Maithan Alloys Ltd. · NSE:MAITHANALL
Maithan Alloys — Q3 FY20 Earnings Presentation
30 slides from Maithan Alloys's earnings presentation, January 2020
Slide 1: Cover letter to stock exchanges
1SO t00l : 20OE COIIPAUY Registered Ofiice : ldealCentre,4th Floor , 9, A.J.C. Bose Road, Kolkata -700 017 r (033) 4063 2393 F (033) 2290 0383 E office@maithanalloys.com .Yffi?U[3i'3J;,.'J1 1l 2l The Secretary Listing Department The Calcutta Stock Exchange Limited National Stock Exchange of India Lt
Slide 2: Investor Presentation January 2020
Investor Presentation January 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Maithan Alloys Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Mission, Vision & Values
Mission, Vision & Values Vision Mission To be India’s premiere Alloy Company by: To be India’s premiere Alloy Company that is built on • Promising excellent shareholder value: Guarantee a high ROC coupled with lower-than- the solid foundation of shareholder trust, customer market debt ratios commitm
Slide 5: Values
Values Commitment: is passion for us. We are extremely committed to serving our shareholders and customers to the best of our abilities. Our promise to our stakeholders is a hard-ironed commitment and we aim to exhibit this value in everything that we do. Loyalty: is the very fabric that runs beneat
Slide 6: Key Differentiators
Key Differentiators Optimising Facilities Diversified Efficiency Strong Credibility Expansion Plans for Maximising Customer Base Returns • Lowest in the Cost Curve • Strong credibility in the market • Sources raw materials when it • International clients across 35 • Inorganic Growth Opportunities •
Slide 7: The Leadership Team
The Leadership Team Mr. Subodh Agarwalla Mr. S. C. Agarwalla Mr. Sudhanshu Agarwalla (Whole Time Director and CEO) (Chairman and Managing Director) (President and CFO) ) Ferro Alloys industry • 30 years of rich experience in ) • A M.B.A. from XLRI Jamshedpur • A B.Tech from IIT BHU and M.B.A. from I
Slide 8: Experienced Board
Experienced Board Mr. S. C. Agarwalla Mr. Subodh Agarwalla Mr. Ashok Bhandari Mr. Nand Kishore Agarwal (Chairman and Managing Director) (Whole Time Director and CEO) (Independent Director) (Independent Director) • 30 years of rich experience in Ferro Alloys industry • A B.Tech from IIT BHU and M.B.A
Slide 9: Financials
Financials
Slide 10: Manufacturing vs Trading Revenues
Manufacturing - vs- Trading Revenues Manufacturing Revenue 476 492 465 443 423 422 422 428 430 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Trading Revenue 84 55 57 42 41 39 34 31 16 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Rs. Crs Financials
Slide 11: Maintaining Sustainable Margins
Maintaining Sustainable Margins Revenues EBITDA % 22.2% 22.5% Demand of our product continues to be robust 20.3% 19.1% 20.5% 18.4% 18.6% 19.2% 16.0% 18.3% 16.4% 13.3% 1,988 1,879 12.4% Long-term sustainable 15.4% Manufacturing EBIT margin range 12.1% 1,425 12.3% 1,342 9.8% is 14% 11.7% 1,151 9.0% 8.
Slide 12: Doing Profitable Business is the key
Doing Profitable Business is the key… Debt & Current Invts. Operating RoCE (%) The Company proposes to incorporate a wholly owned subsidiary to take Higher Return Ratio is because of prudent capital allocation and superlative operating efficiency up the announced expansion project, primarily for man
Slide 13: Consolidated Profit & Loss Statement – Q3 FY20
Consolidated Profit & Loss Statement – Q3 FY20* Particulars (Rs. Crs.) Q3 FY20 Q3 FY19 Q2 FY20 9M FY20 9M FY19 Revenue 469 477 470 1,425 1,439 Raw Material 286 273 276 848 807 Employee Expenses 11 11 10 31 32 Power 92 96 94 281 280 Other Expenses 25 30 37 86 85 Operating EBITDA 54 68 53 179 234 Depr
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) 9M FY20* FY19* FY18* FY17* FY16 Revenue (Net of Excise Duty/ GST) 1,425 1,988 1,879 1,342 1,151 Raw Material 848 1,126 970 628 597 Employee Expenses 31 44 45 33 23 Power 281 373 367 280 315 Other Expenses 86 122 121 130 89 Operating EBITDA
Slide 15: Consolidated Balance Sheet as on 30th September 2019
Consolidated Balance Sheet as on 30th September 2019 (As per IND AS) Particulars (Rs. Crs.) Sept-19 Mar-19 Particulars (Rs. Crs.) Sept-19 Mar-19 Equity 1,186 1,113 Non-Current Assets 289 278 Equity share capital 29 29 Property, plant and equipment 223 229 Other Equity 1,156 1,083 Intangible Assets 0
Slide 16: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. Crs.) Sep-19 Sep-18 Net Profit Before Tax 123.0 168.7 Adjustments for: Non Cash Items / Other Investment or Financial Items 2.3 -3.6 Operating profit before working capital changes 125.3 165.1 Changes in working capital -121.1 70.6 Cash generated from
Slide 17: Performance Snapshot
Performance Snapshot Operating Income (Rs. Crs.) EBITDA (Rs. Crs.) EBIT (Rs. Crs.) 988 1,026 208 201 962 956 201 188 903 793 169 166 161 159 156 148 604 125 117 547 549 64 63 50 52 52 38 H1FY16 H2FY16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19 H2FY19 H1 FY20 H1FY16 H2FY16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19
Slide 18: Investment in Market Linked Debentures
Investment in Market Linked Debentures Amount Invested Market Linked Debentures Maturity Remarks (Rs. Crs.) CITICORP 169.99 October, 2019 Since realised IIFL 150.44 January, 2020 Since realised Piramal Enterprises 150.00 January, 2020 Since realised Update on Investment in Market Linked Debentures (
Slide 19: Maintaining the Maithan Edge
Maintaining the Maithan Edge
Slide 20: The Maithan Edge
The Maithan Edge Largest 20 Years Rich Manufacturer Experience Stake Holder Return’s ▪ ROCE Increased by + 4,000 bps ▪ ROE Increased by + 1,800 bps . India’s largest Revenue Two decades of Manganese Alloy Increased by +19% CAGR experience and Producer and continuous growth Exporter EBIDTA Increased
Slide 21: Product Offerings
Product Offerings Ferro alloys enhance steel strength, durability, anti-corrosion and anti-stain properties and acts as de-oxidant for Steel Manufacturing Ferro Manganese Ferro Silicon Silicon Manganese • An alloy of iron and • An alloy of iron and silicon • An alloy of silicon and manganese • Silic
Slide 22: Capacity addition to support Growth
Capacity addition to support Growth Capacity Built-up Production Visakhapatnam 226 225 213 137 206 +15.0% Byrnihat, 36 Meghalaya 158 149 141 36 Kalyaneshwari 89 82 24 16 70 76 66 42 25 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2006 2007 2009 2012 2013 Total In MVA Increase in
Slide 23: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities Installed Capacity of 137.25 MVA 72.0 48.75 MVA MVA 16.5 MVA Visakhapatnam Kalyaneshwari Byrnihat (SEZ) • Smelters: • Smelters: • 2 x 5.0 MVA • 4 x MVA 18.0 MVA • 1 x 6.5 MVA • Products: Ferro Manganese/ • 1 x 8.25 MVA • Smelters: Silicon Manganese • 2 x 12.
Slide 24: Self Sustaining Business Model
Self Sustaining Business Model We have an ability to Input of sized and graded Raw Material generate a Larger Throughput Feed in day bins through conveyors from our manufacturing facilities Automated Batch preparation and Charge into Furnace Reaction in furnace and discharge of Ferro Manganese Slag
Slide 25: Strong Client Relationships
Strong Client Relationships 75% Repeat Clients “We are pleased to have formed a partnership with Shift of focus from ‘Stable’ Maithan Alloys and we truly appreciate their Europe to ‘Growing’ Asia commitment to quality and customer service. They helping in better realizations have put forth all effor
Slide 26: Asian Economies to drive the Global Steel Demand
Asian Economies to drive the Global Steel Demand Global Steel Demand 2018 : 1,548.5 Mn T EU 13% NAFTA CIS 9% 3% It caters 70% of Global Steel demand Avg. rate of growth is Asia, Oceania expected to be & Middle in the range East ~1%-~2% 70% AFRICA Central & 3% South America 3% Asia Ex-China Growth is
Slide 27: Advantage India
Advantage India Favourable Demand –Supply Dynamics in Indian Steel Industry 100 % FDI allowed in the mining 2017 Budget outlay of ~ Rs. 4 tn ‘Housing For All’ to drive housing sector & exploration of metal & non in infrastructure to drive demand thereby benefitting steel metal ores under the Automat
Slide 28: Support from Government of India
Support from Government of India Alloy Producers to benefit from NSP 2017 Capacity (Mn MT) Production (Mn MT) Per Capita Consumption (kg) CAGR +6% CAGR +7% CAGR +7% 300 255 158 122 92 61 2015-16 2030-31 2015-16 2030-31 2015-16 2030-31 National Steel Policy (NSP) 2017 Highlights Reduce dependence on
Slide 29: Advantage Maithan
Advantage Maithan World Crude Steel Demand (Mn MT) India Crude Steel Demand (Mn MT) 2,000 110 +3% 100 90 +7% 1,500 80 70 60 1,000 50 40 500 30 20 10 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Better Product Mix Strong C
Slide 30: For further information, please contact
For further information, please contact: Company Investor Relations Advisors: Maithan Alloys Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L27101WB1985PLC039503 CIN: U74140MH2010PTC204285 Ms. Neha Shroff/ Mr. Deven Dhruva Mr. Rajesh K. Shah neha.shroff@sgapl.net / deven.dhruva@sgapl.net rajesh@maith