Rama Steel Tubes Ltd. · NSE:RAMASTEEL
Rama Steel Tubes — Investor Presentation (September 2021)
31 slides from Rama Steel Tubes's investor presentation, September 2021
Slide 1: Resilient to Grow – Investor Presentation September 2021
RESILIENT TO GROW Investor Presentation September 2021
Slide 2: Safe Harbor
SAFE HARBOR This investor presentation and the accompanying slides (the “Presentation”), has been prepared for Rama Steel Tubes Ltd (the “Company”). Certain statements in this document may be forward looking statements. Such forward looking statements are subject to certain risks and uncertainties l
Slide 3: Key Rationales
KEY RATIONALES: Backward integration underway at New expansion at Lepakshi plant Increase the share of value- 1 Lepakshi plant at Anantpur, Andhra 2 will be manufacturing different size 3 added products with EBITDA Pradesh and upgradation/modernization of pipes to cater the diversified margins of ~1
Slide 4: Company Overview – RSTL Business Snapshot
COMPANY OVERVIEW RSTL BUSINESS SNAPSHOT Installed Capacity- 4 state of the art PAN India Presence; clientele Global Reach- 17 2,64,000MTPA manufacturing facilities located in North, West spread in more than 300 cities spread across 17+ states countries in 4 continents; Export Capacity Utilization- a
Slide 5: Milestones
Upgradation at Sahibabad plant MILESTONES Further increased is under way for capacity by 60,000 revamping and metric tonnes from modernization 72,000 mtpa to 132,000 Set up a step mtpa at Khopoli plant, down subsidiary; commercial production Further, RST Industries began in November Increased Ltd, L
Slide 6: Manufacturing Capabilities
MANUFACTURING CAPABILITIES Rama Steel Tubes Ltd has strategically located plants’ network spread across North, South and West regions of India. Out total installed capacity stands at 2,64,000 MTPA, spread as under: Uttar Pradesh Maharashtra Andhra Pradesh Sahibabad, Khopoli Anantpur Uttar Pradesh Ma
Slide 7: Competitive Advantage
COMPETITIVE ADVANTAGE A leading manufacturer of Steel Presence in 17 international 1 Pipes and allied products with 4 geographies including UK, US, UAE, wide sectoral applications giving and some other European, Gulf and a competitive edge African countries. Superior products in sync with latest A s
Slide 8: RSTL Structure – Subsidiaries & JVs
RSTL STRUCTURE SUBSIDIARIES & JV’S Lepakshi Tubes Pvt. Ltd. RST International Trading (Andhra Pradesh, India) FZE (Dubai, UAE) Subsidiary Subsidiary Percentage of shares held: 100% Percentage of shares held: 100% Nature of business: Engaged in same business as RSTL Nature of business: Engaged in tra
Slide 9: Geographical Presence
GEOGRAPHICAL PRESENCE Domestic Market Reach; 300+ Cities in India, 17+ States & UT International Presence & Reach; South Africa I United Arab Emirates (U.A.E.) United Kingdom (U.K.) I Europe I Sri Lanka Ethiopia I Kenya I Uganda I Kuwait Republic of Congo I Yemen I Guyana I Germany I USA I South Afr
Slide 10: Product Portfolio
PRODUCT PORTFOLIO STEEL PIPES AND TRANSMISSION & SHEETS AND COATED TUBES/GALVANIZED PIPES ELECTRIFICATION PRODUCTS PRODUCTS Revenue contribution: 25% Revenue contribution: 20% Revenue contribution: 5% Products 1: ERW Galvanized/Black Steel Telecom Transmission Tower and Products: Products: Pipes and
Slide 11: Board of Directors
BOARD OF DIRECTORS Mr. Naresh Kumar Bansal Mr. Richi Bansal Mr. Vinod Pal Singh Rawat Chairman & Managing Director Executive Director Executive Director Mr. Naresh has ~45 years of experience in With over 16 Years of Experience in business, Mr. He, aged 39, is a Commerce Graduate. He has over manufa
Slide 12: Board of Directors
BOARD OF DIRECTORS Mr. Bharat Bhushan Sahny Mr. Jai Prakash Gupta Mrs. Anju Gupta Independent Director Independent Director Independent Director A law graduate with a vision to reach the top, he Mr. Jai Prakash Gupta has done Diploma in Mechanical A first-generation entrepreneur, her dynamic problem
Slide 13: Management Team
MANAGEMENT TEAM Mr. Rakesh Chaturvedi Mr. Rajeev Kohli Mr. Rajeev Kumar Agarwal, President- Commercial Chief Executive Officer (CEO) Chief Financial Officer (CFO) Mr. Rakesh Chaturvedi has more than 40 years of progressive Mr. Rajeev Kohli has more than 25 years of experience in steel industry and h
Slide 14: Management Team
MANAGEMENT TEAM Mr. Keshav Sharan Sharma Mr. Vineet Goel Mr. Kapil Datta Mr. Alok Aggarwal Chief Operating Officer (COO) Vice President –Sales & Marketing Company Secretary General Manager – A Mechanical engineer, Keshav has Mr. Vineet Goel brings more than two decades of Kapil is a qualified Compan
Slide 15: Marquee Clients
MARQUEE CLIENTS OIL AND GAS TELECOM SAIL, GAIL, RIL, Airtel, BSNL, etc. Gujrat Gas etc. INFRASTRUCTURE POWER L&T, GMR, DLF, TATA, NTPC, BSES, UPCL, LARSEN & TOUBRO, PVVNL, DVVNL, ADANI etc. HPSEBL etc AUTOMOBILE Ashok Leyland, Tata Motors, etc. AND MANY MORE CLIENTS IN VARIOUS INDUSTRIES…. Rama Stee
Slide 16: Prestigious Projects Undertaken
PRESTIGIOUS PROJECTS UNDERTAKEN Some of the major projects that the company has been associated with include: Project/Client company name: Project/Client company name: Project/Client company name: Project/Client company name: BSES RAJDHANI HPCL BHATINDA & PURVANCHAL VIDYUT UP & UTRAKHAND POWER LIMIT
Slide 17: Industry Overview
INDUSTRY OVERVIEW Demand for ERW pipe has grown at a CAGR of 4-5% in last 5 Construction 1 years and it is expected to grow further by 8-10% over the next Infrastructure 5 years driven by Government thrust to agriculture and the rural Capital Goods economy, infrastructure schemes such as Bhara
Slide 18: Sectoral Demand
SECTORAL DEMAND Infrastructure Airports and Railway Power: In Union Budget 2021, Infrastructure • As per the National Infrastructure Pipeline government has allocated (NIP) 2019-25, energy sector projects Govt has proposed to spend ~ `13,750 Cr. to AMRUT and accounts for the highest share (24%) out
Slide 19: Business Strategy
BUSINESS STRATEGY NEW MANAGEMENT INDUCTION MODERNIZATIONS, ADDITION OF CAPACITIES AND BACKWARD Appointed very senior people from the industry at the helm of affairs, their insights include setting up INTEGRATION- new operations, technology development, sales & marketing, business development and pro
Slide 20: Business Strategy
BUSINESS STRATEGY FOCUS ON INCREASING THE FOCUS ON EXPORTS SHARE OF VALUE-ADDED RSTL has been consistently grown exports PRODUCTS which now contribute close to 20% of our revenues, presently exporting to 17 countries, Product mix includes Black Pipes, Galvanised margins in the export business are hi
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS Key Performance Highlights: Volume in MT Revenue EBITDA & PAT & PAT Margin % EBITDA Margin 102,116.39 5.13% 2.54% 92,334.21 5,067.9 3.77% 123.8 4,765.74 244.62 80,249.96 3.46% 1.69% 190.9 83.7 3,564.6 123.4 0.23% 4.3 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Ke
Slide 22: Financial Highlights – Q1 FY22 vs Q1 FY21
FINANCIAL HIGHLIGHTS A. Financial Statement Highlights for Q1 FY22 v/s Q1 FY21 Particulars (INR MN) Q1 FY22 Q1 FY21 Financial Performance Comparison – Q1 FY22 v/s Q1 FY21 Revenue from Operations 1,382.9 474.5 Revenue from operations increased by 191.4% from ₹ 474.5 Mn in Q1 FY21 to ₹ 1,382.9 Mn in Q
Slide 23: Financial Highlights – FY21, FY20, FY19
FINANCIAL HIGHLIGHTS B. Financial Statement Highlights: Particulars (INR MN) FY21 FY20 FY19 Financial Performance Comparison Revenue from Operations 4,704.35 3,528.09 5,041.46 – FY21 v/s FY20 Other Income 61.39 36.51 26.40 Revenue from operations increased by 32%, EBITDA by 98.52%, and PAT by 2,798.
Slide 24: Financial Highlights – Consolidated P&L
FINANCIAL HIGHLIGHTS Consolidated P&L Particulars (INR MN) FY19 FY20 FY21 Total Income from Operations 5,067.87 3,564.60 4,765.74 Raw Material Cost 4,701.71 3,239.99 4,311.93 Employee Benefit Expense 59.01 6.97 72.20 Other Expenses 116.31 131.73 136.98 EBITDA 190.78 123.22 244.62 EBITDA Margin % 3.7
Slide 25: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet Particulars (INR MN) FY19 FY20 FY21 Non-Current Assets 525.53 637.65 764.34 PPE 375.13 355.15 459.85 CWIP 9.26 67.90 43.29 Investment Properties 37.8 36.35 38.41 Intangible Assets 0.18 0.07 0.31 Right of Use Assets - 16.2 14.44 Investment in JV and Ass
Slide 26: Consolidated Balance Sheet (Continues)
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet (Continues) Particulars (INR MN) FY19 FY20 FY21 Equity 870.1 878.28 999.45 Equity Share Capital 83.97 83.97 83.97 Other Equity 786.12 794.31 915.48 Non-Current Liabilities 218.7 205.03 311.71 Financial Liabilities Borrowing 206.8 181.54 299.77 Other Fi
Slide 27: Forward Guidance and Outlook
FORWARD GUIDANCE AND OUTLOOK add atleast ~300 bps of margins Setting up a cold rolling mill and the across revenue board Strip Galvanising facilitiy to produce the additional value added products Working to widen the presence in at Lepakshi Plant, Anantpur, Andhra the large diameter (150x150 mm to P
Slide 28: Capital Market Information
CAPITAL MARKET INFORMATION Market Indicators CMP (As on 31st August, 2021): 238.95 BSE Scrip Code: 539309 NSE Symbol: RAMASTEEL 52 Week H/L: 268.7/34.15 2W Avg Vol (in Mn) Mkt Cap (As on 24th August, 3,996.10 2021) In Mn (Shareholding as at 30th June, 2021) Particulars No. of Shareholders No. of Sha
Slide 29: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY RSTL’s core philosophy and ideology is always practiced in all forms of its business activities and its ability to share, relate and collaborate with stakeholders, promoting community development and wellbeing RSTL always contributes to the mother-nature for every nat
Slide 30: Contact Us
CONTACT US CORPORATE OFFICE WORKS B-5, 3rd Floor, Main Road, Ghazipur RAMA STEEL TUBES LTD. New Delhi-110096 Sahibabad (UP) Tel. No. +91 11-43446600 B-21,B-25/1 and B-5, Site No.4, Website: www.ramasteel.com Industrial Area, Sahibabad, CIN : L27201DL1974PLC007114 Uttar Pradesh-201010 RAIGAD (MAHARAS
Slide 31: Thank You
THANK YOU For further information on the Company, please visit: www.ramasteel.com For further information contact: Rajeev Agarwal, CFO Krunal Shah/ Vinayak Shirodkar Rama Steel Tubes Limited Captive IR Strategic Advisors Pvt. Ltd Contact: + 91 95605 30222 Contact: +91 98922 88895 Email: accounts@ram
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