Gravita India Limited · NSE:GRAVITA
Gravita India — Investor Presentation (May 2021)
26 slides from Gravita India's investor presentation, May 19, 2021
Slide 1: Intimation under Regulation 30 - Investor Presentation
GRAVITA INDIA LTD. Corp. Office : 402, Gravita Tower, A-27 B, Shanti Path, Tilak Nagar, JAIPUR-302004, Rajasthan (INDIA) Phone : +91-141-2623266, 2622697FAX : +91-141-2621491 E-mail: info@gravitaindia.com Web : www.gravitaindia.com CIN : L29308RJ1992PLC006870 Date: 19th May, 2021 To, The BSE Ltd. Th
Slide 2: Investor Presentation May 2021
INVESTOR PRESENTATION MAY 2021 Towards Clean, Green & Sustainable Future
Slide 3: Gravita started in 1992 by first generation entrepreneur Rajat Agrawal
GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2
Slide 4: Amazing Journey
We are on an AMAZING JOURNEY 2019 Started Aluminium & 2016 Added Aluminium Plastic recycling in Recycling Africa 2015 Diversified in 2013 Value added Plastic recycling products in Jaipur 2011 Listed on NSE & BSE 2007 1st recycling unit in Ghana 2001 1st Overseas recycling 1994 Lead recycling unit at
Slide 5: Vision 2025
VISION 2025 New recycling verticals 25%+ E-Waste, Lithium, ROCE Rubber, Copper 25% + 50%+ Revenue CAGR Value added products 35% + 25%+ Profitability Growth Non-Lead business ● ● ● Our Priorities Shareholder value Return accretive Judicious use of creation growth capital 4
Slide 6: Financial Highlights
FINANCIAL Highlights 27% 8-9% A- Consistent EBITDA margins External credit rating Revenue CAGR - 5 Yrs 57% Locking the margins 10 Years Back-to-back hedging mechanism in place History of sustainable dividend payouts PAT CAGR - 5 Yrs 60%+ Profit from overseas business with only 25% of the capital emp
Slide 7: Quarterly Highlights - Q4 FY21
QUARTERLY HIGHLIGHTS - Q4 FY21 REVENUE (Cr) 438 Changing gears - VISION 2025 379 374 9%+ 16%+ 24%+ 69%+ Q4 FY20 Q3 FY21 Q4 FY21 Volume Revenue EBITDA PAT EBITDA* (Cr) Y-o-Y Y-o-Y Y-o-Y Y-o-Y 36.05 40.00 9.00% 32.14 28.99 30.00 8.50% 20.00 8.60% 8.22% 46% 33% 10.00 8.00% Revenue from Value added prod
Slide 8: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED Target ROCE 25% 19% Consolidated 18% 16% 15% Drivers of ROCE 13% ● Improving industry dynamics ● Resultant reduction in working capital 5% ● Improving demand- supply ● Value added products FY16 FY17 FY18 FY19 FY20 FY21 ROCE % ● 3 Years ● 25% + ● 8+ Capital Allocation polic
Slide 9: Improving Leverage & Cash Flow
Improving LEVERAGE & CASH FLOW 66 -2 47 - 20 21 4 Debt/Equity *Short term Debt includes current maturities and is backed by inventory which is 100% hedged More Domestic Reduce Lower working Lower Improved Low short volumes imports capital cycle Logistic cost cash flow term debt 8
Slide 10: Leveraging existing Gravita's Strengths
Leveraging existing GRAVITA’S STRENGTHS Our Entry into new verticals is based on proven, existing Gravita’s Strengths. Deep Routed Diversified procurement Customer network network Operation Excellence 9
Slide 11: Industry Specific Entry Barrier
Import License OEM in India Approvals Multinational Specialist Procurement Knowledge Network Time & Cost Capability to of Entry Industry Specific Develop Customized Products ENTRY BARRIER 10
Slide 12: Global & Pan India Operations
GLOBAL & PAN INDIA Operations ● Global spread helps reduce logistics costs and procure material cheaper. ● Start small > grow volumes > establish new plants close to procurement sources. ● Increased flexibility in recycling closest to raw material access and consuming markets. Head Quarters India (J
Slide 13: Deep Routed Procurement Network
Deep Routed PROCUREMENT NETWORK 27 1400+ 1,60,000 MT+ Own yards Touch points Scrap collection Europe Touch Points- 20+ Scrap collection(MT) - 9,000+ Americas Own Yards - 4 Touch Points- 80+ Scrap collection (MT) -18,000+ Africa Own Yards - 22 Asia Touch Points- 300+ Own Yards - 1 Scrap collection (M
Slide 14: Diversified Customer Network - Global
Diversified CUSTOMER NETWORK - GLOBAL 40 + 300 + 1,05,000 MT + Countries Customers Recycled products delivered Europe Countries - 6 Customers -8 Delivered- 10,000 MT+ Americas Countries - 12 Customers -37 Delivered- 18,000 MT + Middle East Countries - 7 Customers -23 Delivered- 16,000 MT+ Asia Count
Slide 15: Diversified Customer Network - India
Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : ● 200+ domestic customers in 18 states in India ● 60+ overseas customers in 20 countries. 14
Slide 16: Operational Excellence
OPERATIONAL EXCELLENCE 3 10 1400+ Recycling Recycling Touch Points Verticals Plants Globally 44% 1.60 Lac+ 65% 33% Customized & MT Production Capacity Overseas Value added Capacity Utilzation Capacity products 1.60 Lac+ 1st ILA 60000 MT+ MT Scrap Asia’s Healthy Collection Accredited Orderbook Plant
Slide 17: Our Partners
OUR PARTNERS (Strong Partnering Capability) 16
Slide 18: Turnkey Solutions for Lead Acid Battery Recycling
Gravita offers TURNKEY SOLUTIONS for Lead Acid Battery Recycling ● In house Lead Acid Battery Recycling Technology ● Technical Consultancy & Services for Lead Recycling & Smelting ● PLC based Control & Monitor System for advanced set-ups ● Annual Maintenance Contracts ● Executed more than 50 turnkey
Slide 19: Robust Management
ROBUST MANAGEMENT Dr. M. P. Agarwal Rajat Agrawal Chairman Managing Director OTHER SALIENT FEATURES • Top management with an average experience of 350 + 150+ more than 25 Yrs in diversified industries Employees Professionals (CA’s, MBA’s, Engineers) • Separate SBU heads for all verticals • Incentive
Slide 20: Customized and Value Added Products
CUSTOMIZED AND VALUE ADDED PRODUCTS Our Capability to produce customized and value added products for diversified customer segments gives us better contributions and larger pie of Customized Lead Alloys Lead Sheets Lead Bricks customer's product mix. Red Lead Lead Oxide Lead Balls Customized Alumini
Slide 21: Risk Mitigation by Back to Back Hedging Mechanism
Risk Mitigation by BACK TO BACK HEDGING mechanism Core Inventory +Back-to- • To mitigate the risk of commodity prices fluctuation from June. Back-to-Back Hedging Back Hedging 2016 • Metal equivalent of the scrap bought, is sold on the same day • Pricing against Customer contracts – Natural Hedging •
Slide 22: Improving Market Dynamics in Recycling - Paradigm Shift
Improving MARKET DYNAMICS IN RECYCLING - Paradigm Shift Vehicle BWMR EPR Scrappage GST Policy PARADIGM SHIFT More Shift from Tie-ups Reduced Better Improved availability informal to with working capacity logistics of domestic formal OEM's capital cycle utilizations scrap 21
Slide 23: Shift from Informal to Formal
Shift from INFORMAL TO FORMAL With redefining of Battery Waste Management Rules (BWMR) , Extended producers responsibility (EPR) and stricter implementation of GST, the scrap availability for formal recycling sector has increased and is further expected to grow. Informal Lead recycling trend in Indi
Slide 24: More Availability of Domestic Scrap
More availability of DOMESTIC SCRAP ● With shift of scrap from Informal to formal for processing through a authorized recycler. ● Contracts with battery manufacturers ● PAN India collection of scrap from corporates ● Contracts with various chains of workshops Domestic scrap collection partners Gravi
Slide 25: Reducing Net Working Capital Cycle
Reducing NET WORKING CAPITAL CYCLE • More domestic scrap & Lower imports reduces transit inventory • Retail scrap collection through OEM’s - Zero working capital * After reducing inventory for the upcoming Mundra Plant | ** Paid Inventory is net off Trade payables 24
Slide 26: Thank You - Save the Planet
<> GRAVITA Thank You SAVE THE PLANET