Bmw Industries Ltd · BSE:BMW
Bmw Industries — Investor Presentation (November 2023)
34 slides from Bmw Industries's investor presentation, November 2023
Slide 1: Cover letter to stock exchanges
Date: 09-11-2023 To, To, The Manager The Manager Listing Department Listing Department BSE Limited The Calcutta Stock Exchange Limited Phiroze Jeejeebhoy Towers Lyons Range, Dalal Street, Mumbai- 400001 Kolkata – 700 001 Scrip Code: 542669 Scrip Code: 12141- CSE Dear Sir / Madam, Subject: Strategy P
Slide 2: Strategy – BMW Industries Limited Presentation November 2023
Strategy BMW Industries Limited Presentation November 2023 Trust | Consistency | Stability
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation may contain certain “forward-looking statements” within the meaning of applicable securities laws and regulations, which may include those describing the Company’s strategies, strategic direction, objectives, future projects and/or prospects, estimates etc. In
Slide 4: Inside this Presentation
Inside this Presentation Particulars Page No. About the Company 4–8 Operational Highlights 9 – 10 Management 11 – 13 Key Investment Highlights 14 – 23 Growth Strategies 24 – 27 Financial Highlights 28 – 32 Thank You 33 3
Slide 5: About the Company
About the Company 4
Slide 6: Company Snapshot
Company Snapshot Product Portfolio About BMWIL ▪ BMW Industry Limited (BMWIL), incorporated in 1981, is one of the largest steel processing company in India, having multi location manufacturing units in the Steel sector ▪ Engaged in the Manufacturing & Processing of HRPO Coils, CR Coils, GP Coils, G
Slide 7: Key Milestones
Key Milestones 1981 - BMWIL 1980-1990 INCORPORATED Enhancement of relationship 1981 – Formation with TATA Steel by starting of Steel Service Center the CRM downstream Commissioned process Commissioned First Company got new -High- TMT Rolling Mill listed on BSE in Speed Tube Diversified into Mill 201
Slide 8: Steel Manufacturing Value Chain
Steel Manufacturing Value Chain Iron Steel Delivery to Mining Refining Manufacturing Final Product Production Production Customers Upstream Process Downstream Process BMWIL – Presence in Steel Processing 7
Slide 9: Key Annual Highlights
Key Annual Highlights CAGR Growth CAGR Growth 25.1% 70.0% 14000.0 26.0% 19.7% 16.5% 26.3% 60,000.0 CAGR Growth 64.7% 64.3% 12000.0 23.9% 24.0% 65.0% 12,968 34,070 24.0% 23.6% 23.1% 18.9% 11.1% 22.0% 50,000.0 56,234 10000.0 59.7% 28,926 60.6% 60.0% 9,547 10,546 21.0% 20.0% 40,000.0 57.1% 8000.0 ₹ Lac
Slide 10: Operational Highlights
Operational Highlights 9
Slide 11: Operational Update
Operational Update Installed Actual Annualized Particulars Capacity Production1 Utilization CRM Complex 10,14,000 4,26,697 84.2% Rolling Mill (TMT Bars) 3,00,000 71,610 47.7% Pipes & Tubes 1,32,000 49,708 75.3% Others 4,10,000 92,955 45.3% Note: 1. Data for H1 FY 24 10
Slide 12: Management
Management 11
Slide 13: Experienced Board and Senior Management Team (1/2)
Experienced Board and Senior Management Team (1/2) Ram Gopal Bansal Monika Chand Chairman and Whole Time Director Independent Director ● Founder having more than 50 years of experience in the steel ● She is a graduate from JNU & has 10+ years of Rich Experience in industry, ssuccessfully Led Joint V
Slide 14: Experienced Board and Senior Management Team (2/2)
Experienced Board and Senior Management Team (2/2) Abhishek Agarwal Vikram Kapur Chief Financial Officer Compliance Officer & Company Secretary ● A Qualified CA/CS & an alumni of St. Xaviers College Kolkata & ● Qualified Company Secretary and Chartered Accountant with ● He is having 10+ years of exp
Slide 15: Key Investment Highlights
Key Investment Highlights Stable margins Established strong despite volatile relationship with steel prices key customers Built an efficient service Strong Cashflow environment to serve its customers Proximity to major Strong Industry customers and raw growth drivers material supplier 14
Slide 16: Stable Margins Despite Volatile Steel Prices
Stable Margins Despite Volatile Steel Prices Operating EBIDTA Margin % 24.00% 23.60% 23.06% 23.9% ▪ BMWIL strategically positioned itself within the Peer Average steel industry's value chain, aiming to attain BMWIL stability and resilience against industry cycles 11.15% 10.26% 8.81% 9.00% ▪ This pos
Slide 17: Established Strong Relationship with Key Customers
Established Strong Relationship with Key Customers Established Client Relationships of +30 years with Marquee Steel Manufacturing Players JV with SAIL & Start of Building Capabilities to Addition of capabilities to Initiation deep association with service customers continue servicing customers TATA
Slide 18: Built an efficient service environment to serve its customers
Built an efficient service environment to serve its customers ▪ Over the years invested to develop its own logistics ▪ Provide solutions to the customers, based on fleet of 105 trucks/long haul trailers the accumulated experience over decades ▪ Invested to build ample storage/warehousing space to ▪
Slide 19: Location Advantage (1/2)
Location Advantage (1/2) BMWIL Plants - Jharkhand Strategically located in a region where raw material is readily available 18
Slide 20: Location Advantage (2/2)
Location Advantage (2/2) BMWIL Plants & H.O. West Bengal Proximity to major buyers of finished and converted products helps in delivering goods in cost efficient manner 19
Slide 21: Industry Growth Factors (1/2)
Industry Growth Factors (1/2) ▪ India is the world’s 2nd largest producer of crude and finished steel, India’s Production and Consumption of Finished Steel with an output of 125.3 MT of Crude Steel & 121.3 MT of Finished Steel in FY23.1 Also, India has been the 2nd largest consumer of finished 130 s
Slide 22: Industry Growth Factors (2/2)
Industry Growth Factors (2/2) Robust Demand Policy Support Increasing Investments Construction Industry ▪ 100% FDI in Steel Sector ▪ Rising investment from domestic and ▪ Infrastructure Sector accounts for 9% of foreign players steel consumption in India ▪ Rise in Export Duty : Govt. hiked the ▪ GVA
Slide 23: Strong Cashflow
Strong Cashflow 14,000 1.28 1.46 1.60 12,000 1.40 12,563 ▪ 12,183 The company has strong and consistent operating cash flow. 1.20 11,015 NCOA/Operating EBITDA is at healthy levels 10,000 0.97 1.00 8,000 ₹ LACS ▪ Due to strong cash flow from operations, net debt/equity as well as net 0.61 0.80 6,000
Slide 24: Staying true to our ESG commitments
Staying true to our ESG commitments Environment Social Governance ▪ Planning to install ▪ Supports cancer ▪ Consistently endeavored solar panels across all patients, especially to practice good facilities, to women, to ensure Corporate Governance substantially reduce their well-being ▪ Believes such
Slide 25: Growth Strategies
Growth Strategies 24
Slide 26: Step-up the existing capacity
Step-up the existing capacity: Increased Pipes & Tubes Capacity/Production (in MT) Pipes & Tubes Capacity Expansion Plans • Expansion of the Pipes & Tubes production capacity is at the existing plants in 10,02,000 Kolkata and Jamshedpur. • Increased Capacity will operate at ~70-80% 6,69,500 5,34,000
Slide 27: Strong Revenue Visibility
Strong Revenue Visibility Agreement for conversion of GP/GC sheets through the CRM Complex, is coming up Expected Revenue of Rs. 2,000 crores over the 1 for renewal in April 2024 contracted period of 5 years Key Entry Barriers: Capital Requirements Geographical Advantage Relationship Competitive cos
Slide 28: Build Own Brand
Build Own Brand Distribution in Place Establish Brand Asset Light Model and Growing Value ▪ Creation of strong distribution ▪ Introduction of adjacent network ▪ Efficiently outsourcing product categories manufacturing facilities ▪ Focused penetration in under- ▪ BMWIL cautiously spending on serviced
Slide 29: Financial Highlights
Financial Highlights 28
Slide 30: Profit and Loss Summary
Profit and Loss Summary Rs in lacs Particulars FY21 FY22 FY23 H1 FY24 Revenue from Operation 39,771 44,738 56,234 31,695 Gross Profit 23,763 28,926 34,070 20,373 Gross Profit Margin 59.7% 64.7% 60.6% 64.3% Operating EBITDA 9,547 10,546 12,968 7,564 Operating EBITDA Margin 24.0% 23.6% 23.1% 23.9% Oth
Slide 31: Revenue Breakup
Revenue Breakup Rs in lacs Particulars FY 21 FY 22 FY 23 H1 FY 24 CRM Complex 30,111 31,899 38,889 21,607 Rolling Mill (TMT Bars) 3,346 5,750 8,047 4,935 Pipes & Tubes 2,082 2,810 2,950 2,256 Logistics 3,323 3,526 3,920 2,024 Others 910 749 2,428 863 Total Revenue 39,772 44,734 56,234 31,695 30
Slide 32: Balance Sheet Summary
Balance Sheet Summary Rs in lacs Particulars FY21 FY22 FY23 H1 FY24 Net Worth 52,002 55,435 60,373 63,705 Net Debt 27,832 25,553 22,998 18,103 Capital Employed 81,476 83,601 88,464 86,749 Net Fixed Assets 48,764 46,758 47,677 52,454 Net Current Assets 6,787 12,163 14,371 15,923 Total Assets 90,025 9
Slide 33: Key Ratios
Key Ratios Particulars FY 21 FY 22 FY 23 H1 FY 24 Operational Ratios Current Ratio 1.30 1.59 1.72 2.08 Fixed Asset Turnover Ratio 0.76 0.94 1.19 1.28 Sales/Capital Employed 0.44 0.54 0.65 0.72 Cash Conversion Cycle 409 298 242 188 Solvency Ratios Net Debt/ Equity 0.54 0.46 0.38 0.28 Net Debt/ Operat
Slide 34: Thank You
Thank You For further details please contact Chief Financial Officer Investor Relations Advisor Abhishek Agarwal Sanjeev Sancheti Email: abhishekagarwal@bmwil.co.in Email: ss@uirtus.in Phone No.: +91 8420555215 Website: www.uirtus.in Phone No.: +91 9836244222 33
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