Rajratan Global Wire Limited · NSE:RAJRATAN
Rajratan Global Wire — Q4 FY2020 Earnings Presentation
19 slides from Rajratan Global Wire's earnings presentation, Jun 6, 2020
Slide 1: Exchange filing cover letter for investor presentation
RGWL/20-21/ 6th June, 2020 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers ‘Exchange Plaza’, C-1, Block G, Dalal Street Bandra Kurla Complex, Mumbai 400001 Bandra (E), Mumbai – 400 051 Scrip Code – 517522 Symbol - RAJRATAN Sub: Investor Presentation Dear Sir, Wit
Slide 2: Investor presentation Fourth quarter, 2019-20
Investor presentation Fourth quarter, 2019-20 Rajratan Global Wire Limited
Slide 3: Rajratan at a glance
Rajratan at a glance The Company is one The Company is also of the fastest engaged in the growing bead wire manufacture of high manufacturers in the carbon steel wire world The Company is the The Company is the second largest bead only bead wire wire manufacturer in manufacturer in Asia Thailand
Slide 4: How we performed in 2019-20
How we performed in 2019-20 Revenues Profit after tax decreased by increased by 2.57%* 24% over FY19 over FY19 Revenues Profit after tax decreased by decreased by 3.32% 23% over Q4 FY19 over Q4 FY19 Note: Decrease in topline was due to the declining steel prices. However, in terms of volume, revenue
Slide 5: Vision, Mission and Values
Vision Mission To become the • To manufacture and supply superior leading and most quality products at competitive prices preferred bead wire and support it with excellent customer manufacturer and service supplier to tyre • To imbibe and constantly develop a companies globally culture of excellence
Slide 6: Background
Background Market presence Capacity Geographical spread The Company has The Company is the The Company The Company has been engaged in the second largest possesses an two manufacturing manufacture of bead manufacturer of bead installed aggregate facilities located in wire and high carbon wire in Asi
Slide 7: Our prestigious marquee customers
Our prestigious marquee customers Apollo Tyres Ltd. • Alliance Tyre • Birla Tyres Ltd. • Balakrishna Tyres Pvt. Ltd. • Bridgestone India Pvt. Ltd. • CEAT Ltd. • CEAT Kelania • Continental India Pvt. Ltd. • Casumina • CAMSO Loadstar, Sri Lanka • Camel Industries • Deestone International • Everthrough
Slide 8: Our attractive growth over the years
Our attractive growth over the years Year FY16 FY17 FY18 FY19 FY20 Revenues# 304.86 304.51 348.77 492.88 480.21 EBITDA 42.72 43.15 38.22 54.10 69.19 Net profit 16.46 18.86 17.12 26.71 33.04 EBITDA margin (%) 14.01 14.17 10.95 10.98 14.41 ROCE* (%) 20.95 19.41 15.93 18.78 18.96 Gearing (x) 1.30 1.02
Slide 9: The numbers we reported during the quarter under review (Q4FY20)
The numbers we reported during the quarter under review (Q4FY20) Parameters Q4FY19 Q4FY20 FY19 FY20 Revenues 128.93 124.65 492.89 480.21 EBITDA 15.77 15.35 54.10 69.18 Depreciation 2.53 3.31 9.19 12.08 Interest 2.85 3.39 10.81 13.39 Profit before tax 10.39 8.65 34.10 43.71 Profit after tax 7.87 6.07
Slide 10: How we performed during the quarter under review (Q4 FY20)
How we performed during the quarter under review (Q4 FY20) Parameters Q4FY19 Q4FY20 FY19 FY20 EBIDTA margin (%) 12.23 12.31 10.98 14.41 Net profit margin (%) 6.10 4.87 5.42 6.88 Interest cover (x) 4.65 3.55 4.15 4.26 Earnings per share (Rs) 7.75 5.98 26.30 32.55 ROCE* 21.61 15.99 18.78 18.96 *Annual
Slide 11: Sectoral environment
1. India is the fourth largest tyre market in the world Sectoral after China, Europe and the United States environment 2. The market is being driven by the increasing radialisation of tyres, especially in trucks and buses 3. Following the Novel Coronavirus and trade barriers, tyre manufacturing comp
Slide 12: How we addressed Covid-19 in Q4 FY20
How we addressed Covid-19 in Q4 FY20 India Thailand • Declining offtake in • Record output in March 2020 March 2020 • Complete • Decline in order manufacturing and book in April 2020 sales closure in India • No manufacturing (April 2020) closure • Manufacturing resumption from May 2020
Slide 13: Our big message of 2019-20
Our big message Context of 2019-20 • Slower growth for the Indian and global economy • Increase in bead wire realisations • Loss of a month and a half due to expansion and Covid-19 Outperformance • Protected revenues (consolidated) and higher profits • Profitable growth (profit growth > revenue grow
Slide 14: The reasons behind our outperformance in 2019-20
The reasons behind our outperformance in 2019-20 We leveraged the We leveraged We strengthened benefits of economies of our product mix expansion (lower scale (towards value- capital cost per (procurement and addition) tonne) manufacturing) We strengthened We strengthened We enhanced out terms of tr
Slide 15: Expansion: The single biggest development at our company in 2019-20
Expansion: The single biggest development at our company in 2019-20 We doubled our We increased We We expanded at manufacturing our strengthened one of the capacity in India consolidated our ability to lowest capital to 72,000 TPA capacity (India service any costs per tonne and Thailand) to customer
Slide 16: The take-home from the expansion of 2019
The take-home from the expansion of 2019 01 02 03 One of the highest One of the most A decisive step bead wire competitive cost towards building a standards in the structures in the global bead wire world world company
Slide 17: Why we are cautiously secure of our medium-term prospects
Why we are cautiously secure of our medium-term prospects Specialised Decline in Adequate focus competition capacity to address customer needs Imports not Enduring Protected viable with partnerships receivables weaker rupee with prominent cycle Indian and global tyre brands
Slide 18: How we are comfortably placed in 2020-21
How we are comfortably placed in 2020-21 01 02 03 04 05 Full 100 Post- Rupee debt Repaid and Lower per cent expansion cost of 8%; prepaid working term loan debt-equity Thai commercial capital for previous ratio of 0.86 business obligations needs expansion debt of less during repaid than 5% lockdown
Slide 19: Please contact investor.cell@rajratan.co.in for more details
Please contact investor.cell@rajratan.co.in for more details Thank you
Rajratan Global Wire — Q4 FY2020 Earnings Presentation on 6ix