Nelcast Limited · NSE:NELCAST
Nelcast — Q3 FY2024 Earnings Presentation
27 slides from Nelcast's earnings presentation, Jan 29, 2024
Slide 1: Exchange filing cover letter
29th January 2024 BSE Limited National Stock Exchange of India Limited Listing Operations Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalai Street, Bandra Kurla Complex, Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Maharashtra, India Maharashtra, India BSE Script Code: 532864 NSE
Slide 2: Investor Presentation January 2024
Investor Presentation January 2024 B S E : 5 3 2 8 6 4 | N S E : N E L C AS T | I S I N : I N E 1 8 9 I 0 1 0 2 4 www.nelcast.com ©2022 – All Rights Reserved | www.nelcast.com 1
Slide 3: Q3 & 9MFY24 Highlights
Q3 & 9MFY24 Highlights Key Developments & Outlook 03 Profit & Loss Highlights 04 Story in Charts 05 ©2022 – All Rights Reserved | www.nelcast.com 2
Slide 4: Key Developments & Outlook
Key Developments & Outlook PARTICULARS CURRENT (Q3 FY24) OUTLOOK (FY25) Revenue growth was dragged due to subdued performance in M&HCV Going forward, key growth drivers will be exports and recovery in Overall Performance and tractors, supported by strong performance in exports. domestic market. Segm
Slide 5: Profit & Loss Highlights
Profit & Loss Highlights Consolidated (in INR Cr.) Q3FY24 Q3FY23 YoY % Q2FY24 QoQ % 9MFY24 9MFY23 YoY % Total Revenue 323.0 333.7 (3.2) % 362.6 (10.9) % 982.0 964.9 1.8% REVENUE EBITDA 28.2 21.3 32.5% 36.1 (21.7) % 87.2 74.7 16.8% ₹323 CR Q3FY24 revenue growth was impacted due to EBITDA Margin % 8.7
Slide 6: Story in Charts
Story in Charts TOTAL REVENUE (INR Cr.) SECTOR-WISE REVENUE (%) 2% 2% 1% 3% 0% 3% 2% (3) % 965 982 26% 38% 38% 35% 334 323 31% 21% 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 EBITDA/KG (INR) PROFIT AFTER TAX (INR Cr.) 9% 21% 96% 13.0 379% 49 12.1 11.9 10.0 26 25 5 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3
Slide 7: Way Forward
Way Forward Deliver on our Strategy 07 ©2022 – All Rights Reserved | www.nelcast.com 6
Slide 8: Delivering on our Strategy
Delivering on our Strategy Manufacture Value Add Expand the Export Improving Capacity Utilization Cost Products Business Levels Optimization • A decade ago, Nelcast shifted • Continue to deliver quality at • Eliminate operational • Better capacity utilization levels focus from highly competitive low
Slide 9: Company Overview
Company Overview Company at a Glance 09 Key Products 10 Manufacturing Process & the Nelcast Advantage 11 Our Well-Equipped Plants 12 Our Journey 13 ©2022 – All Rights Reserved | www.nelcast.com 8
Slide 10: Company at a glance
Company at a glance Where do we stand today? Commercial Vehicles LARGEST TOP 10 PRODUCER PRODUCER Nelcast Limited is a leading producer of Ductile of Grey Iron Iron Castings Castings of Ductile & Grey Iron Castings in India with an installed capacity of 160,000 Metric Tons/Year. Passenger Tractors V
Slide 11: Key Products
Key Products Commercial Vehicles Tractors Off Highway Equipment Railways Passenger Vehicles Forward Differential Carrier Transmission Housing Trumpet Axle Housing Brake Disc Friction Ring Differential Carrier Rear Differential Carrier Rear Axle Housing Monolithic Axle Housing Bogie Suspension Bracke
Slide 12: Manufacturing Process & the Nelcast Advantage
Manufacturing Process & the Nelcast Advantage Silica Sand Tool Design Core Making Resin Machining In-house Engineering team designs Automated Core Sand Mixers In-House facilities and partnerships tooling with CAD/CAM software Automated Core Machines with top Machining Vendors Silica Sand Bentonite C
Slide 13: Our Well-Equipped Plants
Our Well-Equipped Plants Gudur Ponneri Pedapariya I N S T AL L E D C AP AC I T Y I N S T AL L E D C AP AC I T Y I N S T AL L E D C AP AC I T Y 60,000 Metric Tons per Year 40,000 Metric Tons per Year 60,000 Metric Tons per Year MOULDING LINES MOULDING LINES MOULDING LINES ▪ Line 1: DISA Flex 70 with
Slide 14: Our Journey
Our Journey Commencement of Commencement of Commencement of Start of Production at the Nelcast Private Limited exports to the US exports to Europe exports to Thailand Pedapariya (AP) plant with Crossed the Rs.300 was established by P. fourth High Pressure Crores mark in exports Radhakrishna Reddy wi
Slide 15: Why Nelcast?
Why Nelcast? Diversified customer base with strong relationships 15 Strategic Location 16 Strong Business Foundation 17 Strong Export Growth Potential 18 Large Market Opportunity 19 Led by an Experienced Board 20 Focused on a Sustainable Future 21 ©2022 – All Rights Reserved | www.nelcast.com 14
Slide 16: Our Strengths
Our Strengths 1 2 3 Diversified Customer base with strong Strategic Strategic Business relationships Location Foundation 4 5 6 Strong Export Large Market Led by an Growth Potential Opportunity Experienced Board ©2022 – All Rights Reserved | www.nelcast.com 15
Slide 17: Diversified Customer Base with Strong Relationships
1 Diversified Customer Base with Strong Relationships ▪ Customers in Commercial Vehicle, Top OEM Customers Awards Tractor, Off-Highway Equipment, Railways and Passenger Vehicles ▪ Has a distinguished customer base of more than 40 customers that includes OEMs and Tier 1 companies ▪ Serves as a strate
Slide 18: Strategic Location
2 Strategic Location ▪ Plants are in close proximity (37-140 KM) to Chennai, a major manufacturing hub for automotive companies forms both a key customer base for Nelcast and a reliable source of steel scrap, a crucial raw material P L AN T I ▪ All 3 plants are within 15-110KM of Gudur India’s large
Slide 19: Strong Business Foundation
3 Strong Business Foundation Cash & Cash equivalents (in Rs. Cr.) 104.8 ▪ Received an investment grade rating for short term (A1) and long term (A) fund from ICRA on 92.6 the back of adequate liquidity, strong relationship with major OEMs and a diversified clientele ▪ Installed Capacity has been cre
Slide 20: Strong Export Growth Potential
4 Strong Export Growth Potential ▪ India is being viewed as a key cog in the global automotive supply chain and sourcing machined castings from India is now becoming an attractive option for global customers. ▪ Nelcast is among only a few companies in the industry capable of meeting the requirements
Slide 21: Large Market Opportunity
5 Large Market Opportunity Indian Tractor Industry Indian M&HCV Industry Industry volumes touched all-time high in FY2023; Domestic M&HCV sales crossed 300,000 units in FY2023 expected to remain stable 4.5 1000 945 3.9 899 4 842 ~29% 3.4 Sale units (in lacs) 780 3.5 Sale units (in Thousands) 800 3.0
Slide 22: Led by an Experienced Board
6 Led by an Experienced Board D. Sesha Reddy P. Deepak P. Divya R. Sridharan A. Balasubramanian Maheswari Mohan Chairman Managing Director Director Director Director Director ▪ Chairman of Dodla ▪ MBA from Kellogg ▪ MS in Network ▪ Graduate from Madras ▪ Bachelors degree in ▪ Post Graduate in M.A Di
Slide 23: Focussed on a Sustainable Future
Focussed on a Sustainable Future ▪ Renewable energy: About 60% of the power requirement ▪ Blood donation camps is met through renewable sources ▪ Providing medical support ▪ Plantation of trees Protecting the Giving back to to hospitals Environment the Community ▪ Core sand reclamation ▪ Supporting
Slide 24: Annual Financials
Annual Financials Profit & Loss Highlights 24 Balance Sheet Highlights 25 ©2022 – All Rights Reserved | www.nelcast.com 23
Slide 25: Profit & Loss Highlights
Profit & Loss Highlights Consolidated (in INR Cr.) FY19 FY20 FY21 FY22 FY23 Revenue from Operations 856.27 566.76 614.97 927.34 1,263.97 Total Income 862.21 580.35 619.85 936.74 1,280.12 Total Expenses 804.49 549.55 607.56 917.69 1,239.80 EBITDA 81.82 61.86 51.27 67.49 95.51 D&A 17.47 18.53 21.74 22
Slide 26: Balance Sheet Highlights
Balance Sheet Highlights Consolidated (in INR Cr.) FY19 FY20 FY21 FY22 FY23 Total non-current assets 430.65 474.03 474.28 483.96 488.10 Inventories 141.59 128.14 118.41 158.73 158.19 Trade receivables 121.17 112.62 164.19 240.35 255.92 Cash & cash equivalents 58.65 48.0 65.04 61.39 104.80 Total curr
Slide 27: Thank You
Thank You For further details please contact: S.K. Sivakumar Sonia Keswani/Vikash Verma Corporate Office 159, TTK Road, Alwarpet, Chennai - 600 018 Nelcast Limited Ernst & Young LLP www.nelcast.com 📞: +91 44 2498 4111 📞: +91 8017393854 📧: nelcast@nelcast.com 📧: sonia.keswani@in.ey.com 📧…