Electrosteel Castings Ltd. · NSE:ELECTCAST
Electrosteel Castings — H1 FY2024 Earnings Presentation
33 slides from Electrosteel Castings's earnings presentation, Nov 9, 2023
Slide 1: Regulation 30 disclosure cover letter
9 November, 2023 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 & H1FY24 Investor Presentation
Q2 & H1FY24 Investor Presentation November 2023 ‘La Frasnee’ Hydropower Plant Project - France
Slide 3: Table of Contents
Table of Contents 1 Water Infrastructure Opportunity 2 ESG Initiatives: Moving Towards Sustainability 3 Investment Rationale 4 Financial Highlights (Q2 & H1FY24)
Slide 4: Water Infrastructure Opportunity
Water Infrastructure Opportunity
Slide 5: Water Infrastructure Demand Drivers
Water Infrastructure Demand Drivers Jal Jeevan Mission (JJM): Driving Water JJM : Funds Drawn by States/Union Territories Infra Demand (INR Crore) 54,744 ➢ The Government’s flagship scheme with an outlay of 3.60 lakh 40,010 crores for providing water supply by Functional Household Tap Connections (F
Slide 6: 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 ➢ Ash-Slurry Handling ➢ Gravity Sewage ➢ Vertical Connection to Water Transmission & Disposal System Collectio
Slide 7: Ductile Iron Pipe & Fittings Best Suited for Water Infra
Ductile Iron Pipe & Fittings Best Suited for Water Infra Ductile Iron Pipe Ductile Iron Fittings ➢ One of the most preferred pipes for water supply & sewage applications ➢ Used in connection with DI pipes of both Flanged & Socket Ends across the Globe ➢ State of the art manufacturing plants - Kharda
Slide 8: ESG Initiatives: Focus on Sustainability
ESG Initiatives: Focus on Sustainability
Slide 9: Environmental Initiatives: Towards a Greener Future
Environmental Initiatives: Towards a Greener Future Environmental Initiatives ➢ Documented Environmental Management System ➢ Year-round Sapling Plantation ➢ TPM activities like 5S & Audits, Kaizen ➢ Continuous Monitoring and Evaluation of environmental parameters ➢ Ambient air quality & Stack monito
Slide 10: Waste Management Initiatives: Towards a Cleaner Future
Waste Management Initiatives: Towards a Cleaner Future Reuse of Mg Dust (100%) - in Tons Waste Management 20 18 13 14 12 ➢ Srikalahasthi Plant - Treats and utilises sewage water of Tirupati Municipal Corporation thereby conserving natural water resources ➢ Khardah Plant - Recycles waste-water, 3.5 M
Slide 11: Focus on Sustainability
Focus on Sustainability Annual World Environment Day Initiatives 01 Promoting Green Planet: Jute Bag Distribution Sustainable Organization Awarded ‘Sustainable Organization For Valuable Initiatives’ by Economic Times at Global Sustainability 02 Sapling Plantation & Distribution Congress - Acknowledg
Slide 12: Jal Sevak Sanman: Awarding Environmentalists Efforts
Jal Sevak Sanman: Awarding Environmentalists Efforts Jal Sewak Sanman Jal Sewak Sanman: Awardees ➢ Aligns with the Company’s mission of ‘Carrying life to people, safe ➢ Prof. Abhijit Mukherjee (Individual Category), an Associate drinking water for all’ Professor at the Department of Geology and Geop
Slide 13: Seasoned Board of Directors: Ensuring Effective Governance
Seasoned Board of Directors: Ensuring Effective Governance Mr. Pradip Kumar Khaitan Mr. Umang Kejriwal Mr. Mayank Kejriwal Mr. Sunil Katial Mr. Ashutosh Agarwal Mr. Amrendra Prasad Verma Chairman, Whole Time Director, Managing Director Joint Managing Director CFO, Whole Time Director Independent Dir
Slide 14: Seasoned Board of Directors: Ensuring Effective Governance
Seasoned Board of Directors: Ensuring Effective Governance Mr. Binod Kumar Khaitan Dr. Mohua Banerjee Mr. Rajkumar Khanna Mr. Bal Kishan Choudhury Mr. Vyas Mitre Ralli Mr. Jinendra Kumar Jain Mr. Virendra Sinha Independent Independent Independent Independent Independent Independent Independent Direc
Slide 15: Investment Rationale
ELECTROSTEEL Investment Rationale
Slide 16: Largest Beneficiary of Water Infrastructure Play
Largest Beneficiary of Water Infrastructure Play Manufacturing Excellence Capex to Tap the Growing Notable Financial Establishing a Niche Play & Global Presence Water Infra Demand Track-record ➢ Promoters Expertise of ➢ 5 Multi-locational Strategic ➢ INR 600 Crore Capex Plan ➢ Revenues at INR 3,418
Slide 17: Our Journey Towards Integrated Play
Our Journey Towards Integrated Play 1955-59 1994 1996 2000 2002-03 2005 2006 ➢ Acquired 46% stake in ➢ Commissioning of ➢ Capacity of DI Pipe Founded in 1955. Set Up DI Pipe plant Obtained Kitemark Lanco Industries Ltd. Obtained Kitemark license 150,000 TPA COP at SW increased to 120,000 Commenced P
Slide 18: 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 17
Slide 19: Technology at Work: Walking an Extra Mile
Technology at Work: Walking an Extra Mile Laying DI Pipes at Kargil Airlifting for ‘La Frasnee’ Hydropower Plant Project Challenge ➢ Need for permanent water infra for Indian Army including steady Project Challenge drinking water supply ➢ Need to lay long stretch of pipes in mountainous terrain with
Slide 20: Fueling Capex Plans with Internal Accruals
Fueling Capex Plans with Internal Accruals Cash Profit (PAT + Depreciation) (INR Crore) 438 449 Capacity (in Lakh MT) & Planned Capex 322 210 7.15 5.03 6.04 FY21 FY22 FY23 H1FY24 Capex aided by Cash Flows along with Reduction in Debt Long Term Debt (INR Crore) 5.80 6.36 7.00 8.95 955 1,031 FY21 FY22
Slide 21: Well Paced to Ride the Water Infrastructure Tide
Well Paced to Ride the Water Infrastructure Tide Credit Rating Dividend History Scope for Margin Strong Cashflow Expansion Generation & Improvement in Return Ratios Rewarding Stakeholders with Dividend Integrated Manufacturing Facilities, Robust Domestic and Export Demand of Long Term: CRISIL AA-/ S
Slide 22: Financial Highlights
Financial Highlights
Slide 23: Q2/H1-FY24 Result Highlights (Consolidated)
Q2/H1-FY24 Result Highlights (Consolidated) Particulars (in INR Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY FY23 Crores) • Total Income grew by 8% YoY to Total Income 1,938 1,801 8% 1,712 13% 3,650 3,585 2% 7,360 INR 1,938 Crores in Q2FY24 led by Cost of Goods Sold 981 986 (1%) 931 5% 1,912 1,891
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet Equity and Liabilities (in INR Crores) FY23 H1FY24 Assets (in INR Crores) FY23 H1FY24 Share Capital 59 59 Non Current Assets Other Equity 4,325 4,515 Plant, Property and Equipment 2,668 2,715 Total Equity 4,384 4,574 Capital Work in Progress 1,302 1,281 Borrowings 737 552
Slide 25: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Operating Revenues (in INR Crores) Gross Profit (in INR Crores) & Gross Margin (%) 7,360 55.1% 53.6% 45.8% 47.6% 5,337 3,372 3,580 3,650 2,858 1,972 1,738 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 EBITDA (in INR Crores) & EBITDA Margin (%) PAT (in INR Crores) & PA
Slide 26: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Net Leverage Analysis Working Capital Analysis (in Days) Net Debt to Equity 136 140 138 131 0.50 0.48 0.43 0.37 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 Adjusted Return on Capital Employed* Adjusted Return on Equity* 15.6% 15.2% 12.3% 12.3% 11.1% 10.2% 8.7% 6.1%
Slide 27: Q2/H1-FY24 Result Highlights (Standalone)
Q2/H1-FY24 Result Highlights (Standalone) Particulars Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY FY23 (in INR Crores) • Total Income grew by 9% YoY to Total Income 1,888 1,725 9% 1,530 23% 3,418 3,476 (2%) 7,013 INR 1,888 Crores in Q2FY24 led by Cost of Goods Sold 992 979 1% 829 20% 1,821 1,913
Slide 28: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities (in INR Crores) FY23 H1FY24 Assets (in INR Crores) FY23 H1FY24 Share Capital 59 59 Non Current Assets Other Equity 4,211 4,417 Plant, Property and Equipment 2,605 2,652 Total Equity 4,270 4,476 Capital Work in Progress 1,302 1,280 Borrowings 706 523 Ot
Slide 29: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) Operating Revenues (in INR Crores) Gross Profit (in INR Crores) & Gross Margin (%) 7,013 53.5% 50.8% 43.5% 46.7% 5,095 3,049 2,587 3,138 3,418 1,679 1,597 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 EBITDA (in INR Crores) & EBITDA Margin (%) PAT (in INR Crores) & PAT
Slide 30: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) Net Leverage Analysis Working Capital Analysis (in Days) Net Debt to Equity 129 129 134 125 0.47 0.43 0.36 0.34 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 Adjusted Return on Capital Employed* Adjusted Return on Equity* 17.1% 16.6% 13.0% 11.1% 12.0% 11.2% 8.8% 5.6% FY
Slide 31: Shareholder Information
Shareholder Information Capital Market Data Shareholding Pattern September 2023 (%) NSE Ticker /BSE Code ELECTCAST / 500128 Current Market Price (as on 09 Nov 2023) 94.2 Promoter Market Cap (INR Crores) (as on 09 Nov 2023) 5,598 40% 44% FIIs 52 Week High/Low 96.5 / 31.5 DIIs Shares Outstanding, Cror
Slide 32: 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 33: Thank You
Thank You Electrosteel Castings Limited Corporate Office G.K. Tower, 19, Camac Street, Kolkata - 700 017 Contact: +91-33-22839990 www.electrosteel.com IR Contact Details Hiral Keniya | Vikash Verma hiral.keniya@in.ey.com | vikash.verma1@in.ey.com +91 9029662801| +91 9664009029
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