBITDA 14.9 11.2 4.2 259% 34% EBITDA % 7.3% 9.1% 4.2% +312 bps -17
Slide 5: H1FY22 Balance Sheet Summary
H1FY22 Balance Sheet Summary PARTICULARS ( ₹ I N C R O R E S ) H1FY22 FY21 % Change Shareholders' Funds 64.33 53.45 20% Non-Current Liabilities 6.67 7.35 -9% Long Term Borrowings 5.92 6.61 -11% Current Liabilities 40.51 30.64 32% Short Term Borrowings 27.75 24.59 13% Trade Payables 5.66 0.29 1824% T
Slide 6: Management Commentary
Management Commentary Commenting on the H1FY22 performance, Sanjay Shah, Executive Director, said: “The Company's overall operational and financial performance for the first half of FY22 has been more than satisfactory. The Company recorded great results on all fronts. Revenue from Operations for H1
Slide 7: Inside the Presentation
Inside the Presentation 01 09 ABOUT 02 19 STRATEGIC REVIEW 09 DB GROUP 19 INVESTMENT THESIS 10 SNAPSHOT 20 STRENGTHS AND WEAKNESS 11 MILESTONES 21 BUSINESS CANVAS 12 PRODUCT CATEGORIES 13 INFRASTRUCTURE 14 15 CLIENTS WAREHOUSING CAPABILITIES 03 23 FINANCIAL SUMMARY 23 5 YEAR SUMMARY 16 LEADERSHIP 24
Slide 8: About
ABOUT 09 DB GROUP 10 SNAPSHOT 11 MILESTONES S ART HAK 12 PRODUCT CATEGORIES 13 INFRASTRUCTURE 14 CLIENTS M ET AL S 15 WAREHOUSING CAPABILITIES 16 LEADERSHIP L IM IT ED 17 BOARD OF DIRECTORS
Slide 9: Desraj Bansal Group
Desraj Bansal Group The ~400 crore* Desraj Bansal Group ("DB Group") is a leading business group with interests in the Metals and Energy sector. SARTHAK METALS SARTHAK ENERGY BANSAL DB Group has 5 state-of-the-art fully- LIMITED (P) LIMITED BROTHERS functional manufacturing facilities in Bhilai, Chh
Slide 10: Sarthak Metals Snapshot
Sarthak Metals Snapshot Sarthak Metals Limited ("Sarthak") part of the Desraj Bansal Group is India's leading LEADING ~400 CRORE 10,000 TPA AMONGST THE PART OF THE ~400 CRORE* CAPACITY FOR CORED manufacturer and exporter of Cored LEADING CORED WIRE DB GROUP WIRES Wires and Aluminium Flipping Coils M
Slide 11: Milestones
Milestones 1995 2008 2017 Incorporated in 1995 with an Commenced production of Raised funds through its initial public Cross 200 crores sales benchmark industrial gases unit producing Aluminium flipping coils with its first offer and got listed on BSE SME industrial oxygen and carbon dioxide mill bu
Slide 12: Product Categories
Product Categories Cored Wires Aluminium Flipping Coils • Cored Wires are a product of wire injection technology • Aluminium flipping coils are used in steel manufacturing of steels. They consist of steel tubes (wires) filled with process for de-oxidising of molten steel, and as a various alloys tha
Slide 13: Infrastructure
Infrastructure Capacity Utilization (IN TPA) 1 2 ,0 0 • The Company has two state-of-the-art manufacturing facilities in Bhilai, Chhattisgarh • Strategically located in proximity to many clients 1 0 , 0 • Cumulative ~2,50,000 sq. ft. plot area, with land availability for future expansions 8 ,0 0 • 4
Slide 14: Clients
Clients Domestic Exports SHADEED IRON & STEEL CO. LLC SARTHAK METALS LIMITED | 14
Slide 15: Clients (Contd.)
Clients (Contd.) 20 10 YEAR+ RELATIONSHIPS Customer Profile FABRICATION UNITS 05 5 YEAR+ RELATIONSHIPS STEEL PLANTS 35% TOP 5 CLIENTS SALES CONTRIBUTION ~85% FOUNDRIES REPEAT BUSINESS SARTHAK METALS LIMITED | 15
Slide 16: Warehousing Capabilities
Warehousing Capabilities • Equipped with state-of-the-art warehousing capabilities • Ensuring uninterrupted and reliable supply of metallurgical solution to our clients Cored Wires Aluminium Flipping Coils • 1,500 Sq. Mt. material storage space • 2,800 Sq. Mt. material storage space • Establishing S
Slide 17: Leadership
Leadership Anoop Kumar Bansal Sanjay Shah Mayur Bhatt MANAGING DIRECTOR WHOLE-TIME DIRECTOR WHOLE-TIME DIRECTOR & CEO Mr Bansal has a Bachelors in Commerce degree Mr Shah is a Whole-Time Director and the head of Mr Bhatt is a Whole-Time Director and the Chief from Nagpur, as Managing Director Market
Slide 18: Board of Directors
Board of Directors Mr Sunil Kumar Agarwal Ms Rama Kohli Mr Sunil Dutt Bhatt Mr Dwadasi Venkata Giri CHAIRMAN & NON-EXECUTIVE, NON-EXECUTIVE, INDEPENDENT NON-EXECUTIVE, INDEPENDENT NON-EXECUTIVE, INDEPENDENT NON-INDEPENDENT DIRECTOR WOMAN DIRECTOR DIRECTOR DIRECTOR Mr Agarwal is the Chairman of the M
Slide 19: Strategic Drivers
STRATEGIC DRIVERS 20 INVESTMENT THESIS 21 STRENGTHS AND WEAKNESS 22 BUSINESS CANVAS S ART HAK M ET AL S L T D
Slide 20: Investment Thesis
Investment Thesis Industry tailwinds Expansion – Ramp-up – Cored Export Integration in Healthy financial Aluminum flipping wires opportunities value-chain and performance coils Diversification Indian steel industry The Company is planning Ramping up operations Getting export growth Evaluating opport
Slide 21: Strengths and Weakness
Strengths and Weakness STRENGTHS WEAKNESS • Among the leading players in metallurgical cored wires • Fragmented market • Strategically located facilities • Cyclicality of the steel industry • Strong clientele with India’s leading steel players • Working capital intensive operations • Long standing t
Slide 22: Business Canvas
Business Canvas Key Key Value Customer Customer Partnerships Activities Proposition Relationships Segmentation • Cordial relationships with • Manufacturing • Quality products for • Long standing customer • Steel plants suppliers metallurgical industry as per relations based on trust • Sales & market
Slide 23: Financial Summary
FINANCIAL SUMMARY 24 5-Y SUMMARY 25 P&L SUMMARY 26 BALANCE SHEET SUMMARY 27 CASH FLOW SUMMARY S ART HAK 28 MARKET STATISTICS M ET AL S L T D
Slide 24: 5 Years Summary
5 Years Summary Revenue from Operations Profit After Tax EBITDA & Equity & EBITDA Margins Debt to Equity (₹ IN CRORES) (₹ IN CRORES) (₹ IN CRORES & IN %) 1 8 .0 8 .0 % (₹ IN CRORES & TIMES) 7.0% 0.85 1 6 .0 6 0 0.83 0 .9 6.3% 7 .0 % 6.0% 5.7% 0.71 0 .8 5.2% 1 4 .0 5 0 6 .0 % 0 .7 1 2 .0 5 .0 % 0.58
Slide 25: P&L Summary
P&L Summary PARTICULARS ( ₹ I N C R O R E S ) FY17 FY18 FY19 FY20 FY21 Revenue from Operations 152.18 171.26 189.26 214.17 221.56 Total Income 153.87 172.90 190.83 215.26 222.08 Operating Expenses 143.57 160.95 177.27 202.93 205.96 EBITDA 8.61 10.31 12.00 11.24 15.60 EBITDA % 5.7% 6.0% 6.3% 5.2% 7.0
Slide 26: Balance Sheet Summary
Balance Sheet Summary PARTICULARS ( ₹ I N C R O R E S ) FY17 FY18 FY19 FY20 FY21 Shareholders' Funds 32.68 36.61 42.37 46.17 53.45 Non-Current Liabilities 1.29 2.53 3.25 2.38 7.35 Long Term Borrowings 1.00 2.28 2.75 1.61 6.61 Current Liabilities 28.77 26.00 38.22 27.72 30.64 Short Term Borrowings 26
Slide 27: Cash Flow Summary
Cash Flow Summary PARTICULARS ( ₹ I N C R O R E S ) FY17 FY18 FY19 FY20 FY21 Cash from Operating Activities 4.10 0.04 1.14 17.14 (0.56) Cash from Investing Activities (2.21) (1.52) (6.12) (2.61) (1.32) Cash from Financing Activities 5.50 (5.78) 6.89 (16.79) 4.05 Net Cash Flow 7.39 (7.27) 1.91 (2.26)
Slide 28: Market Statistics
Market Statistics SHAREHOLDING PATTERN Current Market Price ₹91.1 52 Week High/Low ₹99.0 / ₹15.2 30.17% Market Capitalization ₹124.7 Crore Shares Outstanding 1.37 Crore 69.83% BSE Scrip Code 540393 Promoters Public *Shareholding data as of September 2021 Market price data as of 29th October 2021 SAR
Slide 29: Get in touch
Get in touch Anirudh Singhal Pratik Jain Sayam Pokharna Sarthak Metals Limited Sarthak Metals Limited The Investment Lab cfo@sarthakmetals.com cs@sarthakmetals.com sayam@theinvestmentlab.in SAFE HARBOR This document which has been prepared by Sarthak Metals Limited (the “Company”, “Sarthak”), have b