Vardhman Textiles Limited · NSE:VTL
Vardhman Textiles — Vardhman Special Steels — Investor Presentation (March 2018)
22 slides from Vardhman Textiles's investor presentation, March 2018
Slide 1: Our Company at a Glance
OUR COMPANY AT A GLANCE WHAT WE DO Vardhman Special Steels Limited is one of India’s leading steel bar producers for automotive applications.
Slide 2: Vardhman Special Steels Limited Started in 1973
Vardhman Special Steels Limited Started in 1973 Steel Melt Shop Rolling Mill Bright Bar Shop Annual Capacity : 185,000 MT Annual Capacity : 185,000 MT Annual Capacity : 36,000 MT Area expansion :- In case of further increase in volume, current layout has limited space for finishing and conditioning.
Slide 3: Quality Certifications
Quality Certifications All accredited by DNV India's Best Companies To Work For 2012
Slide 4: Distribution Network in India - Warehouses
Distribution Network in India - Warehouses Chennai Rudrapur Bangalore Gurugram VSSL PLANT Aurangabad Pune * Warehouse arrangement with GAC
Slide 5: Sector Wise Sales
Sector Wise Sales Sales(MT) Bearing , 4 Engineering & Off Highway, 14 Passenger Vehicles, 34 Commercial Vehi 16 Two Wheeler , 32
Slide 6: Diversified Client List
Diversified Client List Cars Two wheelers HCL/LCV Auto Components Tractor Automotive Off Highway We have one of the widest customer approvals. Healthy Business Growth
Slide 7: We serve our customers all around the globe
“Through continuous improvement in business processes, knowledge and skills, we aim to achieve maximum customer satisfaction.” We serve our customers all around the globe. GERMANY
Slide 8: Current Business Apprehension
Current Business Apprehension • Recently Union Government announced that only electric vehicles (EVs) will be sold in India from 2030 with a view to reduce the effect of climate change. The However, it looks like that 100% shift to (EVs) is unlikely to happen by 2030. Problem • Threat in Long Term f
Slide 9: Recent Significant Events
Recent Significant Events
Slide 10: Our Edge Over Peers
Our Edge Over Peers …which has yielded good returns! Experience Business Focus Space Competitive Advantage Deliveries Technology Product Brand Range
Slide 11: Our Performance Over The Years
Our Performance Over The Years 1,51,000 MT Sales Volume (2017-18) Estimated 1,67,000 MT Steel Production (2017-18) Estimated
Slide 12: Key Financials
Key Financials Rs. In Crores $ In million All currency conversions in the presentation has been done at 1 US$ = INR 65 All figures are for Vardhman Special Steels Ltd on consolidated basis. *ROCE, RONW & EPS has been Annnualised.
Slide 13: Understanding our profitability & risk drivers
Understanding our profitability & risk drivers Our profitability is closely linked to the raw material prices. The sales price fixation happens every 6 months and the next increase is due on 1st April 2018. In the era of increasing raw material prices, our margins get squeezed and the benefit of
Slide 14: Historical Stock Returns (Annualised)
14 Historical Stock Returns (Annualised)
Slide 15: Shareholding Pattern- Post QIP
Shareholding Pattern- Post QIP Mr. Sachit Jain – Vice Chairman & Managing Director intends to increase his stake in the company by 1% post Rights Issue for which he is buying VSSL shares from the market since last year . Of that 1%, he has already purchased 0.88% as on 23.03.18 and his stake stands
Slide 16: Capex Plan for next 3 Years
Capex Plan for next 3 Years We intend to undertake a Capex of Rs 210 Cr over the next 3 years which includes : Up gradation of Melting Shop, R&D and other common facilities. Up gradation of Rolling Mill. Expansion of Bright Bar Shop. Purchase of Adjoining 8 Acres of Land. After the above C
Slide 17: Capacity Expansion Plans
Capacity Expansion Plans a) Increasing the heat size which we are planning to achieve by changing the shell of melting furnace with higher capacity of 35 tons as compared to the present capacity of 30 tons. b) Reducing the melting time which we are planning to do by adding chemical energy by putting
Slide 18: Other Benefits
Other Benefits: The Government of Punjab has implemented two part tariff with effect from 1st January, 2018 wherein the variable rate has been fixed at Rs.5/- per unit in addition to fix charges. With this, we will be benefitted by about Rs. 12 crore p.a. from 2018-19. The Government of Punjab h
Slide 19: Way Forward…….Unfinished Agenda
Way Forward…….Unfinished Agenda To increase the melting capacity to 2,40,000 MT and rolling capacity to 2,20,000 MT over the next 3 years by undertaking capex of approx Rs 200 Cr. Looking for a joint venture in down stream value added products namely bright bar. Strong technical alliance with global
Slide 20: Non-Independent Directors
Non- Independent Directors He has an experience of more than 34 years in He is B. Tech from BHU/IIT, Varanasi and manufacturing, investment banking and private Rajeev Gupta Independent Director M.B.A. from IIM, Ahmedabad. equity. He has set up M&A Investment Banking Firm Arpwood Capital Ltd and Arpw
Slide 21: Independent Directors
Independent Directors Name Designation Qualification Experience He has an experience of more than 29 years in the Jayant Davar Independent Director He is a Mechanical Engineer Auto Industry. He is Chairman-cum-Managing Director of Sandhar Technologies Limited. He has an experience of more than 25 ye
Slide 22: Thank you
Thank you
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