Slide 1: Exchange filing cover letter
Salasar Techno Engineering Limited Date: May 31st 2022 Listing Department, Department of Corporate Services, The National Stock Exchange of India, The BSE Limited, Exchange Plaza, C-1 Bandra Krla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai- 400051, Dalal Street, Mumbai- 400001, NSE Symbol
Slide 2: Investor Presentation – Q4 & FY22
www.salasartechno.com SALASAR TECHNO ENGINEERING LIMITED INVESTOR PRESENTATION – Q4 & FY22 MAY 2022 Building a Stronger Future
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Salasar Techno Engineering Limited (“Salasar” or the company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operatio
Slide 4: Discussion Summary
DISCUSSION SUMMARY 01 Business Overview 02 Q4 FY22 Highlights 03 Competitive Advantage 04 Financial Summary 3
Slide 5: Business Overview
BUSINESS OVERVIEW Broadening Horizons For Sustainable Growth 4
Slide 6: Salasar Story
SALASAR STORY Growing Steel Structure Manufacturer & EPC Infrastructure player, providing services across telecom, energy and railways Sector In the year 2006, Salasar started out as a tower manufacturer with the vision of transforming the industry. Tower manufacturers rarely provided multiple solut
Slide 7: Quick Snapshot
QUICK SNAPSHOT As the country continues its growth trajectory, we stand tall, partnering to bridge the gap in nation’s infrastructure needs with our sustainable and efficient business model Telecom Transmission Railway Utility Solar Heavy Steel Towers Line Towers Electrification Poles Structures Str
Slide 8: Numbers That Define Salasar
NUMBERS THAT DEFINE SALASAR Our differentiated positioning in the country’s most dynamic sector will accelerate our transition to diversified and agile business to better serve our growing clientele 1,10,000+ MT 50,000+ 568+ KM Annual Production Telecom Tower Power Transmission Capacity Supplies Lin
Slide 9: State-of-the-Art Manufacturing Facilities
STATE-OF-THE-ART MANUFACTURING FACILITIES Strong base of operations with technology-driven facilities for efficient steel structure manufacturing and galvanizing Plant Unit – I Unit – II Unit - III Total Area Installed Capacity 1,50,000+ Sq. yards ▪ 1,00,000 MT of Steel Jindal Nagar, Distt. Galvaniz
Slide 10: Select Marquee Clients
SELECT MARQUEE CLIENTS Salasar has a strong and diverse client base which has helped us establish ourselves in a leading position in the industry Telecom Sector Power Sector Others/ EPC Approved vendor for Power Grid Qualified to bid for rural Qualified by CORE (Central Corporation Ltd. electrificat
Slide 11: Strong & Experienced Leadership Team
STRONG & EXPERIENCED LEADERSHIP TEAM Board of Directors Mr. Alok Kumar B.Sc from Punjab University, Chandigarh 1 Mr. Shalabh Agarwal 4 Mr. Mukesh Kumar Garg Director Non-Executive Independent Director • Wide experience spanning over 4 decades in trading, manufacturing and fabrication of iron & steel
Slide 12: Q4 & FY22 Highlights
Q4 & FY22 HIGHLIGHTS Delivering Consistent Performance 11
Slide 13: Management Comment
MANAGEMENT COMMENT Mr Shashank Agarwal, Joint Managing Director, Salasar Techno Engineering Ltd: “Overall the Financial Year of 2022 remained a challenging one for the company keeping in view the abnormal and unprecedented volatility in the commodity prices both for steel and Zinc. The company has b
Slide 14: Consolidated P&L Statement – Q4 & FY22
CONSOLIDATED P&L STATEMENT – Q4 & FY22 Particulars (INR Cr) Q4 FY22 Q4 FY21 Q3 FY22 FY22 FY21 YoY Net Sales 212.3 211.5 173.6 718.9 596.6 20.5% Cost of Goods Sold 175.3 168.8 132.7 570.8 473.0 20.7% Employee Cost 10.0 9.8 12.2 40.0 30.9 29.3% Other Indirect Expenses 11.0 13.6 12.1 39.1 35.7 9.6% Tot
Slide 15: Order Book Position
ORDER BOOK POSITION Particulars Value Orders EPC outstanding as on 31st March 2022 Rs. 808 crore + L-1 EPC orders for which LOI awaited Rs. 130 crore + Manufacturing orders outstanding under new heavy steel structure plant as on 31st March 2022 Rs. 200 crore + Export order in hand Rs. 44 crore Total
Slide 16: Revenue Composition Segment Wise
REVENUE COMPOSITION SEGMENT WISE FY22 Revenue by Segments FY21 Revenue by Segments 18% 14% 5% 6% 80% 77% Manufacturing - Steel Structures and Others Manufacturing - Steel Structures and Others EPC - Power Transmission EPC - Power Transmission EPC - Railway Electrification EPC - Railway Electrificati
Slide 17: Competitive Advantages
COMPETITIVE ADVANTAGES Unlocking Value, Delivering Results 16
Slide 18: Growth Strategy
GROWTH STRATEGY New business of manufacturing of heavy structures such as ROB, Pre- Engineered Buildings, etc. Expanding tower designs and leveraging on their tie-ups with Ramboll to provide value to the clients Tapping industry opportunities by expanding product portfolio and optimal utilization of
Slide 19: Structured Plant Expansion to Cater High Industry Demand
STRUCTURED PLANT EXPANSION TO CATER HIGH INDUSTRY DEMAND Expanding product portfolio with optimal utilization of existing capacity Unit III, Khera, Unit III, Khera, HSD plant, Unit- III: at present the Bhilai, • Location Distt. Hapur, Distt. Hapur, company is having robust order book Chhattisgarh Ut
Slide 20: Collaboration with Ramboll, Denmark
COLLABORATION WITH RAMBOLL, DENMARK With this international technical tie-up with an industry leader, Salasar is well-positioned to meet the increasing industry demand Salasar has a long-standing technical tie-up with Ramboll (Denmark) to manufacture lighter and lower costing tower structures and hi
Slide 21: Telecom Infra: Huge Opportunity Due to Increasing Telecom Demand
TELECOM INFRA: HUGE OPPORTUNITY DUE TO INCERASING TELECOM DEMAND India is the second largest telecom market in the world with a subscriber base of 1.17 billion Yearly growth of towers and base stations (BTS) (‘000s) Key Facts and Developments 2,206 2,256 2,313 • Leading player in the Telecom Tower m
Slide 22: Increased Demand for Power Transmission Infrastructure Development
INCREASED DEMAND FOR POWER TRANSMISSION INFRASTRUCTURE DEVELOPMENT Robust Growth Outlook Driven By Strong Policy Support Historical Generation and Transmission Investment Key Facts and Developments • Design and Construction of Power Transmission lines of 66kV, % Growth in Generation Capacity (MW) %
Slide 23: Railways Electrification – One of the Key Focus Areas
RAILWAYS ELECTRIFICATION – ONE OF THE KEY FOCUS AREAS Government has an ambitious plan to secure infrastructure for 100% electrification of the railway network by 2024 Growth of Railway Electrification (Route Km, RKM) Key Facts and Developments * 6,886 RKM already commissioned till Jan’21 • Governme
Slide 24: A Fast-Growing Steel Structure Division
A FAST-GROWING STEEL STRUCTURE DIVISION Salasar’s Steel Structure Division caters to refineries, steel plants, power plants and bridges for railways and roadways Key Strengths ▪ One of the largest installed capacities in North India ▪ State of the art manufacturing facility Heavy & Complex ▪ Easy ac
Slide 25: Financial Summary
FINANCIAL SUMMARY Gaining Strengths 24
Slide 26: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Sales Volume (MT) Revenue (Rs Crore) 719 74,993 655 597 58,619 58,776 495 526 55,657 51,829 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA (Rs Crore) / EBITDA Margin (%) PAT (Rs Crore) / PAT Margin (%) 10.9% 11.2% 40 6.0% 7% 80 9.8% 12% 9.6% 9.6% 5.1% 5.0% 4.4% 6%
Slide 27: Key Financial Ratios
KEY FINANCIAL RATIOS ROCE (%) ROE (%) 23% 23% 23% 19% 19% 15% 16% 11% 12% 11% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Debt to Equity (x) 0.9 0.8 0.8 0.7 0.7 FY18 FY19 FY20 FY21 FY22 RoCE – EBIT/ Average Capital Employed, ROE – Profit/Average Shareholders Funds, D/E – Average Debt/ Average
Slide 28: Consolidated P&L Statement
CONSOLIDATED P&L STATEMENT Particulars (INR Cr) FY22 FY21 FY20 Net Sales 718.9 596.6 526.3 Cost of Goods Sold 570.8 473.0 415.1 Employee Cost 40.0 30.9 31.0 Other Indirect Expenses 39.1 35.7 28.3 Total Expenditure 649.9 539.6 474.5 EBITDA 68.9 57.0 51.8 EBITDA Margin% 9.6% 9.6% 9.8% Other Income 2.2
Slide 29: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (INR Cr) Mar-22 Mar-21 Mar-20 Particulars (INR Cr) Mar-22 Mar-21 Mar-20 EQUITY & LIABILITY ASSETS Share Capital 28.6 14.3 13.3 Non-Current Assets: Other Equity 253.4 238.4 193.9 Net Block 124.9 112.4 91.1 Non- Controlling Interest 0.3 0.3 - Shareholder's Funds
Slide 30: Thank You
Salasar Techno Engineering Ernst & Young LLP Thank You Pramod Kala, CFO pramod.kala@salasartechno.com Vikash Verma I Rohit Anand Vikash.verma1@in.ey.com I Rohit.anand4@in.ey.com © 2022 – All Rights Reserved | www.salasartechno.com