Vardhman Special Steels Limited · NSE:VSSL

Vardhman Special Steels — Q1 FY20 Earnings Presentation

37 slides from Vardhman Special Steels's earnings presentation, Aug 13, 2019

  1. Slide 1: Cover letter to stock exchanges

    Q I Vardhmén VARDHMAN SPECIAL STEELS LIMITED Vardhmin I Delivering Excellence. Since I965. CHANDIGARH ROAD LUDHIANA-I4IOI0, PUNJAB T: +9I-I6I-2228943-48 F: +9I-I6l-260IO48. 22226l6. 260|040 E: secretarial.|ud@vardhman.com Ref. VSSL:SCY:AUG:2019-2o DATED: 13:1fi1g1EIL9 The Deputy General Manager, The

  2. Slide 2: Result Update Presentation Q1 FY20

    Q VABDHMAN SPECIAL STEELS LTD. A CWHHTMEN' TIII CL'L T'v‘ Vardhman Special Steels Limited Result Update Presentation Q1 FY20

  3. Slide 3: Disclaimer

    D I SC I a I m e r Q VARDHMAN SPECIAL STEELS LTD. 0-9-0 v Acomwrmqumw This presentation has been prepared by Vardhman Special Steels Limited (the ”Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, an

  4. Slide 4: Table of Content

    Ta b I e Of CO nte nt 5 Q ' VARDHMAN SPECIAL STEELS LTD. 0-9-0 6 ACQMi/HTi/iENTTnQUAJTV .Financial Highlights . Company Overview . Business Overview . Way Ahead

  5. Slide 5: Financial Highlights

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  6. Slide 6: Management Message

    I M a n age m e nt 5 M essage Q VARDHMAN SPECIAL STEELS LTD. 0-6-0 “7 ; :cmwmaflocua. w Commenting on the results Mr. $achit Jain, Vice Chairman and Managing Director said — ”During the quarter, we have registered a revenue of Rs. 240.78 crores, with EBITDA and PAT of Rs. 16.04 and Rs. 1.14 crore re

  7. Slide 7: Recent Developments

    Rece nt DeveloP me nts Q VARDHMAN SPECIAL STEELS LTD. 0-9-- V i CClAlAlTl/lEN' T"‘ CW Tl , .................................................................................................................................................................... ..... v o .' 0 Towards end of June 2019, ini

  8. Slide 8: Financial Highlights Quarterly

    Financial Highlights Quarterly 97 - VARDHMANSPECIALSTEELSLTD. ACOMMlTMENT T0 QUALITY m Sales Volumes (tonnes) Revenue from Operations (Rs. Crore) 31252 295.49 269.50 41,586 42,469 43,258 243.25 240.78 34363 I I I Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 3'7,581 Q1 FY20 Q1 FY19 I Q2 FY19* Q3 FY19* Q4 FY19* Q1

  9. Slide 9: Financial Highlights - Q1 FY20

    Financial Highlights — Ql FY20 Q VARDHMAN SPECIAL STEELS LTD. O-e-O v i CClAMlTMEN' T") (JUL Tl II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I. .I I ,¢ 5. O s .0 I Decrease in I -I“ I - I revenue 240.78 269.50 243.25 I Income from Operations I I mainly on account of Excise Duty 0.00 0.00 0.00 I I decline

  10. Slide 10: Financial Highlights FY19 vs FY18

    Financial Highlights FY19 vs FY18 e7 — VARDHMANSPECMLSTEELSLTQ A GCMMiTh‘iEN'TO CUA. Tl ._e_. 6.25% 30.48% 2.47% Volume (tonnes) Revenue from Operations* EBITDA# 1,61,676 tonnes Rs. 1,120.76 crore Rs. 69.71 crore ° Higher sales volumes, better realizations and sale of outsourced goods and raw materi

  11. Slide 11: Financial Highlights - Annual

    Fina nCia I Highlights - An n ua I Q VARDHMAN SPECIAL STEELS LTD. 0-9-0 ‘7 ACOMMlTMENTTn QUALITY I I I Sales Volumes (tonnes) I I Revenue from Operations (Rs. Crore) : 1.61.676 : 1,120.76 1,52,162 I 1'31'636 858.96 1,15,401 1,21,451 : : 656.34 652.74 673.81 : I I I I I I I I I I : I I I I I I - - -

  12. Slide 12: Revenue Break up Sector Wise

    Reven ue B rea k u p sector Wise “Q7 — VARDHMAN SPECIAL STEELS LTD. ACOMMlTMENT TU QUALITV ._e_. l— l— Two Wheelers, Two Wheelers, 32% Commercial Commercial Vehicles, 32% Vehicles I 20% 16% Engg. & Off. Highway, 14% Engg. & Off. Highway, 10% Bearings, 4% Passenger Vehicles, Bearings, 0% Passenger Ve

  13. Slide 13: Financial Highlights - FY19

    Fina nCia I Highlights — FY19 Q i VARDHMAN SPECIAL STEELS LTD. .—e—. 6 AcoMMITMENTm QUAJTV Income from Operations 1,120.76* 877.89 Excise Duty 0.00 18.93 Revenue From Operations 1,120.76 858.96 Other Income 1.87 6.10 Total Income 1,122.63 865.06 29.77% Cost of Materials Consumed 799.27 488.90 Purcha

  14. Slide 14: Balance Sheet as on 31st March 2019

    Balance Sheet as on 315t March 2019 Q VABDHMANSPECIALSTEELSLTD. 0-9-0 ‘7 Ell'incuui Equity* 361.99 339.32 Non-Current Assets 343.51 288.56 Equity Share Capital 3576 3570 Property Plant & Equipment 279.53 249.27 Other Equity 326.23 303.62 Capital work in progress 32.57 6.99 Non-current liabilities 13

  15. Slide 15: Company Overview

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  16. Slide 16: About Us

    About Us 0-6-0 Eé) VABDHMAN SPECIAL STEELS LTD. A CCMMITMEII' T0 CUA. W Amongst India’s Leading Steel Bar Producers for Automotive Applications I Incorporated in May 2010 State-of- art manufacturing I Headquartered in Ludhiana, Punjab I Caters to sectors such as Engineering, facilities Automotive, T

  17. Slide 17: Journey So Far

    Journey So Far Q VARDHMAN SPECIAL STEELS LTD. 0-6-0 v Hitll‘l'll‘i lufli‘LlJi What We were... April 2017 — Rights Issue of Rs 67.85 Cr. 1973 — Started as Oswal Oct. 2017 — Purchased ~8 acres of Steels I July 2015 — Installed 50,000 TPA — adjoining land for Rs. 36 Cr. Fume Extraction system capacity

  18. Slide 18: Clear focus on long term Value Creation

    Clear focus on long term Value Creation 65 VARDHMANSPECIALSTEELSLTD. 0-6-0 “7 ACOMl/iiTl/IENTTOQUAJTV . FY19 Rs. 1 , 121 ‘ 1,61,676 2,00,000 1,80,000 ‘ 0.92 Tons TPA TPA Crore : Listed on Stock l i Exchange I! ~ \x Rs. 527 Crore ‘ 93,169 1,00,000 80,400 ‘ 1.28 Tons TPA TPA Revenue Sales Installed In

  19. Slide 19: Strong Experienced Board of Directors

    Strong Experienced Board of Directors contd... Q VARDHMANSPECIALSTEELSLTD. 0-9-0 v f- 3:l.ll,‘llTl,‘lEll' TO OUR, Tv’ Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Independent Director Vice Chairman & MD B. Tech from BHU/IIT, Varanasi and MBA (IIM, B. Tech (Electrical) — ”T, New Delhi, MBA (Gold Ahmed

  20. Slide 20: Strong Experienced Board of Directors contd...

    Strong Experienced Board of Directors contd... Q VARDHMANSPECIALSTEELSLTD. v A CCIAMITMEN" Ti" (JUL Tv’ Mr. B.K. Choudhary Mr. Rakesh Jain Non-Executive Director Independent Director I Degree in B.Sc., M.C0m & MBA I Ph.d in Polymers from the University of Akron I Rich experience of more than 44 year

  21. Slide 21: Business Overview

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  22. Slide 22: Wide Range of Rolled & Bright Bars Products

    Wide Range of Rolled & Bright Bars Products A. 33HMlTMEH‘TD cu: w 0-9-0 _ Hot Rolled Bars Bright Bars I Diameter Size : Increased from 25-70 ' Size : 14.66 to 78 mm (Peeled), 21.35 to MM in 2012 to 16-120 MM 50 mm (Drawn) 21

  23. Slide 23: Diverse applications of our products

    Diverse applications of our products as VARDHMAN SPECIAL STEELS LTD. A COMMITMENT "l0 QUAJTY Axle Gears ‘ Drive-Shaft Knuckle Spindle Bearings Connecting Rod Axle Shaft I Center VelocityJoint ‘ Steering-Yoke Differential Gears N| 2

  24. Slide 24: State-of-art Manufacturing facilities

    State-of-art Manufacturing facilities Q VARDHMAN SPECIAL STEELS LTD. v # CCMl/llllfllEFr T0 CUR. W Rolling Mill Annual Capacity : 2,00,000 TPA Annual Capacity : 1,80,000 TPA . Annual Capacity : 36,000 TPA 30 MT Ultra High Power (UHP) Eccentric Rolling Mi|| installed in 2013—14 . Bar Peeling & Centre

  25. Slide 25: Process Flow

    P race 55 F I OW Q VARDHMAN SPECIAL STEELS LTD. 0-9-0 “7 ACOMMlTMENTTnQUAlITV sponge. om. we mow, L Shredded Scrap ’ » Exports Domestic Shipment h Final Inspection and Dispatch w Bright Bar Shop _ NDT Line mow ELECYRIC ARC runNAcs Spherodize Annealing vmum Des-56m: UM! uaale near-mg unu Commons CMII

  26. Slide 26: In House Steel Melting Shop

    In H o u se Stee I M e I ti ng Sh o p - Q VARDHMAN SPECIAL STEELS LTD. 0-6-0 ‘7 ACC‘MWTMENTTO QUAJTV ‘ Ladle Refining Furnace Continuous Casting Machine

  27. Slide 27: Rolling Mill & Bright Bars

    Rolling Mill & Bright Bars 4i CCMMITMEl-l' TIII (JUL T'l‘ ._e_. Rolling Mill Bright Bar Shop

  28. Slide 28: Automatic Line of Bar Inspection - NDT Line

    Automatic Line of Bar Inspection - NDT Line 63 .‘6‘. E VARDHMANSPECIALSTEELSLTD.I ACDNil/HTMENT TU QUAJTY MFLT Acceptance Criteria: Chamfering 0.2x10mm Bar ends free from Straightening Straightness : 2mm/ meter Acceptance Criteria: SDH — Shot Blasting 0.8x10mm, FBH 0.8 & 1.2mm — 27

  29. Slide 29: Best in class R&D Facility

    Best in class R&D Facility ACGMTMEMTU QUAJW 0-6-0 I Spectrometer : ARL 4460:1454 for Chemical Analysis. Can check 32 different elements I CS — 230 : Analyzer for Carbon & Sulfur content in steel I LECO gas analyzer — TC 600 Hz, N2, 02 Analyzer I Mobile Spectra and XRF for Mix up Testing of Bars I Me

  30. Slide 30: Strategically located Warehousing Facilities

    Strategically located Warehousing Facilities Q VARDHMANSPECIALSTEELSLTD. 0-9-0 6 A COMMlTMENT Tn QUAJTV flllllllllllllIllIIllIIlllllllllllllllllllllll: ' I I One Owned Warehouse I Bilaspur Haryana I Five Leased Warehouses in India I Bangalore I Chennai I Rudrapur I Pune I I Aurangabad I I ..........

  31. Slide 31: Key Strengths

    Key Strengths Q VARDHMAN SPECIAL STEELS LTD. o—e—o W Hitll‘lil‘i lufii‘LlJv State of Art Manufacturing Facilities and advanced R&D Capabilities I Well equipped with latest upgraded Technology Machines o Diversified Product offerings I Manufactures diverse range of products with wide applications acr

  32. Slide 32: 200+ Reputed & Long term customers

    200+ Reputed & Long term customers.... Q VARDHMAN SPECIAL STEELS LTD. v # CCMMiTMEiI’ T0 CUR. W Ca rs Two Wheelers % g 7 iTi @ I@“fill/E. minim}: @VAMAHA W TATA ASHDK LEYLAND smaRaJ / TVS :4 mazna a RENAULT \\' V A DAIMLER Auto Components Tractors Off Highway Vehicles « oerIIKon AGRICULTURE BATEBPIL

  33. Slide 33: Across Globe with Customer Base

    Across Globe with Customer Base Q vmnmmspscmsmmsuo. V A COMMITMENT Tn QLlAllTV m," ,Taiwan I """"""" """"""" -‘ ‘ F-Vié'fii'éFE'E6'HEFFB'JEEZE<% i ’ 32

  34. Slide 34: Slide 34

  35. Slide 35: Investing in Our Real Assets

    Investing in Our Real Assets : acIAIIIrIIEII' TI'I cm, II 0-6-0 5’ Vardhman Leadership Development Program Park Plaza, Ludhiana -"'16 to 20 January2019 . 5' - CCL - US based Organisation — : . . :’ ' . : . I TraInIng programs — : I I New Initiative undertaken offers leadershIp programs E 5 functiona

  36. Slide 36: Way Ahead

    Way Ahead Q VARDHMAN SPECIAL STEELS LTD. v i CClAMlTl/lEll' Tl" (JUL Ti’ Capacity Expansion I Increase melting capacity to 2,40,000 TPA and Rolling Capacity to 2,20,000 TPA by FY21- expected capex of approx. Rs. 200 Cr. I Target of achieving full capacity utilization soon after completing capex Join

  37. Slide 37: Thank You

    Th 3 n k Y0 U (0) VARDHMAN SPECIAL STEELS LTD. o—e—o 6 A COM MlTM ENT T0 QUA W . SSE 534392 .NSE VSSL Bloomberg VSSLIN REUTERSéB VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt. Ltd. ClN:L27100PBZO

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