Slide 1: Exchange filing cover letter for investor presentation
Date: February 08, 2025 To, To, The Manager The Manager Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor 25, Phiroze Jeejeebhoy Towers, Bandra (East), Dalal Street, Mumbai - 400 051 Mumbai - 400 001 N
Slide 2: Diffusion Engineers Limited | February 2025
DIFFUSION ENGINEERS LIMITED | February 2025
Slide 3: Forward-looking statements disclaimer
This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Diffusion Engineers Limited (DEL) and its group companies’ future business developments and economic perform
Slide 4: Company Overview, Business Overview, Industry Overview, Financial Highlights, Way Ahead
01 Company Overview 02 Business Overview 03 Industry Overview 04 Financial Highlights 05 Way Ahead
Slide 5: Company Overview
Company Overview
Slide 6: Providing innovative engineering solutions for enhanced industrial performance and efficiency
Incorporated in 1982 Diversified Product Portfolio across Established as private limited Company Industries Over 4 decades of Experience Special welding consumables, wear plates and heavy engineering equipment Strategically Located Manufacturing Expanding Global Footprint Facility 30+ Countr
Slide 7: Company milestones and history
Converted from Pvt. Ltd. to Public Ltd. Company Established subsidiary Incorporated as Acquired land (in part) Acquired land (N-79) Company in Singapore, Private Limited for manufacturing for manufacturing Diffusion Engineers Company facility at Unit I facility at Unit II Singapore Pte Ltd
Slide 8: Board of Directors
Mr. Prashant Garg Dr. Nitin Garg Mrs. Chitra Garg Mr. Anil Trigunayat Chairman and Managing Director Non-Executive Director Non-Executive Director Indepedent Director Mr. Sherry Oommen Mrs. Deepali Bendre Independent Director Independent Director 7
Slide 9: Key strengths
Synergistic business models focused Long - standing relationships Experienced promoters on forward integration with customers across industries and strong management team Transitioning from a manufacturer of special welding Over four decades of business operations Over 2 decades of experience in thi
Slide 10: Business Overview
Overview
Slide 11: Diffusion Engineers Limited
Diffusion Engineers Limited Manufacturing welding consumables, wear plates and wear parts and heavy engineering machinery for core industries Used in Industries Cement Steel Power Engineering Sugar Defence Mining Oil & Gas Key Raw Materials include Ferro alloys, Powdered metals like Chromium, Nickel
Slide 12: Product portfolio by business segment
Welding and Anti- Heavy Engineering Wear Plate / Wear Parts Trading Wear Consumables Equipment • Special purpose electrodes • Wear Plates • Air Separator • Thermal Spray Powder • Flux cored wires • Wear Parts • High Pressure Grinding Rollers • Welding Equipment • Cold Repair Compounds • Welding Serv
Slide 13: Special Purpose Electrodes, Flux Cored Wire, Cold Repair Compounds
Special Purpose Electrodes Flux Cored Wire Cold Repair Compounds A welding electrode is a wire or rod built of metal Composition and Functionality: Flux-cored wire We manufacture cold repair compounds based or alloy and has a flux or without a flux and is a tubular welding consumable filled wi
Slide 14: Wear Plates, Wear Parts, Welding service
Wear Plates Wear Parts Welding service – job work Function and Benefits: Wear plates or abrasion Customized Wear Parts: We manufacture ready to Comprehensive Welding Solutions: We resistant plates protect equipment surfaces from fit wear parts for quality, cost effective and higher enhance lif
Slide 15: Heavy engineering equipment manufacturing at Unit IV
We specialize in manufacturing and fabrication of heavy engineering equipment for cement, steel, power, sugar, and other core industries. Our dedicated Unit IV in Khapri (Uma), Nagpur – 441501, Maharashtra, ensures high-quality production and precision engineering Tandem Wagon Trippler Material Ho
Slide 16: Manufacturing units and proposed facility
Work in Progress Unit I Unit II Unit III Unit IV Proposed Facility Operational since 1994 Operational since 2000 Operational since 2015 Operational since 2016 Commence from Nov. 25 Special Purpose Flux cored wire, Anti-wear Flux cored wires, wear plates Special purpose welding electrodes wear plates
Slide 17: DSIR approved R&D facility and accreditations
01 DSIR approved R&D facility at Unit I Equipped with laboratory infrastructure for various developmental 02 activities - process refinement, finished products testing and other raw materials analysis We hold accreditation by the National Accreditation Board for Testing 03 and Calibration Laboratori
Slide 18: Marquee Customers
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Slide 19: Distributor network domestic and overseas
Manufacturing plant in Nagpur, India Export to other countries We have Tie-ups with over 95 distributors in domestic market and 9 distributors in the overseas market 18
Slide 20: Industry Overview
Overview
Slide 21: Global and Indian welding consumables market
Global welding consumables industry The global welding consumables market size was valued at USD 12.98 bn in ($ billion) 2023 and is projected to grow from USD 13.40 bn in 2024 to USD 19.95 bn by 2032, exhibiting a CAGR of 5.1% 20.50 17.00 Asia-Pacific region has highest share, with around 41% c
Slide 22: Wear plate and heavy engineering markets
Global Wear Plate Market Indian Wear Plate Market Heavy Engineering Industry in India ($ billion) Rs Billion 28 26 3,900 24 3,700 22 3,400 4.4 3,200 3.6 2,800 CY23 CY27P FY24 FY25P FY26P FY27P FY23 FY24 FY25P FY26P FY27P The global wear plate market is anticipated to expand from $2.1 Heavy elect
Slide 23: Financial Overview
pa] Financial Overview
Slide 24: Management commentary on Q3 FY25
“During the third quarter ended 31st December 2024 we have registered a Revenue of Rs. 791.98 million, EBITDA of Rs. 104.71 million and PAT of Rs. 71.01 million. This growth was mainly driven by strong sales momentum across all units. This growth reflects sustained market demand, enhanced execution,
Slide 25: Consolidated Quarterly Performance
Revenue from Operations EBITDA* PAT Consolidated Quarterly Performance (Rs. In Mn) 824.67 91.78 126.82 85.07 791.98 104.71 72.73 71.00 92.21 80.53 739.44 710.82 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 EBITDA Margins % PAT Margins % 12.41% 15.38
Slide 26: Consolidated Profit & Loss Q3 and 9M FY25
Particulars Q3 FY25 9M FY25 9M FY24 Y-o-Y% Total Income from operations for the Total Income from Operations 791.98 2,327.47 2,042.01 13.98% 9M FY25 was Rs. 2,327.47 mn in as Material Consumed & against Rs 2,042.01 in 9M FY24, a YoY 507.72 1,534.25 1,331.60 Manufacturing Expenses increase of 13.98
Slide 27: Standalone Profit & Loss Q3 and 9M FY25
Particulars Q3 FY25 9M FY25 9M FY24 Y-o-Y% Total Income from operations for the 9M FY25 was Rs. 2151.18 mn as against Rs 1,879. Total Income from Operations 735.42 2,151.18 1,879.60 14.45% 60 in 9M FY24, a YoY increase of 14.45%. This Material Consumed & growth was mainly due to strong market 485.
Slide 28: Geography, industry, product and region-wise revenue split
Domestic Geography-wise Industry-wise Product-wise Region-wise Export, Heavy Engineering 9.23%, Others, Central, West, Equipment, 32.28% 22.12% 21.60% 11.82% Cement, Trading, Sugar, 42.64% 6.53% 2.74% East, South, Steel, Welding and 17.52% 31.30% 17.00% Antiwear Domestic, Wear Plates & Consumables,
Slide 29: Order book by product type
856.60 Type Dec-24 Mar-24 Dec-24 Mar-24 693.64 Heavy Engineering 856.60 693.64 (Rs. In Mn) Wear Plates and Wear Parts 325.98 145.85 325.98 Welding Consumables 70.93 88.48 145.85 88.48 70.93 Grand Total 1,253.51 927.97 Heavy Engineering Wear Plates and Wear Welding Consumables Parts 28
Slide 30: Consolidated Annual Profit & Loss FY21-FY24
Particulars FY21 FY22 FY23 FY24 Total Income from Operations 1,552.63 2,045.89 2,548.76 2,781.45 Material Consumed & Manufacturing Expenses 1,004.78 1,435.11 1,804.78 1,856.50 Employee Cost 239.45 268.96 307.60 360.56 Other Expenses 101.19 116.92 157.61 175.70 Total Expenditure 1,345.42 1,820.99 2,2
Slide 31: 4 Years CAGR: Revenue, EBITDA, PAT
4 Years CAGR (%) Revenue (Rs. Mn) 27% 2781.45 2548.76 2045.89 16% 17% 1552.63 Revenue EBITDA PAT FY21 FY22 FY23 FY24 *EBITDA (Rs. Mn) EBITDA Margin (%) PAT (Rs. Mn) PAT Margin (%) 13.35% 13.97% 11.08% 15.00% 500.00 12.00% 350.00 10.99% 10.94% 10.00% 8.33% 8.69% 300.00 400.00 308.05 7.51% 250.00 10.0
Slide 32: Consolidated Balance Sheet
Rs. Mn Rs. Mn As on 30th As on 31st As on 30th As on 31st Liabilities September 2024 March 2024 Assets September 2024 March 2024 Shareholder’s Funds 2,061.22 1,910.19 Non-current assets 1,317.77 1,275.05 Share capital 280.21 280.21 Property,Plant & Equipment 942.11 905.70 Reserves & Surplus 1,776.80
Slide 33: RoA, RoE, RoCE and Debt to Equity
RoE(%) RoA(%) 18.52% 16.86% 11.18% 15.10% 8.99% 9.61% 11.64% 7.40% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 RoCE(%) Total Debt to Equity Ratio (X) 0.34 20.63% 17.30% 18.46% 14.90% 0.2 0.19 0.18 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 RoE = Net Profit/Average Total Equity | RoA = Net Profit/Total Asse
Slide 34: Inventory, Receivables, Payables and Net Working Capital
Inventory Receivables 98 85 64 66 67 92 90 83 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Payables Net Working Capital 130 97 88 72 75 68 68 47 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 33
Slide 35: Way Ahead
Ahead
Slide 36: Way Ahead: growth priorities
07 Turnkey Repair and Maintenance Services for Critical Equipments in Process Plants 06 Developing New Products and Solutions for industries like Oil & Gas, Petrochemical, Railways and Defence 05 Launching High Performance Grinding Rollers for Cement Industry 04 Foraying in more Critical and Larger
Slide 37: Thank You
Thank You Company : Investor Relations Advisors : Diffusion Engineers Limited. Adfactors PR Pvt. Ltd. Mr. Abhishek Mehta Mr. Amit Sharma / Mr. Rupesh Rege info@diffusionengineers.com amit.sharma@adfactorspr.com rupesh.rege@adfactorspr.com www.diffusionengineers.com www.adfactorspr.com