Vardhman Textiles Limited · NSE:VTL
Vardhman Textiles — Vardhman Special Steels — Q4 FY2018 Earnings Presentation
39 slides from Vardhman Textiles's earnings presentation, May 2018
Slide 1: Vardhman Special Steels Limited Investor Presentation
Vardhman Special Steels Limited Investor Presentation May 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection wi
Slide 3: Table of Contents
Table of Contents Company Overview Industry Overview Business Overview Quarterly Financial Highlights Annual Financial Highlights Way Ahead 3
Slide 4: Company Overview
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Slide 5: Company Overview
Company Overview Amongst India’s Leading Steel Bar Reputed and long term customers Producer for Automotive Application Toyota, Hero Moto Corp, Incorporated in May 2010 Caterpillar, Hino Motors, Maruti, Headquartered in Ludhiana, Bajaj and Hyundai, among others Punjab More than 200+ Clients a
Slide 6: Journey So Far
Journey So Far 1973 - Commissioning of Oswal July 2015 – Installed Fume Steels at Faridabad, with initial 2010 - Incorporated as Extraction system for pollution & capacity to produce 50,000 independent identity dust control worth Rs. 12 Crore metric tonnes of special & alloy under Vardhman Gro
Slide 7: Strong & Experienced Board of Directors
Strong & Experienced Board of Directors Mr. Rajeev Gupta – Chairman & Independent Mr. Sachit Jain – Vice Chairman & MD Director B. Tech (Electrical) from IIT, New Delhi, MBA (Gold medallist) from IIM, Ahmedabad and Owner/President Management B. Tech from BHU/IIT, Varanasi and MBA from IIM, Ahmed
Slide 8: Strong & Experienced Board of Directors cont…
Strong & Experienced Board of Directors cont… Mr. Sanjeev Pahwa – Director Mr. Sanjoy Bhattacharyya – Director B. Tech from IIT, Delhi Renowned Industrialist Bachelor of Science (Statistics Honours) and M.B.A. from IIM, Ahmedabad Rich Experience of more than 25 years in bicycle/automobile ty
Slide 9: Industry Overview
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Slide 10: Indian Automobiles Industry
Indian Automobiles Industry India expected to become 4th largest automobile producer globally by 2020 after China, US & Japan. Auto components industry also expected to become 3rd largest in world by 2025 7th largest manufacturer of commercial vehicles Initiatives like ‘Make in India’, ‘Automotive M
Slide 11: Indian Automobiles Industry – Market Overview
Indian Automobiles Industry – Market Overview Number of automobiles produced in India (in Two-wheelers and passenger vehicles dominate Indian auto market - millions) Sales of two-wheelers are expected to grow 8-10% in FY18 24 25 Sales of top five passenger vehicle manufacturers in India increase
Slide 12: Advantage India
Advantage India Domestic sales of passenger vehicles expected to increase at CAGR of Government aims to build India 12.87 % between 2016-26 into global R&D hub Strong growth in demand - rising Innovation - likely to intensify income, middle class and young among engine technology & populatio
Slide 13: Business Overview
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Slide 14: Wide Range of Sizes for Rolled Products
Wide Range of Sizes for Rolled Products Hot Rolled Bars Bright Bars Diameter Size : Increased from 25-70 Size : 14.66 to 78 mm (Peeled), 21.35 to MM in 2012 to 16-120 MM in 2017-18 50 mm (Drawn) 14
Slide 15: With State-of-the-art manufacturing facilities
With State-of-the-art manufacturing facilities Steel Melting Shop Rolling Mill Bright Bars Annual Capacity : 2,00,000 MT Annual Capacity : 1,80,000 MT Annual Capacity : 36,000 MT 30 MT Ultra High Power (UHP) Eccentric High Rolling Mill installed in 2013 Bar Peeling & Centreless Grinding
Slide 16: Process Flow
9 VARDHMAN SPECIAL STEELS LTD. Process Flow — ‘Sponge, ORI, PIG IRON, Shredded Scrap t Se all => ENnOtts Domestic Shipment we ) Final Inspection and Dispatch Bright Bar Shop 1 5 30 TON ELECTRIC ARC FURNACE Spherodize Annealing Vaccum Degassing Unit —_Laddle Refining Unit = Continous Casting Facility
Slide 17: Steel Melting Shop
Steel Melting Shop Electric Arc Furnace Ladle Refining Furnace Continuous Casting Machine Vacuum Degassing 17
Slide 18: Rolling Mill & Bright Bars
Rolling Mill & Bright Bars Rolling Mill Bright Bar Shop Reheating Furnace Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop 18
Slide 19: Automatic Line of Bar Inspection - NDT Line
Automatic Line of Bar Inspection - NDT Line MFLT Acceptance Criteria: Chamfering 0.2x10mm Bar ends free from Straightening Burr Straightness : 2mm / meter UST Acceptance Criteria: SDH - Shot Blasting 0.8x10mm, FBH - 0.8 & 1.2mm 19
Slide 20: With best in class R&D Facility
With best in class R&D Facility Spectrometer : ARL 4460:1454 for Chemical Analysis. It can check 32 different elements CS - 230 : Analyzer for Carbon & Sulfur content in steel LECO gas analyzer – TC 600 H2, N2, O2 Analyzer Mobile Spectro and XRF for Mix up Testing of Bars Mechanical and Me
Slide 21: Strategically located Warehousing Facilities
Strategically located Warehousing Facilities One Owned Warehouse Bilaspur Bilaspur Haryana Rudrapur Five Leased Warehouses in India Bangalore Chennai Aurangabad Rudrapur Pune Pune Aurangabad Bangalore Chennai 21
Slide 22: Key Strengths
Key Strengths State of Art Manufacturing Facilities and advanced R&D Capabilities Well equipped with latest upgraded Technology Machines 01 Diversified Product offerings Manufactures diverse range of products with wide applications across sectors Further expanding product offerings to increase
Slide 23: Strong Global Customer Base
Strong Global Customer Base Russia Germany Spain USA Turkey Taiwan Thailand 23
Slide 24: Reputed & long term customers
Reputed & long term customers Cars Two wheelers HCL/LCV Auto Components Tractor Automotive Off Highway Over 200 Clients across different sectors 24
Slide 25: Quality Certifications
Quality Certifications ISO 9001 : 2008 ISO 14001 : 2004 ISO/TS 16949:2009 OHSAS 18001 : 2007 (non-accr.) India's Best Companies To Work For 2012 25
Slide 26: Quarterly Financial Highlights
Quarterly Financial Highlights
Slide 27: Quarterly Financial Highlights – Q4 FY18
Quarterly Financial Highlights – Q4 FY18 33.68% 19.94% Revenue EBITDA** Rs. 231.36 cr Rs. 17.20 cr 52.43% 11.40% PAT EPS Rs. 7.21 cr Rs. 2.15 vs. Rs. 1.93* Q4 FY17 *Re-instated EPS w.r.t. Right Issue **EBITDA is excluding Other Income During FY18 Company raised Rs. 68 cr through Rights Issue and Rs.
Slide 28: Quarterly Highlights – Q4 FY18
Quarterly Highlights – Q4 FY18 Net Revenue (Rs. Crore) 218.42 231.36 202.12 207.06 173.07 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 EBITDA* (Rs. Crore) PAT (Rs. Crore) 20 10.00% 12.00 5.00% 8.65% 4.37% 18 8.29% 7.43% 9.00% 4.50% 10.00 16 7.01% 8.00% 4.00% 18.9 14 7.00% 9.54 3.12% 3.50% 14.5 17.2 8.00
Slide 29: Quarterly Profitability Highlights – Q4 FY18
Quarterly Profitability Highlights – Q4 FY18 INR Crore Q4 FY18 Q4 FY17 Y-o-Y % Q3 FY18 Q-o-Q% Income from Operations 231.36 193.60 218.42 Excise Duty 0.00 20.53 0.00 Net Sales 231.36 173.07 33.68% 218.42 5.92% Cost of Materials Consumed 147.63 97.20 123.61 Changes In Inventory (20.44) (6.71) (9.25)
Slide 30: Annual Financial Highlights
Annual Financial Highlights
Slide 31: Annual Financial Highlights – FY18
Annual Financial Highlights – FY18 27.48% 3.47% Revenue EBTIDA** Rs. 858.96 cr Rs. 61.93 cr 30.72% 1.03% PAT EPS Rs. 25.04 cr Rs. 7.88 vs. Rs. 7.80* FY17 *Re-instated EPS w.r.t. Right Issue; **EBITDA is excluding Other Income During FY18 Company raised Rs. 68 cr through Rights Issue and Rs. 50 cr th
Slide 32: Annual Financial Highlights – FY18
Annual Financial Highlights – FY18 Volume (MT) Net Revenue (Rs. Crs) 152,102.00 858.96 131,636.00 656.34 652.74 673.81 116,401.00 121,303.00 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 EBITDA* (Rs. Crs) / Margin (%) PAT (Rs. Crs) / Margin (%) 70 8.88% 10% 7.21% 30 4% 9% 2.84% 2.91% 60 25 8% 3% 59.84 20
Slide 33: Revenue Break up – FY18
Revenue Break up – FY18 Geography Wise Sector wise CommercialEnginee Vehicles, 16% ring & Off. Highway , 14% Exports, Domestic, Two Bearings, 5.0% 95.0% Wheeler, 4% 32% Passenger Vehicles, 34% 33
Slide 34: Annual Financial Highlights – FY18
Annual Financial Highlights – FY18 INR Crore FY18 FY17 Y-o-Y % Income from Operations 877.89 753.13 Excise Duty 18.93 79.32 Net Sales 858.96 673.81 27.48% Cost of Materials Consumed 488.90 364.22 Changes In Inventory (19.22) (11.65) Employee Expenses 46.73 39.80 Power & Fuel 127.81 109.48 Other Expe
Slide 35: Annual Balance sheet Highlights – FY18
Annual Balance sheet Highlights – FY18 ROA (%) RoCE (%) 11.66% 11.07% 3.13% 3.70% 8.30% 0.69% 2.29% FY15 FY16 FY17 FY18* -2.46% FY15 FY16 FY17 FY18* RoE (%) Total Debt to Equity 9.67% 2.06 7.38% 1.88 1.60 2.35% 0.67 FY15 FY16 FY17 FY18* -8.91% FY15 FY16 FY17 FY18* * During FY18 Company raised Rs. 68
Slide 36: Balance Sheet as on 31st March
Balance Sheet as on 31st March INR Crore Mar’18 Mar’17 INR Crore Mar’18 Mar’17 Equity* 339.32 198.08 Non Current Assets 278.83 277.60 Equity Share Capital 35.70 18.56 Property Plant & Equipment 249.27 264.18 Other Equity 303.62 179.53 Capital work in progress 6.99 1.11 Non-current liabilities 102.33
Slide 37: Way Ahead
Way Ahead
Slide 38: Way Ahead
Way Ahead Capacity Expansion Increase melting capacity to 2,40,000 MT and Rolling Capacity to 2,20,000 MT over next 3 years - expected capex of approx. Rs. 200 Cr. Target of achieving full capacity utilization soon after completing capex Joint Venture & Acquisition Looking for Joint venture op
Slide 39: Thank You
Thank You 534392 VSSL VSSL IN VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt. Ltd. CIN:L27100PB2010PLC033930 CIN: U74900MH2016PTC273679 Mr. Sanjeev Singla Mr. Amit Sharma sanjeevsingla@vardhman.co
Vardhman Special Steels — Q4 FY2018 Earnings Presentation on 6ix