Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q2 FY20 Earnings Presentation
34 slides from Vardhman Special Steels's earnings presentation, Nov 5, 2019
Slide 1: Exchange filing cover letter
G) | Vardhman VARDHMANSPECIAL STEELS LIMITED Ww Delivering Excellence. Since 1965. . CHANDIGARH ROAD LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048, 2222616, 2601040 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:NOV:2019-20 DATED:05-Nov-2019 The Deputy General Manager, The National
Slide 2: Vardhman Special Steels Limited Result Update Presentation Q2 & H1 FY20
@) VARDHMAN SPECIAL STEELS LTD. A COMMITMENTTO QUALITY Vardhman Special Steels Limited Result Update Presentation Q2 & Hi FY20
Slide 3: Disclaimer
Disclaimer @) VARDHMANSPECIALSTEELSLTD. oe W A COMMITMENT TO QUALITY This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 4: Table of Contents
Ta b e of Co nte nts @) VARDHMANSPECIALSTEELSLTD. | oS-O W A COMMITMENTTO QUALITY fr Financial Highlights fr Company Overview fr Business Overview fr Way Ahead
Slide 5: Financial Highlights
s epee setioties Financial Highlights
Slide 6: Management's Message
, Management S Message @) VARDHMANSPECIALSTEELSLTD. e350 W A COMMITMENT TOQUALITY Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said — “During the first half of FY20, we continued to witness the slow down in the overall auto industry leading to a lower than expected
Slide 7: Recent Developments
Rece nt Deve O p ments @) VARDHMANSPECIALSTEELSLTD. ese W ACOMMITMENT TOQUALITY cen eel lll lll) lle s * © During first half Company had undertaken shutdown of approximately two months of steel melting shop (SMS) in order * to upgrade and modernize SMSfacilities as per planned strategy and to meet f
Slide 8: Financial Highlights - Quarterly
Financial Highlights ~ Quarterly © VARDHMANSPECIALSTEELSLTD. e-<s-e A COMMITMENT TO QUALITY Sales Volumes(tonnes) Revenue from Operations (Rs. Crore) 312.52 295.49 42,469 43,258 243.25 240.78 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19* Q3 FY19* Q4 FY19* Q1 FY20* Q2 FY20* EBITDA (Rs. Crore)# PAT
Slide 9: Financial Highlights - Q2 FY20
Financial Highlights — Q2 FY20 @) VARDHMANSPECIALSTEELSLTD. | ese W A COMMITMENT TO QUALITY BORDER Revenue From Operations* 211.82 295.49 240.78 Q2 FY20 volumes Other Income 5.37 1.23 0.66 stood at 33,203 tons Total Income 217.19 296.72 (26.80%) 241.44 YoY decline of 22% on Cost of Materials Consume
Slide 10: Financial Highlights - H1 FY20
Financial Highlights — H1 FY20 @) VARDHMANSPECIALSTEELSLTD. | ese W A COMMITMENT TO QUALITY Revenue From Operations 452.60 564.99 Other Income 6.03 3.01 Total Income 458.63 568.00 (19.26%) Cost of Materials Consumed 178.02 352.98 Purchases of Stocks 4.30 14.65 ChangesIn Inventory 121.99 (29.32) Raw
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights @) VARDHMANSPECIALSTEELSLTD. ese W A COMMITMENT TOQUALITY Equity* 360.01 361.99 Non-Current Assets 359.43 343.51 Equity Share Capital 35.76 35.76 Property Plant & Equipment 312.38 279.53 Other Equity 324.24 326.23 Right of Use Asset 1.27 0.00 Non-currentliabilities 130.54 13
Slide 12: Company Overview
s eae tes asians nernensianenteate Company Overview
Slide 13: About Us
About Us 6) VARDHMANSPECIALSTEELSLTD. ese Ww ACOMMITMENT TO QUALITY AmongstIndia’s Leading Steel Bar Producers for Automotive Applications = Incorporated in May 2010 State-of- art manufacturing =" Headquartered in Ludhiana, Punjab =" Caters to sectors such as Engineering, facilities Automotive, Trac
Slide 14: Journey So Far
J ourn ey SO Fa r @) VARDHMAN SPECIAL STEELSLTD. | O=-S-0 W A COMMITMENTTOQUALITY What Wewere... : = Feb. 2018 — QIP of Rs 50Cr. : ® June 2018 — CRISIL upgraded credit ) : rating 1973 — Started as Oswal : " 2012 - Listed on BSE & : = August 2018 — Changein Statutory Steels - 50,000 TPA capacity of s
Slide 15: Clear focus on long term Value Creation
Clear focus on long term Value Creation ) sscosman specusreisiro e-<s-e W A COMMITMENTTO QUALITY Rs. ° 1121 \ 1,61,676 2,00,000 TDA 1,80,000 \ 0.92 Dek , Tons TPA Crore Listed on Stock Exchange MTN Lett > \ (ws. 93,169 1,00,000 80,400 (“so 527 Crore Tons TPA TPA Revenue Sales Installed Installed Deb
Slide 16: Strong Experienced Board of Directors
Strong Experienced Board of Directors contd... @ sis socomseasun f W ACOMMITMENT TOQUALITY Mr. Rajeev Gupta Mr. Sachit Jain Chairman & IndependentDirector Vice Chairman & MD B. Tech from BHU/IIT, Varanasi and MBA(IIM, B. Tech (Electrical) - IIT, New Delhi, MBA (Gold Ahmedabad) medallist) - IIM, Anme
Slide 17: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... @ sis socomseasun oS-0 W ACOMMITMENT TOQUALITY Mr. B.K. Choudhary Mr. Rakesh Jain Non-Executive Director IndependentDirector = Degree in B.Sc.,M.Com & MBA = Ph.d in Polymers from the University of Akron = Rich experience of more than 44 yearsin Steel ="
Slide 18: Business Overview
s een enn Business Overview
Slide 19: Wide Range of Rolled & Bright Bars Products
Wide Rangeof Rolled & Bright Bars Products ese ACOMMITMENT TOQUALITY Hot Rolled Bars Bright Bars tl ~~ ae ae , ~ a en Lf > - ‘ t : a s =» Diameter Size : Increased from 25-70 Size : 14.66 to 78 mm (Peeled), 18 to MM in 2012 to 16-120 MM 55.25 mm (Drawn) 18
Slide 20: Diverse applications of our products
| i Diverse applications of our products VARDHMANSPECIAL STEELSLTD. A COMMITMENT TO QUALITY Axle Gears Drive-Shaft Knuckle Spindle Bearings Connecting Rod Axle Shaft «fl | Center Velocity Joint Steering-Yoke | Differential Gears 9
Slide 21: State-of-art Manufacturing facilities
State-of-art Manufacturing facilities 6) woSEOSTE Ww ACOMMITMENT TO QUALITY Rolling Mill Annual Capacity : 2,00,000 TPA Annual Capacity : 2,00,000 TPA =» Annual Capacity : 36,000 TPA 30 MT Ultra High Power (UHP) Eccentric Rolling Mill installed in 2013-14 = Bar Peeling & Centreless Grinding Bottom T
Slide 22: Process Flow
P FOCeSS F ow @) VARDHMANSPECIAL STEELSLTD. e-<s-e W ACOMMITMENTTO QUALITY ‘=. Sponge, ORI, PIG IRON, Shredded Scrap << EXponts Domestic Shipment | Final Inspection and Dispatch efSC Bright Bar Shop em FNDTLine 30 TON ELECTRIC ARC FURNACE Spherodize Annealing Vaccum Degassing UNit —_Laddle Refining
Slide 23: In-House Steel Melting Shop
os H ouse Steel M e Iting Sh Op @) VARDHMANSPECIALSTEELSLTD. oS-O W A COMMITMENTTO QUALITY Two Ladle Refining Furnace
Slide 24: Rolling Mill & Bright Bars
Rolling Mill & Bright Bars oS-0 ACOMMITMENT TOQUALITY Rolling Mill Bright Bar Shop UP “e ry Pe \ Sh re
Slide 25: Automatic Line of Bar Inspection - NDT Line
Automatic Line of Bar Inspection - NDTLine @) wou eS e-<s-e W ACOMMITMENTTO QUALITY MIFLT AcceptanceCriteria: Chamfering 0.2x10mm Bar ends free from Straightening Straightness : 2mm / meter AcceptanceCriteria: SDH - Shot Blasting 0.8x10mm, FBH - 0.8 & 1.2mm 24
Slide 26: Best in Class R&D Facility
Best i ne aSS R& D Fa ci ity @) VARDHMANSPECIALSTEELSLTD. oS-O W A COMMITMENTTO QUALITY = 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 H,, N,, O, Analyzer = Mobile Spectro a
Slide 27: Strategically located Warehousing Facilities
Strategically located Warehousing Facilities ) sscosman specusreisiro as e-<s-e A COMMITMENT TO QUALITY ‘3 : BERR = 3 =" One Owned Warehouse = Bilaspur Haryana = Five Leased Warehousesin India =" Bangalore = Chennai =" Rudrapur »= Pune We = Aurangabad 26
Slide 28: Key Strengths
Key Strengths @) ese W VARDHMANSPECIALSTEELSLTD. A COMMITMENTTO QUALITY State of Art Manufacturing Facilities and advanced R&D Capabilities = Well equipped with latest upgraded Technology Machines Diversified Product offerings = Manufactures diverse range of products with wide applications across se
Slide 29: 200+ Reputed & Long term customers
200+ Reputed & Long term customers.... © wens. e-<s-e A COMMITMENT TOQUALITY Cars Two Wheelers HCL/LCVs WD Dp MARUTI @YAMAHA L< > qlp © TOYOTA _—HYUNDAI M$S0ZUKI YourHesrt: Hero ne TATA ASHOK LEYLAND SWaRdJ wissan) TUS te OA maZzDa RENAULT |, DAIMLER Auto Components Off Highway Vehicles GNGKN Automo
Slide 30: Across Globe with Customer Base
... Across Globe with Customer Base 6) VARDHMAN SPECIAL STEELS LTD. oo WwW A COMMITMENTTO QUALITY
Slide 31: Slide 31
Slide 32: Investing in Our Real Assets
Investing in Our Real Assets e-<s-e A COMMITMENT TOQUALITY 9 Vardhman Leadership Development Program Park Plaza,Ludhiana -16" to 20"January 2019 eo : = CCL-US based Organisation- *: o ° ®e Se s = Training programs — : : = New Initiative undertaken a fd offers leadership programs functional, attitudi
Slide 33: Way Ahead
Way Ah ea d @) VARDHMANSPECIALSTEELSLTD. e-<s-e W ACOMMITMENT TOQUALITY Capacity Expansion & Utilization = Increase melting capacity to 2,40,000 TPA and Rolling Capacity to 2,20,000 TPA by FY21 = Target of achieving full capacity utilization, quality improvement, cost reduction & product mix enrichm
Slide 34: Thank You
Th an k Yo u @) VARDHMANSPECIALSTEELSLTD. as e-<s-e A COMMITMENT TO QUALITY 3SE 534392 | €)} NSE vsst | Bloomberg VSSLIN National Stock ExchangeofIndia Limited REUTERS =} VARM.BO For further information, please contact: Company: Investor Relations Advisors: Vardhman Special Steels Limited Bridge Inv
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