Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q3 FY19 Earnings Presentation
35 slides from Vardhman Special Steels's earnings presentation, Feb 12, 2019
Slide 1: Regulation 30 compliance cover letter to stock exchanges
VARDHMAN SPECIAL STEELS LlMiTED CHANDIGARH ROAD Vamhmm Delivering Excellence. Since l965. LUDHIANA-HIGH), PUNjAB T: +9l~l6l—2228943-48 F: +9l—l6l—260l048, 22226l6, 260l040 E: secretarial.lud@vardhman.com Ref. vssuscv: FEB: zoIS-Iq Qajgdj-il-QZJMQ The National Stock Exchange of india Ltd, The Deputy
Slide 2: Vardhman Special Steels Limited Investors & Analysts Meet Presentation
3“ VARDHMAM SPECiAL S'EELS CD ' Vardhman Special Steels Limited Investors & Analysts Meet Presentation 11th February 2019
Slide 3: Disclaimer
DiSCIaimer a mmmmsmastm This presentatian has been prepared by Vardhman Special Steels Limited (the ”Campany”) salely far infarmatian purpases and daes nat canstitute any affer, recammendatian ar invitatian ta purchase ar subscribe far any securities, and shall natfarm the basis ar be relied an in c
Slide 4: Table of Contents
Table of Contents (0‘ VARDHMAN SPECIAL STEES LTD‘ 0-6-0 ‘7 . . CompanyOverview “A . Business Overview . . Financial Highlights . . Way Ahead
Slide 5: About Us
AbOUt U5 (0‘ VARDHMANSPECIALST‘EHSLTD Amongst India's Leading Steel Bar Producers for Automotive State-of- art Applications manufacturing facilities I Billets — 2.00.000 TPA I Rolled Bars — 1.80.000 Specialized Product offerings ...... TPA — Steel bars & rods I Bright Bars — 36.000 TPA 200+ Reputed
Slide 6: Journey So Far
Journey So Far... Q VARDHMAN SPECIAL SEE LTD What We were... m V I April 2017 7 Rights Issue of Rs 67.85 Cr. 1973 7 Started as Oswal I Oct. 2017 7 Purchased ~8 acres of Steels I July 2015 7 Installed 7 50.000 TPA . adjoining land for Rs. 36 Cr. Fume Extraction system capacity of special & alloy I Fe
Slide 7: Clear focus on long term value creation
...Clear focus on long term Value Creation Q vmmmmmm Jan — Dec Rs. 1 109 ‘ 1,65,768 2,00,000 1,80,000 ‘ 0. 81* 2018 C’mre Tons TPA TPA Listed on Stock 1 I I ‘ Exchange ‘ ~_~~ ' " _______ _’ “5- 527 Crore | 93,169 1,00,000 80,400 ‘ 1 28 ' Tons TPA TPA 2012 Revenue Sales Installed Installed Debt to Vo
Slide 8: Strong Experienced Board of Directors
Strong Experienced Board of Directors Q | VARDHMAN SPECIAL STEELE LTD 0-9-0 Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Independent Director Vice Chairman & MD I B. Tech from BHU/IIT. Varanasi and MBA (IIM. I B. Tech (Electrical) » IIT. New Delhi. MBA (Gold Ahmedabad) medallist) IIM. Ahmedabad and O
Slide 9: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... 0 0-6-0 mnmmnmml ' Mr. B.K. Choudhary Mr. Rakesh Jain Non-Executive Director Independent Director I Degree in B.Sc.. M.Com & MBA Ph.d in Polymers from the University ofAkron I Rich experience of more than 44 years in Steel Worked in the Advanced Technol
Slide 10: Wide Range of Rolled & Bright Bars Products
Wide Range of Rolled & Bright Bars Products . W | Hot Rolled Bars Bright Bars
Slide 11: Diverse applications of our products
Diverse applications of our products VMDHIMNSPECMLSTESLTR | Axle Gears IfDrive-Shaft Knuckle Spindle Bearings Connecting Rod Axle Shaft Center Velocity Joint Steering-Yoke Differential Gears >—-l| 0
Slide 12: State-of-art Manufacturing facilities
State-of-art Manufacturing facilities... Q V wwwwspmsmmI , , Rolling Mill Capacity: 2.00.000 TPA Capacity: 1.80.000 TPA Capacity: 36.000 TPA
Slide 13: With In-House Steel Melting Shop
...With ln-House Steel Melting Shop Q vmuumuspscmmsuu V ' o—e—o ‘ Ladle Refining Furnace
Slide 14: And best in class R&D Facility
...And best in class R&D Facility 0-9-0 Spectrometer: ARL 4460:1454 for Chemical Analysis can - check 32 different elements CS 230 : Analyzer for Carbon - - & Sulfur content in steel LECO gas analyzer— TC 600 Hz, N2, 02 Analyzer Mechanical and Metallurgical Testing Lab Metallurgical Microscope with
Slide 15: Warehouses
0-9-0 I One Owned Warehouse E I Bilaspur Haryana I Five Leased Warehouses in I India I Bangalore I Chennai I Rudrapur I Pune _ I Aurangabad _ '. ............................................. a- 14
Slide 16: 200+ Reputed & Long term customers
200+ Reputed & Long term customers.... (0‘ vmmmnmml Two Wheelers HCL/LCVs ’ MARU'I'I OYAMAHA TOYOTA HYIJI'IDFII H: SUZUKI Mama/aw Hero BAJAJ TATA ASHDK LEYLAND smanal mazna “Emuu JOHN DEERE TAFE g Q) I‘I'Iall indra 15
Slide 17: Across a Strong Global Customer Base
Across a Strong Global Customer Base Q vmmmm 0-9-0 ‘7 Amuma’nmm _____________________________________________________________ I [ 9M FY19 Export contributes } 16
Slide 18: I! :s m :s 2.L’ I an :r 072' :r P'- In
I! :s m :s 2.L’ I an :r 072' :r P'- In
Slide 19: Quarterly Financial Highlights
Quarterly Financial Highlights (.5 mnwmnmm 0-9-0 ‘7 «may, Sales Volumes (MT) Revenue from Operations (Rs. Crore) 312.52 42:469 43'2“ 295.49 41,586 38,275 38,455 269.50 231.36 218.42 * Q3 FY18 Q4 FY18 ||| ||| Q1 FY19 Q2 FY19 Includes sale of raw material and traded goods Q3 FY19 l Q3 FY18 l Q4 FY18 l
Slide 20: Quarterly Financial Highlights
Quarterly Financial Highlights 60 mmmcmmm 0-9-0 ‘7 may.” EBITDA (Rs. Crore)# PAT (Rs. Crore) . 22.38 9.54 19.88 19_49 1952 9.03 16.55 7-21 7.07 6.21 i |||| Q3 FY18 i Q4 FY18 #EBITDA is including other Income i Q1 FY19 i Q2 FY19 i Q3 FY19 i - i Q3 FY18 i I II Q4 FY18 i Q1 FY19 i Q2 FY19 i Q3 FY19 ‘ 1
Slide 21: Financial Highlights 9M FY19 vs 9M FY18
Financial Highlights 9M FY19 vs 9M FY18 e] mnmmnmml — ' ' 0-6-0 12% 40% 21% Volume (MT) Revenue from Operations* EBITDA# 1,27,313 MT Rs. 877.51 crore Rs. 58.54 crore 25% 6% PAT Basic EPS Rs. 22.36 crore Rs. 6.26 vs. Rs. 5.93 9M FY18 ° Increase in Revenue mainly on account of increase in sales volume
Slide 22: Revenue Break up - Sector Wise
Revenue Break up — Sector Wise G W” “WWW”, m V “w v, FY18 9M FY19 Two Two Commerc Wheelers Wheelers, Commerc , 32% 32% ial Vehicles, 20% Bea rings, 4% Passeng Vehicles, Vehicles, 34% 43%
Slide 23: Financial Highlights
FinanCial Highlights (6‘ vmnmmspscmsrmsm ‘7 “(WW r. Volume (MT) Revenue from Operations (Rs. Crore) 1,108.87 1,65,768 1,52,162 858.96 1,31,636 1,16,401 1,21,451 656.34 652.74 673-81 FY15 FY16 I FY17 FY18 Jan - Dec ‘ I III FY15 ‘ FY16 ‘ FY17 ‘ FY18 ‘ Jan 2018 - Dec 2018 22
Slide 24: Financial Highlights
FinanCial Highlights (0‘ vmummspscmsmsm ‘7 “(WW r, EBITDA (Rs. Crore)# PAT (Rs. Crore) 78.03 29.57 68.03 25.03 65.49 19.15 I 44.26 4.22 18.97 FY16 FY17 FY18 Jan - Dec I 2018 ‘ ‘ ‘ ‘ -15.12 FY15 FY16 FY17 FY18 Jan - Dec 2018 23 ”EBITDA is including other Income
Slide 25: Annual Balance sheet Highlights
Annual Balance sheet Highlights FY15 to 18 e] — mummmmm RoCE (%1 12-75% 12.16% 8.81% 3.80‘V FY15 FY16 FY17 FY18* RoE |%)_ Net Debt to Eguity 1-98 1.82 9.67% 159 738% W5 ‘ ‘ ‘ F FY16 FY17 FY18* FY15 FY16 FY17 FY18* 3.91% * During FY18 Company raised Rs. 58 a through Rights Issue and Rs. 50 c: tnmugn
Slide 26: Investing in Our Real Assets
Investing in Our Real Assets Program Q7 Vardhman Leadershipis” Development zo‘mum an Plaza mm.“ m 20V) CCL - US based Organisation — I Training programs— I Newlnitiative undertaken offers leadership programs . . . . L::::::;::t::::a:l,_sklll Formalized I across 160 countries, FT top10 trainingprogra
Slide 27: Way Ahead
Slide 28: Way Ahead
Way Ahead Q vmwmspscmswasun m V l Capacity Expansion I Increase melting capacity to 2,40,000 TPA and Rolling Capacity to 2,20,000 TPA by FY21— expected capex of approx. Rs. 200 Cr. I Target of achieving full capacity utilization soon after completing capex Joint Venture & Technical Alliance I In dow
Slide 29: Thank You
Thank You 63 VARDHMAN SPECIAL STEELS LTD‘ 0+0 ‘7 SSE 534392 ' NSE VSSL Blootnborg vss|_|N ..UT..5... VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt. Ltd. CIN:L27100PB2010PLC033930 CIN: U74900MH201
Slide 30: Annexures
Slide 31: Process Flow
Process Flow 0-6-0 590"", w, 916 mow. 5mm Swap » Domestic Shipment I Final Inspection and Dispatch 6‘ C [— Brighl Bil Shop 'VWV“ 09'3““! 9"" male Hellmn. uml w ION meme m mm“ Spherodile Annealing Commons (mm mum, As Rolled 83! ¢ sum / / "Hal Rolled" Reheat Furnace Rolling Mill
Slide 32: Automatic Line of Bar Inspection
Automatic Line of Bar Inspection - NDT Line 0-6-0 MFLT , Acceptance Criteria: Chamferlng 0_2X10mm Bar ends free from Burr Straightening Straightness : 2mm/ meter Acceptance Criteria: SDH - Shot Blasting 0.8x10mm, FBH - 0.8 & 1.2mm 31
Slide 33: Quarterly Profit & Loss
Quarterly Profit & Loss Q VAR ANSPECIALSTESLTD. O-e-O Revenue from Operations 312.52* 218.42 43.08% 295.49* Excise Duty 0.00 0.00 0.00 Other Income 0.40 0.98 1.23 Total Income 312.92 219.40 42.63% 296.72 Cost of Materials Consumed 235.67 123.61 183.15 Purchases of Stocks 17.11 0.00 14.65 Changes In
Slide 34: Nine Months Profit & Loss
Nine Months Profit & Loss G VMMMMSPECIALSTESLTD. .9. V . : Income from Operations 877.51* 646.53 Excise Duty 0.00 18.93 Revenue from Operations 877.51 627.60 39.82% Other Income 1.33 3.81 Total Income 878.84 631.41 39.19% Cost of Materials Consumed 588.65 341.27 Purchases of Stocks 31.76 0.00 Change
Slide 35: Balance Sheet as on 30th September 2018
Balance Sheet as on 30th September 2018 Q VARDHMINSWImm 355.35 339.32 Non Current Assets 316.26 278.83 Equity* Equity Share Capital 3570 3570 Property Plant Ki Equipment 281.15 249.27 Other Equity 319.65 303.62 Capital work in progress 15.37 6.99 “gib'e 3556‘s 036 “-29 Non-current liabilities 142.75
Vardhman Special Steels — Q3 FY19 Earnings Presentation on 6ix