Steelcast Ltd. · NSE:STEELCAS
Steelcast — Q2 FY2025 Earnings Presentation
34 slides from Steelcast's earnings presentation, Nov 9, 2024
Slide 1: Covering letter to stock exchanges
AC/2079 09.11.2024 The Secretary, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block, Dalal Street, Bandra-Kurla Complex, MUMBAI - 400 001 Bandra (E), Mumbai - 400 051 Scrip Code: 513517 Scrip Symbol: STEELCAS Dear Sir/Ma
Slide 2: Steelcast Investor Presentation Q2FY25 & H1FY25
STEELCAST INVESTOR PRESENTATION Q2FY25 & H1FY25
Slide 3: Table of Contents
TABLE OF CONTENTS Company Overview Financial Performance Strong Business Model Outlook & Rationalization Measures Page 2
Slide 4: Company Overview
01 Company Overview Page 3
Slide 5: Steelcast – In a Nutshell
Steelcast – In a Nutshell 63 Years 9 80% Manufacturing Sectors Renewable Power Plants Experience Catered Currently Captive Power Supply 29,000 TPA 70% Castings shipped as Two Star Export House fully machined Capacity Competes with Global shipped as fully machined players 5 Kgs-2,500 Kgs Sand & Shell
Slide 6: Steelcast – Over 7 Decades of Legacy
Steelcast – Over 7 Decades of Legacy Company enjoys a Premier Position in the steel Casting Industry in India Business Segments One of the few companies in India and Globally manufacturing Steel castings based on Earth Moving Sand and Shell Casting Process Mining Wide range of casting products inclu
Slide 7: Financial Performance (Q2FY25 & H1FY25)
02 Financial Performance (Q2FY25 & H1FY25) Page 6
Slide 8: Q2 & H1 FY25 Performance Highlights
Q2 & H1 FY25 Performance Highlights Highlights The company experienced a subdued performance this quarter; however, export sales saw a slight increase over domestic sales, demonstrating steady demand in international markets. The company remains committed to its guidance, with improved visibility an
Slide 9: Result Highlight – Quarterly and Half Yearly performance
Result Highlight – Quarterly and Half Yearly performance Q2FY25 Highlights EBIDTA* (₹ crore) & EBITDA Margin * Revenue from Operations (₹ crore) (%) PAT (₹ crore) & PAT Margin (%) 101.6 35.0 29.0% 20.0 18.6 19.5% 28.7 13.3 18.0 18.5% 30.0 77.7 75.9 28.0% 16.0 12.9 17.5% 25.0 28.3% 19.9 19.6 14.0 18.
Slide 10: Quarterly Profit & Loss Statement
Quarterly Profit & Loss Statement Particulars (Rs.Crs ) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q H1FY25 H1FY24 Y-o-Y Revenue from Operations 75.9 101.6 -25.3% 77.7 -2.3% 153.6 221.1 -30.5% Cost of Materials consumed 18.3 20.7 -11.8% 15.0 21.7% 33.3 48.7 -31.8% Changes in Inventories of finished goods & WIP
Slide 11: Balance Sheet
Balance Sheet Assets (Rs.Crs) H1FY25 Mar-24 Liabilities (Rs.Crs ) H1FY25 Mar-24 Non – Current Assets Equity Property, plant and equipment 135.2 137.9 Equity Share Capital 10.1 10.1 Capital work-in-progress 3.0 0.0 Other Equity 276.5 259.5 Total Equity 286.6 269.6 Intangible Assets 0.2 0.2 Liabilitie
Slide 12: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs ) Sep-24 Mar-24 Sep-23 Profit before Tax 35.4 100.9 52.4 Adjustment for Non-Operating Items 4.7 16.2 8.2 Operating Profit before Working Capital Changes 40.1 117.1 60.7 Changes in Working Capital 7.1 -23.8 -9.4 Cash Generated from Operations 47.2 93.3
Slide 13: Revenue Breakup - H1FY25
Revenue Breakup - H1FY25 Segment-wise Revenue Geography-wise Revenue Total Revenue 51.0% 49.0% Rs. 153.6 Cr 100% OEM Sales Domestic Exports ‹#› Page 12
Slide 14: Quarterly Result analysis
Quarterly Result analysis % of Revenue 30% Q2FY25 Q1FY25 Q2FY24 25% 24.0 24.4 23.6 22.6 20% 20.4 19.3 18.3 17.5 15% 16.6 14.9 13.7 13.1 12.9 12.2 12.5 11.4 11.9 11.7 10% 10.0 10.3 9.0 5% 5.2 4.3 3.6 0.0 0.1 0.2 0% Materials Consumed Employee Cost Finance Cost Mfg Expense Power & Fuel Stores & Spares
Slide 15: Key Highlights for Q2FY25
Key Highlights for Q2FY25 Operational Performance • In Q2FY25 we reported a revenue of approximately Rs 76 crores, a YoY decrease of 25%, which was primarily on the back of liquidation of inventory in North America and Europe. Our Domestic segment witnessed a double-digit growth on a year-on- year b
Slide 16: Balance Sheet Ratios
Balance Sheet Ratios RoCE RoE 42.3% 37.9% 39.7% 30.9% 28.4% 23.3% 14.7% 13.2% 9.8% 6.8% Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 ‹#› Page 15
Slide 17: Prudent Working Capital Cycle
Prudent Working Capital Cycle Despite the business being WC intensive, Steelcast had a prudent working capital cycle of 53 days in FY24. 119 112 94 91 85 81 83 74 65 59 59 59 52 53 53 49 50 43 42 43 39 28 29 17 FY19 FY20 FY21 FY22 FY23 FY24 Inventory (Days) Receivable (Days) Payable (Days) Working C
Slide 18: Prudent Leverage Management
Prudent Leverage Management 300.0 269.6 0.45 0.40 0.40 250.0 215.2 0.35 200.0 0.30 156.6 0.25 150.0 0.20 100.0 62.8 0.11 0.15 0.10 50.0 23.6 0.08 0.00 0.05 - - FY22 FY23 FY24 Total Debt (₹ crore) 62.8 23.6 0.08 Networth (₹ crore) 156.6 215.2 269.6 Debt-Equity (x) 0.40 0.11 0.00 Particulars (₹ Crore)
Slide 19: Five-Year CAGR Snapshot: Unveiling Business Growth Trends
Five-Year CAGR Snapshot: Unveiling Business Growth Trends Revenue from operations EBIDTA (Excluding Other Income) 114 117 +19.6% 477 +33.1% 410 302 64 201 37 158 31 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 EBIT (Excluding Other Income) PAT 96 99 71 75 +47.0% +75.0% 46 33 21 18 12 8 2020 202
Slide 20: Strong Business Model of Steelcast
03 Strong Business Model of Steelcast Page 19
Slide 21: Diversified Business Model catering to Varied OEMs in Different Industries
Diversified Business Model catering to Varied OEMs in Different Industries… Existing Segments Earth Moving Industry Mining Mineral Processing Industry Electro Locomotive Steel Plants Cement Construction ‹#› Page 20
Slide 22: Expanding our footprint to new segments
Expanding our footprint to new segments Foray into New Segments Ground Engaging Tools Railways Defence (GETs) ‹#› Page 21
Slide 23: Moats
Moats Moats of the company : Cost Barrier High margin due to cost plus model Expertise spanning over decades Debt Free Entry barrier due to high replacement cost and Strong R&D and Technological Capabilities. Customer loyalty Well Experienced Team & Balanced / professional BOD Green Energy Global Fo
Slide 24: Locational Advantage
Locational Advantage Situated in Bhavnagar, Gujarat, which is a power surplus Company’s own 66KV power transmission station with state 10 MW power available 24*7 Scrap - the major raw material is available with high degree of purity and at competitive price from Well connected with major cities of G
Slide 25: Presence across the Globe
Presence across the Globe “Two-Star Export Denmark House Status holder” Canada Germany Poland South Korea Slovakia USA Japan China We have presence in 15 India Headquartered Thailand countries, and we expect Mexico to increase the same in Singapore 18+ countries in the next 1 to 2 years Brazil Austr
Slide 26: Certifications & Recognitions
Certifications & Recognitions An ISO: 9001-2015 An ISO:45001-2018 An ISO:14001-2015 An EN:9100:2018 D An NABL (National Certified by Transportation Company certified by TUV Company certified by TUV Company certified by TUV company certified by TUV Accreditation Board for & Power Generation NORD, Ger
Slide 27: Diversified & Experienced Board of Directors
Diversified & Experienced Board of Directors Mr. Chetan M. Tamboli Mr. Rushil C Tamboli Mr. Hemant D Dholakia Mrs. Vidhi S Merchant Mr. Apurva R Shah Mr. Dipam A Patel Managing Director & CEO Whole Time Director Independent Non-Executive Invitee Non-Executive Non- Executive Director Non-Independent
Slide 28: Diversified & Experienced Board of Directors
Diversified & Experienced Board of Directors Mrs. Aarushi M Ganatra Mr. Kumar Tipirneni Mr. Harsh R Gandhi Mr. Rajiv D Gandhi Mr. Ashutosh H Shukla Mr. Subhash R Sharma Independent Invitee Independent Independent Executive Director & COO Executive Director & CFO Non-Executive Director Non-Executive
Slide 29: Outlook & Rationalization Measures
04 Outlook & Rationalization Measures Page 28
Slide 30: Rationalization Measures
Rationalization Measures Hybrid power plant Reduction in has also been throughput time for Company has set up commissioned in Both these plants will As a result of our 5 MW Solar Power meet around 80% of the processing of continuous efforts to July, 2023. castings – thus Plant in Bhavnagar, Annualiz
Slide 31: Building Excellence: Key Pillars of Steelcast's Enduring Success
Building Excellence: Key Pillars of Steelcast's Enduring Success Reliable quality supplier with long association with marquee customers Adequate capacity with ramp-up capabilities Seasoned and experienced management team and skilled work force Six decades robust experience of surviving and sustainin
Slide 32: Strategy to Explore Potential Growth Opportunities
Strategy to Explore Potential Growth Opportunities Strengthening business Enhancing component Entry in New Provides ready to relationship with the Adding new sectors basket through new Geographies use/machined parts existing customers product development Short Term Future Long Term • Recovery from c
Slide 33: Safe Harbour
Safe Harbour This presentation has been prepared by and is the sole responsibility of Steelcast Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or inducem
Slide 34: Thank You
THANK YOU Mr. Ronak Jain +91 98209 50544 ronak.jain@linkintime.co.in Mr. Subhash Sharma, ED & CFO Kanav Khanna / Arpit Mundra Email : ss@steelcast.com Email: kanav.khanna@in.ey.com / arpit.mundra@in.ey.com Phone Number : +91-9910036240 / +91- 9265185627 Page 33