Tega Industries Ltd. · NSE:TEGA
Tega Industries — Q4 FY22 Earnings Presentation
25 slides from Tega Industries's earnings presentation, May 26, 2022
Slide 1: Cover letter to stock exchanges: Investor Presentation
INDUSTRIES LTD PARTNERSHIPS IN PRACTICE May Z6, ZOZZ To, The Corporate Services Department, Manager - Listing Department Bombay Stock Exchange Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai
Slide 2: Tega Industries Limited Investor Presentation May 2022
TEGA INDUSTRIES LIMITED PARTNERSHIPS IN PRAC TICE Investor Presentation May. 2022 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tega Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: Tega Industries Limited – Company Overview
Tega Industries Limited – Company Overview Immunity from Capex Cycles Cater to after‐market spend recurring revenues Continuous Design Innovation Launched DynaPrime in 2018 – a composite liner of rubber & steel Leading manufacturer & Commenced Catering to global mineral Inorganic Strategy distri
Slide 5: Evolution into a Global Multi-product Player
Evolution into a Global Multi-product Player Foundation Buyout Intellectual Property, Initial Public Additional Patent, Acquisition Offering Greenfield Project Collaboration of our Buyout by Madan Mohan • Grant of patent in relation The shares of the company Promoter, Madan Mohan Mohanka of Skega AB
Slide 6: Corporate Structure
Corporate Structure Tega Industries Ltd Material Subsidiaries1 100% 100% 100% 100% 50% JV Tega Industries Tega Industries Tega Holdings Africa Proprietary Losugen Pty Ltd Hosch Chile SpA Pte Ltd Ltd. Holdings Pte Ltd 1 Shown above are material subsidiaries. The company also holds other wholly owned
Slide 7: Q4 & FY22 Performance Highlights
Q4 & FY22 PERFORMANCE 6 HIGHLIGHTS
Slide 8: Q4 & FY22 Performance Highlights
Q4 & FY22 Performance Highlights Q4 FY22 FY22 Revenue +16.6% Revenue +18.2% Rs. 2,901 mn Management Commentary Rs. 9,518 mn Rising input material costs continues to have an impact on margin. Effort is to pass on the same to the customers in Operating EBITDA Operating EBITDA the coming quarters. +2
Slide 9: Consolidated Financial Performance
Consolidated Financial Performance FY21 Revenue (In Rs mn) FY22 +18.7% +12.7% +12.0% +10.5% 2,467 2,847 +30.0% +33.1% 2,077 2,526 PAT (In Rs mn) 1,879 2,256 1,446 1,696 Y-o-Y +19% 489 412 336 +45.5% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q-o-Q Operating EBITDA (%) Q4 FY21 Q3
Slide 10: Consolidated Financial Performance – Annual
Consolidated Financial Performance Annual Performance (In Rs mn) Revenue Operating EBITDA PAT* +18.2% 9,518 8,055 ‐2.5% 1,875 1,829 ‐14.3% 1,364 1,169 FY21 FY22 FY21 FY22 FY21 FY22 *PAT excluding non‐operating income has grown from Rs 852 mn to Rs 927 mn i.e. 8% growth YOY
Slide 11: Q4 & FY22 - Consolidated P&L
Q4 & FY22 - Consolidated P&L Particulars (Rs in mn) Q4FY22 Q4FY21 Y‐o‐Y FY22 FY21 Y‐o‐Y Revenue from Operations 2,900.5 2,488.3 16.6% 9,517.6 8,055.2 18.2% Cost of Materials consumed 1,109.9 1,063.8 4,036.3 3,282.4 Changes in Inventories 149.5 8.4 ‐10.1 ‐44.5 Material Margin 1,641.1 1,416.0 15.9% 5,
Slide 12: FY22 - Consolidated Balance Sheet
FY22 - Consolidated Balance Sheet Equity & Liabilities (Rs in Mn) Mar’22 Mar’21 Assets (Rs in Mn) Mar’22 Mar’21 Equity Share Capital 662.9 662.9 Property, plant and equipment 1,711.3 1,692.0 Other Equity 6,697.4 5,474.3 Capital Work‐in‐Progress 101.7 68.6 Total Equity 7,360.4 6,137.2 Right of Use As
Slide 13: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 12
Slide 14: Key Investment Highlights
Key Investment Highlights Diverse & Innovative Products Insulated from Capex with Low Substitution Threat 1 2 Cyclicity of Mining Players Diverse Global Presence with Strong R&D leading to Multiple Patents, with focus on Quality 3 Strong Global Manufacturing 4 & Sales Capabilities Consistent Growth
Slide 15: 1. Diverse & Innovative Products
1. Diverse & Innovative Products Specialized, ‘critical to operate’ and recurring consumable Sale of Sale of Products Services products Flagship products Specialized Plant Audit Mill liners Hydrocyclones Screens & Trommels Conveyor Products Consultancy Rapido Spillex Supply of Individual Spare Parts
Slide 16: 2. Insulated from Capex Cyclicity of Mining Players
2. Insulated from Capex Cyclicity of Mining Players Upfront capex & After‐market spend over the lifecycle of a mill 1x 3x Approx. split Upfront After market spend Capex Recurring cost for miners Majority of our products are linked to the operating expenditure budget of a mining site, thus immune fro
Slide 17: 3. Strong R&D leading to Multiple Patents
3. Strong R&D leading to Multiple Patents Track record of bringing multiple innovative products to the market 2018 – Rapido 2018 – DynaPrime 2016 – Chutes 2015 – Trommels • In‐house R&D team comprises 36 personnel • We do not rely on outsourcing: reduces our dependence • R&D & manufacturing capabili
Slide 18: 4. Diverse Global Presence - Manufacturing & Sales Capabilities
4. Diverse Global Presence - Manufacturing & Sales Capabilities Chile South Africa Australia International Commissioning/Acquisition: 2011 Commissioning/Acquisition : 2006 manufacturing Product capabilities: Commissioning/Acquisition: 2010 Product capabilities: Mill liners, Trommels, Chute liners, P
Slide 19: 5. Consistent Growth & Long-Term Repeat Business
5. Consistent Growth & Long-Term Repeat Business Entry barriers helps maintain high margins over Robust market position time with revenues from operations growing at 14.5% CAGR (FY19‐22) Successfully maintained operational efficiency levels whilst completing acquisitions, JVs & Built Inherent Streng
Slide 20: 6. Track Record of Successful Inorganic Growth Strategy
6. Track Record of Successful Inorganic Growth Strategy JV in 1991 Acquisition in 2006 Acquisition in 2010 Acquisition in 2011 • Assistance from Hosch • Expand operations globally • Increased market share in • Access to the Latin American England covering aspects Australia by acquiring markets inclu
Slide 21: Key Growth Drivers Going Forward
Key Growth Drivers Going Forward Gain market share & Leverage in‐house R&D to Expand manufacturing Explore opportunities for Operational efficiencies & customer wallet share grow product offerings & capabilities to optimise inorganic growth margin expansion across high growth capitalize on future ec
Slide 22: Leadership Team
LEADERSHIP TEAM 21
Slide 23: Experienced Board of Directors
Experienced Board of Directors Madan M. Mohanka Mehul Mohanka Syed Yaver Imam Chairman and Executive Managing Director and Executive Director Director Group CEO Appointed: Since inception Appointed: Jun‐02 Appointed: Jul‐05 Background: Background: Background: • Promoter, Founder and Chairman • One o
Slide 24: Management Team
Management Team • One of the Promoters of the Company, MD & • Associated with Tega for four decades since Group CEO joining as a Trainee in 1981 and climbed up Mehul Mohanka Syed Yaver Imam the ladder • Associated with Tega for almost two decades MD and Group CEO Director – Global • Executive Direct
Slide 25: Thank You
THANK YOU Mr. Manoj Kumar Agarwal Chief Financial Officer, Company Secretary and Compliance Officer investor.relations@tegaindustries.com Mr. Rajesh Agrawal Sr. Vice President +91 99674 91495 Rajesh.Agrawal@linkintime.co.in Mr. Nachiket Kale +91 9920940808 nachiket.kale@linkintime.co.in