Ifgl Refractories Ltd. · NSE:IFGLEXPOR
Ifgl Refractories — Q3 FY20 Earnings Presentation
30 slides from Ifgl Refractories's earnings presentation, Feb 8, 2020
Slide 1: Exchange filing cover letter under Regulation 30
� � 0 llEFRACTORIES LIMITED Head & Corporate Office 3, Netaji Subhas Road, Kolkata - 700 001, India Phone: +91 3340106100, Fax: +913322430886 E-mail: ifgl.ho@ifgl.in, Websites : www.ifglref.com 8 th February, 2020 National Stock Exchange oflndia Ltd BSE Limited 'Exchange Plaza', C-1, Block- G Phiroz
Slide 2: IFGL Refractories Limited Investor Presentation February 2020
1 COMMITTED TO CLEAN METAL IFGL Refractories Limited (Formerly IFGL Exports Limited) Investor Presentation February 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), has been prepared by IFGL Refractories Limited, solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or b
Slide 4: Industry Overview
3 Industry Overview
Slide 5: Global Steel Demand outlook
Global Steel Demand outlook In MT World World (Ex China) Developing economies (Ex China) 1,709 1,775 1,806 874 875 897 463 465 484 2018 2019F 2020F 2018 2019F 2020F 2018 2019F 2020F Source: World Steel Association Reasons contributing to growth ➢ Global outlook: ▪ Global steel demand is expected to
Slide 6: Forecasted Global Short-Term Steel Demand
Forecasted Global Short-Term Steel Demand In MT 2019 2020F 1,805.7 1,775.0 1,270.0 1,248.1 166.8 168.6 141.5 142.6 47.9 48.0 58.0 59.2 43.8 45.5 32.9 34.5 36.0 37.2 NAFTA Central Europe Other Europe Africa Gulf CIS Asia & World & South Oceania America ➢ Steel demand in emerging economies excluding C
Slide 7: Top Steel Consuming Countries
Top 5 Steel Consuming Countries +1% In MT 2019 2020F 909.1 900.0 +7% 0% 101.6 108.7 100.8 101.2 -1% +1% 64.5 64.1 53.9 54.2 China India United States Japan South Korea Source: World Steel Association ➢ As is visible in the above chart, India is the only country among top 5 steel consuming countries
Slide 8: India's share in Global Steel production expected to rise
India’s share in Global Steel production expected to rise 50% 2016 2020 49% 13% 12% 7% 7% 7% 7% 7% 7% 6% 6% 6% 6% 6% 5% China India North CIS Europe Other Asia Japan Others America Source: BofA MerrillLynch Report 7
Slide 9: National Infrastructure Pipeline (NIP) Project
National Infrastructure Pipeline (NIP) Project National Infrastructure Pipeline Project (NIP) Government unveiled the multimillion-dollar National Infrastructure Pipeline (NIP), with projects spread across 18 Investment allocation under NIP states over the next five years $5 Trillion Economy Others,
Slide 10: Domestic Steel Industry on a strong footing
Domestic Steel Industry on a strong footing India is now the world's second largest steel producer, surpassing Japan 1 Target of 300 MT* of production capacity by 2 2030 (National Steel Policy, 2017) Steel consumption has grown by 5.7% YoY and reached 92.1 MT* in 2018 (as per World Steel 3 Associati
Slide 11: Growth drivers of Indian Steel industry
Growth drivers of Indian Steel industry Anti-Dumping Duty policy promotes fair trade and reduces the ill effects of dumping, on the Domestic Industry Infrastructure Huge export development and opportunity for India demand from the due to its low cost various sectors advantage Active local investment
Slide 12: About Refractories
About Refractories What are Refractories Refractories are material having high melting points, with properties that make them suitable to act as heat- resisting barriers between high and low temperature zones. Refractories are inorganic nonmetallic material which can withstand high temperature witho
Slide 13: Global Refractories Market outlook (2018-2023)
Global Refractories Market outlook (2018-2023) Global Refractories Market (In USD Million) +5.2% 46,213 48,620 41,749 43,924 35,849 37,717 39,682 2017 2018 2019 2020F 2021F 2022F 2023F Reasons contributing to growth ➢ Global Refractories Market is estimated to grow at a CAGR of 5.2% and reach size o
Slide 14: Our Performance
LP Geihs Our Performance
Slide 15: Corporate Structure
Corporate Structure… IFGL Refractories Limited 3.604 Cr Equity Shares with a Face Value of Rs. 10 each Plants at Kalunga, Odisha, India + Plant at Kandla SEZ, Kandla, Gujarat, India 100% IFGL Worldwide Holdings Limited 100% 100% 100% Hofmann Monocon Group EI Ceramics Ceramic UK / USA / China Germany
Slide 16: 9M FY20 Consolidated Financial Highlights
9M FY20 Consolidated Financial Highlights Total Income [Rs. Crs] EBITDA [Rs. Crs] 698 699 87 80 9MFY19 9MFY20 9MFY19 9MFY20 EBITDA margin [%] PAT [Rs. Crs] 12.5% 37 11.4% 33 9MFY19 9MFY20 9MFY19 9MFY20 15
Slide 17: Consolidated Q3 & 9M FY20 Profit & Loss
Consolidated Q3 & 9M FY20 Profit & Loss Profit & Loss [Rs. Crs.] Q3 FY20 Q3 FY19 Y-o-Y% 9M FY20 9M FY19 Y-o-Y% Total Income 220.1 236.8 -7.0% 699.3 697.9 0.2% Materials consumed 108.4 118.6 351.9 341.2 Employee Expenses 38.2 38.3 113.1 110.7 Other Expenses 50.4 55.6 154.8 158.6 EBITDA 23.1 24.3 -4.7
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (in Rs. Crs.) Sep-19 Mar-19 Equity & Liabilities (in Rs. Crs) Sep-19 Mar-19 Non-current Assets 474.2 486.1 Equity 803.2 794.6 Fixed Assets Share Capital 36.0 36.0 Property Plant & Equipment 141.8 143.8 Right to Use Asset 9.2 0.0 Other Equity 767.2 758.6 Capital WIP
Slide 19: 9M FY20 Standalone Financial Highlights
9M FY20 Standalone Financial Highlights Total Income [Rs. Crs] EBITDA [Rs. Crs] 386 57 60 355 9MFY19 9MFY20 9MFY19 9MFY20 EBITDA margin [%] PAT [Rs. Crs] 16.1% 15.7% 23 18 9MFY19 9MFY20 9MFY19 9MFY20 18
Slide 20: Subsidiaries Performance
Subsidiaries Performance EI Ceramics [$ mn] Monocon Group [GBP mn] 14.9 21.6 14.6 2.3 1.8 20.2 1.7 1.3 1.7 1.2 1.1 0.8 Revenue EBITDA 9MFY19 9MFY20 PAT 9MFY19 9MFY20 Hofmann Ceramic [Euro mn] 7.7 6.0 0.0 -0.3 -0.5 -0.8 9MFY19 9MFY20 19
Slide 21: Ongoing Capex to boost performance
Ongoing Capex to boost performance ➢ ~Rs. 8 Cr : For Capacity expansions & 1 IFGL Odisha Plant debottlenecking ➢ For new products expansion - Total Project cost estimated to be Rs. 29 Cr 2 IFGL Kandla Plant ➢ Phase 1 ( involving cost of Rs. 15 Cr) likely to be completed by FY20 ➢ 10-acre Land acquir
Slide 22: Consistently performing over the years
Consistently performing over the years… Particulars [Rs. Crs.] FY15^ FY16^ FY17^ FY18^ FY19 Total Income 793.5 722.1 769.5 839.7 946.1 Materials consumed 406.1 365.2 362.0 421.4 473.1 Employee Expenses 117.9 119.6 120.9 126.7 146.2 ^ Total Income is Other Expenses 170.6 156.1 183.5 181.3 212.3 Net o
Slide 23: …to create sustainable value for Shareholders
…to create sustainable value for Shareholders… Net Debt (Rs. Crs.) Net Debt : Equity [x] Net Debt : EBITDA [x] 67.8 0.19 0.69 0.35 28.3 16.0 17.7 0.07 0.16 0.16 0.02 0.02 -0.06 -44.8 -0.39 -90.3 -0.11 -1.60 FY15 FY16 FY17* FY18* FY19* H1FY20 FY15 FY16 FY17* FY18* FY19* H1FY20 FY15 FY16 FY17* FY18* F
Slide 24: …with consistent Payout
…with consistent Payout 25.0% 25.0% 20.0% 20.0% 20.0% 20.0% 17.5% 15.0% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Particulars (Rs.) FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20* Consolidated Book Value Per Share 70.9 95.1 99.6 111.7 189.9 208.7 220.5 222.9^ Consolidated Earning Per Share 7.9 18.3 15.1 12.1
Slide 25: About Us
24 About Us
Slide 26: A Global MNC
A Global MNC… Monocon , UK Hofmann Ceramic, Mono Ceramics Inc Germany Michigan, US Tianjin Monocon Tianjin, China E I Ceramics, Cincinnati, US IFGL, Kandla SEZ 25
Slide 27: …with proven management
…with proven management… Mr. S.K. Bajoria Mr. P. Bajoria Mr. Kamal Sarda Chairman Managing Director Director & Chief Financial Officer • Promoter of S K Bajoria Group based at • Associated with IFGL from the very early days • Fellow Member of ICAI and a law graduate with Kolkata engaged in diversifi
Slide 28: …serving the specialized refractory segment
…serving the specialized refractory segment… Isostatic Refractories Slide Gate Refractories & Systems Tube Changer Refractories & System Purging System & Refractories Cast Products & Zirconia Nozzles Foundry Ceramics 27
Slide 29: …to reputed names in the Global Steel Industry
…to reputed names in the Global Steel Industry 28
Slide 30: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : IFGL Refractories Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L51909OR2007PLC027954 CIN - U74140MH2010PTC204285 Mr. Rajesh Agrawal Mr. Shogun Jain / Mr. Pratik R. Shah rajesh.agarwal@ifgl.in shogun.jain@sgapl.net /pr