Sarthak Metals Ltd · NSE:SMLT
Sarthak Metals — Q4 FY2023 Earnings Presentation
29 slides from Sarthak Metals's earnings presentation, May 2023
Slide 1: Earnings Presentation
Earnings Presentation S A R T H A K M E TA L S L I M I T E D M o de r n m e ta llur gica l s o lutio ns fo r fine tuning s te e l
Slide 2: Q4FY23 Result Summary
Q4FY23 Result Summary 03 OPERATIONAL HIGHLIGHTS 04 P&L SUMMARY 05 MANAGEMENT COMMENTARY S ART HAK M E T AL S L IM IT E D
Slide 3: Q4FY23 Operational Highlights
Q4FY23 Operational Highlights Cored Wire Aluminium Flipping Coil Volumes & Realizations Volumes & Realizations (IN TONNES & ₹LAKH/TONNE) 2 ,0 0 4 .0 0 (IN TONNES & ₹LAKH/TONNE) 3 ,0 0 3 .0 0 1 ,8 0 3 .5 0 2 ,5 0 2.76 2 .5 0 3.43 Revenue 1 ,6 0 3 .0 0 Revenue 1 ,4 0 3.08 2.18 2 ,0 0 2 .0 0 1 ,2 0 2 .
Slide 4: Q4FY23 P&L Summary
Q4FY23 P&L Summary PARTICULARS ( ₹ I N C R O R E S ) Q4FY23 Q3FY23 Q4FY22 YoY % Change QoQ % Change Revenue from Operations 80.82 92.56 147.25 -45% -13% Total Income 81.45 93.32 147.65 -45% -13% Operating Expenses 71.73 80.96 134.57 -47% -11% EBITDA (Excluding OI & EI) 9.09 11.61 12.68 -28% -22% EBI
Slide 5: Management Commentary
Management Commentary Commenting on the Q4 & FY23 performance, Sanjay Shah, Executive Director, said: “We are pleased to announce that the Company has closed FY23 on a positive note, despite facing significant challenges in the external environment throughout the year. The announcement of Export Dut
Slide 6: Venturing Into Flux Cored Wire
Venturing Into Flux Cored Wire Overview Applications Import Substitution Opportunity INDIAN IMPORTS OF FLUX CORED WIRE (IN MT) • Flux Core Arc Welding is a type of welding • Fabrication workshops process using consumable electrode that • Shipbuilding industry 3Y AVERAGE contains flux around it IMPOR
Slide 7: Inside the Presentation
Inside the Presentation 01 07 ABOUT 02 18 STRATEGIC REVIEW 08 DB GROUP 19 INVESTMENT THESIS 09 SNAPSHOT 20 STRENGTHS AND WEAKNESS 10 MILESTONES 21 BUSINESS CANVAS 11 PRODUCT CATEGORIES 12 INFRASTRUCTURE 13 14 CLIENTS WAREHOUSING CAPABILITIES 03 22 FINANCIAL SUMMARY 23 5 YEAR SUMMARY 15 LEADERSHIP 24
Slide 8: About
ABOUT 08 DB GROUP 09 SNAPSHOT 10 MILESTONES S ART HAK 11 PRODUCT CATEGORIES 12 INFRASTRUCTURE 13 CLIENTS M E T AL S 14 WAREHOUSING CAPABILITIES 15 LEADERSHIP L IM IT E D 16 BOARD OF DIRECTORS
Slide 9: Desraj Bansal Group
Desraj Bansal Group The 650+ crore* Desraj Bansal Group ("DB Group") is a leading business group with interests in the Metals and Energy sector. SARTHAK METALS SARTHAK ENERGY BANSAL DB Group has 5 state-of-the-art LIMITED (P) LIMITED BROTHERS fully-functional manufacturing facilities in Bhilai, Chha
Slide 10: Sarthak Metals Snapshot
Sarthak Metals Snapshot Sarthak Metals Limited ("Sarthak") part of the Desraj Bansal Group is India's leading LEADING 650+ CRORE 10,000TPA 21% AMONGST THE PART OF THE 650+* CRORE PRODUCTION CAPACITY FOR REVENUE CAGR manufacturer and exporter of LEADING CORED WIRE DB GROUP CORED WIRES (FY19-23) Cored
Slide 11: Milestones
Milestones 1995 2008 2017 Incorporated in 1995 with an Commenced production of Raised funds through its initial Crossed 450+ crores topline industrial gases unit producing Aluminium flipping coils with its public offer and got listed on BSE benchmark industrial oxygen and carbon first mill built in-
Slide 12: Product Categories
Product Categories Cored Wires Aluminium Flipping Coils • Cored Wires are a product of wire injection • Aluminium flipping coils are used in steel technology of steels. They consist of steel tubes manufacturing process for de-oxidising of molten (wires) filled with various alloys that are injected i
Slide 13: Infrastructure
Infrastructure Production Trends (IN TPA) 1 2 ,0 0 • The Company has two state-of-the-art manufacturing facilities in Bhilai, Chhattisgarh 9,925 • Strategically located in proximity to many clients 1 0 , 0 • Cumulative ~2,50,000 sq. ft. plot area, with land availability for future 8,569 expansions 8
Slide 14: Clients
Clients Domestic Exports SHADEED IRON & STEEL CO. LLC SARTHAK METALS LIMITED | 14
Slide 15: Clients (Contd.)
Clients (Contd.) 20 10 YEAR+ RELATIONSHIPS Customer Profile FABRICATION UNITS 05 5 YEAR+ RELATIONSHIPS STEEL PLANTS 40% TOP 5 CLIENTS SALES CONTRIBUTION ~85% FOUNDRIES REPEAT BUSINESS SARTHAK METALS LIMITED | 15
Slide 16: Warehousing Capabilities
Warehousing Capabilities • Equipped with state-of-the-art warehousing capabilities • Ensuring uninterrupted and reliable supply of metallurgical solution to our clients Cored Wires Aluminium Flipping Coils • 1,500 Sq. Mt. material storage space • 2,800 Sq. Mt. material storage space • Establishing S
Slide 17: Leadership
Leadership Anoop Kumar Bansal Sanjay Shah Mayur Bhatt MANAGING DIRECTOR WHOLE-TIME DIRECTOR WHOLE-TIME DIRECTOR & CEO Mr Bansal has a Bachelors in Commerce Mr Shah is a Whole-Time Director and the Mr Bhatt is a Whole-Time Director and the degree from Nagpur, as Managing Director head of Marketing te
Slide 18: Board of Directors
Board of Directors Mr Sunil Kumar Agarwal Ms Rama Kohli Mr Sunil Dutt Bhatt Mr Dwadasi Venkata Giri CHAIRMAN & NON-EXECUTIVE, NON-EXECUTIVE, INDEPENDENT NON-EXECUTIVE, NON-EXECUTIVE, NON-INDEPENDENT DIRECTOR WOMAN DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR Mr Agarwal is the Chairman of the M
Slide 19: Strategic Drivers
STRATEGIC DRIVERS 19 INVESTMENT THESIS 20 STRENGTHS AND WEAKNESS 21 BUSINESS CANVAS S ART HAK M E T AL S L T D
Slide 20: Investment Thesis
Investment Thesis Industry Expansion – Ramp-up – Export Integration in Healthy tailwinds Aluminum Cored wires opportunities value-chain and financial flipping coils Diversification performance Indian steel industry The Company has Ramping up operations Getting export growth Evaluating opportunities
Slide 21: Strengths and Weakness
Strengths and Weakness STRENGTHS WEAKNESS • Among the leading players in metallurgical cored wires • Fragmented market • Strategically located facilities • Cyclicality of the steel industry • Strong clientele with India’s leading steel players • Working capital intensive operations • Long standing t
Slide 22: Business Canvas
Business Canvas Key Key Value Customer Customer Partnerships Activities Proposition Relationships Segmentation • Cordial relationships with • Manufacturing • Quality products for • Long standing customer • Steel plants suppliers metallurgical industry as relations based on trust • Sales & marketing
Slide 23: Financial Summary
FINANCIAL SUMMARY 23 5-Y SUMMARY 24 P&L SUMMARY 25 BALANCE SHEET SUMMARY 26 CASH FLOW SUMMARY S ART HAK 27 MARKET STATISTICS M E T AL S L T D
Slide 24: 5 Year Summary
5 Year Summary Revenue from Profit After Tax EBITDA & Equity & Operations EBITDA Margins Debt to Equity (₹ IN CRORES) (₹ IN CRORES) (₹ IN CRORES & IN %) 4 5 .0 1 2 .0 % (₹ IN CRORES & TIMES) 4 0 . 9.8% 1 2 0 0.85 0 .9 CAGR: 21% CAGR: 51% 1 0 . % 8.3% 0 .8 3 5 .0 1 0 104.99 0 .7 3 0 . 7.1% 8 .0 % 0.5
Slide 25: P&L Summary
P&L Summary PARTICULARS ( ₹ I N C R O R E S ) FY19 FY20 FY21 FY22 FY23 CAGR (FY18-22) Revenue from Operations 189.26 214.17 221.71 457.30 408.43 Total Income 190.83 215.26 222.08 458.26 412.23 Revenue Operating Expenses 177.27 202.92 205.86 419.39 368.34 EBITDA (Excluding OI & EI) 11.99 11.25 15.85
Slide 26: Balance Sheet Summary
Balance Sheet Summary PARTICULARS ( ₹ I N C R O R E S ) FY19 FY20 FY21 FY22 FY23 Shareholders' Funds 42.37 46.17 53.10 77.94 104.99 Non-Current Liabilities 3.25 2.38 5.31 3.44 0.96 Long Term Borrowings 2.75 1.61 4.41 2.58 0.00 Current Liabilities 38.22 27.72 32.84 34.70 4.03 Short Term Borrowings 33
Slide 27: Cash Flow Summary
Cash Flow Summary PARTICULARS ( ₹ I N C R O R E S ) FY19 FY20 FY21 FY22 FY23 Cash from Operating Activities 1.14 17.14 -0.56 16.44 34.97 Cash from Investing Activities -6.12 -2.61 -1.32 3.11 -1.53 Cash from Financing Activities 6.89 -16.79 4.05 -15.23 -26.04 Net Cash Flow 1.91 -2.26 2.17 4.31 7.40 C
Slide 28: Market Statistics
Market Statistics SHAREHOLDING PATTERN Current Market Price ₹162.7 52 Week High/Low ₹206.6 / ₹81.7 30.17% Market Capitalization ₹223 Crore Shares Outstanding 1.37 Crore 69.83% BSE Scrip Code 540393 Promoters Public Shareholding data as of 31st March 2023 Market price data as of 26th May 2023 SARTHAK
Slide 29: Get in touch
Get in touch Anirudh Singhal Pratik Jain Sayam Pokharna Sarthak Metals Limited Sarthak Metals Limited TIL Advisors (P) Limited cfo@sarthakmetals.com cs@sarthakmetals.com sayam@theinvestmentlab.in +91 94266 60791 SAFE HARBOR This document which has been prepared by Sarthak Metals Limited (the “Compan