Maharashtra Seamless Limited · NSE:MAHSEAMLES
Maharashtra Seamless — Q2 FY2023 Earnings Presentation
26 slides from Maharashtra Seamless's earnings presentation, Oct 18, 2022
Slide 1: Exchange filing cover letter: Earnings Presentation
E-Communication MSL/SEC/SE/2022-23 17th October, 2022 BSE Limited National Stock Exchange of India Limited 25th Floor, P.J. Towers, Exchange Plaza, C-1, Block-G, Dalal Street, Mumbai-400001 Bandra - Kurla Complex Bandra (E), Mumbai-400051 Stock Code: 500265 Scrip Code: MAHSEAMLES Dear Sir/Madam, Sub
Slide 2: Earnings Presentation Quarter ending 30 September 2022
Earnings Presentation Quarter ending 30 September 2022 17 October 2022 1
Slide 3: Forward Looking & Disclaimer Statement
Forward Looking & Disclaimer Statement This document contains “forward-looking statements” about our business, financial performance, skills and prospects. Statements about our plans, intentions, expectation, beliefs, estimates, prediction or similar expression for the future are forward-looking sta
Slide 4: Maharashtra Seamless – Segments & Capacities
Maharashtra Seamless – Segments & Capacities Seamless Pipes ERW Pipes Renewable Energy Rig • MSL • New generation • Wind • 450,000 mt/annum offshore jack up rig • 7 MW at • API certified Maharashtra • USTPL • Operating with • High frequency • 100% subsidiary 98% efficiency on 3 • PSL 2 • Solar • 200
Slide 5: Products & Industries served
Products & Industries served Industries Seamless ERW Others Served Pipes Pipes (Coated & Premium Connections, Pipe Fittings) Agriculture Automotive Bearing Chemical Drinking Water Engineering Fertilizers Housing Irrigation Mechanical Oil and Gas Petrochemical Power
Slide 6: Highlights – Maharashtra Seamless (Consolidated)
Highlights – Maharashtra Seamless (Consolidated) Total revenue EBIDTA & EBIDTA margin 1800 300 36% 1444 1436 250 1353 220 1350 1161 225 27% 983 160 168 135 Rs. crore Rs. crore 900 150 18% 16% 18% 450 75 14% 14% 9% 12% 0 0 0% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Profi
Slide 7: Highlights – Maharashtra Seamless (Standalone)
Highlights – Maharashtra Seamless (Standalone) Total revenue EBIDTA & EBIDTA margin 1600 240 40% 1195 1168 180 181 1200 1068 180 159 30% 969 139 843 124 Rs. crore Rs. crore 800 120 20% 400 60 15% 15% 17% 16% 10% 13% 0 0 0% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Profit
Slide 8: Highlights – United Seamless Tubulaar
Highlights – United Seamless Tubulaar Total revenue EBIDTA & EBIDTA margin 400 80 40% 67 279 269 53 300 60 30% 226 193 36 Rs. crore Rs. crore 200 146 40 30 25% 20% 17 19% 100 20 16% 16% 10% 12% 0 0 0% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Profit after tax Earnings per
Slide 9: Standalone Profit & Loss for Q2 FY23 v/s Q1 FY23
Standalone Profit & Loss for Q2 FY23 v/s Q1 FY23 Rs. crore Particulars MSL USTPL Q2 FY23 Q1 FY23 Q2 FY23 Q1 FY23 • USTPL is a wholly owned Revenue from operations 1148 1058 263 278 subsidiary of MSL. Add: Other income 20 10 5 1 • Scheme of Total revenue 1168 1068 268 279 amalgamation has been filed
Slide 10: Annual Highlights – Maharashtra Seamless
Annual Highlights – Maharashtra Seamless Total revenue EBIDTA & EBIDTA margin 4000 3644 800 40% 664 3110 551 3000 600 539 30% 446 2668 2316 Rs. crore Rs. crore 2000 400 306 20% 2228 22% 21% 20% 1000 200 14% 15% 10% 0 0 0% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Profit after tax Earnings pe
Slide 11: Operational & Financial Performance
Operational & Financial Performance Maharashtra Seamless Limited (MSL) Particulars Q2 FY23 Q1 FY23 Q2 FY22 H1 FY23 H1 FY22 FY22 Seamless ERW Seamless ERW Seamless ERW Seamless ERW Seamless ERW Seamless ERW Production (kMT) 89 13 84 18 84 20 173 31 138 36 315 74 Sales (kMT) 90 13 85 17 78 17 175 30 1
Slide 12: EBIDTA Mix – Maharashtra Seamless
EBIDTA Mix – Maharashtra Seamless Q2 FY23 Q1 FY23 Rs. crore 2 15 13 1 19 Seamless 163 154 ERW Rig Q2 FY22 FY22 18 Renewable Energy 15 57 7 73 15 87 392 www.alimtiaz.com 11
Slide 13: Key Balance Sheet Items – Unquoted Investments & ICDs
Key Balance Sheet Items Unquoted Equity/Preference Share investments & ICDs given Rs. crore Particulars September 22 March 22 March 21 • Preference shares of Rs. 500 crore, ICD of Preference / Preference / Preference / Rs. 50.51 crore & Equity Equity Equity ICD ICD ICD equity shares of Rs. Indian En
Slide 14: Key Balance Sheet Items – Liquid investments
Key Balance Sheet Items Liquid investments – Long term & short term Rs. crore Particulars Sep 22 March 22 March 21 Long term Bonds (PSU) & Debentures 307 307 283 • Investments in bonds are sub-divided into tax free bonds (40%) and Listed Equity Investments 12 16 14 perpetual bonds (60%). (A) 319 323
Slide 15: Key Balance Sheet Items – Borrowings – Gross & Net Debt
Key Balance Sheet Items Borrowings – Gross & Net Debt Rs. crore • USTPL acquisition loan of Rs. 315 crores Particulars Sep 22 March 22 March 21 was repayable gradually till February 2029. Loan for USTPL acquisition @ 7.55% p.a. (Prepaid in full on 10 October 2022) 315 336 375 • In view of sufficient
Slide 16: Key Balance Sheet Items – Corporate Guarantee & SBLC reduction schedule
Key Balance Sheet Items Corporate Guarantee & SBLC reduction schedule Rs. crore Particulars Actual Projected March 21 March 22 September 22 March 23 March 24 September 24 Discovery Drilling 257 218 209 180 116 - Maharashtra Seamless (Singapore) 147 76 41 - - - Total 404 294 250 180 116 - • Corporate
Slide 17: Capital Allocation over next 2-3 years
Capital Allocation Industry – Over and Market next 2-3 years Trends • Prepayment of long term debt of Rs. 315 crores was undertaken in October 2022. • In pursuance of increased focus on value addition products in pipe segment and renewable energy segments, following areas have been identified where
Slide 18: Order book details as on 10 October 2022
Order book details as on 10 October 2022 Order book of MSL Rs. crore Order book of USTPL Rs. crore Segment Seamless ERW Total % Segment Seamless % AU + Dealer 682 31 713 44% Export 84 57% Export 326 35 361 22% AU + Dealer 33 23% ONGC & OIL 352 - 352 21% Cylinder 30 20% Downstream 24 183 207 13% Tota
Slide 19: Dispatch Target & Margin Outlook for FY 2022-23
Dispatch Target & Margin Outlook for FY 2022-23 MSL FY22 Q1 FY23 Q2 FY23 FY23 % achieved in Segment Actual kMT Actual kMT Actual kMT Target kMT H1 FY23 Seamless 315 85 90 365 48% ERW 80 17 13 80 38% USTPL FY22 Q1 FY23 Q2 FY23 FY23 % achieved in Segment Actual kMT Actual kMT Actual kMT Target kMT H1
Slide 20: Government Policies
Government Policies Export Duty: • Imposition of export duty on iron-ore & certain steel products excludes seamless & ERW pipes. • This has improved domestic raw material availability and lead to reactivation of projects. Anti-Dumping Duty: • The Ministry of Finance, on recommendation of Directorate
Slide 21: MSL – Sales & Marketing Update
MSL – Sales Industry & Marketing and Update Market Trends Export market for OCTG has been generating sustained demand on the back of increased rig counts and stable steel prices. Capacities for OCTG remain overbooked. Brand „MAHA‟ has been able to penetrate further in North American markets. With fr
Slide 22: USTPL – Sales & Marketing Update
USTPL – Sales Industry and & Marketing Market Update Trends Mill has been certified by American Petroleum Institute with API 5CT for Casings & Coupling Stock, API 5L for Line Pipes and API Q1 (Quality Management System) licenses. USTPL has been certified for Indian Boiler Regulations (IBR) and has a
Slide 23: Market Trends – Huge Potential
Market Trends – Huge Potential OPEC‟s production shortfall is at 3.58 mn barrels per day below its output goals. This shortfall is 3.5% of global demand caused by underinvestment in oil and gas sector over past decade. Rig counts in USA have now reached pre-COVID levels at 769, a 41% increase over l
Slide 24: Shareholding Structure – 30 September 2022
Shareholding Structure – 30 September 2022 4.12% 2.67% 67.25% Key changes – Q2 FY 2023 v/s Q1 FY 2023 25.96% • Promoter holding increased from 67.08% to 67.25%. • DII holding increased from 3.70% to 4.12%. This also Promoters includes mutual funds who have increased holding from Others 2.93% to 3.08
Slide 25: Marquee Customers
Marquee Customers Oil and Gas Infrastructure www.alimtiaz.com 24
Slide 26: Investor Contact
Investor Contact Kaushal Bengani Senior Manager – Investor Relations Tel. No.: +91-124-4624177 E-Mail: kaushal@mahaseam.com www.jindal.com CIN: L99999MH1988PLC080545 25
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