Arfin India Ltd · NSE:ARFIN
Arfin India — Investor Presentation (June 2018)
26 slides from Arfin India's investor presentation, June 2018
Slide 1: Arfin India Limited Corporate Presentation
Arfin India Limited Corporate Presentation June, 2018
Slide 2: Safe Harbour
Safe Harbour This presentation has been prepared by Arfin India Limited (the “Company”) based upon information available in the public domain solely for information purposes without regard to any specific objectives, financial situations or informational needs of any particular person. This presenta
Slide 3: About Arfin India Limited
About Arfin India Limited
Slide 4: Company Overview
About Arfin India Limited Company Overview Arfin India Limited (“Arfin”) forayed into aluminium products manufacturing in Financial Performance (INR Million) the year 2012 Particulars FY16 FY17 FY18 Emerged as one of the largest players in the non ferrous metal products segment in Net Revenue 2,728.
Slide 5: Management team with vast industry experience
Management team with vast industry experience A Science graduate from Gujarat University, Mahendra R. Shah’s leadership has led Arfin’s emergence as India’s leading aluminium products company Chairman of Gujarat Chapter of Non Ferrous Metals by All India MSME Association [AIMA MSME] and has recently
Slide 6: Awards Received by Arfin
Awards Received by Arfin “Best Performing Company – WnfA” Ranked at 602nd position among 1000 fastest growing companies in Asia Pacific. AIL was selected from 10 million Companies of 11 countries of Asia Pacific region. Arfin India Limited has been Awarded as India’s Best Company of the Year for 201
Slide 7: Financial Highlights
Financial Highlights 25.1% 64.3% 70.2% 69.2% Revenue CAGR EBITDA CAGR PBT CAGR PAT CAGR FY14 - FY18 FY14 - FY18 FY14 - FY18 FY14 - FY18 FY16 FY17 FY18 Revenue Growth Revenue Growth Revenue Growth 9% FY16 v/s FY15 26% FY17 v/s FY16 36% FY18 v/s FY17 Growth in EBITDA Growth in EBITDA Growth in EBITDA
Slide 8: Manufacturing Facilities
Manufacturing Facilities Unit 1 Unit 2 Unit 3 Unit 4 & 5 Area 16,000 sq. yards 8,148 sq. yards 17,000 sq. yards 2,560 sq. yards (Unit No.4) 1,587 sq. yards (Unit No.5) - Aluminium Wire Rod - Conductors and - Aluminium Alloy Ingots - Aluminium Deox Product - Master and Ferro Alloy Cables - Automobile
Slide 9: Delivering strong performance with multiple growth drivers
Delivering strong performance with multiple growth drivers Strong traction visible in existing product portfolio Robust demand necessitates capacity expansion in existing products Incremental growth targeted by addition of new products Track Record of Successfully Launching New Products Developed st
Slide 10: Strong traction visible in existing product portfolio
Strong traction visible in existing product portfolio Aluminium Products Capacity Utilization Clients Applications Deoxidize the steel and to Wire Rod complete the steel 15,000 MT 54.4% manufacturing process and also for captive use in the conductor and cables business Deoxidize the steel and to Deo
Slide 11: Robust demand necessitates capacity expansion in existing products
Robust demand necessitates capacity expansion in existing products Aluminium Wire Rod Aluminium Alloy Ingots 15,000 MT 20,000 MT 6,000 MT 18,000 MT (FY19) (FY20) Capex of INR 50 mn Capex of INR 100 mn Plans to expand aluminium alloy wire rod production facilities Plans to expand aluminium alloy ingo
Slide 12: Incremental growth targeted by addition of new products
Incremental growth targeted by addition of new products New Additions Automotive Components Manufactures aluminium castings which are used in the engines, radiators and various other components of this segment Top Brackets for Centrifugal Pumps Master & Ferro Alloys Conductor and Cables Master Alloy
Slide 13: Track Record of Successfully Launching New Products
Track Record of Successfully Launching New Products Forayed into manufacturing of aluminium products- Commenced commercial Aluminium wire rod, production of conductors and aluminium deox and auto Started the production of cables in Q3FY18. Also added components. alloy ingots new capacity for wire ro
Slide 14: Developed strong relationships with marquee clients
Developed strong relationships with marquee clients Steel Power Automotive 14
Slide 15: Financial Performance
Financial Performance
Slide 16: Sales Mix
Sales Mix Diversified Product Portfolio Product-wise volume 8% 2% Aluminium Wire Rod 7% Aluminium Wire Rod 2% 28% 2% 2% 29% Aluminium Deox Aluminium Deox 6% 5% Aluminium Alloy Aluminium Alloy Ingots Ingots Aluminium Cored Cored Wire 16% Wires 19% Master Alloys Cables & Conductor Cables & Conductor M
Slide 17: Consistent Improvement in Financial Performance
Consistent Improvement in Financial Performance Consistent Revenue Growth (INR mn) Strong Returns 31% 32% 33% 32% 4661 28% CAGR 25.1% 3868 29% 30% 26% 26% 2499 2729 1904 16% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 ROE ROCE Improving Margin Profile Rationalizing Capital Structure 2.6 1.9 1.
Slide 18: Financials
Financials Balance Sheet (INR Mn) FY16 FY17 FY18 Income Statement (INR Mn) FY16 FY17 FY18 Share Capital 30 41 132 Revenue from Operations (Net) 2,729 3,438 4,661 Reserves & Surplus 208 508 694 COGS 2,372 2,854 3,761 Net worth 238 549 826 % of sales 86.9 83.0 81 Long Term Borrowings 109 46 110 Employ
Slide 19: Quarter Results
Quarter Results Revenue (INR Mn) Income Statement (INR Mn) Q3FY18 Q4FY17 Q4FY18 Revenue from Operations (Net) 1,193.1 902.7 1,447.2 60% Growth 1,447 COGS 941.2 725.1 1,145.9 903 78.9 80.3 79.1 % of sales Employee expenses 16.5 17.6 19.2 % of sales 1.4 1.9 1.3 Q4FY17 Q4FY18 Other Expenses 106.1 77.6
Slide 20: Industry
Industry
Slide 21: Aluminium Industry Overview
Aluminium Industry Overview Aluminium Industry Overview LME Aluminium Prices (USD/MT) India is amongst the lowest cost producers of aluminium across the world owing to easy availability and ranks 4th in terms of primary aluminium production 2,200 Over the next 5 years, expect overall aluminium deman
Slide 22: Aluminium Recycling Industry Overview
Aluminium Recycling Industry Overview Indian Aluminium Recycling Industry Aluminium is 100% recyclable and the process is less capital intensive than primary metal production as the process requires only 5% of energy 3.3 MN MTPA Total Aluminium At present, in India, all the activity related to alumi
Slide 23: Strong Growth of Steel Industry to ensure sustained demand for Arfin
Strong Growth of Steel Industry to ensure sustained demand for Arfin Indian steel demand growth cycle is upticking 21.3 Indian steel consumption growth (%) 14.4 13.9 13.4 12.9 11.9 11.4 9.8 8.7 8.4 8.1 7.8 7.6 7.5 9 6.9 6.6 8 8 5.9 7 4.9 4.1 3.9 3.8 3.5 3.2 5 2.6 2.2 4 0.8 0.4 FY19E FY21E FY23E FY25
Slide 24: Power Transmission Industry Overview
Power Transmission Industry Overview Industry Overview Planned Capex All India Installed Capacity (MW) as on 31-12-2017 No. of Transmission Lines ~ USD 640 Bn Proposed Global Spend 62,186 915 ~ INR 98,000 Cr 85,550 1,304 Proposed Spend by State transmission utilities 58,181 11,711 197 71,223 3,394 6
Slide 25: Auto Components Industry Overview
Auto Components Industry Overview Favorable Industry Dynamics: Indian auto comps to grow threefold by CY21 Over the last decade, the automotive components industry has registered a CAGR of 14 per cent and has scaled three times to US$ 43.5 billion in 2016-17 while exports have grown to US$ 11 bill
Slide 26: Thank You !
Thank You ! For Further Queries Please Contact : Mr. Vijay Lathi Chief Financial Officer Email id – vijay.lathi@arfin.co.in