Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — H1 FY24 Earnings Presentation
36 slides from Vardhman Special Steels's earnings presentation, Nov 7, 2023
Slide 1: Regulation 30 compliance cover letter
Vardhmin VARDHMAN SPECIAL STEELS LIMITED Delivering Excellence. Since 1965. CHANDIGARH ROAD LUDHIANA- 4 1o I o, PUNJAB 1 T: +9 1-161-2228943-48 F: +9 1-161 -260 1048. 22226 16, 260 1040 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:NOV:2023-24 Dated: o7.r1.2023 BSELimited The National Stock Exchange
Slide 2: Result Update Presentation Q2 & H1 FY24
Vardhman Special Steels Limited Result Update Presentation Q2 & H1 FY24
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection wi
Slide 4: Table of Contents
Table of Contents Financial Highlights Company Overview Business Overview Way Ahead 3
Slide 5: Financial Highlights
Financial Highlights
Slide 6: Management's Message
Management’s Message Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said – “During the first half of this financial year our revenue declined by ~10% and EBITDA by ~27% YoY. This is mainly due to price reductions from OEMs, lower volumes and higher other expenses. Mor
Slide 7: Financial Highlights - Quarterly
Financial Highlights - Quarterly Sales Volumes (tonnes) Revenue from Operations (Rs. Crore) 50,961 50,511 49,034 443.16 46,358 47,435 422.04 415.19 409.36 400.63 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 O4 FY23 Q1 FY24 Q2 FY24 EBITDA (Rs. Crore)# PAT (Rs. Crore) 28.01 28.47 49.05 49.7
Slide 8: Financial Highlights – Q2 FY24
Financial Highlights – Q2 FY24 INR Crore Q2 FY24 Q2 FY23 Y-o-Y % Q1 FY24 Revenue From Operations 415.19 443.16 (6.31)% 409.36 Other Income 5.62 14.20 7.24 Q2 FY24 volumes stood at 49,034 tonnes, YoY decline of 3.78% Total Income 420.81 457.37 416.60 Cost of Materials 6.31% YoY decrease in Revenu
Slide 9: Financial Highlights – H1 FY24
Financial Highlights – H1 FY24 INR Crore H1 FY24 H1 FY23 Y-o-Y % Revenue From Operations 824.55 912.33 (9.62)% Volumes for H1 FY24 stood at 96,469 Other Income 12.86 20.11 tonnes – YoY decline of 6.54% Total Income 837.41 932.44 Decline in Revenue from Operations Cost of Materials Consumed 518.9
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights INR Crore As on 30th Sep’23 As on 31st Mar’23 INR Crore As on 30th Sep’23 As on 31st Mar’23 Equity 663.26 642.21 Non-Current Assets 359.05 331.89 Equity Share Capital 81.25 40.63 Property Plant & Equipment 303.95 292.96 Other Equity 582.00 601.59 Capital work in progress 17.
Slide 11: Company Overview
Company Overview
Slide 12: About Us
About Us Amongst India’s Leading Steel Bar Producers for Automotive Applications Incorporated in May 2010 Headquartered in Ludhiana, Punjab State-of- art manufacturing Caters to sectors such as Engineering, facilities Automotive, Tractor, Bearing and Allied Cutting-edge manufacturing Industr
Slide 13: Journey So Far
Journey So Far Feb. 2018 – QIP of Rs 50 Cr. June 2018 – CRISIL upgraded credit rating What We were… Aug 2018 – Change in Statutory Auditors to M/s B. S. R. & Co. LLP 1973 – Started as Oswal 2012 - Listed on BSE & Feb 2019 – Fortified Board of Directors - Steels - 50,000 TPA NSE one Indep
Slide 14: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Non-Independent Director Vice Chairman & MD B. Tech from BHU/IIT, Varanasi and MBA (IIM, Ahmedabad) B. Tech (Electrical) - IIT, New Delhi, MBA (Gold medallist) - IIM, Rich experience of more than 35 year
Slide 15: Strong Experienced Board of Directors contd...
Strong Experienced Board of Directors contd... Mrs. Vidya Shah Mr. Rakesh Jain Independent Director Independent Director MBA from Indian Institute of Management, Ahmedabad 11 years of career in investment banking - ICICI, Peregrine and NM Ph.D. in Polymers from University of Akron Rothschild
Slide 16: Business Overview
Business Overview
Slide 17: Wide Range of Rolled & Bright Bars Products
Wide Range of Rolled & Bright Bars Products Hot Rolled Bars Bright Bars Diameter Size : Increased from 25-70 Size : 14.66 to 78 mm (Peeled), 18 to MM in 2012 to 16-120 MM 55.25 mm (Drawn) 16
Slide 18: Diverse applications of our products
Diverse applications of our products Axle Gears Transmission Gear Stabilizer Bar Drive-Shaft Knuckle Spindle Tie-Rod Piston Bearings Connecting Rod Companion-flange Camshaft Axle Shaft Center Velocity Joint Piston-Pin Crankshaft Steering-Yoke Differential Gears Steering Shaft 17
Slide 19: State-of-art Manufacturing facilities
State-of-art Manufacturing facilities Steel Melting Shop Rolling Mill Bright Bars Annual Capacity : 2,40,000 TPA Annual Capacity : 2,00,000 TPA Annual Capacity : 48,000 TPA 30 MT Ultra High Power (UHP) Eccentric Rolling Mill installed in 2013-14 Bar Peeling & Centreless Grinding Bottom T
Slide 20: Process Flow
Process Flow eco ‘Sponge, ORI, PIG IRON, ‘Shredded Scrap Exports Domestic Shipment ) Final Inspection and Dispatch , a Aa aia Bright Bar Shop 30 TON ELECTRIC ARC FURNACE Spherodize Annealing | Vaccum Degassing Unit —_Laddle Refining Unit Continous Casting Facility As Rolled Bar “Hot Rolled" Billet A
Slide 21: In-House Steel Melting Shop
In-House Steel Melting Shop Electric Arc Furnace Two Ladle Refining Furnace Continuous Casting Machine Vacuum Degassing 20
Slide 22: Rolling Mill & Bright Bars
Rolling Mill & Bright Bars Rolling Mill Bright Bar Shop Reheating Furnace Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop 21
Slide 23: Automatic Line of Bar Inspection - NDT Line
Automatic Line of Bar Inspection - NDT Line MFLT Acceptance Criteria: Chamfering 0.2x10mm Bar ends free from Straightening Burr Straightness : 2mm / meter UST Acceptance Criteria: SDH - Shot Blasting 0.8x10mm, FBH - 0.8 & 1.2mm 22
Slide 24: Best in class R&D Facility
Best in class R&D Facility Spectrometer : ARL 4460:1454 for Chemical Analysis. Can check 32 different elements CS - 230 : Analyzer for Carbon & Sulfur content in steel LECO gas analyzer – TC 600 H2, N2, O2 Analyzer Mobile Spectro and XRF for Mix up Testing of Bars Mechanical and Metallurgi
Slide 25: Strategically located Warehousing Facilities
Strategically located Warehousing Facilities Bilaspur One Owned Warehouse Bilaspur Haryana Rudrapur Five Leased Warehouses in India Aurangabad Bangalore Chennai Pune Rudrapur Bangalore Pune Chennai Aurangabad 24
Slide 26: Key Strengths
Key Strengths State of Art Manufacturing Facilities and advanced R&D Capabilities Well equipped with latest upgraded Technology Machines 01 Diversified Product offerings Manufactures diverse range of products with wide applications across sectors Further expanding product offerings to increase
Slide 27: 200+ Reputed & Long term customers
200+ Reputed & Long term customers.... Cars Two Wheelers HCL/LCVs Auto Components Tractors Off Highway Vehicles 26
Slide 28: Across Globe with Customer Base
... Across Globe with Customer Base Russia Germany Italy Japan Turkey Vietnam Taiwan Thailand 5% of FY23 sales from exports 27
Slide 29: Way Ahead
Way Ahead
Slide 30: Investing in Our Real Assets
Investing in Our Real Assets Centre for Creative Leadership ‘Manav Vikas Kendra’ ‘EKLAVYA - B.Sc. to B. Tech.’ CCL - US based Organisation – Training programs – New Initiative undertaken offers leadership programs functional, attitudinal, skill Formalized training programs across 160 countri
Slide 31: Strategic alliance with Aichi Steel Corporation (ASC) Japan
VSSL entered a strategic alliance with Aichi Steel Corporation (ASC) Japan. (Main material maker for Toyota) Gasoline Technology and technical know how shared with VSSL to make steel for Toyota companies and other Phase - 1 OEM’s To raise quality of steel of VSSL to be supplied to future ready c
Slide 32: What advantage for VSSL after alliance with Aichi
What advantage for VSSL after alliance with Aichi Possibilities Future Ready products - Patent steel grades developed for special application in EV’s, hybrid and conventional cars Own In House R&D – Toyota Car Company takes input from Aichi on special steel to be developed car parts. It means we
Slide 33: Timeline for activities
Timeline for activities Production 300,000MT / year Phase 3 Export 60,000 MT / year • Initiate CAPEX to increase production • Vardhman may look forward to capacity to 250,000 MT in first phase Forging business in India • FY 23: Year of manufacturing of Trial orders for Aichi Phase 2 • Anticipate to
Slide 34: ESG Initiatives
ESG Initiatives Environment: Committed towards cleaner, greener and healthier environment by implementing stringent standards & policies for Environment in our unit Making steel through Electric Arc Furnace route which is significantly more environment friendly than Blast Furnace route. Most of
Slide 35: ESG Initiatives
ESG Initiatives Have In-house oxygen generation plants for our captive consumption. During Covid time, we had served society by supplying oxygen cylinders. During 2nd wave of Covid, we have been able to serve for 50% requirement of oxygen of Ludhiana city Employee well being: We hadn’t laid of
Slide 36: Thank You
Thank You 534392 VSSL VSSL IN VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Adfactors PR Pvt. Ltd. Mr. Sanjeev Singla Mr. Amit Sharma sanjeevsingla@vardhman.com +91 9867726686 amit.sharma@adfactorspr.com www.vardhmansteel.com
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