Steelcast Ltd. · NSE:STEELCAS
Steelcast — Investor Presentation (September 2023)
39 slides from Steelcast's investor presentation, Sep 9, 2023
Slide 1: Intimation of Analyst / Institutional Investor meetings
AC/2079 06.09.2023 The Secretary, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block, Dalal Street, Bandra-Kurla Complex, MUMBAI - 400 001 Bandra (E), Mumbai - 400 051 Scrip Code: 513517 Scrip Symbol: STEELCAS Dear Sir/Ma
Slide 2: Presentation by Steelcast Limited on 9th September 2023
PRESENTATION BY STEELCAST LIMITED ON 9th SEPTEMBER 2023 6 Sigma “Drive for Excellence”
Slide 3: Steelcast in 1960 and Now
1. STEELCAST in 1960 and Now 6 Sigma “Drive for Excellence”
Slide 4: Our Niche Products: OEMs Earth Moving
2. Our Niche Products (Industrywise) OEMs Earth Moving: Front Support Axle Housing Bracket Cap Assy. Wt. 780 Kg Wt. 1669 Kg Wt. 450 Kg Wt. 82 Kg Rear Spindle Steering Arm Spindle Pivot Eye Wt. 2228 Kg Wt. 456 Kg Wt. 1795 Kg Wt. 363 Kg 6 Sigma “Drive for Excellence”
Slide 5: Our Niche Products: OEMs Mining
3. Our Niche Products (Industrywise) OEMs Mining: Track Shoe Adjusting Block Track Shoe Guide Rail Wt. 750 Kg Wt. 257 Kg Wt. 1300 Kg Wt. 412 Kg Crowd Sheave Boom Foot Idler Sprocket Wt. 1830 Kg Wt. 1630 Kg Wt. 1422 Kg Wt. 1566 Kg 6 Sigma “Drive for Excellence”
Slide 6: Our Niche Products: OEMs Construction
4. Our Niche Products (Industrywise) OEMs Construction: Pivot Eye Pivot Boss Tipping Lever FD Cover Wt. 12 Kg Wt. 23 Kg Wt. 12 Kg Wt. 125 Kg Boom Nose Boom Foot Boom Center Boom Trunnion Wt. 84 Kg Wt. 34 Kg Wt. 32 Kg Wt. 17 Kg 6 Sigma “Drive for Excellence”
Slide 7: Our Niche Products: OEMs Railways & Locomotives
5. Our Niche Products (Industrywise) OEMs Railways & Locomotives: Front Draft Lug Striker Casting Transition Casting Cast Container Wt. 18 Kg Wt. 50 Kg Wt. 22 Kg Wt. 100 Kg Cylinder Head Coupler Body Side Frame Bolster Wt. 41 Kg Wt. 168 Kg Wt. 477 Kg Wt. 716 Kg 6 Sigma “Drive for Excellence”
Slide 8: Our Niche Products: OEMs Defense
6. Our Niche Products (Industrywise) OEMs Defense: Track Shoe (T72) Mortar Bomb Track Shoe (MBT) Aerial Bomb Wt. 15 Kg Wt. 5 Kg Wt. 21 Kg Wt. 230 Kg HR Rocket Body Transfer Gear Box Head Casting Aerial Bomb Wt. 48 Kg Wt. 11 Kg Wt. 6 Kg Wt. 420 Kg 6 Sigma “Drive for Excellence”
Slide 9: Our Niche Products: OEMs GET
7. Our Niche Products (Industrywise) OEMs GET: Upper Shroud Lower Shroud Adapter End Bits Wt. 53 Kg Wt. 65 Kg Wt. 236 Kg Wt. 150 Kg Tooth Wear Cap Tooth Long C Clamp Wt. 95 Kg Wt. 32 Kg Wt. 113 Kg Wt. 27 Kg 6 Sigma “Drive for Excellence”
Slide 10: Our Niche Products: Cement, Steel, Transportation
8. Our Niche Products (Industrywise) OEMs Cement: Inclined Blast Grate Grate Plate Grate Plate RFT Grate Plate Wt. 30 Kg Wt. 25 Kg Wt. 27 Kg Wt. 19 Kg OEMs Steel: OEMs Transportation: Grate Bar Grate Bar Spring Seat Spring Seat Wt. 4 Kg Wt. 3 Kg Wt. 7 Kg Wt. 10 Kg 6 Sigma “Drive for Excellence”
Slide 11: Q1FY24 Performance Highlights
9. Q1FY24 Performance Highlights Q1 FY24 (Y-o-Y) Highlights Revenue 3.3 % The Revenue from Operations saw a marginal increase of 3.3% on a Y-o-Y basis. The demand in Global market seems to be slower and surging up 119.5 Crs in domestic market. The EBITDA margins for Q1FY24 were strong, reaching a pe
Slide 12: Q1FY24 Consolidated Key Highlights
10. 12. Q1FY24 Consolidated Q1FY24 ConsolidatedKey Highlights Highlights Revenue (Rs. in Crs) EBIDTA (Rs. in Crs) PAT (Rs. in Crs) -1% +3% +4% +34% +4% +43% Q4FY23 Q1FY24 Q1FY23 Q1FY24 Q4FY23 Q1FY24 Q1FY23 Q1FY24 Q4FY23 Q1FY24 Q1FY23 Q1FY24 Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y 6 Sigma “Drive for Exce
Slide 13: FY23 Consolidated Key Highlights
11. FY23 Consolidated Key Highlights Revenue (Rs. in Crs) EBIDTA (Rs. in Crs) PAT (Rs. in Crs) 58% +79% 112% FY22 FY23 FY22 FY23 FY22 FY23 Y-o-Y Y-o-Y Y-o-Y 6 Sigma “Drive for Excellence” 11
Slide 14: Balance Sheet Ratios
12. Balance sheet Ratios Long term Debt (Rs. Crs.) Short term Debt (Rs. Crs) Debt to Equity 0 0 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 RoCE RoE Working Capital (in Days) 42.3% 37.9% 26.6% 28.4% 21.7% 23.3% 14.7% 13.2% 9.8% 6.8% Mar-19
Slide 15: Company Overview
13. Company Overview 6 Sigma “Drive for Excellence”
Slide 16: Key Strengths
14 . Key Strengths Experienced Board backed by a strong management team Diversified Business Model, catering to varied sectors Well Experienced Unique Business Team Model Strong R&D and Technological 5 MW Solar Power Plant & Technology Green Energy Capabilities. These also are entry 4.5 MW Hybrid Po
Slide 17: Locational Advantage
15. Locational Advantage 6 Sigma “Drive for Excellence”
Slide 18: Diversified Business Model catering to Varied Industries/OEMs
16. Diversified Business Model catering to Varied Industries/OEMs Existing Segments Earth Moving Industry Mining Mineral Processing Industry Steel Plants Cement Construction 6 Sigma “Drive for Excellence”
Slide 19: Diversified Business Model (Continued): Foray into New Segments
17. Diversified Business Model catering to Varied Industries/OEMs (Continued) Foray into New Segments Railways Electro Locomotive Ground Engaging Tools (GETs) Defence 6 Sigma “Drive for Excellence”
Slide 20: Presence across the Globe
18. Presence across the Globe Denmark Poland South Korea Germany Slovakia USA China Japan India - Headquartered Mexico Thailand Singapore Brazil Australia Export Presence “Two-Star Export House Status holder” Expected to increase the presence in 15+ countries in the next 1 to 2 years 6 Sigma “Drive
Slide 21: Projected Domestic Vs. Export Sales (Quantity in Tons)
19. Projected Domestic Vs. Export Sales (Quantity in Tons) Financial Year Region 22-23 (Actual) 23-24 24-25 25-26 26-27 27-28 Tons % Tons % Tons % Tons % Tons % Tons % Domestic 7,902 50 6,290 50 8,281 54 8,980 48 11,225 48 13,190 47 Export 7,838 50 6,280 50 7,054 46 9,729 52 12,161 52 14,874 53 Tota
Slide 22: Industrywise % Value
20. Industrywise % Value Industry Financial Year 12-13 22-23 23-24 24-25 25-26 26-27 Mining 84.0 25.1 21.0 21.2 19.7 19.1 Earth Moving 0.0 51.7 47.0 47.2 44.2 39.2 Locomotive 0.5 4.0 3.0 2.7 2.5 2.1 Transport 0.0 0.4 0.4 0.5 0.4 0.3 Construction 8.4 13.4 20.0 20.6 17.6 15.1 Railway 0.0 2.2 6.0 5.6 9
Slide 23: Installed & Projected Utilization Capacity
21. Installed & Projected Utilization Capacity Installed Capacity (Tons Per Annum) Facility 22-23 23-24 24-25 25-26 26-27 Semi-Automated No Bake Line 11,850 11,850 11,850 11,850 11,850 Automated No Bake Loop Line 10,000 10,000 10,000 10,000 10,000 Shell Molding Plant 7,150 7,150 7,150 7,150 7,150 To
Slide 24: Installed & Projected Utilization Capacity (Continued)
22. Installed & Projected Utilization Capacity (Continued) Utilized Capacity Existing & Future: (Tons) Plant 22-23 23-24 24-25 25-26 26-27 ` P1 5,788 4,711 6,137 8,524 10,926 P2 3,854 3,884 4,625 5,287 6,511 P5 6,098 3,975 4,573 4,898 5,949 Total 15,740 12,570 15,335 18,709 23,386 Capacity Utilisati
Slide 25: Yearwise CAPEX Plan FY 23-24 to 28-29
23. Yearwise CAPEX Plan FY 23-24 TO 28-29 (Rs. In Cr) * Financial Year CAPEX for the 2023-24 2024-25 2025-26 2026-27 2027-28 Year → Plant ↓ 1 1.89 1.75 2.56 3.33 - 2 0.87 1.63 0.41 - - 5 0.95 0.11 0.09 0.09 - 7 3.57 3.32 0.19 0.02 - 9 4.47 3.19 6.76 6.56 - Total 11.75 10.00 10.00 10.00 15.00 * Mainl
Slide 26: Hybrid and Solar Power Plants
24. Hybrid and Solar Power Plants Summary of Hybrid offers Sr No Offer Hybrid Estimated Landed Cost Current cost of Saving rate Total Saving in Capacity Generation in Rs/KWH at power Cr Rs/Year MW Cr Units/Yr Consumer Bus after fixed charges deduction 1 Group Captive after 4.5 2.286 4.22 8.51 4.29 9
Slide 27: Peer Capacity
25. Peer Capacity Indian Manufacturers Q Name Place Capacity Tons/Month 1 AIA Engineering Ltd. Ahmedabad, Gujarat 3,000 2 Steelcast Ltd. Bhavnagar, Gujarat 2,416 3 Matrix Metals (Sanmar group) Trichy, Tamilnadu 2,500 4 Texmaco Rail & Engineering Ltd. Kolkata, West Bengal 2,500 5 Bhillai Engineering
Slide 28: Peer Capacity (Continued)
26. Peer Capacity (Continued) International Manufacturers Sr. Name Place Capacity No. Tons/Month 1 Huron Casting Inc. MI, USA 8,000 2 Impro Ind USA Inc CA, USA 3,000 3 Harrison Steel Attica, IN 6,000 4 Sivyer Steel castings IA, USA 3,000 5 Bradken Inc MO, USA 3,000 6 Barber Steel Rothbury, MI 3,000
Slide 29: Peer Performance
27. Peer Performance Peer Companies Financial Information Company Financial Data Points as on 30-06-2023 (Amount in Rs. Crores) Name Sales EBIDTA EBIDTA PAT Paid-up Share Net Gross Block (As on % Capital Worth 31-03-2023) Steelcast Ltd 119.49 32.59 27.27 19.68 10.12 215.21 227.50 PTC Industries 70.8
Slide 30: Peer Performance (Continued)
28. Peer Performance (Continued) Peer Companies Capital Market Information Company Market Market EPS P/E Industry Book P/B 52 52 Name Capitalizatio Price (TTM) P/E Value Week Week n (Rs. Cr.) High Low Steelcast Ltd 1,393.83 688.65 37.88 18.18 106.33 6.48 690.75 410.00 PTC Industries Ltd 7,977.06 5,9
Slide 31: Debt Status as on 31st August 2023
29. Debt Status as on 31st August 2023 Amount Particulars (in Cr.) Short Term Nil Long Term Nil Steelcast is Short Term & Long Term Debt free. 6 Sigma “Drive for Excellence”
Slide 32: CARE Rating (February 23)
30. CARE Rating (February 23) Facility Amt (Rs. Rating* Cr.) LT / ST Fund Based Bank Facility 74.65 (EPC/PSC) A - ; Stable / A2 + LT / ST Non-Fund Based Bank Facility 16.25 (BG/LC) Total 90.90 LT - AAA is the highest (AAA, AA, A, BBB, BB, B, C, D) ST - A1 is the highest (A1, A2, A3, A4) ("+" (plus)
Slide 33: Certifications & Recognitions
31. Certifications & Recognitions Sr. No. Details 1 An ISO: 9001-2015 Company certified by TUV NORD, Germany (for Quality Management). 2 An ISO:45001-2018 Company certified by TUV NORD Germany (For Occupational Health & Safety Management System) 3 An ISO:14001-2015 Company certified by TUV NORD, Ger
Slide 34: Certifications & Recognitions (Continued)
32. Certifications & Recognitions (Continued) Sr. No. Details 6 Certified by Transportation & Power Generation Equipment Program, USA for “Foundry, “Heat Treating” &”NDT Testing” 7 Supplier Excellence Recognition (SER)- Certified level certification by Caterpillar Inc. USA 8 Class A approved foundry
Slide 35: Treasury Policy
33. Treasury Policy Treasury Policy encompasses deployment of surplus money in various investment products like money market instruments, fixed deposits in Government Securities and Banks. The Policy sets out the basic principles of a prudent system to control the risks in investment. The Company ha
Slide 36: Capital Projects under consideration
34. Capital Projects under consideration Sr. Project Description Likely Investment No. (Rs. In Crores) 1 Steel Foundry (Ground Engaging Tools) 40.00 2 Track System for excavators (Machining + Induction Hardening and 30.00 assembly of Track) 3 Steel Foundry (Heavy Weight), 2.5 Ton/Piece to 6 Ton/Piec
Slide 37: Experienced Board of Directors
35. Experienced Board of Directors Mr. Chetan M. Tamboli, Managing Director & CEO • Aged 63 years, a third-generation entrepreneur, is a commerce graduate armed with an MBA Finance from USA • Serving as a CEO since 2003 with total experience of more than 34 years. Looks after strategy, policy making
Slide 38: Experienced Board of Directors (Continued)
36. Experienced Board of Directors (Continued) Mrs. Aarushi M Ganatra (Independent Non- Mr. Kumar Tipirneni (Permanent Invitee ) Executive Director) • Aged 64 years, is a graduate in Commerce •Aged 83 years, is a B. Tech graduate (IIT, Khadagpur) armed with M.E. (Foundry) (IISc, Bangaluru). He is a
Slide 39: Thank you
Thank you 6 Sigma “Drive for Excellence”