Electrosteel Castings Ltd. · NSE:ELECTCAST
Electrosteel Castings — H1 FY2025 Earnings Presentation
34 slides from Electrosteel Castings's earnings presentation, Oct 30, 2024
Slide 1: Regulation 30 disclosure cover letter
30 October, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 500128 Symbol: ELECTCAST ISIN : INE086A01029 Dear Sir/Madam, Sub: Disclosure under Regu
Slide 2: Q2 & H1FY25 Investor Presentation
Q2 & H1FY25 Investor Presentation October 2024 Page 1
Slide 3: Table of Contents
Table of Contents ECL in a Nutshell 03 Financial Highlights (Q2 & H1FY25) 05 Investment Rationale 14 Water Infrastructure Opportunity 18 Recognition and Shareholder Information 25 Appendix 32 Page 2
Slide 4: ECL in a Nutshell
Dummy text ECL in a Nutshell Page 3
Slide 5: Our Pure Play DI Pipe Proposition
Our Pure Play DI Pipe Proposition Pioneer of DI Capacity Build up Well Positioned Viksit Bharat Pipes in India at Regular Intervals Balance Sheet Vision - Provides to Drive Growth Robust Demand Visibility Pan India One of the Strong Brand Presence with Preferred Recall Propelling Talented Team Plant
Slide 6: Financial Highlights
Dummy text Financial Highlights Page 5
Slide 7: Q2 & H1FY25 Result Highlights (Consolidated)
Q2 & H1FY25 Result Highlights (Consolidated) Particulars (in INR Crores) Q2FY25 Q2FY24 YoY Q1FY25 QoQ H1FY25 H1FY24 YoY FY24 Total Income 1,849 1,938 (4.6%) 2,036 (9.2%) 3,885 3,650 6.5% 7,580 Cost of Goods Sold 912 981 (7.0%) 1,016 (10.3%) 1,928 1,912 0.8% 3,757 Gross Profit 937 957 (2.0%) 1,020 (8
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet As at As at As at As at Equity and Liabilities (in INR Crores) Assets (in INR Crores) 31.03.2024 30.09.2024 31.03.2024 30.09.2024 Share Capital 62 62 Non Current Assets Other Equity 5,052 5,377 Plant, Property and Equipment 2,842 2,832 5,114 5,439 Capital Work in Progress
Slide 9: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Gross Profit (in INR Crores) & Gross Margin (%) EBITDA (in INR Crores) & EBITDA Margin (%) 53.6% 45.8% 50.4% 50.4% 14.1% 11.2% 16.9% 17.2% 3,823 1,281 3,372 2,858 754 822 1,957 666 FY22 FY23 FY24 H1FY25 FY22 FY23 FY24 H1FY25 PAT (in INR Crores) & PAT Margin (%) Earn
Slide 10: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Net Leverage Analysis Working Capital Analysis (in Days) Net Debt to Equity 140 140 142 131 0.50 0.46 0.34 0.27 FY22 FY23 FY24 H1FY25 FY22 FY23 FY24 H1FY25 Adjusted Return on Capital Employed* Adjusted Return on Equity* 19.0% 19.9% 19.3% 18.3% 12.3% 12.3% 11.1% 10.2
Slide 11: Q2 & H1FY25 Result Highlights (Standalone)
Q2 & H1FY25 Result Highlights (Standalone) Particulars (in INR Crores) Q2FY25 Q2FY24 YoY Q1FY25 QoQ H1FY25 H1FY24 YoY FY24 Total Income 1,712 1,888 (9.3%) 1,851 (7.5%) 3,564 3,418 4.3% 7,044 Cost of Goods Sold 876 993 (11.8%) 945 (7.3%) 1,821 1,821 0.0% 3,559 Gross Profit 837 896 (6.6%) 906 (7.7%) 1
Slide 12: Standalone Balance Sheet
Standalone Balance Sheet As at As at As at As at Equity and Liabilities (in INR Crores) Assets (in INR Crores) 31.03.2024 30.09.2024 31.03.2024 30.09.2024 Share Capital 62 62 Non-Current Assets Other Equity 4,930 5,229 Plant, Property and Equipment 2,776 2,763 Total Equity 4,992 5,291 Capital Work i
Slide 13: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) Gross Profit (in INR Crores) & Gross Margin (%) EBITDA (in INR Crores) & EBITDA Margin (%) 14.1% 11.7% 17.7% 17.5% 50.8% 43.5% 49.5% 48.9% 1,246 3,485 3,049 819 2,587 716 623 1,743 FY22 FY23 FY24 H1FY25 FY22 FY23 FY24 H1FY25 PAT (in INR Crores) & PAT Margin (%) Earnin
Slide 14: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) Net Leverage Analysis Working Capital Analysis (in Days) 137 141 Net Debt to Equity 129 125 0.47 0.43 0.31 0.25 FY22 FY23 FY24 H1FY25 FY22 FY23 FY24 H1FY25 Adjusted Return on Capital Employed* Adjusted Return on Equity* 19.8% 20.1% 19.8% 18.2% 13.0% 12.0% 11.1% 11.2%
Slide 15: Investment Rationale
Dummy text Investment Rationale Page 14
Slide 16: Largest Beneficiary of Water Infrastructure Play
Largest Beneficiary of Water Infrastructure Play Manufacturing Excellence & Establishing a Niche Play ESG Initiatives Global Presence ➢ Promoters Expertise of almost Seven ➢ 5 Multi-locational Strategic State-of-Art ➢ Treats and utilises sewage water of Decades Facilities Tirupati Municipal Corporat
Slide 17: Strong Financial Metrics
Strong Financial Metrics Consolidated Financial Credit Rating Dividend History Highlights ➢ Revenues at INR 7,580 Crores, Highest ➢ Long Term ➢ Consistently rewarding stakeholders with ever yearly EBITDA and PAT at INR 1,281 IndiaRatings: AA/Stable (Upgraded from dividend Crores and INR 740 Crores,
Slide 18: Fueling Capex Plans with Internal Accruals
Fueling Capex Plans with Internal Accruals Production (in Lakhs MT) Cash Profit (PAT + Depreciation) (INR Crores) 850 438 449 210 FY21 FY22 FY23 FY24 Capex aided 5.03 6.04 7.15 7.48 9.00 10.00 by Cash Flows along Long Term Debt (INR Crores) FY21 FY22 FY23 FY24 FY25e FY26e with 955 1,031 Estimated Ca
Slide 19: Water Infrastructure Opportunity
Dummy text Water Infrastructure Opportunity Page 18
Slide 20: Industry Demand Tailwinds
Industry Demand Tailwinds Water Infra Industry Demand Dynamics *Indian DI Pipes Demand for Pipes ^Projected Water Demand in India (in Billion Cubic Meter) Market in Sewerage Expected to grow at a Registered a CAGR of about 4.7% in past few Sector 2010 2025 2050 CAGR of 12.5%, over the next 5-7 years
Slide 21: Water Infrastructure Demand Drivers
Water Infrastructure Demand Drivers Jal Jeevan Mission (JJM): JJM : Funds Drawn by States/Union Territories Driving Water Infra Demand (INR Crores) ➢ The Government’s flagship scheme - Outlay of INR 3.60 lakh crores has connected 15 Crores households with tap water connection since 2019 69,886 54,74
Slide 22: Water Infrastructure Applications
Water Infrastructure Applications ECL’s Water Infra Applications Drinking water/ Industrial Sewage and Miscellaneous irrigation applications Wastewater Disposal applications ➢ Clear and Raw Water ➢ Ash-Slurry Handling & ➢ Gravity Sewage ➢ Vertical Connection to Transmission Disposal System Collectio
Slide 23: Ductile Iron Pipe & Fittings Best Suited for Water Infra
Ductile Iron Pipe & Fittings Best Suited for Water Infra Ductile Iron Pipe Ductile Iron Fittings ECL is the pioneer in setting up the ECL is amongst the premier first Ductile Iron Pipe plant in the manufacturers of Ductile Indian Sub-continent Iron fittings in India ➢ One of the most preferred pipes
Slide 24: Geographical Presence
Geographical Presence Revenue Mix: H1FY25 Sales Electrosteel Castings UK Ltd 13% Electrosteel Europe Electrosteel Electrosteel Trading SA (100%) USA SA Spain Electrosteel Doha Trading LLC (49%) Electrosteel Algerie Electrosteel West Bengal: Khardah, SPA Gulf Haldia Electrosteel Bahrain Holding Andhr
Slide 25: Delivering Key Projects for Marquee Clients
Delivering Key Projects for Marquee Clients ISRO Vikram Sarabhai Space Centre Kargil India’s New Parliament Building Boeing Corporation Pfizer Facility BMW (Wallersdrof, Germany) Ras Abu Aboud Stadium, Qatar Doha Metro Hamad International Airport WWTP, Okhla French Atomic Centre Page 24
Slide 26: Recognition and Shareholders Information
Dummy text Recognition and Shareholders Information Page 25
Slide 27: Features in 25 Years of Indo-French Success Story
Features in 25 Years of Indo-French Success Story *Electrosteel Europe S.A. Acknowledged by French Embassy in India Companies Recognised ECL’s French Connection Publication recognizing ECL’s expertise ECL amongst the few companies ➢ Recognized as a key industrial company with over 23 ➢ Decarbonizing
Slide 28: Jal Sevak Samman: Awarding Environmentalists Efforts
Jal Sevak Samman: Awarding Environmentalists Efforts Jal Sevak Samman Jal Sevak Samman: Awardees ➢ Aligns with the Company’s mission of ‘Carrying life to people, safe drinking Individual Category water for all’ ➢ 1st Prize - Mr. Aloke Sarkar for spearheading & reintegrating the vital ➢ Promotes the
Slide 29: Accredited with ET Iconic Brands of India 2023 Award
Accredited with ET Iconic Brands of India 2023 Award Won ET Edge’s: Iconic Brands of India 2023 Award ECL recognised as an Iconic Brand of India Being honoured for our commitment for providing innovative and sustainable water solutions for humanity Page 28
Slide 30: Shareholder Information
Shareholder Information Capital Market Data Shareholding Pattern September 2024 (%) NSE Ticker /BSE Code ELECTCAST / 500128 Current Market Price (as on 28 October 2024) 170 32.1% Market Cap (INR Crores) (as on 28 October 2024) 10,509 46.2% Promoter 52 Week High/Low 236.6/78.9 FIIs 2.0% DIIs Number o
Slide 31: Safe Harbour
Safe Harbour This presentation has been prepared by Electrosteel Castings Limited solely to provide information about the Company. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such informa
Slide 32: Thank you!
Electrosteel Castings Limited Corporate Office G.K. Tower, 19, Camac Street, Kolkata - 700 017 Contact: +91-33-22839990 www.electrosteel.com Thank you! IR Contact Details Hiral Keniya | Vikash Verma hiral.keniya@in.ey.com | vikash.verma1@in.ey.com +91 9029662801| +91 9664009029
Slide 33: Appendix
Dummy text Appendix Page 32
Slide 34: Our Journey Towards Integrated Play
Our Journey Towards Integrated Play 1955-59 1994 1996 2000 2002-03 2005 2006 Set Up DI Pipe plant Obtained Kitemark ➢ Acquired 46% stake in ➢ Commissioning of ➢ Capacity of DI Pipe Founded in 1955. Lanco Industries Ltd. 150,000 TPA COP at SW increased to 120,000 Commenced Production of facility at K
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