Steel Strips Wheels Ltd · NSE:SSWL
Steel Strips Wheels — Investor Presentation (July 2024)
31 slides from Steel Strips Wheels's investor presentation, Jul 23, 2024
Slide 1: Cover letter to stock exchanges under Regulation 30
STEEL STRIPS WHEELS LTD. CIN : L271 07P81 985PLC0061 59 Head Office : 150/T516949 Certified SCO 49-50, Sector 26, STEEL STFIPS GROUP Madhya Marg, Chandigarh 160 019 (lNDlA) Tel : +91 172-2793112, 2790979, 2792385 Fax : +91 172-2794834 I 2790887 Website : www.sswlindia.com Date: 23,07.2024 BSE Limite
Slide 2: Steel Strips Wheels Limited Investor Presentation July 2024
STEEL STRIPS WHEELS LIMITED Delivering Value; Seeking Excellence Investor Presentation July 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Steel Strips Wheels Limited (the “Company”), have bee n prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Company Overview
Cee Strips Wheels Limited Company Overview
Slide 5: Company Overview
Company Overview SSWL is a leader in designing & manufacturing Automotive wheels – both Steel & Alloy Wheels category SSWL aspires to be the Preferred Global Brand of Wheel Solution provider committed to excellence Wheel Plants Strategic Partnerships - 5 Operations Founded Excellence Operational For
Slide 6: Our Journey
Our Journey Commencement of First Steel Wheels Commercial Production at Dappar Plant, Punjab 1991 Start of 2W & Tractor Wheels Production 2002 Start of LCV Wheels Commercial Production 2006 Start of Commercial Production for Exports Market by supplies of PV to PSA 2007 Peugeot Citroen, France & HCV
Slide 7: Strategic Partnerships
Strategic Partnerships • Tata Steel Limited (through its then wholly -owned subsidiary Company namely Kalimati Investment Company Ltd, which has now merged with Tata Steel Ltd) had TATA Steel Limited, India entered into a Strategic Alliance Agreement in January 2008 with SSWL • Through this relation
Slide 8: Our Products
Our Products I n c l . E xp o r t s Steel Wheels – Rs. 732 crores (~71%) (Q1 FY25 Revenues) Competitive Pricing Suitability Quick Maintenance Robust Wheel More flexible, absorbs Competitively priced; Requires nothing more Steel Wheels are robust, more shock, thus suitable have higher acceptance in t
Slide 9: Product Capacities & Utilization
Product Capacities & Utilization 73% 77% 72% 78% 75% 65% • Phased addition of 70 STEEL WHEELS lakh steel wheel operational capacity • Resolution plan 270 successfully 186 186 205 205 205 205 implemented in January 2024 by payment of ~Rs 138.15 Crs. (Rs. 5 Crs. FY20 FY21 FY22 FY23 FY24 Q1 FY25 FY25E
Slide 10: State-of-the-Art Facilities
State-of-the-Art Facilities Wheel Capac ity (Mn) Catering to PV, MUV, Dappar, Punjab 10.8 Tractor & OTR Corporate Office, Chandigarh Dappar, Punjab 6+1.5 Chennai, Tamil Nadu PV & CV 7.5 Bhuj, Gujarat* Jamshedpur, Jharkhand 2.2 HCV / LCV Jamshedpur, Jharkhand Mehsana, Gujarat Saraikela, Jharkhand HCV
Slide 11: Clientele
Clientele 10 T h e B r a n d Na m e s a n d L o g o s m e n t i o n e d a r e t h e p r o p e r t y o f t h e i r r e s p e c t i v e o w n e r s a n d a r e u s e d h e r e f o r i d e n t i f i c a t i o n p u r p o s e s o n l y .
Slide 12: Steel Wheels
Steel Wheels Domestic Market Share Key Customers Key Platforms Share of Business Maruti Suzuki Ciaz, Baleno, Scross, Brezza, Celerio 35% S t e e l W h e e l S a l e s Vo l u m e 37% Hyundai Mahindra Honda MG Motors Venue, Grandi10, Verna KUV, TUV, XUV Elevate, Amaze, City Hector, Comet 31% 56% 97% 1
Slide 13: Export Profile
Export Profile Exports Revenue (Rs. Crs.) FY24 FY25 Russia -20% UK Germany Poland 154 Canada Netherlands Slovakia 123 USA France Romania Japan Austria Hungary Spain S Korea Italy Morocco Q1 Egypt U.A.E. Thailand Region Wise Export Revenue Colombia Contribution % Brazil 74% 71% 64% 53% 56% Argentina
Slide 14: Growth Drivers
Cee Strips Wheels Limited Growth Drivers
Slide 15: Growth Drivers
Growth Drivers Sales Mix Shift Shift of Sales Mix towards High Margin Accretive Segments – Alloy Wheel & Exports Operations Optimization Development of Robotic Automated Operation process for Operating Cost Rationalization Foray into EV Segment Exploring various avenues to foray into EV Segment Indu
Slide 16: Shift of Sales Mix to High Margin Alloy Wheels Segment
Shift of Sales Mix to High Margin Alloy Wheels Segment I n c r e a s e d Vo l u m e s f r o m A l l o y W h e e l S a l e s Leading to Increased Contribution to Sales (in Lakh Units) I n c l . E xp o r t s 30 Volume Contribution to Total Sales Volume 28 Value Contribution to Total Sales Contribution
Slide 17: Shift of Sales Mix to High Margin Exports Segment
Shift of Sales Mix to High Margin Exports Segment I n c r e a s e d Vo l u m e s f r o m E x p o r t s Increased Revenues from Exports (in Lakh Units) (Rs. Crs.) Q1 FY25 Alloy Wheel Volume Q1 FY25 Alloy Wheel Revenue 0.38 Lakhs unit Rs. 15.2 Crs. 55 829 634 37 31 23 294 270 15 222 7 123 FY20 FY21 FY
Slide 18: Balance Sheet KPIs
Balance Sheet KPIs Cash Accruals (Rs. in Crs.) Long Term Debt (Rs. in Crs.) RoCE RoE Due to Incremental Capex 310 544 548 22.9% 282 274 487 25.9% 24.0% 17.9% 374 20.3% 17.0% 122 222 10.7% 95 8.7% 7.1% 3.6% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 19: Dividend Payout History
Dividend Payout History Dividend 15 % 15 % 20 % 30 % 30 % 40 % 40 % 0% 20 % 75 % 100 % 100 % Declared % 15.7 15.7 11.7 6.2 6.2 4.7 4.7 Dividend 3.1 3.1 Paid (Rs in Cr) 2.3 2.3 0.0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 ^ FY21 FY22 FY23 FY24 C o n s i ste nt D i v i d e n d p a i d b y t h e C o m p
Slide 20: Q1 FY25 Financials
Cee Strips Wheels Limited Q1 FY25 Financials
Slide 21: Q1 FY25 Financial Performance Snapshot
Q1 FY25 Financial Performance Snapshot Revenues from EBITDA (Rs. Crs.) & PAT (Rs. Crs.) & Volumes Revenue Mix operations (Rs. Crs.) EBITDA Margins % PAT Margins % (in Lakh units) 10.8 % 11.1 % 4.6 % 4.5 % Alloy Wheel Steel Wheel -1.8% +0.9% -2.9% -1% 1,044 1,025 113 114 48 46.3 45.9 46 7.2 7.3 28.2%
Slide 22: Profit & Loss
Profit & Loss Particulars (Rs. in Crs) Q1 FY25 Q1 FY24 Y-o-Y FY24 Revenue from Operations 1,025.3 1,044.4 -2% 4,357.1 Cost of Materials Consumed 649.0 688.4 2,854.3 Changes in Inventory 15.1 -13.5 -18.3 Gross Profit 361.2 369.6 -2% 1,521.0 Gross Profit Margin 35.2% 35.4% 34.9% Employee Cost 90.2 88.
Slide 23: Performance Ratios
Performance Ratios Return on Equity (RoE) Return on Capital Employed (RoCE) Fixed Asset Turnover Ratio Increased from 13% in FY19 to 17% Increased from 15% in FY19 to 20% Improved from 1.5 in FY19 to 3.0 in FY24 in FY24 in FY24 23% 26% 3.0 3.0 24% 2.6 18% 17% 20% 13 15 1.5 1.4 11% 1.2 7% 9% 4% FY19
Slide 24: Historical Financials
Cee Strips Wheels Limited Historical Financials
Slide 25: Historical Profit and Loss
Historical Profit and Loss Profit and Loss (Rs in Crs) FY24 FY23 FY22 FY21 FY20 Revenue from Operations 4,357.1 4,040.5 3,560.0 1,749.4 1,563.3 Cost of Materials Consumed 2,854.3 2,688.3 2,221.6 1,082.4 973.3 Changes in Inventory -18.3 -24.7 -34.5 16.7 -7.1 Gross Profit 1,521.0 1,376.9 1,372.8 650.3
Slide 26: Balance Sheet
Balance Sheet Assets (Rs. in Crs) FY24 FY23 FY22 FY21 FY20 Equity & Liabilities (Rs. in Crs) FY24 FY23 FY22 FY21 FY20 Non - Current Assets 1,919.4 1,603.1 1,497.0 1,425.9 1,412.8 Total Equity 1345.7 1,134.7 951.8 749.3 698.0 Share Capital 15.7 15.7 15.6 15.6 15.6 Property Plant & Equipments 1,454.8
Slide 27: Cash Flow - Snapshot
Cash Flow - Snapshot Particulars (Rs. in Crs) FY24 FY23 FY22 FY21 FY20 Net Profit Before Tax 288.6 291.2 300.9 63.9 32.3 Adjustments for: Non -Cash Items / Other Investment or Financial Items 183.1 152.1 150.9 144.5 152.3 Operating profit before working capital changes 471.7 443.4 451.8 208.4 184.7
Slide 28: CSR & Awards
Cee Strips Wheels Limited CSR & Awards
Slide 29: CSR
CSR Promotion of Education by strengthening government schools & helping poor students by providing Financial Assistance & providing access to education to Orphan Children who lost their parents due to Covid -19 Providing help to the Mentally Strengthening Community Health Challenged Children in get
Slide 30: Awards
ny Awards Gus Strips Wheels Limited 7 a2 CERTIFICATE OF PARTICIPATION —
Slide 31: Thank You
Steel Strips Wheels Limited THANK YOU Company: Steel Strips Wheels Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L2710PB1985PLC006159 CIN: U74140MH2010PTC204285 Mr. Naveen Sorot (CFO)/ Mr. Mohan Joshi (ED) Mr. Deven Dhruva / Mr. Deep Hemani info@sswlindia.com deven.dhruva@sgapl.ne
Steel Strips Wheels — Investor Presentation (July 2024) on 6ix