Tega Industries Ltd. · NSE:TEGA
Tega Industries — Q2 FY24 Earnings Presentation
32 slides from Tega Industries's earnings presentation, Nov 9, 2023
Slide 1: Stock exchange intimation letter for investor presentation
November 09, 2023 To, The Corporate Services Department, Manager - Listing Department BSE Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai- 400 001 Bandra (E), Mumbai - 400 051 BSE Scrip Code
Slide 2: Investor Presentation – Q2 FY24
TEGA INDUSTRIES LIMITED Investor Presentation – Q2 FY24 November 2023
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Tega Industries Limited
Tega Industries Limited Leading manufacturer & Commenced operations in India Catering to global mineral distributor of specialized ‘critical in 1978, in collaboration with beneficiation, mining & bulk to operate’ & recurring Skega AB, Sweden solids handling industry consumable products Immunity from
Slide 5: Corporate Structure
Corporate Structure Tega Industries Ltd 100% 100% 50%JV Tega McNally Tega Holdings Pte Ltd Hosch Minerals Limited 100% 100% 100% Tega Industries Africa Tega Industries Chile Losugen Pty Ltd Proprietary Ltd. SpA TEGA INDUSTRIES LIMITED 4
Slide 6: Evolution into a Global Multi-Product Player
Evolution into a Global Multi-Product Player Intellectual Property, Additional Patent, Initial Public Foundation Buyout Acquisition Greenfield Project Offering Collaboration of our Buyout by Madan Mohan Grant of patent in relation to Grant of patent in relation to The shares of the company Promoter,
Slide 7: The Focus Behind Our Vision
The Focus Behind Our Vision TEGA is committed to engineering flawless solutions that enrich the future of mining Sales Management To remain the first vendor of recall for all our customers Our purpose We strive to deliver superior products that enhance value for our customers At Tega, Values lead to
Slide 8: Our Value-Accretive Business Model
Our Value-Accretive Business Model Experience Wallet Share Mission-Critical Productivity Driver Developed rich insight into the Products with established ore quality and terrain realities productivity and efficacy. across 70 countries, helping to Majority customers buy large continuously provide imp
Slide 9: Our Value-Accretive Business Model
Our Value-Accretive Business Model Inherent Advantages Strategic Positioning Supply chain High Entry Barrier Proximity Customized design Low reliance on outsourcing Presence in high entry moderates its dependence on barriers of technology and vendors minimizing the knowledge. We operate in possibili
Slide 10: Tega's Holistic Value Chain Integration
Tega's Holistic Value Chain Integration Tega Industries Ltd – Focused on MSEL - Focused on Equipment and Consumables services component • Build a more sustainable business. • Tap the new market- global market size • Designs and manufactures critical-to- • Original Equipment Manufacturer (OEM) for th
Slide 11: Our Digitalization Momentum (Industry 4.0)
Our Digitalization Momentum (Industry 4.0) DIGITAL SECURITY MEASURES DISRUPTION Initiatives to enhance systemic efficiency, Ground-shifting sensor-based product. This moderate redundancy, safeguard from IoT-driven product will send out real-time viruses and cyber-attacks, accelerate data alerts on p
Slide 12: ESG Initiatives
ESG Initiatives ENVIRONMENT SOCIAL ENVIRONMENT ENVIRONMENT GOVERNANCE ENVIRONMENT 450 21 All Statutory Committees trees planted safety mock drills conducted chaired by Independent & Executive Directors 13.35% A+ Stable reduction in CO2 emissions in ₹ 1.58 crore rating by CRISIL, validating CSR Expen
Slide 13: Q2 & H1 FY24 Performance Highlights
Q2 & H1 FY24 PERFORMANCE HIGHLIGHTS
Slide 14: Q2 & H1 FY24 Result Highlights
Q2 & H1 FY24 Result Highlights Q2 FY24 H1 FY24 YoY YoY Operating Revenue Operating Revenue +37% +24% Rs. 3,775 Rs. 6,455 Operating EBITDA Operating EBITDA +51% +21% Rs. 817 Rs. 1,211 PAT PAT +18% +34 % Rs. 474 Rs. 688 All figures in Rs mn 13 TEGA INDUSTRIES LIMITED
Slide 15: Consolidated Financial Performance
Consolidated Financial Performance Operating Revenue Operating EBITDA & Margin PAT & PAT Margin 19.6% 21.6% 12.8% 12.5% +37% +51% +34% 3,775 817 474 2,762 354 541 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 18.8% 19.3% 11.2% 10.7% +24% +21% +18% 6,455 1,211 688 5,206 1,002 584 H1 FY23 H1 FY24 H1
Slide 16: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs. Mn) Q2 FY24 Q2 FY23 Y‐o‐Y H1 FY24 H1 FY23 Y-o-Y Revenue from Operations 3,774.6 2,761.9 36.7% 6,455.4 5,206.3 24.0% Cost of Material Consumed 1,664.6 1,256.5 3,008.1 2,323.3 Change in Inventories of Finished goods & Work in Progress -60.6 -90.
Slide 17: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars (In Rs. Mn) Sept’23 Mar’23 Particulars (In Rs. Mn) Sept’23 Mar’23 EQUITY AND LIABLITIES ASSETS Equity Non-Current Assets Equity share capital 665 664 Property, Plant and Equipment 3,045 3,055 Other Equity 10,168 9,826 Capital Work-in-Progress 193 120
Slide 18: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement (In Rs. Mn) Sept’23 Sept’22 Cash Flow from Operating Activities Profit before Tax 900.3 770.0 Adjustment for Non-Operating Items -321.0 -354.6 Operating Profit before Working Capital Changes 1,221.3 1,124.5 Changes in Working Capital 679.2 11.2 Ca
Slide 19: Operations & Growth Strategy
OPERATIONS & GROWTH STRATEGY
Slide 20: Strategic Advantages
Strategic Advantages Diverse & Innovative Products with Insulated from Capex Cyclicity of Low Substitution Threat 1 2 Mining Players Strong R&D leading to Multiple Patents, Diverse Global Presence with Strong with focus on Quality 3 4 Global Manufacturing & Sales Capabilities 700 Distributors Consis
Slide 21: 1. Diverse & Innovative Products
1. Diverse & Innovative Products FLAGSHIP PRODUCTS MILL LINERS HYDROCYCLONES SCREENS & TROMMELS CONVEYOR PRODUCTS SALE OF PRODUCTS Rapido Spillex Specialized, ‘critical to operate’ And recurring consumable products DynaPrime DynaPulp Tega Cyclone (PExEL) Trommel Centrax Sale of Services Screening So
Slide 22: 2. Insulated from Capex Cyclicity of Mining Players
2. Insulated from Capex Cyclicity of Mining Players Upfront capex & After-market spend over the lifecycle of a mill Recurring cost for miners 1X Approx. split 3X Upfront Capex After market spend ~75% Repeat Orders (over last 3 years) TEGA INDUSTRIES LIMITED 21
Slide 23: 3. Strong R&D Leading to Multiple Patents
3. Strong R&D Leading to Multiple Patents Track record of bringing multiple innovative products to the market ISO 45001:2018 India 2018 – Rapido 2018 – DynaPrime 2016 – Chutes 2015 – Trommels R&D Capability Quality Control ISO 9001:2015 India, South Africa o We do not rely on outsourcing: reduces ou
Slide 24: 4. Diverse Global Presence – Manufacturing & Sales Capabilities
4. Diverse Global Presence – Manufacturing & Sales Capabilities INTERNATIONAL MANUFACTURING OPERATIONS DOMESTIC MANUFACTURING OPERATIONS CHILE SOUTH AFRICA AUSTRALIA DAHEJ, GUJARAT KOLKATA (SAMALI), WB KALYANI, WEST BENGAL Commissioning/Acquisition: Commissioning/Acquisition : Commissioning/Acquisit
Slide 25: 4. Diverse Global Presence - Manufacturing & Sales Capabilities
4. Diverse Global Presence - Manufacturing & Sales Capabilities India Chile South Africa Australia Sales & Marketing Offices Mining activity High TEGA INDUSTRIES LIMITED 24
Slide 26: 5. Consistent Growth & Long-Term Repeat Business
5. Consistent Growth & Long-Term Repeat Business ESTABLISHED TRACK RECORD CAGR 17% Revenue from Operations FY19-23 Growth Momentum CAGR 29% Robust market position Built Inherent Strength Forged Strong Relations Operating EBITDA from FY 19-23 Differentiated, High Margin Business Successfully maintain
Slide 27: 6. Successful Track Record of Inorganic Growth Strategy
6. Successful Track Record of Inorganic Growth Strategy JV in 1991 Acquisition in 2006 Acquisition in 2010 Acquisition in 2011 Acquisition in 2023 • Expand operations • Access to the Latin • Tega Mcnally Minerals globally • Increased market share American markets Ltd - Offers pioneering • Provided a
Slide 28: Key Growth Drivers Going Forward
Key Growth Drivers Going Forward Capitalise on growing relevance Disrupt the market Balance Sheet integrity • Ore grades depleting in gold mines • Penetrate the market with the distinctive • Expand largely out of accruals • Disproportionate growth in mining and mineral DynaPrime product • Fund worki
Slide 29: Key Growth Drivers Going Forward
Key Growth Drivers Going Forward Capitalize on the future Product Improvement Capacity Expansion • Leverage proprietary R&D capabilities; increase • Consistently improve products,enhancing • Greenfield facility in Chile product offerings cost- effectiveness • Engage in brownfield expansion in South
Slide 30: Experienced Board of Directors
Experienced Board of Directors MADAN M. MOHANKA MEHUL MOHANKA SYED YAVER IMAM Chairman and Executive Director Managing Director and Group CEO Executive Director Appointed: Since inception Appointed: Jun-02 Appointed: Jul-05 Promoter, Founder and Chairman One of the Promoters, MD & Group CEO Serves a
Slide 31: Management Team
Management Team MEHUL MOHANKA SHARAD KUMAR KHAITAN MD and Group CEO CFO and President – Finance & Accounts One of the Promoters of the Company, MD & Group CEO Qualified Chartered Accountant with an experience of more Associated with Tega for almost two decades than 20 years in areas of Financial Pla
Slide 32: Thank You
Sharad Kumar Khaitan Chief Financial Officer investor.relations@tegaindustries.com Mr. Bhavya Shah Thank You +91 8082748577 bhavya.shah@linkintime.co.in Mr. Sumeet Khaitan +91 7021320701 sumeet.khaitan@linkintime.co.in