Ador Welding Limited · NSE:ADOR
Ador Welding — Investor Presentation (June 2021)
24 slides from Ador Welding's investor presentation, Jun 10, 2021
Slide 1: Exchange filing cover letter for investor meet presentation
AWL/SEC/SE/2021-22 10 June, 2021 BSE LTD. NATIONAL STOCK EXCHANGE OF INDIA LTD. Phiroze Jeejeebhoy Towers, Exchange Plaza, C - 1, Block G, 01° Floor, Dalal Street, Bandra-Kurla Complex, Fort, Bandra (East), Mumbai - 400 023. Mumbai - 400 051. Company Scrip Code: 517041 Company Scrip Code: ADORWELD D
Slide 2: Investors Meet
INVESTORS MEET 10/June/2021 Creating The Best Welding Experience 1
Slide 3: Agenda
Agenda I Ador Group Introduction I Ador Welding I India Welding Industry Overview I Financial performance and ratios I Way forward Creating The Best Welding Experience 2
Slide 4: Ador Group
Ador Group 113 YEARS YOUNG INDUSTRIAL GROUP − FY 21 - Group Revenues of approx. 700 Cr. − Welding & Cutting Products − Electronic Components for Thermal Power Plants − 1200 Employees − Projects / Flares − e-Vehicle Chargers − Traffic Solutions Ador Multiproducts Ador Fontech Flash 1908 1951 1995 Ort
Slide 5: Business Units & Customer Profile
Railways Business Defense Units & Infrastructure Domestic Welding Business Nuclear Customer Plants Welding Projects Automation Business Profile Thermal, Wind & Hydro Power International Business Shipbuilding Oil & Gas Automotive Creating The Best Welding Experience 4
Slide 6: India Welding Industry Overview
India Welding Indian Welding Market (4500 Cr.) Growing @ 9% CAGR to be 6700 Cr. by 2025 Consumables (3150 Cr.) Equipment (1350 Cr.) 70% 30% Industry ~ 5100 Cr by 2025 ~ 1700 Cr by 2025 Ador Welding ESAB D&H Secheron Ador Fontech Ador ESAB Overview Lincoln Electric Mailam G-Weld D&H India EWAC Alloys
Slide 7: Growth drivers to sectors catered by welding
Infrastructure Growth Via National Infrastructure Pipeline the Government of India plans to execute 7400 projects with a total budget of 111 lakh crore till 2025 drivers to Railways & Defence Policy support initiatives such as “Make in India”, export promotion policy sectors The Government of India
Slide 8: Vision and Refreshed Branding
Vision and Creating The Best Welding Experience Refreshed Branding Creating The Best Welding Experience 7
Slide 9: Ador Welding
Ador Welding 70+ Years 3 Plants 250+ Distributors 10+ Industry Segments Creating The Best Welding Experience 8
Slide 10: Technical Capability
Technical Capability Research & Development center for equipment and consumables recognized by “The Department of Scientific and Industrial Research” – Government of India Highly qualified team of 35 researchers and engineers working on development of new products. Accredited laboratory as per ISO 1
Slide 11: Some of Our Valued Customers In India
Some of Our Valued Customers In India Copyrights and Trademarks of the logo, taglines, images belong to the respective companies. Presence of a company logo on this slide does not indicate endorsements Company logos are shared only to indicated the customer base of AWL Creating The Best Welding Expe
Slide 12: Domestic Welding Business Actions
Domestic Welding − Strengthen Distribution − Efficient use of IT Systems Business − Reconfiguration of Manufacturing Systems Actions − Advanced Product Development with a focus on “Make in India” − Reduction of Logistics Costs − Optimize Product-Mix Creating The Best Welding Experience 11
Slide 13: International Business Actions
International Business Actions − Strengthen market presence in existing markets − Rate Contracts − Enhance application-oriented selling − Build Equipment Product Line Creating The Best Welding Experience 12
Slide 14: Global Presence
Global Presence Copyrights and Trademarks of the logo, taglines, images belong to the respective companies. Presence of a company logo on this slide does not indicate endorsements Company logos are shared only to indicated the customer base of AWL Creating The Best Welding Experience 13
Slide 15: Welding Automation Business Actions
Welding Automation Business Actions − Nascent Business Division − Enhance product portfolio − Improve strike ratio of Orders Creating The Best Welding Experience 14
Slide 16: Projects Actions
Projects Focus on Strengths Consolidate business offering Actions Focus on Flares & Process Equipment Business Sustained Business Operations Focus on stable revenue growth, increase margins, better cash-flows and reduce costs Customer Focus Use technology innovation to increase delivery efficiency E
Slide 17: Financial Overview
Welding Business Project Engineering Financial Overview 459 514 34.4 543 49.72 454 Revenue in INR Cr. 69.68 25.02 480.05 484.92 429.57 389.47 FY 18 FY 19 FY 20 FY 21 Creating The Best Welding Experience 16
Slide 18: Segment wise Revenue Breakup
Segment wise Consumable Equipment Revenue Project Engineering Breakup 9% 6% 16% 14% 77% 79% FY 20 FY 21 Creating The Best Welding Experience 17
Slide 19: Financial Parameters
Financial Parameters Gross Margins (%) PBT Margins (%) Ador Welding Welding Business Projects Ador Welding Welding Business Projects FY 18 21% 26% -3% FY 18 4% 8% -18% FY 19 21% 26% -52% FY 19 4% 11% -95% FY 20 24% 28% -8% FY 20 6% 11% -43% FY 21 22% 25% -29% FY 21 2% 8% -102% Creating The Best Weld
Slide 20: Volume
Volume 40,371 44,622 37,908 37,736 36,491 34,017 Welding Consumable sales in Metric Tons FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 Creating The Best Welding Experience 19
Slide 21: Q4 vs Q4 Segment wise
Q4-vs-Q4 Segment wise 37% 73% 71% 13.24 33% 61% 58% 16.93 26.9 24% 17.8 22% 21% 122.6 106.3 8% Q4 FY 20 Q4 FY 21 Consumables Equipments PEB Consumables Equipments Consumable Equipment PEB Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 Revenue (Cr.) Gross Margin (%) Raw Material Consumed as % of sales Creating
Slide 22: Financial Ratios
Financial Ratios − Working Capital days has been decreasing FY 18 FY 19 FY 20 FY21 − D/E ratio has reduced from 0.4 to 0.12 D/E Ratio 0.4 0.26 0.33 0.12 − Reducing borrowings from 81 cr to 28 Cr. Current ratio 1.6 1.5 1.5 1.6 Borrowings(in cr) 81 64 81 28 Inventory days 44 37 43 51 Debtor days 75 61
Slide 23: Way Forward
Way Forward − Focus on our Strengths − Build on the Ador Brand (in Welding) − Reduce legacy costs − Keep it simple Creating The Best Welding Experience 22
Slide 24: Creating The Best Welding Experience
Creating The Best Welding Experience 23