Emco Industries Limited · PSX:EMCO
Emco Industries — Investor Presentation (November 2023)
47 slides from Emco Industries's investor presentation, Nov 22, 2023
Slide 1: EMCO Industries Ltd. Corporate Briefing Session Nov 2023
EMCO INDUSTRIES LTD. Corporate Briefing Session Nov 2023
Slide 2: Disclaimer
Disclaimer • This presentation has been prepared by EMCO Industries Ltd solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance should be placed on the fairness, accuracy, sufficiency, completeness or correctness of the information or any op
Slide 3: Disclaimer
Disclaimer • The presentation may contain statements that reflect EMCO Industries’ own beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about the future, which are beyond EMCO Industries’ control. Such forward looking statements represe
Slide 4: Porcelain Insulators: What are they?
Porcelain Insulators: What are they? • An insulator is a material that resists the flow of electrical current. • In electrical transmission, an insulator is a component that ensures the current in electrical lines is isolated from physical support structures. • Porcelain is the oldest and most widel
Slide 5: EMCO – Key Products & Services
EMCO – Key Products & Services Transmission & Distribution Lines Substation Equipment Ancillary Products & Services Porcelain Insulators Post Insulators High Voltage Testing Surge Arrestors Metal Work Division Disconnect Switches RTV Coating Division Instrument Transformers Confidential
Slide 6: High level insulator manufacturing process
High level insulator manufacturing process Materials Raw Materials (Clay, Feldspar, Quartz) Ball Milling Filter Pressing Pug Milling Finished Goods Final Trimming Jiggering/Shaping Glazing Natural gas firing Confidential
Slide 7: Energy System Overview
Energy System Overview Confidential
Slide 8: Typical High Voltage Substation
Typical High Voltage Substation Elements of a substation A: Primary power lines’ side B: Secondary power lines’ side 1. Primary power lines (EMCO Existing: Transmission Line Insulators) 2. Ground wire Denotes EMCO 3. Overhead lines (EMCO Existing: Substation support Insulators & Interconnect Insulat
Slide 9: Revenue growth expectations
Innovation Intent: Growth expectations 10 billion PKR 5 billion PKR Revenue 5 billion PKR 3 Confidential
Slide 10: Product Portfolio Overview
EMCO Industries Ltd Product Portfolio Overview
Slide 11: Core Insulator Division: Transmission & Distribution Line Insulators
Core Insulator Division: Transmission & Distribution Line Insulators
Slide 12: EMCO: Anatomy of Disc Insulator
EMCO: Anatomy of Disc Insulator Porcelain Shell Hardware Cap Hardware Pin & Locking Device
Slide 13: High Voltage Disconnect Switches – Forward Integration Initiative
High Voltage Disconnect Switches – Forward Integration Initiative
Slide 14: Typical 3 pole High Voltage Disconnector
Typical 3 pole High Voltage Disconnector Current Carrying Arm Earthing Switch Base Frame, Motor Operating Mechanism & Steel Structure (not shown) EMCO Manufactured Insulators x 6
Slide 15: Functionality of a Disconnector
FUNCTIONALITY OF A DISCONNECTOR Disconnect switches rapidly disconnect circuits from power supplies in the event of an emergency. Disconnect switches can function in conjunction with circuit breakers, devices which interrupt the flow of electricity along a circuit when the current exceeds the circui
Slide 16: High Voltage Surge Arrestors - Forward Integration Initiative
High Voltage Surge Arrestors - Forward Integration Initiative
Slide 17: Typical Surge Arrestor Configuration
Typical Surge Arrestor Configuration Local Aluminum Corona Ring Imported Zinc Oxide Varistors (Not shown) inside Porcelain Insulator EMCO Manufactured Insulator Bushing Local Aluminum Hardware & Steel Structure (Not Shown)
Slide 18: Functionality of a Surge Arrester
FUNCTIONALITY OF A SURGE ARRESTER • A surge arrester is a device to protect electrical equipment from over-voltage transients caused by external (lightning) or internal (switching) events. • A surge arrester works by diverting the extra voltage into the earth wire, rather than flowing through the el
Slide 19: High Voltage Instrument Transformers - Forward Integration Initiative
High Voltage Instrument Transformers - Forward Integration Initiative
Slide 20: Typical Current Transformer Configuration
Typical Current Transformer Configuration Local Tank, Connectors & Bellows Primary Core & Secondary Cores EMCO Manufactured Insulator Local Bottom Tank
Slide 21: Functionality of a Current/Potential Transformer
FUNCTIONALITY OF A CURRENT/POTENTIAL TRANSFORMER A current/ potential transformer (CT/ PT) is a type of transformer that is used to reduce or multiply an alternating current (AC). It produces a current in its secondary which is proportional to the current in its primary.
Slide 22: Room Temperature Vulcanization (RTV) – Forward Integration Initiative
Room Temperature Vulcanization (RTV) – Forward Integration Initiative
Slide 23: RTV Coating Project: Porcelain Strengths meets hydrophobicity
RTV Coating Project: Porcelain Strengths meets hydrophobicity • To avoid leakage currents, discharges and pollution flashovers, a highly customized silicone layer is applied to the porcelain insulator surface using either a patented dip coating process, or in certain cases a special spray coating pr
Slide 24: RTV Coating Project – EMCO Workshop
RTV Coating Project – EMCO Workshop Machines Dip coating workshop has 252 dip coating machines installed Curing Equipment Dip coating workshop has 500 curing stations Dipping Capacity 252 machines can dip coat 5000- 6000 insulators per day Quality Control Lab RTV coating: Viscosity, Tack free time I
Slide 25: Glimpse of KE RTV Coating T/L Project
GLIMPSE OF KE RTV COATING T/L PROJECT
Slide 26: Glimpse of Pre-Coated 245kV Surge Arrestor for 220kV Grid Daharki
GLIMPSE OF PRE-COATED 245kV SURGE ARRESTOR FOR 220kV FOUNDATION POWER CO. GRID DAHARKI
Slide 27: Glimpse of On-Site RTV Coating Project of Oursun 132kV Grid Gharo
GLIMPSE OF ON-SITE RTV COATING PROJECT OF OURSUN (50MW SOLAR PLANT) 132KV GRID GHARO
Slide 28: Metal Works Section - Backward Integration Initiative
Metal Works Section - Backward Integration Initiative
Slide 29: Metal Works Division: Forging & Fabrication Facility
Metal Works Division: Forging & Fabrication Facility
Slide 30: Metal Works Division – Galvanizing Facility
Metal Works Division – Galvanizing Facility
Slide 31: Recent Developments
EMCO Industries Ltd Recent Developments
Slide 32: State of the Art High Voltage Laboratory
State of the Art High Voltage Laboratory
Slide 33: EMCO's Second High Voltage Lab: Highest Voltage class lab in Pakistan in private sector
EMCO’s Second High Voltage Lab: Highest Voltage class lab in Pakistan in private sector
Slide 34: Slide 34
Slide 35: Instrument Transformer Section
Instrument Transformer Section
Slide 36: BMR Project New High Temperature Kiln
BMR Project New High Temperature Kiln
Slide 37: Financial Review
Financial Review —
Slide 38: Historical Financials
HISTORICAL FINANCIALS 1st Qtr- PKR "mn" FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Sep-23 Income Statement Revenue 1,386 1,598 2,077 2,586 3,546 1,260 Gross Profit 348 380 527 611 964 401 EBITDA 293 336 468 483 815 338 Finance Charges 82 97 88 103 248 95 PAT 145 118 202 217 293 129 Balance Sheet Non-cu
Slide 39: Revenue - (PKR Mln.)
Revenue - (PKR Mln.) 4,000 3,546 3,500 3,000 2,586 2,500 2,077 2,000 1,598 1,500 1,386 1,260 1,148 1,000 500 - FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1st Qtr- Sep-23 39
Slide 40: Gross Profit - (PKR Mln.)
Gross Profit - (PKR Mln.) 1,200 1,000 964 800 611 600 527 380 401 400 348 200 157 - FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1st Qtr- Sep-23 40
Slide 41: EBITDA - (PKR Mln.)
EBTIDA - (PKR Mln.) 900 815 800 700 600 468 500 483 400 336 338 293 300 200 119 100 - FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1st Qtr- Sep-23 41
Slide 42: Profit After Tax - (PKR Mln.)
Profit After Tax - (PKR Mln.) 350 300 293 250 217 202 200 145 150 129 118 100 50 36 - FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1st Qtr- Sep-23 42
Slide 43: Current ratio (x)
Current ratio (x) 1.75 1.58 1.64 1.55 1.52 1.35 1.40 1.36 1.22 1.15 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1st Qtr- Sep-23 43
Slide 44: ROE (%)
ROE (%) 20.0% 18.0% 18.1% 16.0% 13.2% 14.0% 12.0% 11.1% 10.0% 8.0% 11.4% 9.5% 8.9% 6.0% 4.0% 2.0% 3.6% 0.0% FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1st Qtr- Sep-23 44
Slide 45: Interest bearing D/E (%)
Interest bearing D/E (%) 90.0% 80.0% 70.0% 60.0% 51.4% 51.2% 50.0% 37.9% 40.0% 33.6% 30.0% 26.5% 30.0% 20.0% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1st Qtr- Sep-23 45
Slide 46: DSCR (x)
DSCR (x) 3.50 3.30 2.99 3.10 2.80 2.89 2.90 2.70 2.62 2.50 2.30 2.07 1.97 2.10 1.90 1.70 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1st Qtr- Sep-23 46
Slide 47: Q&A Thank You
Q&A Thank You
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