Electrosteel Castings Ltd. · NSE:ELECTCAST
Electrosteel Castings — Q1 FY24 Earnings Presentation
39 slides from Electrosteel Castings's earnings presentation, Aug 10, 2023
Slide 1: Regulation 30 disclosure cover letter to stock exchanges
10 August, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 500128 Symbol: ELECTCAST ISIN : INE086A01029 Dear Sir/Madam, Sub: Disclosure under Regul
Slide 2: Q1FY24 Investor Presentation
Q1FY24 Investor Presentation August 2023 ‘La Frasnee’ Hydropower Plant Project - France
Slide 3: Table of Contents
Table of Contents 1 Water Infrastructure Opportunity 2 ESG Initiatives: Moving Towards Sustainability 3 Investment Rationale 4 Financial Highlights
Slide 4: Water Infrastructure Opportunity
Water Infrastructure Opportunity
Slide 5: Largest Beneficiary of Water Infrastructure Play
Largest Beneficiary of Water Infrastructure Play Manufacturing Excellence Capex to Tap the Growing Notable Financial Establishing a Niche Play & Global Presence Water Infra Demand Track-record ➢ Promoters Expertise of ➢ 5 Multi-locational Strategic ➢ INR 600 Crore Capex Plan ➢ Highest ever Revenues,
Slide 6: Our Journey Towards Integrated Play
Our Journey Towards Integrated Play 1955-59 1994 1996 2000 2002-03 2005 2006 ➢ Acquired 46% stake in ➢ Commissioning of ➢ Capacity of DI Pipe Founded in 1955. Set Up DI Pipe plant Obtained Kitemark Lanco Industries Ltd. Obtained Kitemark license 150,000 TPA COP at SW increased to 120,000 Commenced P
Slide 7: Water Infrastructure Demand Drivers
Water Infrastructure Demand Drivers Jal Jeevan Mission (JJM): Driving Water JJM : Funds Drawn by States/Union Territories Infra Demand (INR Crore) 54,744 ➢ The Government’s flagship scheme with an outlay of 3.60 lakh 40,010 crores for providing water supply by Functional Household Tap Connections (F
Slide 8: Ductile Iron Pipe & Fittings Best Suited for Water Infra
Ductile Iron Pipe & Fittings Best Suited for Water Infra Ductile Iron Pipe Ductile Iron Fittings ➢ One of the most preferred pipes for water supply & sewage applications ➢ Used in connection with DI pipes of both Flanged & Socket Ends across the Globe ➢ State of the art manufacturing plants - Kharda
Slide 9: Market Leader in DI Pipe Industry
Market Leader in DI Pipe Industry ECL’s Integrated Capacities Particulars Capacity DI Pipes 7,00,000 MTPA DI Fittings 21,000 MTPA CI Spun Pipe 90,000 MTPA Liquid Metal 8,18,000 MTPA Coke 6,04,000 MTPA Ferro Silicon 9 MVA*3 Sinter 8,60,000 MTPA Benefits of Integrated Capacity Play ➢ Cost Advantage du
Slide 10: One of the Key Players with Integrated Facilities
One of the Key Players with Integrated Facilities Iron Ore fines Raw Materials Coal Sinter plant Coke Oven Limestone Sinter BF Grade Coke Blast Furnace Pig Iron Power Plant Raw Materials Coke Fines Limestone Fines MBF Slag Molten Metal BF Gas Intermediates Mini Cement Plant Brick Plant Ferro Alloys
Slide 11: Delivering Key Projects for Marquee Clients
Delivering Key Projects for Marquee Clients ISRO Vikram Sarabhai Space Centre Kargil India’s New Parliament Building Boeing Corporation Pfizer Facility BMW (Wallersdrof, Germany) Ras Abu Aboud Stadium, Qatar Doha Metro Hamad International Airport WWTP, Okhla French Atomic Centre 10
Slide 12: Technology at Work: Walking an Extra Mile
Technology at Work: Walking an Extra Mile Laying DI Pipes at Kargil Airlifting for ‘La Frasnee’ Hydropower Plant Project Challenge ➢ Need for permanent water infra for Indian Army including steady Project Challenge drinking water supply ➢ Need to lay long stretch of pipes in mountainous terrain with
Slide 13: Harnessing the Digitalization Wave
Harnessing the Digitalization Wave Digitalization/Automation Initiatives ➢ SAP upgraded to SAP-HANA across all Digital Branding Edge locations ➢ Build Goodwill and Brand Image ➢ Created (Employee Window), as ➢ Strong Brand Recall an HR digitalization dashboard tool for ➢ Powerful and Effective Engag
Slide 14: Water Infrastructure Applications
Water Infrastructure Applications ECL’s Water Infra Applications Drinking water/ Industrial Sewage and Miscellaneous irrigation applications Wastewater Disposal applications ➢ Clear and Raw ➢ Ash-Slurry Handling ➢ Gravity Sewage ➢ Vertical Connection to Water Transmission & Disposal System Collectio
Slide 15: Fueling Capex Plans with Internal Accruals
Fueling Capex Plans with Internal Accruals Cash Generation from Operations (INR Crore) Capacity (in Lakh MT) & Planned Capex 473 398 7.15 FY21 FY22 FY23 5.03 6.04 -325 Capex aided by Cash Flows along with Reduction in Debt Net Debt Trajectory (INR Crore) 5.80 6.36 7.00 8.95 FY21 FY22 FY23 FY25e 1,87
Slide 16: ESG Initiatives: Focus on Sustainability
ESG Initiatives: Focus on Sustainability
Slide 17: Environmental Initiatives: Towards a Greener Future
Environmental Initiatives: Towards a Greener Future Environmental Initiatives ➢ Documented Environmental Management System ➢ Year-round Sapling Plantation ➢ TPM activities like 5S & Audits, Kaizen ➢ Continuous Monitoring and Evaluation of environmental parameters ➢ Ambient air quality & Stack monito
Slide 18: Waste Management Initiatives: Towards a Cleaner Future
Waste Management Initiatives: Towards a Cleaner Future Reuse of Mg Dust (100%) - in Tons Waste Management 20 18 13 14 12 ➢ Srikalahasthi Plant - Treats and utilises sewage water of Tirupati Municipal Corporation thereby conserving natural water resources, 22 MW waste heat recovery power plant ➢ Khar
Slide 19: Energy Conservation: Thrust on a Greener Future
Energy Conservation: Thrust on a Greener Future Energy Conservation ➢ 17,888 KWH Solar energy (utilized in 2021-22) ➢ Dual fuel burners to eliminate fuel oil consumption reducing diesel oil usage ➢ Use of high efficiency two stage burners to reduce fuel oil consumption by ~35% ➢ Use of cooling tower
Slide 20: Focus on Sustainability
Focus on Sustainability Annual World Environment Day Initiatives 01 Promoting Green Planet: Jute Bag Distribution Sustainable Organization Awarded ‘Sustainable Organization For Valuable Initiatives’ by Economic Times at Global Sustainability 02 Sapling Plantation & Distribution Congress - Acknowledg
Slide 21: Jal Sevak Sanman: Awarding Environmentalists Efforts
Jal Sevak Sanman: Awarding Environmentalists Efforts Jal Sewak Sanman Jal Sewak Sanman: Awardees ➢ Aligns with the Company’s mission of ‘Carrying life to people, safe ➢ Prof. Abhijit Mukherjee (Individual Category), an Associate drinking water for all’ Professor at the Department of Geology and Geop
Slide 22: Seasoned Board of Directors: Ensuring Effective Governance
Seasoned Board of Directors: Ensuring Effective Governance Mr. Pradip Kumar Khaitan Mr. Umang Kejriwal Mr. Mayank Kejriwal Mr. Sunil Katial Mr. Ashutosh Agarwal Mr. Amrendra Prasad Verma Chairman, Whole Time Director, Managing Director Joint Managing Director CFO, Whole Time Director Independent Dir
Slide 23: Seasoned Board of Directors: Ensuring Effective Governance
Seasoned Board of Directors: Ensuring Effective Governance Mr. Binod Kumar Khaitan Dr. Mohua Banerjee Mr. Rajkumar Khanna Mr. Bal Kishan Choudhury Mr. Vyas Mitre Ralli Mr. Jinendra Kumar Jain Mr. Virendra Sinha Independent Independent Independent Independent Independent Independent Independent Direc
Slide 24: Investment Rationale
ELECTROSTEEL Investment Rationale
Slide 25: Well Paced to Ride the Water Infrastructure Tide
Well Paced to Ride the Water Infrastructure Tide Industry Pioneer Competent Delivering Capacity & Leadership Management Customer Delight Expansion to Fuel Position with Thrust on Growth Quality ECL’s ‘Quality Right the First Time’ Promoters Rich Knowledge & Proposition Helps to Retain Marquee Enhanc
Slide 26: Well Paced to Ride the Water Infrastructure Tide
Well Paced to Ride the Water Infrastructure Tide Credit Rating Dividend History Scope for Margin Strong Cashflow Expansion Generation & Improvement in Return Ratios Rewarding Stakeholders with Dividend Integrated Manufacturing Facilities, Robust Domestic and Export Demand of Long Term: CRISIL AA-/ S
Slide 27: Financial Highlights
Financial Highlights
Slide 28: Q1 FY24 Result Highlights (Consolidated)
Q1 FY24 Result Highlights (Consolidated) Particulars (in INR Crores) Q1FY24 Q1FY23 YoY Q4FY23 QoQ FY23 FY22 YoY Total Income 1,712 1,783 (4%) 1,909 (10%) 7,360 5,337 38% Cost of Goods Sold 931 904 3% 1,038 (10%) 3,989 2,478 61% Gross Profit 781 879 (11%) 870 (10%) 3,371 2,859 18% Gross Profit margin
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Equity and Liabilities (in INR Crores) FY22 FY23 Assets (in INR Crores) FY22 FY23 Share Capital 59 59 Non Current Assets Other Equity 4,045 4,324 Plant, Property and Equipment 2,703 2,668 Total Equity 4,104 4,384 Capital Work in Progress 1,208 1,302 Borrowings 877 737 Othe
Slide 30: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Operating Revenues (in INR Crores) Gross Profit (in INR Crores) & Gross Margin (%) 7,360 55.1% 53.6% 45.8% 5,337 3,372 2,858 3,580 1,972 FY21 FY22 FY23 FY21 FY22 FY23 EBITDA (in INR Crores) & EBITDA Margin (%) PAT (in INR Crores) & PAT Margin (%) 15.1% 14.1% 11.1% 7
Slide 31: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Net Leverage Analysis Working Capital Analysis (in Days) Net Debt to Equity 136 140 131 0.50 0.48 0.43 FY21 FY22 FY23 FY21 FY22 FY23 Adjusted Return on Capital Employed* Adjusted Return on Equity* 12.3% 11.1% 12.3% 8.7% 10.2% 6.1% FY21 FY22 FY23 FY21 FY22 FY23 * Adj
Slide 32: Q1 FY24 Result Highlights (Standalone)
Q1 FY24 Result Highlights (Standalone) Particulars (in INR Crores) Q1FY24 Q1FY23 YoY Q4FY23 QoQ FY23 FY22 YoY Total Income 1,530 1,751 (13%) 1,786 (14%) 7,013 5,095 38% Cost of Goods Sold 829 933 (11%) 1,012 (18%) 3,964 2,508 58% Gross Profit 701 818 (14%) 774 (9%) 3,049 2,587 18% Gross Profit margi
Slide 33: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities (in INR Crores) FY22 FY23 Assets (in INR Crores) FY22 FY23 Share Capital 59 59 Non Current Assets Other Equity 3,928 4,211 Plant, Property and Equipment 2,645 2605 Total Equity 3,987 4,270 Capital Work in Progress 1,208 1302 Borrowings 838 706 Other No
Slide 34: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) Operating Revenues (in INR Crores) Gross Profit (in INR Crores) & Gross Margin (%) 7,013 53.5% 50.8% 43.5% 5,095 3,049 2,587 3,138 1,679 FY21 FY22 FY23 FY21 FY22 FY23 EBITDA (in INR Crores) & EBITDA Margin (%) PAT (in INR Crores) & PAT Margin (%) 14.3% 14.1% 11.7% 6.2
Slide 35: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) Net Leverage Analysis Working Capital Analysis (in Days) 129 129 125 Net Debt to Equity 0.47 0.43 0.36 FY21 FY22 FY23 FY21 FY22 FY23 Adjusted Return on Capital Employed* Adjusted Return on Equity* 13.0% 11.1% 12.0% 11.2% 8.8% 5.6% FY21 FY22 FY23 FY21 FY22 FY23 * Adjus
Slide 36: Shareholder Information
Shareholder Information Capital Market Data Shareholding Pattern June 2023 (%) NSE Ticker /BSE Code ELECTCAST / 500128 Current Market Price (as on 9 Aug 2023) 58.5 Promoter Market Cap (INR Crores) (as on 9 Aug 2023) 3,748 39% 44% FIIs 52 Week High/Low 63.5 / 31.4 DIIs Shares Outstanding, Crores 59.5
Slide 37: Q1FY24 Earnings Call Invite
Q1FY24 Earnings Call Invite Q1 FY24 Earnings Conference Call August 11, 2023, 4:00 P.M. IST The call will be represented by the Senior Management of the Company Dial in Details: For further details, please contact: +91 44 4770 2144 Universal Dial In +91 44 7126 1331 E: vikash.verma1@in.ey.com / UK –
Slide 38: Safe Harbour
Safe Harbour This presentation has been prepared by Electrosteel Castings Limited solely to provide information about the Company. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such informa
Slide 39: Thank You
Thank You Electrosteel Castings Limited Corporate Office G.K. Tower, 19, Camac Street, Kolkata - 700 017 Contact: +91-33-22839990 www.electrosteel.com IR Contact Details Hiral Keniya | Vikash Verma hiral.keniya@in.ey.com | vikash.verma1@in.ey.com +91 9029662801| +91 9664009029
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