Bmw Industries Ltd · BSE:BMW
Bmw Industries — Q1 FY24 Earnings Presentation
36 slides from Bmw Industries's earnings presentation, August 2023
Slide 1: BMW Industries Limited
BMW Industries Limited Trust | Consistency | Stability 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is provided by BMW Industries Limited (the “Company”). Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change
Slide 3: Inside this Presentation
Inside this Presentation Particulars Page No. About the Company 4–6 Financial Highlights 7 – 12 Operational Highlights 13 – 15 Management 16 – 18 Key Investment Highlights 19 – 27 Growth Strategies 28 – 30 Shareholding Pattern 31 Thank You 32 Annexures 33 – 36 3
Slide 4: About the Company
About the Company 4
Slide 5: Company Snapshot
Company Snapshot Product Portfolio About BMWIL BMW Industry Limited (BMWIL), incorporated in 1981, is one of the largest steel processing company in India, having multi location manufacturing units in the Steel sector Engaged in the Manufacturing & Processing of HRPO Coils, CR Coils, GP Coils, G
Slide 6: Key Milestones
Key Milestones 1981 - BMWIL 1980-1990 INCORPORATED Enhancement of relationship 1981 – Formation with TATA Steel by starting of Steel Service Center the CRM downstream Commissioned process Commissioned First Company got new -High- TMT Rolling Mill listed on BSE in Speed Tube Diversified into Mill 201
Slide 7: Financial Highlights
Financial Highlights 7
Slide 8: Management Commentary
Management Commentary The company has continued to grow its operating revenue to ₹ 15,752 in the current quarter with a 16.1% increase YoY Gross profit has risen to ₹ 10,248 lacs from ₹ 7,164 in the same quarter previous year. Gross Profit margin has risen to 65.1% from 52.8% in the same quarter pre
Slide 9: Key Quarterly Highlights (1/2)
Key Quarterly Highlights (1/2) § Operating Income up 16.1% YoY at ₹ 15,752 lacs § Gross Profit up 43.0% YoY at ₹10,248 lacs and Margin stood at 65.1%. § Operating EBITDA up 36.9% YoY at ₹ 3,669 lacs and Margin stood at 23.3% § PAT grew by 80.4% YoY at ₹ 1,557 lacs § ROE* improved to 10.2% in Q1FY24
Slide 10: Key Quarterly Highlights (2/2)
Key Quarterly Highlights (2/2) Rs in lacs Operating Gross Operating PBT PAT Cash Income Profit EBITDA Profit1 15,752 10,248 3,669 2,134 1,557 2,616 Growth (YOY) 16.1% 43.0% 36.9% 88.1% 80.4% 24.5% Growth (QOQ) 16.5% 25.9% 28.0% (16.0%) (3.5%) 54.9% Margin2 (%) 65.1% 23.3% 13.5% 9.8% Margin –YoY 1,22
Slide 11: Quarterly Profit & Loss Summary
Quarterly Profit & Loss Summary Rs in lacs YOY QOQ FY 23 Particulars Q1 FY24 Q1 FY 23 Q4 FY23 Change Change Operating Income 15,752 13,568 16.1% 13,524 16.5% 56,234 Gross Profit 10,248 7,164 43.0% 8,143 25.9% 34,070 Gross Profit (%) 65.1% 52.8% 23.2% 60.2% 8.0% 60.6% Operating EBITDA 3,669 2,679 36.
Slide 12: Balance Sheet Summary
Balance Sheet Summary Rs in lacs Particulars 30-Jun-23 31-Mar-23 30-Jun-22 12.3% 11.5% Net Worth 61,978 60,373 55,935 8.5% 9.4% 10.2% Gross Debt 22,790 23,759 23,666 6.2% Cash & Cash equivalent 718 762 110 Net Debt 22,072 22,998 23,556 Jun'22 Mar'23 Jun'23 ROCE ROE Fixed Assets 47,793 47,667 44,627
Slide 13: Operational Highlights
Operational Highlights 13
Slide 14: Steel Manufacturing Value Chain
Steel Manufacturing Value Chain Iron Steel Delivery to Mining Refining Manufacturing Final Product Production Production Customers Upstream Process Downstream Process BMWIL – Presence in Steel Processing 14
Slide 15: Operational Update
Operational Update Installed Actual Particulars Utilization Capacity Production CRM Complex 10,14,000 8,23,898 81% Rolling Mill 3,00,000 1,22,686 41% MS Pipes & Tubes 1,32,000 73,321 56% Miscellaneous 4,10,000 1,81,491 44% § In discussion to further increase the capacity for conversion of MS pipes a
Slide 16: Management
Management 16
Slide 17: Experienced Board and Senior Management Team (1/2)
Experienced Board and Senior Management Team (1/2) Ram Gopal Bansal Monika Chand Chairman and Whole Time Director Independent Director ● Founder having more than 50 years of experience in the steel ● She is a graduate from JNU & has 10+ years of Rich Experience in industry, ssuccessfully Led Joint V
Slide 18: Experienced Board and Senior Management Team (2/2)
Experienced Board and Senior Management Team (2/2) Abhishek Agarwal Vikram Kapur Chief Financial Officer Compliance Officer & Company Secretary ● A Qualified CA/CS & an alumni of St. Xaviers College Kolkata & ● Qualified Company Secretary and Chartered Accountant with ● He is having 10+ years of exp
Slide 19: Key Investment Highlights
Key Investment Highlights Stable margins Established strong despite volatile relationship with steel prices key customers Built an efficient service Strong Cashflow environment to serve its customers Proximity to major Strong industry customers and raw growth drivers material supplier 19
Slide 20: Stable Margins Despite Volatile Steel Prices
Stable Margins Despite Volatile Steel Prices Operating EBIDTA Margin % 24.00% 23.60% 23.06% BMWIL strategically positioned itself within the Peer Average steel industry's value chain, aiming to attain BMWIL stability and resilience against industry cycles 11.15% 10.26% 8.81% This positioning ena
Slide 21: Established Strong Relationship with Key Customers
Established Strong Relationship with Key Customers Established Client Relationships of +30 years with Marquee Steel Manufacturing Players JV with SAIL & Start of Building Capabilities to Addition of capabilities to Initiation deep association with service customers continue servicing customers TATA
Slide 22: Built an efficient service environment to serve its customers
Built an efficient service environment to serve its customers Over the years invested to develop its own logistics Provide solutions to the customers, based on fleet of 105 trucks/long haul trailers the accumulated experience over decades Invested to build ample storage/warehousing space to
Slide 23: Location Advantage (1/2)
Location Advantage (1/2) BMWIL Plants - Jharkhand Strategically located in a region where raw material is readily available 23
Slide 24: Location Advantage (2/2)
Location Advantage (2/2) BMWIL Plants & H.O. West Bengal Proximity to major buyers of finished and converted products helps in delivering goods in cost efficient manner 24
Slide 25: Industry Growth Factors (1/2)
Industry Growth Factors (1/2) India is the world’s 2nd largest producer of crude and finished steel, India’s Production and Consumption of Finished Steel with an output of 125.3 MT of Crude Steel & 121.3 MT of Finished Steel in FY23.1 Also, India has been the 2nd largest consumer of finished 130 s
Slide 26: Industry Growth Factors (2/2)
Industry Growth Factors (2/2) Robust Demand Policy Support Increasing Investments Construction Industry 100% FDI in Steel Sector Rising investment from domestic and Infrastructure Sector accounts for 9% of foreign players steel consumption in India Rise in Export Duty : Govt. hiked the GVA
Slide 27: Strong Cashflows
Strong Cashflows 14,000 1.28 1.40 12,000 1.20 12,563 12,183 10,000 0.97 1.00 8,000 0.61 0.80 ₹ LACS The company has strong and consistent operating cash 6,000 0.60 6,409 flow 4,000 0.40 2,000 0.20 Due to strong cash flow from operations, net debt/equity as well as net debt / operating EBITDA has
Slide 28: Growth Strategies
Growth Strategies 28
Slide 29: Strong Revenue Visibility
Strong Revenue Visibility Agreement for conversion of GP/GC sheets through the CRM Complex, is coming up Expected Revenue of Rs. 2,000 crores over the 1 for renewal in April 2024 contracted period of 5 years* Key Entry Barriers: Capital Requirements Geographical Advantage Relationship Competitive co
Slide 30: Build Own Brand
Build Own Brand Distribution in Place Establish Brand Asset Light Model and Growing Value Creation of strong distribution Introduction of adjacent network Efficiently outsourcing product categories manufacturing facilities Focused penetration in under- BMWIL cautiously spending on serviced
Slide 31: Shareholding Pattern
Shareholding Pattern ( Resident individuals ) 1.38% 0.01% ( NRIs ) ( Bodies Corporate ) 24.61% 74.00% ( Promoter & Promoter Group ) As on 30th June’23 Promoter & Promoter Group Bodies Corporate Resident Individuals NRIs 31
Slide 32: Thank You
Thank You For further details please contact Chief Financial Officer Investor Relations Advisor Abhishek Agarwal Sanjeev Sancheti Email: abhishekagarwal@bmwil.co.in Email: ss@uirtus.in Phone No.: +91 8420555215 Website: www.uirtus.in Phone No.: +91 9836244222 32
Slide 33: Annexure
Annexure 33
Slide 34: Profit and Loss Summary
Profit and Loss Summary Rs in lacs Particulars FY 21 FY 22 FY 23 CAGR Revenue from Operation 39,771 44,738 56,234 18.9% Gross Profit 23,763 28,926 34,070 19.7% Gross Profit Margin 59.7% 64.7% 60.6% 0.7% Operating EBITDA 9,547 10,546 12,968 16.5% Operating EBITDA Margin 24.0% 23.6% 23.1% (2.0)% Other
Slide 35: Balance Sheet Summary
Balance Sheet Summary Rs in lacs Particulars FY 21 FY 22 FY 23 Net Worth 52,002 55,435 60,373 Gross Debt 27,892 25,648 23,759 Net Debt 27,832 25,553 22,998 Capital Employed 81,476 83,600 88,464 Net Fixed Assets 48,764 46,758 48,821 Net Current Assets 6,787 12,162 14,371 Total Assets 90,025 90,684 96
Slide 36: Key Ratios
Key Ratios Particulars FY 21 FY 22 FY 23 Operational Ratios Current Ratio 1.30 1.59 1.72 Fixed Asset Turnover Ratio 0.76 0.94 1.19 Sales/Capital Employed 0.43 0.54 0.65 Cash Conversion Cycle 409 298 242 Solvency Ratios Net Debt/ Equity 0.54 0.46 0.38 Net Debt/ Operating EBITDA 2.92 2.42 1.77 Interes