Maithan Alloys Ltd. · NSE:MAITHANALL
Maithan Alloys — 9M FY19 Earnings Presentation
30 slides from Maithan Alloys's earnings presentation, Jan 30, 2019
Slide 1: Covering letter to stock exchanges
ISO 9001 : 2008 COIIIPANY Regrstered Office . ldeal Centre, 4th Floor , I, A.J.C Bose Road, Kolkata - 700 017 T (033) 4063 2393 F (033) 2290 0383. E offi ce@maithanalloys com W www. maithanalloys.com 3gtr Janua,y ' 2079 crN : L27101wB19BspLCo395o3 1l 2l The Secretary Listing Department The Calcutta
Slide 2: Maithan Alloys Limited Investor Presentation – January 2019
MAITHAN ALLOYS LIMITED Investor Presentation – January 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Maithan Alloys Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Maintaining Sustainable Margins
Maintaining Sustainable Margins ₹ Crs Revenues EBITDA % Demand of our product continues to be 20.1% robust 16.6% Long-term sustainable EBITDA 16.3% margin range 15%-17% 1,879 1,439 11.1% 1,342 1,151 FY16 FY17^ FY18 9MFY19 Performance Demand Supply catching up improved on the overpassed supply with d
Slide 5: Strengthening Balance Sheet
Strengthening Balance Sheet ₹ Crs Total Debt Cash & Cash Equivalents Financial Flexibility 551 • Announced 384 Greenfield project in West Bengal 214 139 158 • Working on other 63 90 77 73 expansion plans 4 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 22.5% 27.5% 52.4% 69.7% 70.4% 446 512 525 309 251 421 297 1
Slide 6: Performance Highlights – 9MFY19
Performance Highlights – 9MFY19 ₹ Crs 0% -14% -9% 1,439 1,439 273 203 185 234 9M FY18 9M FY19 9M FY18 9M FY19 9M FY18 9M FY19 Manufacturing Revenue* Manufacturing EBITDA +3% -13% 1,279 1,320 263 229 9M FY18 9M FY19 9M FY18 9M FY19 5 *Net of GST/Excise Duty Financials are as on Standalone basis and a
Slide 7: Manufacturing vs Trading – 9MFY19
Manufacturing –vs- Trading – 9MFY19 ₹ Crs Manufacturing Revenue Trading Revenue TOTAL Revenue +3% -25% 0% 1,279 1,320 160 1,439 1,439 119 9M FY18 9M FY19 9M FY18 9M FY19 9M FY18 9M FY19 Manufacturing business is consistently growing 6 Revenue are net of GST/Excise duty Financials are as on Standalon
Slide 8: The Maithan Edge
The Maithan Edge… Largest Rich Niche Robust Manufacturer Experience Products Balance Sheet India’s largest Two decades of Basket of the most Net Cash Manganese experience and valuable Techno- Credit Rating: Alloy Producer continuous growth Commercial Products CARE AA and Exporter CRISIL AA- CARE/CRI
Slide 9: Visible in Financial Performance
Visible in Financial Performance “A Culture of Outperformance” CAGR from FY2012 to FY2018 Increase in Stake Holder Return’s ▪ ROCE Increased by + 3,290 bps ▪ ROE Increased by + 2,390 bps Revenue increased by +21% CAGR EBIDTA increased by +34% CAGR PAT increased by +37% CAGR Net Cash position of Rs.
Slide 10: Product Offerings
Product Offerings Ferro alloys enhance steel strength, durability, anti-corrosion and anti-stain properties and acts as de-oxidant for Steel Manufacturing Ferro Manganese - An alloy of iron and manganese • Used in steel products wherein silicon content needs to be controlled at low levels • Used in
Slide 11: Capacity addition to support Growth
Capacity addition to support Growth Capacity Built-up Production Volume (MT) - ‘000 Visakhapatnam MVA 137 225 213 Byrnihat, 36 206 Meghalaya +16% CAGR 158 149 36 141 Kalyaneshwari 16 89 76 82 66 70 24 25 42 2006 2007 2009 2012 2013 Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 In
Slide 12: State-of-Art Manufacturing Facilities
State-of-Art Manufacturing Facilities Installed Capacity of 137.25 MVA Smelters: Smelters: Smelters: • 2 x 5.0 MVA • 2 x 8.25 MVA • 4 x MVA 18.0 MVA • 1 x 6.5 MVA • 1 x 8.25 MVA • 2 x 12.0 MVA Products: Ferro Products: Ferro Silicon Products: Ferro Manganese/ Silicon Manganese/ Silicon Manganese Man
Slide 13: Self-Sustaining Business Model
Self-Sustaining Business Model Input of sized and graded Raw We have an ability to generate a Material Larger Throughput Feed in day bins through from our manufacturing facilities conveyors Automated Batch preparation and Charge into Furnace Ferro Manganese Slag Reaction in furnace and discharge of
Slide 14: Strong Client Relationships
Strong Client Relationships Shift of focus from ‘Stable’ Europe to ‘Growing’ Asia helping in better realizations ~100% of Domestic clients are associated with the Company for over 7 years Long term relationships with clients offers Competitive Advantage Low Concentration Risk in export markets with
Slide 15: The Leadership Team
The Leadership Team Mr. Subodh Agarwalla Mr. S. C. Agarwalla Mr. Sudhanshu Agarwalla Whole Time Director and CEO Chairman and Managing Director President and CFO • A B.Tech from IIT BHU and M.B.A. from IIM • 30 years of rich experience in Ferro Alloys • A M.B.A. from XLRI Jamshedpur Bangalore indust
Slide 16: Experienced Board
Experienced Board Mr. Nand Kishore Agarwal Mr. Biswajit Choudhuri Independent Director Independent Director Experienced in the field of Accounts, Finance and Tax Laws Experienced in the field of Engineering, Banking, Finance and Management Mr. Vikash Kumar Jewrajka Mr. Ashok Bhandari Independent Dir
Slide 17: Vision, Mission and Values
Vision, Mission and Values Vision To be India’s premiere Alloy Company that is built on the solid foundation of shareholder trust, customer commitment, employee satisfaction and sustainable communities. Consistently delivering on our promises backed by meticulous hard work is our motto for ensuring
Slide 18: Values
Values Commitment is a passion for us. We are extremely committed to serving our shareholders and customers to Loyalty is the very fabric the best of our abilities. Our promise that runs beneath our to our stakeholders is a hard-ironed organization. We strive to We not only believe but commitment an
Slide 19: Maintaining the Maithan Edge
Maintaining the Maithan Edge
Slide 20: Key Growth Drivers
Key Growth Drivers Low Debt Brand Value Addition Sustainability Low Cost Curve Margin Driven Asset Light Model Efficiency Discipline Expanding the Market Integrity From Vendor-ship to Partnership Relationship Driven Solutions Manufacturing and Marketing Efficiencies Customized 19
Slide 21: Key Differentiators
Key Differentiators Optimising Facilities for Efficiency Maximising Returns • Lowest in the Cost Curve • Sources raw materials when it • Optimum Capacity Utilization gets contracts • Higher Tonnage product • PPA agreement with power plants • Stable Asset turnover ratios and low debt-equity ratio Str
Slide 22: Industry Tailwinds
maithan ltd Industry Tailwinds
Slide 23: Asian Economies to drive the Global Steel Demand
Asian Economies to drive the Global Steel Demand Global Steel Demand 2018 : 1,548.5 Mn T CIS 3% EU It caters 70% of 13% NAFTA Global Steel 9% demand Asia, Oceania Avg. rate of & Middle growth is East expected to be 70% in the range ~1%-~2% AFRICA Central & 3% South America 3% Asia Ex-China Growth is
Slide 24: Advantage India
Advantage India 100 % FDI allowed in the India’s GDP to grow by +7 % mining sector & exploration of (IMF) over the next two years metal & non metal ores under the Automatic Route 2017 Budget outlay of ~ ₹ 4 tn in infrastructure to drive domestic steel consumption Steel Industry’s Outlook to Favourab
Slide 25: Support from Government of India
Support from Government of India Alloy Producers to benefit from NSP 2017 Capacity (Mn MT) Production (Mn MT) Per Capita Consumption (kg) CAGR +6% CAGR +7% CAGR +7% 300 255 158 122 92 61 2015-16 2030-31 2015-16 2030-31 2015-16 2030-31 National Steel Policy (NSP) 2017 Highlights • Reduce dependence o
Slide 26: Advantage Maithan
Advantage Maithan World Crude Steel Demand (Mn MT) India Crude Steel Demand (Mn MT) 2,000 110 +3% 100 90 +7% 1,500 80 70 60 1,000 50 40 500 30 20 10 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Gaining Market Share Strong
Slide 27: Financials
maithan ltd Financials
Slide 28: Standalone Profit & Loss (As per IND AS)
Standalone Profit & Loss (As per IND AS) Particulars (₹ Crs) Q3 FY19 Q3 FY18 YoY 9M FY19 9M FY18 YoY Revenue (Net of Excise Duty/ GST) 477 549 -13% 1,439 1,439 0% Raw Material 273 302 807 762 Employee Expenses 11 12 32 33 Power 96 98 280 281 Other Expenses 30 33 85 89 Operating EBITDA 68 105 -35% 23
Slide 29: Standalone Balance Sheet as on 30th September 2018
Standalone Balance Sheet as on 30th September 2018 (As per IND AS) Particulars (₹ Crs) Sept-18 Mar-18 Particulars (₹ Crs) Sept-18 Mar-18 Equity 996 875 Non-Current Assets 288 291 Equity share capital 29 29 Property, plant and equipment 227 233 Other Equity 967 846 Intangible Assets 0 0 Non-current L
Slide 30: For further information, please contact
For further information, please contact: Company Investor Relations Advisors: Maithan Alloys Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L27101WB1985PLC039503 CIN: U74140MH2010PTC204285 Ms. Neha Shroff/ Mr. Deven Dhruva Mr. Rajesh K. Shah neha.shroff@sgapl.net / deven.dhruva@sgapl.net rajesh@maith