Steel Strips Wheels Ltd · NSE:SSWL
Steel Strips Wheels — Investor Presentation (October 2023)
33 slides from Steel Strips Wheels's investor presentation, Oct 31, 2023
Slide 1: Steel Strips Wheels Limited Investor Presentation
STEEL STRIPS WHEELS LIMITED Delivering Value; Seeking Excellence Investor Presentation October 2023
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Steel Strips Wheels Limited (the “Company”), have bee n prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 3: Company Overview
see Strips Wheels Limited Company Overview
Slide 4: Company Overview
Company Overview SSWL is a leader in designing & manufacturing Automotive wheels – both Steel & Alloy Wheels category SSWL aspires to be the Preferred Global Brand of Wheel Solution provider committed to excellence Wheel Plants Strategic Partnerships - 4 Operations Founded Excellence Foraying into E
Slide 5: Our Journey
Our Journey Commencement of First Steel Wheels Commercial Production at Dappar Plant, Punjab 1991 Start of 2W & Tractor Wheels Production 2002 Start of LCV Wheels Commercial Production 2006 Start of Commercial Production for Exports Market by supplies of PV to PSA 2007 Peugeot Citroen, France & HCV
Slide 6: Strategic Partnerships
Strategic Partnerships • Tata Steel Limited (through its then wholly -owned subsidiary Company namely Kalimati Investment Company Ltd, which has now merged with Tata Steel Ltd) had TATA Steel Limited, India entered into a Strategic Alliance Agreement in January 2008 with SSWL • Through this relation
Slide 7: Our Products
Our Products Steel Wheels – Rs. 1,567 crores (~72%) (H1 FY24 Revenues) Competitive Pricing Suitability Quick Maintenance Robust Wheel More flexible, absorbs Competitively priced; Requires nothing more Steel Wheels are robust, more shock, thus suitable have higher acceptance in than hammering the ben
Slide 8: Product Capacities & Utilization
Product Capacities & Utilization 90% 81% 73% 77% 72% 65% • By FY24 end, 70 Lakhs Steel Wheel capacity to STEEL WHEELS be added in phased manner, post acquisition of AMW Auto 275 Components Limited 179 186 186 205 205 205 • NCLT Order received on 12 th October 2023 • Resolution plan to be FY19 FY20 F
Slide 9: State-of-the-Art Facilities
State-of-the-Art Facilities Wheel Capac ity (Mn) Catering to PV, MUV, Dappar, Punjab 10.8 Tractor & OTR Corporate Office, Chandigarh Dappar, Punjab 6+1.5 Chennai, Tamil Nadu PV & CV 7.5 Mehsana, Gujarat Jamshedpur, Jharkhand Jamshedpur, Jharkhand 2.2 HCV / LCV Saraikela, Jharkhand Mehsana, Gujarat 3
Slide 10: Clientele
Clientele 10 T h e B r a n d Na m e s a n d L o g o s m e n t i o n e d a r e t h e p r o p e r t y o f t h e i r r e s p e c t i v e o w n e r s a n d a r e u s e d h e r e f o r i d e n t i f i c a t i o n p u r p o s e s o n l y .
Slide 11: Steel Wheels
Steel Wheels Domestic Market Share Key Customers Key Platforms Share of Business Maruti Suzuki Ciaz, Baleno, Scross, Brezza, Celerio 42% S t e e l W h e e l S a l e s Vo l u m e 45% Hyundai Mahindra Honda MG Motors Venue, Xcent, Grandi10, Verna KUV, TUV, XUV Mobilio, WRV, Jazz Amaze, City Hector 45%
Slide 12: Export Profile
Export Profile Quarterly Exports Revenue (Rs. Crs.) +109% +111% FY23 FY24 177 331 Russia UK Germany Poland Canada Netherlands Slovakia 85 157 USA France Romania Japan Austria Hungary Spain S Korea Italy Morocco Q2 H1 Egypt U.A.E. Thailand Region Wise Export Revenue Colombia Contribution % Brazil 74%
Slide 13: Growth Drivers
see Strips Wheels Limited Growth Drivers
Slide 14: Growth Drivers
Growth Drivers Sales Mix Shift Shift of Sales Mix towards High Margin Accretive Segments – Alloy Wheel & Exports Operations Optimization Development of Robotic Automated Operation process for Operating Cost Rationalization Foray into EV Segment Exploring various avenues to foray into EV Segment Indu
Slide 15: Shift of Sales Mix to High Margin Alloy Wheels Segment
Shift of Sales Mix to High Margin Alloy Wheels Segment I n c r e a s e d Vo l u m e s f r o m A l l o y W h e e l S a l e s Leading to Increased Contribution to Sales (in Lakh Units) I n c l . E xp o r t s 28 Volume Contribution to Total Sales Volume 31% 28% Value Contribution to Total Sales Contrib
Slide 16: Shift of Sales Mix to High Margin Exports Segment
Shift of Sales Mix to High Margin Exports Segment I n c r e a s e d Vo l u m e s f r o m E x p o r t s Increased Revenues from Exports (in Lakh Units) (Rs. Crs.) H1 FY24 Alloy Wheel Volume H1 FY24 Alloy Wheel Revenue 1.12 Lakhs unit Rs. 38.8 Crs. 55 829 +51% +61% 31 23 331 21 294 270 16 15 222 198 F
Slide 17: Strengthening Balance Sheet
Strengthening Balance Sheet Cash Accruals (Rs. in Crs.) Long Term Debt (Rs. in Crs.) RoCE RoE Alloy Wheel Capacity Addition 282 274 544 548 Preponed to Q3 FY24 22.9% 25.9% 24.0% 17.9% 374 382 22.7% 17.0% 145 122 222 10.7% 95 8.7% 7.1% 3.6% FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 FY20
Slide 18: Dividend Payout History
Dividend Payout History Dividend 15 % 15 % 15 % 20 % 30 % 30 % 40 % 40 % 0% 20 % 75 % 100 % Declared % 15.7 11.7 6.2 6.2 4.7 4.7 Dividend 3.1 3.1 Paid (Rs in Cr) 2.3 2.3 2.3 0.0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20^ FY21 FY22 FY23 C o n s i ste nt D i v i d e n d p a i d b y t h e C o m p a
Slide 19: Q2 & H1 FY24 Financials
see Strips Wheels Limited Q2 & H1 FY24 Financials
Slide 20: Financial Performance Snapshot
Financial Performance Snapshot Revenues EBITDA (Rs. Crs.) PAT (Rs. Crs.) Volumes Revenue Mix (Rs. Crs.) EBITDA Margins % PAT Margins % (in Lakh units) 10.8 % 11.0 % 5.1 % 4.6 % Alloy Wheel Steel Wheel +4.9% +6.2% -4.2% +8% 1,081 1,134 124 55 52 51 Q2 FY24 117 47 7 8 28% 31% 40 44 72% 69% Q2FY23 Q2FY
Slide 21: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. in Crs) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1 FY23 Y-o-Y Revenue from Operations 1,133.7 1,081.1 4.9% 1,044.4 8.6% 2,178.1 2,097.2 3.9% Cost of Materials Consumed 748.2 718.9 688.4 1,436.5 1,415.9 Changes in Inventory -0.9 16.5 -13.5 -14.5 -1.0 Gr
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. in Crs) Sep-23 Mar-23 Equity & Liabilities (Rs. in Crs) Sep-23 Mar-23 Non - Current Assets 1,749.8 1,603.1 Total Equity 1,223.1 1,134.7 Share Capital 15.7 15.7 Property Plant & Equipments 1,301.6 1,347.3 Other Equity 1,207.4 1,119.1 CWIP 353.3 163.4 Share appli
Slide 23: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. in Crs) Sep-23 Sep-22 Net Profit Before Tax 149.5 151.2 Adjustments for: Non -Cash Items / Other Investment or Financial Items 96.6 75.7 Operating profit before working capital changes 246.2 227.0 Changes in working capital -173.0 -222.7 Cash generat
Slide 24: Historical Financials
see Strips Wheels Limited Historical Financials
Slide 25: Performance Ratios
Performance Ratios Return on Equity (RoE) Return on Capital Employed (RoCE) Asset Turnover Ratio Increased from 13% in FY19 to 18% Increased from 15% in FY19 to 24% Improved from 1.5 in FY19 to 3.0 in FY23 in FY23 in FY23 23% 26% 3.0 24% 2.6 18% 13% 15% 1.5 11% 1.2 1.4 7% 9% 4% FY19 FY20 FY21 FY22 F
Slide 26: Strengthening Balance Sheet
Strengthening Balance Sheet Cash Conversion Cycle Inventory Debtors Creditors In Days 61 98 103 56 48 167 123 108 106 100 91 84 77 58 63 37 43 28 33 25 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 RoCE* RoE* Cash & Cash Equivalents* 24% 18% Rs. 44.0 Crs. 26 * As o n 3 1 s t M a r c h 2 0 2 3
Slide 27: Historical Profit and Loss
Historical Profit and Loss Profit and Loss (Rs in Crs) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 4,040.5 3,560.0 1,749.4 1,563.3 2,041.2 Cost of Materials Consumed 2,688.3 2,221.6 1,082.4 973.3 1,353.7 Changes in Inventory -24.7 -34.5 16.7 -7.1 -49.8 Gross Profit 1,376.9 1,372.8 650.3 597.1 7
Slide 28: Balance Sheet
Balance Sheet Assets (Rs. in Crs) FY23 FY22 FY21 FY20 FY19 Equity & Liabilities (Rs. in Crs) FY23 FY22 FY21 FY20 FY19 Non - Current Assets 1,603.1 1,497.0 1,425.9 1,412.8 1,400.7 Total Equity 1,134.7 951.8 749.3 698.0 659.9 Share Capital 15.7 15.6 15.6 15.6 15.6 Property Plant & Equipments 1,347.3 1
Slide 29: Cash Flow - Snapshot
Cash Flow - Snapshot Particulars (Rs. in Crs) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 288.6 300.9 63.9 32.3 108.7 Adjustments for: Non -Cash Items / Other Investment or Financial Items 154.8 150.9 144.5 152.3 148.1 Operating profit before working capital changes 443.4 451.8 208.4 184.7 256.8
Slide 30: CSR & Awards
see Strips Wheels Limited CSR & Awards
Slide 31: CSR
CSR Promotion of Education by strengthening government schools & helping poor students by providing Financial Assistance & providing access to education to Orphan Children who lost their parents due to Covid -19 Providing help to the Mentally Strengthening Community Health Challenged Children in get
Slide 32: Awards
Awards Best Quality Performance Best Localization Award for the Year 2022 - JCB - Hyundai Motor India Limited 32
Slide 33: Thank You
THANK YOU Company: Steel Strips Wheels Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L2710PB1985PLC006159 CIN: U74140MH2010PTC204285 Mr. Naveen Sorot (CFO)/ Mr. Mohan Joshi (ED) Mr. Harsh Shah / Ms. Deven Dhruva info@sswlindia.com harsh.shah@sgapl.net / deven.dhruva@sgapl.net Tel:
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