Salasar Techno Engineering Ltd. · NSE:SALASAR
Salasar Techno Engineering — Q3 FY18 Earnings Presentation
37 slides from Salasar Techno Engineering's earnings presentation, February 2018
Slide 1: Salasar Techno Engineering Limited Result Update Presentation
SALASAR Salasar Techno Engineering Limited Result Update Presentation February 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Salasar Techno Engineering Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection
Slide 3: Agenda
Disclaimer Consolidated Financial Highlights 01 Company Overview 02 Business Overview 03 Industry Overview 04 Way Ahead 05 3
Slide 4: Consolidated Financial Highlights
Consolidated Financial Highlights
Slide 5: Management Comment
Management Comment Commenting on this development, Mr Shashank Agarwal, Joint Managing Director, Salasar Techno Engineering Ltd. said, “This quarter, we have registered a strong revenue growth of 39% and recorded significant increase in our overall profit of over 85%. This is on account of the deman
Slide 6: Consolidated Financials Highlights – Q3 FY18
Consolidated Financials Highlights – Q3 FY18 +39.13% +61.93% +157bps Rs. 132.26** Cr Rs. 14.75 Cr 11.15% Revenue EBITDA EBITDA Margin +85.64% +160bps +51.09% Rs. 8.46 Cr 6.40 % Rs 6.92 vs Rs 4.58 Q3 FY17 PAT PAT Margin EPS* Strong financial performance driven by higher margin telecom & EPC business
Slide 7: Consolidated Financials Highlights – Q3 FY18
Consolidated Financials Highlights – Q3 FY18 Rs. Cr Q3 FY18 Q3 FY17 Y-o-Y(%) Q2 FY18 Revenue from Operation 132.26 103.12 99.58 Excise Duty 0.0 8.05 0.00 Net Income from Operations 132.26 95.07 39.13% 99.58** Cost of Material Consumed 79.77 77.60 55.96 Purchase of Traded goods 14.16 1.52 9.87 Change
Slide 8: Consolidated Financials Highlights – 9M FY18
Consolidated Financials Highlights – 9M FY18 +40.06% +51.63% +83 bps Rs 348.97 Cr Rs. 37.98 Cr 10.88% Revenue EBITDA EBITDA Margin +73.67% +112 bps +41.33% Rs. 20.16 Cr 5.78 % Rs 16.48 vs Rs 11.66 9M FY17 PAT PAT Margin EPS* 8 *Company raised Rs 35.87 cr via IPO of 33,21,000 equity shares of Face va
Slide 9: Consolidated Financials Highlights – 9M FY18
Consolidated Financials Highlights – 9M FY18 Rs. Cr 9M FY18 9M FY17 Y-o-Y(%) Revenue from Operation 356.91 270.34 Excise Duty 7.95 21.19 Net Income from Operations 348.97 249.15 40.06% Cost of Material Consumed 207.65 172.77 Purchase of Traded goods 34.54 4.07 Changes in Inventories (1.60) (16.25) E
Slide 10: Consolidated Financial Highlights - Annual
Consolidated Financial Highlights - Annual Production (MT) Revenue (Rs. Crs) 45,395 39,398 416.24 36,332 30,992 330.11 310.00 292.37 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 EBITDA (Rs. Crs) / Margin (%) PAT (Rs. Crs) / Margin (%) 50 12% 25 6% 9.38% 9.32% 40 8.47% 4.51% 7.91% 20 38.79 8% 3.56% 18.78
Slide 11: Consolidated Financial Highlights - Annual
Consolidated Financial Highlights - Annual +34.27% +33.46% +68.00% Rs 416.24 Cr Rs. 38.79 Cr Rs.18.78Cr Revenue EBITDA PAT +90 bps +70.06% 4.51 % Rs 18.86 vs Rs 11.09 FY16 PAT Margin EPS 11
Slide 12: Consolidated Financial Highlights - Annual
Consolidated Financial Highlights - Annual Rs. Cr FY17 FY16 Y-o-Y (%) Total Income from Operations 416.24 310.00 34.27%% Raw Materials 270.93 211.00 Employee Cost 14.25 11.14 Manufacturing & Operating Expense 69.67 42.56 Other Cost 22.60 16.24 Total Expenditure 377.45 280.94 EBITDA 38.79 29.06 33.46
Slide 13: Segmental Performance
Segmental Performance Revenue Break-up – FY16 Revenue Break-up – FY17 Transmission, 9.5% Other, 5.6% Telecom, Transmission, Other, 3.2% Telecom, 73.0% 24.5% 53.3% Solar, 11.9% Solar, 19.0% 13
Slide 14: Revenue Contribution – Govt. Vs Private
Revenue Contribution – Govt. Vs Private Revenue Break-up – FY16 Revenue Break-up – FY17 Government, Government, 6.5% 23.8% Private, 76.2% Private, 93.4% 14
Slide 15: Key Financials Ratios
Key Financials Ratios ROA (%) RoCE (%) 30.55% 7.22% 6.26% 28.74% 27.18% 3.34% 26.75% 3.03% FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 RoE (%) 19.38% 14.62% 11.00% 9.72% FY14 FY15 FY16 FY17 15
Slide 16: Balance Sheet as on 31st March'17
Balance Sheet as on 31st March’17 As on 31st As on 31st As on 31st As on 31st Rs. Crs Rs. Crs Mar’17 Mar’16 Mar’17 Mar’16 Shareholder’s Funds 95.84 75.12 Non-current assets 67.42 56.01 Share capital 9.96 4.98 Fixed assets 61.58 55.03 Reserves & Surplus 85.88 70.14 Goodwill on consolidation 0.00 0.03
Slide 17: Company Overview
Company Overview
Slide 18: Company Overview
Company Overview manufacturing/fabrication ISO 9001: 2015, 14001: 2015 One of India's face and OHSAS 18001: 2007 certified Focus on Innovative Products for Ramboll's technical expertise in Telecom towers structural Provider of customised partners Increased steel fabrication and design capacity from
Slide 19: Timeline
Timeline FY 13 FY 18 Ventured into FY 16 Received Approved transmission Bagged Rs. 228 cr Vendor status from business, 1st order project s for Rural PGCIL for 70 km line from Electrification st 1 order for FY 11 RRVPNL , Rajasthan from PVVNL, U.P. FY 17 Transmission Line (Funded under Ventured into
Slide 20: Management Team
Management Team Mr. Kamlesh Kumar Mr. Alok Kumar Mr. Shashank Agarwal Mr. Shalabh Agarwal Ms. Tripti Gupta Sharma Chairman & Jt. Managing Director Director Director Chief Finance Officer Managing Director • B.Sc. from Punjab • B.E. (Mech.) from MIT, • B.Tech from MIT, Manipal • MBA in Finance & • Me
Slide 21: Business Overview
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Slide 22: Business Verticals
Business Verticals Transmission Solar Structures Telecom Tower Poles EPC Installation and Project Execution 22
Slide 23: Product Portfolio
Product Portfolio • Customized Galvanized and Non-galvanized steel structures • Process of applying a protective zinc coating to steel or iron, to prevent rusting • Forms a coating of zinc which serves as a sacrificial anode and protects its base metal by corroding before iron Telecommunication Towe
Slide 24: Product Portfolio contd…
Product Portfolio contd… • Transmission Towers and • Solar Module Mounting • Feeder Segregation and Rural • Lighting Poles for Smart Cities - Substation Structures - Structures - Solar module Electrification – Carrying out Lighting Pole is raised source of Transmission line tower or racking (also ca
Slide 25: Product Portfolio contd…
Product Portfolio contd… Smart Poles • Used in places where aesthetic requirements are high • Practical substitute, is combination of Telecom Poles, Wi-Fi, Smart Lighting, Local Area Monitoring and environmental census • Can be design as per requirement arising of local conditions 25
Slide 26: Key Strengths
Key Strengths Partnership with Ramboll • Manufacturing partner for Ramboll's technical expertise in Structural Design of Tubular Telecom Towers • Ramboll market leader in innovative design & Strong Financial Capabilities supply of tower solutions • Upward trend in EBITDA Margins • Strong return rati
Slide 27: State of the art Manufacturing Facilities
State of the art Manufacturing Facilities Location • Unit-I, Khasra No. 265, 281 & 283, Parsaun, Jindal Nagar, Dasna, Hapur-201313, Uttar Pradesh (UP) • Unit-II, Khasra No. 1184, 1185, Khera, Pilkhuwa, Hapur-245304. Uttar Pradesh (UP) • Unit-III, Khasra No. 686/6, Khera, Pilkhuwa , Hapur-245304, Utt
Slide 28: Certifications
Certifications Unit 1 ISO 14001:2015 Unit 2 ISO 14001:2015 Unit 1 ISO 9001:2015 Unit 2 ISO 9001:2015 Environmental Management Environmental Management Quality Management System Quality Management System System System 28
Slide 29: Awards & Recognitions
Awards & Recognitions • Best Tower Partner award from Indus Towers for the period 2014-15 • Excellence thru Collaboration award from Indus in 2014 • Best Partners award from Bharti Infratel for the period 2014-15 • One of the Top PAN India Tower Supplier in VIOM and ATC 29
Slide 30: Bouquet of Satisfied Customers
Bouquet of Satisfied Customers 30
Slide 31: Industry Overview
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Slide 32: Industry Overview
Industry Overview Strong economic • Supported by strong government reforms fundamentals • RBI's inflation focus supported by benign global commodity prices • Forecasted growth of 8 % on an average from fiscal 2016 to 2020 Robust Growth • Powered by greater access to banking, technology adoption, urb
Slide 33: Industry Overview
Industry Overview • Total mobile services market revenue in India is expected to touch US$ 37 billion in 2017 • Compound Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC Strong Prospects for • Indian telecommunication services market will grow by 10.3 %
Slide 34: Industry Opportunities
Industry Opportunities • Strong growth expected telecom infrastructure industry - new technologies, such as 4G & expansion in rural areas to boost this growth • Around 70 per cent of India’s 4,00,000 towers are owned and operated by tower companies • Governments initiatives to electrify rural areas
Slide 35: Way Ahead
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Slide 36: Way Ahead
Way Ahead Utilisation of Incremental Capacity and Expanding Product Portfolio ▪ Utilise additional 50,000 MT Galvanizing plant ▪ Continue to expand product portfolio by upgrading 01 existing products and introducing new ones to maintain market share and engage new customers Expanding Design & Engine
Slide 37: Thank You
Thank You SALASAR 540642 SALASAR IN SALASAR BO For further information, please contact: Company : Investor Relations Advisors : Salasar Techno Engineering Limited Bridge Investor Relations Pvt. Ltd. CIN No. U23201DL2001PLC174076 CIN No. U74900MH2016PTC273679 Mr. Kamlesh Kumar Sharma Mr. Amit Sharma
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