Maithan Alloys Ltd. · NSE:MAITHANALL
Maithan Alloys — Investor Presentation (November 2018)
30 slides from Maithan Alloys's investor presentation, November 2018
Slide 1: Maithan Alloys Limited Investor Presentation – November 2018
MAITHAN ALLOYS LIMITED Investor Presentation – November 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Maithan Alloys Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 3: Growth Momentum Continues
Growth Momentum Continues ₹ Crs +8% -1% +5% 962 169 166 124 131 889 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 Manufacturing Revenue* Manufacturing EBITDA +10% -1% 898 163 161 813 H1 FY18 H1 FY19 H1 FY18 H1 FY19 3 *Net of GST/Excise Duty Financials are as on Standalone basis and as per IND-AS
Slide 4: Manufacturing vs Trading
Manufacturing –vs- Trading Manufacturing Revenue Trading Revenue TOTAL Revenue +10% -16% +8% 898 76 962 813 889 64 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 Manufacturing business is consistently growing. 4 Revenue are net of GST/Excise duty Financials are as on Standalone basis and as per IND
Slide 5: Future Outlook
Future Outlook Cash & Cash Future Internal War Chest of Cash Equivalents of Accruals ₹ 400 Crs Inorganic Expansion Organic Expansion Approved to set up a Greenfield Ferro Authorised the Executive Directors and Alloy manufacturing unit in West Chief Financial Officer of the Company Bengal with an est
Slide 6: The Maithan Edge…
The Maithan Edge… Largest Rich Niche Robust Manufacturer Experience Products Balance Sheet India’s largest Two decades of Basket of the most Net Cash Manganese experience and valuable Techno- Credit Rating: Alloy Producer continuous growth Commercial Products CARE AA and Exporter CRISIL AA- CARE/CRI
Slide 7: Visible in Financial Performance
Visible in Financial Performance “A Culture of Outperformance” CAGR from FY2012 to FY2018 Increase in Stake Holder Return’s ▪ ROCE Increased by + 3,290 bps ▪ ROE Increased by + 2,390 bps Revenue increased by +21% CAGR EBIDTA increased by +34% CAGR PAT increased by +37% CAGR Net Cash position of Rs.
Slide 8: Product Offerings
Product Offerings Ferro alloys enhance steel strength, durability, anti-corrosion and anti-stain properties and acts as de-oxidant for Steel Manufacturing Ferro Manganese - An alloy of iron and manganese • Used in steel products wherein silicon content needs to be controlled at low levels • Used in
Slide 9: Capacity addition to support Growth
Capacity addition to support Growth Capacity Built-up Production Volume (MT) - ‘000 Visakhapatnam MVA 137 225 213 Byrnihat, 36 206 Meghalaya +16% CAGR 158 149 36 141 Kalyaneshwari 16 89 76 82 66 70 24 25 42 2006 2007 2009 2012 2013 Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 In
Slide 10: State-of-Art Manufacturing Facilities
State-of-Art Manufacturing Facilities Installed Capacity of 137.25 MVA Smelters: Smelters: Smelters: • 2 x 5.0 MVA • 2 x 8.25 MVA • 4 x MVA 18.0 MVA • 1 x 6.5 MVA • 1 x 8.25 MVA • 2 x 12.0 MVA Products: Ferro Products: Ferro Silicon Products: Ferro Manganese/ Silicon Manganese/ Silicon Manganese Man
Slide 11: Self-Sustaining Business Model
Self-Sustaining Business Model Input of sized and graded Raw We have an ability to generate a Material Larger Throughput Feed in day bins through from our manufacturing facilities conveyors Automated Batch preparation and Charge into Furnace Ferro Manganese Slag Reaction in furnace and discharge of
Slide 12: Strong Client Relationships
Strong Client Relationships Shift of focus from ‘Stable’ Europe to ‘Growing’ Asia helping in better realizations ~100% of Domestic clients are associated with the Company for over 7 years Long term relationships with clients offers Competitive Advantage Low Concentration Risk in export markets with
Slide 13: The Leadership Team
The Leadership Team Mr. Subodh Agarwalla Mr. S. C. Agarwalla Mr. Sudhanshu Agarwalla Whole Time Director and CEO Chairman and Managing Director President and CFO • A B. Tech from IIT BHU and M.B.A from IIM • Over 25 years of rich experience in Ferro Alloys • A M.B.A from XLRI Jamshedpur. Bangalore i
Slide 14: Experienced Board
Experienced Board Mr. Nand Kishore Agarwal Mr. Biswajit Choudhuri Independent Director Independent Director Experienced in the field of Accounts, Finance and Tax Laws Experienced in the field of Engineering, Banking, Finance and Management Mr. Vikash Kumar Jewrajka Mr. Ashok Bhandari Independent Dir
Slide 15: Vision, Mission and Values
Vision, Mission and Values Vision To be India’s premiere Alloy Company that is built on the solid foundation of shareholder trust, customer commitment, employee satisfaction and sustainable communities. Consistently delivering on our promises backed by meticulous hard work is our motto for ensuring
Slide 16: Values
Values Commitment is a passion for us. We are extremely committed to serving our shareholders and customers to Loyalty is the very fabric the best of our abilities. Our promise that runs beneath our to our stakeholders is a hard-ironed organization. We strive to We not only believe but commitment an
Slide 17: Maintaining the Maithan Edge
Maintaining the Maithan Edge
Slide 18: Key Growth Drivers
Key Growth Drivers Low Debt Brand Value Addition Sustainability Low Cost Curve Margin Driven Asset Light Model Efficiency Discipline Expanding the Market Integrity From Vendor-ship to Partnership Relationship Driven Solutions Manufacturing and Marketing Efficiencies Customized 18
Slide 19: Key Differentiators
Key Differentiators Optimising Facilities for Efficiency Maximising Returns • Lowest in the Cost Curve • Sources raw materials when it • Optimum Capacity Utilization gets contracts • Higher Tonnage product • PPA agreement with power plants • Stable Asset turnover ratios and low debt-equity ratio Str
Slide 20: Industry Tailwinds
maithan Itd Industry Tailwinds
Slide 21: Asian Economies to drive the Global Steel Demand
Asian Economies to drive the Global Steel Demand Global Steel Demand 2018 : 1,548.5 Mn T CIS 3% EU It caters 70% of 13% NAFTA Global Steel 9% demand Asia, Oceania Avg. rate of & Middle growth is East expected to be 70% in the range ~1%-~2% AFRICA Central & 3% South America 3% Asia Ex-China Growth is
Slide 22: Advantage India
Advantage India 100 % FDI allowed in the India’s GDP to grow by +7 % mining sector & exploration of (IMF) over the next two years metal & non metal ores under the Automatic Route 2017 Budget outlay of ~ ₹ 4 tn in infrastructure to drive domestic steel consumption Steel Industry’s Outlook to Favourab
Slide 23: Support from Government of India
Support from Government of India Alloy Producers to benefit from NSP 2017 Capacity (Mn MT) Production (Mn MT) Per Capita Consumption (kg) CAGR +6% CAGR +7% CAGR +7% 300 255 158 122 92 61 2015-16 2030-31 2015-16 2030-31 2015-16 2030-31 National Steel Policy (NSP) 2017 Highlights • Reduce dependence o
Slide 24: Advantage Maithan
Advantage Maithan World Crude Steel Demand (Mn MT) India Crude Steel Demand (Mn MT) 1,800 100 +2% 1,600 90 +7% 1,400 80 70 1,200 60 1,000 50 800 40 600 30 400 20 200 10 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162017* 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162017* Gaining Market Sh
Slide 25: Financials
maithan Itd Financials
Slide 26: Standalone Profit & Loss (As per IND AS)
Standalone Profit & Loss (As per IND AS) Particulars (₹ Crs) Q2 FY19 Q2 FY18 YoY H1 FY19 H1 FY18 YoY Revenue (Net of Excise Duty/ GST) 507 459 10% 962 889 8% Raw Material 296 236 534 460 Employee Expenses 11 11 22 21 Power 90 92 184 183 Other Expenses 27 30 56 56 Operating EBITDA 83 90 -8% 166 169 -
Slide 27: Standalone Balance Sheet (As per IND AS)
Standalone Balance Sheet (As per IND AS) Particulars (₹ Crs) Sept-18 Mar-18 Particulars (₹ Crs) Sept-18 Mar-18 Equity 996 875 Non-Current Assets 288 291 Equity share capital 29 29 Property, plant and equipment 227 233 Other Equity 967 846 Intangible Assets 0 0 Non-current Liabilities 34 31 Financial
Slide 28: Led by our Efficiency Proving our Credibility
Outperformance in 2018… Growing Revenue (₹ Crs) Margins improved even in uncertain times (₹ Crs) 1,879 410 377 25% 390 370 350 20.3% 330 20.1% 20% 310 290 273 270 250 11.1% 15% 230 1,342 Average 210 190 9.9% 10% 170 109 127 1,370 150 130 5% 110 1,151 90 70 1,107 50 0% FY15 FY16 FY17 FY18 EBIDTA Oper
Slide 29: Proven Track Record
Proven Track Record 8.5 7.9 47.9% 43.2% 36.0% 5.5 3.9 4.3 24.2% 19.7% FY15 FY16 FY17 FY18 H1FY19@ FY15 FY16 FY17 FY18 H1FY19@ ₹ Crs 22.5% 27.5% 52.4% 69.7% 67.1% 446 512 525 309 251 421 317 104 361 65 FY15 FY16 FY17 FY18 H1FY19@ EBIT Capital Employed Higher Return Ratio is because of prudent capital
Slide 30: For further information, please contact
For further information, please contact: Company Investor Relations Advisors: Maithan Alloys Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L27101WB1985PLC039503 CIN: U74140MH2010PTC204285 Ms. Neha Shroff/ Mr. Deven Dhruva Mr. Rajesh K. Shah neha.shroff@sgapl.net / deven.dhruva@sgapl.net rajesh@maith
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