Gravita India Limited · NSE:GRAVITA
Gravita India — Q3 FY22 Earnings Presentation
29 slides from Gravita India's earnings presentation, Jan 29, 2022
Slide 1: Regulation 30 intimation cover letter
~~ GRAVITA GRAVITA INDIA LTD. Corp. Office : 402. Gravlta Tower, A-27 B. Shantl Path. Tllak Nagar. JAIPUR-302 004. Rajasthan (INDIA) Phone : +91-141- 2623266. 2622697 FAX : +91-141-2621491 E-mail : lnfo@gravltalndla.com Web. : www.gravltalndla.com CIN : l2930BRJI992PLC006870 29 111 January 2022 GIL/
Slide 2: Investor Presentation Jan 2022
INVESTOR PRESENTATION Jan 2022 Towards Clean, Green & Sustainable Future
Slide 3: Gravita, started in 1992 by first generation entrepreneur
GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2
Slide 4: We are on an Amazing Journey
We are on an AMAZING JOURNEY 2021 New recycling facility at Mundra port 2019 Started Aluminium & 2016 Added Aluminium Plastic recycling in Recycling Africa 2015 Diversified in 2013 Value added Plastic recycling products in Jaipur 2010 Listed on NSE & BSE 2007 1st recycling unit in Ghana 2001 1st Ove
Slide 5: Vision 2025
VISION 2025 New recycling verticals 25%+ E-Waste, Lithium, ROCE Rubber, Copper & Paper 25% + 50%+ Revenue CAGR Value added products 35% + 25%+ Profitability Growth Non-Lead business ● ● ● Our Priorities Shareholder value Return accretive Judicious use of creation growth capital 4
Slide 6: Financial Highlights
FINANCIAL Highlights 27% 8-9% A Consistent EBITDA margins External credit rating Revenue CAGR - 5 Yrs 64% Locking the margins 10 Years Back-to-back hedging mechanism in place History of sustainable dividend payouts PAT CAGR - 5 Yrs 60%+ Profit from overseas business with only 25% of the capital empl
Slide 7: Quarterly Highlights - Q3 FY22
QUARTERLY HIGHLIGHTS - Q3 FY22 REVENUE (Cr) 546 557 Changing gears - VISION 2025 374 14%+ 49%+ 69%+ 150%+ Volume Revenue EBITDA PAT Q3FY21 Q2FY22 Q3FY22 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 60.00 EBITDA* (Cr) 50.26 54.21 9.70%10.00% 50.00 32.14 9.00% 40.008.60% 9.20% 30.00 8.00% 42% 37% 20.00 10.00 7.00% Revenue
Slide 8: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED 19% 19% 18% Target ROCE 25% 16% Consolidated 15% 13% Drivers of ROCE ● Improving industry dynamics ● Resultant reduction in working capital ● Improving demand- 5% supply ● Value added products FY16 FY17 FY18 FY19 FY20 FY21 9M FY22 ● 3 Years ● 25% + ● 8+ Capital Allocation
Slide 9: Improving Leverage & Cash Flow
Improving LEVERAGE & CASH FLOW Debt and Equity Operational Cash Flow (Cr) 273 250 256 66 43 233 28 15 57 -2 47 230 -20 218 222 68 21 199 21 166 49 41 4 26 19 20 15 146 103 6 1.23 1.26 1.21 97 1.1 0.95 0.87 FY16 FY17 FY18 FY19 FY20 FY21 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 Short Term Debt Long Term De
Slide 10: Leveraging existing Gravita's Strengths
Leveraging existing GRAVITA’S STRENGTHS Our Entry into new verticals is based on proven, existing Gravita’s Strengths. Deep Routed Diversified procurement Customer network network Operation Excellence 9
Slide 11: Industry Specific Entry Barrier
Import License OEM in India Approvals Multinational Specialist Procurement Knowledge Network Time & Cost Capability to of Entry Industry Specific Develop Customized Products ENTRY BARRIER 10
Slide 12: Global & Pan India Operations
GLOBAL & PAN INDIA Operations ● Global spread helps reduce logistics costs and procure material cheaper. ● Start small > grow volumes > establish new plants close to procurement sources. ● Increased flexibility in recycling closest to raw material access and consuming markets. Head Quarters India (J
Slide 13: Deep Routed Procurement Network
Deep Routed PROCUREMENT NETWORK 27 1400+ 1,60,000 MT+ Own yards Touch points Scrap collection Europe Touch Points- 20+ Scrap collection(MT) - 9,000+ Americas Own Yards - 4 Touch Points- 80+ Scrap collection (MT) -18,000+ Africa Own Yards - 22 Asia Touch Points- 300+ Own Yards - 1 Scrap collection (M
Slide 14: Diversified Customer Network - Global
Diversified CUSTOMER NETWORK - GLOBAL 40 + 300 + 1,05,000 MT + Countries Customers Recycled products delivered Europe Countries - 6 Customers -8 Delivered- 10,000 MT+ Americas Countries - 12 Customers -37 Delivered- 18,000 MT + Middle East Countries - 7 Customers -23 Delivered- 16,000 MT+ Asia Count
Slide 15: Diversified Customer Network - India
Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : ● 200+ domestic customers in 18 states in India ● 60+ overseas customers in 20 countries. 14
Slide 16: Operational Excellence
OPERATIONAL EXCELLENCE 3 12 1400+ Recycling Recycling Touch Points Verticals Plants Globally 45% 2.03 Lac+ 72% 30% Customized & MT Production Capacity Overseas Value added Capacity Utilzation Capacity products 1.60 Lac+ 1st ILA 60000 MT+ MT Scrap Asia’s Healthy Collection Accredited Orderbook Plant
Slide 17: Our Partners
OUR PARTNERS (Strong Partnering Capability) 16
Slide 18: Turnkey Solutions for Lead Acid Battery Recycling
Gravita offers TURNKEY SOLUTIONS for Lead Acid Battery Recycling ● In house Lead Acid Battery Recycling Technology ● Technical Consultancy & Services for Lead Recycling & Smelting ● PLC based Control & Monitor System for advanced set-ups ● Annual Maintenance Contracts ● Executed more than 50 turnkey
Slide 19: Robust Management
ROBUST MANAGEMENT Dr. M. P. Agarwal Rajat Agrawal Chairman Managing Director OTHER SALIENT FEATURES • Top management with an average experience of 350 + 150+ more than 25 Yrs in diversified industries Employees Professionals (CA’s, MBA’s, Engineers) • Separate SBU heads for all verticals • Incentive
Slide 20: Customized and Value Added Products
CUSTOMIZED AND VALUE ADDED PRODUCTS Our Capability to produce customized and value added products for diversified customer segments gives us better contributions and larger pie of Customized Lead Alloys Lead Sheets Lead Bricks customer's product mix. Value Added Products % in revenue 50% 44% 44% 45%
Slide 21: Risk Mitigation by Back to Back Hedging mechanism
Risk Mitigation by BACK TO BACK HEDGING mechanism Core Inventory +Back-to-Back Back-to-Back Hedging Hedging • To mitigate the risk of commodity prices fluctuation from June. 2016 $ 2005 $ 1947 • Metal equivalent of the scrap bought, is sold on the same $ 2379 $ 1867 $ 2122 day 8.32% 8.05% • Pricing
Slide 22: Improving Market Dynamics in Recycling - Paradigm Shift
Improving MARKET DYNAMICS IN RECYCLING - Paradigm Shift Vehicle BWMR EPR Scrappage GST Policy PARADIGM SHIFT More Shift from Tie-ups Reduced Better Improved availability informal to with working capacity logistics of domestic formal OEM's capital cycle utilizations scrap 21
Slide 23: Shift from Informal to Formal
Shift from INFORMAL TO FORMAL With redefining of Battery Waste Management Rules (BWMR) , Extended producers responsibility (EPR) and stricter implementation of GST, the scrap availability for formal recycling sector has increased and is further expected to grow. Informal Lead recycling trend in Indi
Slide 24: More availability of Domestic Scrap
More availability of DOMESTIC SCRAP % of Raw materials domestically ● With shift of scrap from Informal to formal for processing collected within India through a authorized recycler. 55% ● Contracts with battery manufacturers ● PAN India collection of scrap from corporates 45% ● Contracts with vario
Slide 25: Reducing Net Working Capital Cycle
Reducing NET WORKING CAPITAL CYCLE • More domestic scrap & Lower imports reduces transit inventory • Retail scrap collection through OEM’s - Zero working capital 75 Days* 63 Days 90 Days Future Earlier Current 14 30 18 15 35 26 35 35 30 Receivables Receivables Receivables Paid Plant Inventory * Paid
Slide 26: Environment, Social & Corporate Governance: Capturing Value from Waste
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Focused on Capturing Value from Waste Through Modern Recycling and Recovery Recycling Waste: • Uses scrap of lead, aluminum and plastic in manufacturing of finished goods and has a process in place to 3 collect the scrap and recycle the same Recycling verti
Slide 27: Environment, Social & Corporate Governance: Contributions to Society
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Involved in Making Holistic & Meaningful Contributions to Society 4 • Engagement Platforms of Customers & Partners: Customers: Regular business meetings, Customer Round of ESOPs satisfaction survey 2% • Product/Service Safety and Quality: Identify areas for
Slide 28: Environment, Social & Corporate Governance: Ethical Standards
ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Fosters a Culture of High Ethical Standards, Accountability and Transparency 50% • Business Ethics: Always worked towards building trust with shareholders, employees, customers, suppliers Independent directors and other stakeholders based on the principles
Slide 29: Thank You - Save the Planet
Thank You SAVE THE PLANET