Tega Industries Ltd. · NSE:TEGA
Tega Industries — Q4 FY2023 Earnings Presentation
31 slides from Tega Industries's earnings presentation, May 30, 2023
Slide 1: Cover letter to stock exchanges
May 30, 2023 To, The Corporate Services Department, Manager - Listing Department BSE Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai- 400 001 Bandra (E), Mumbai - 400 051 BSE Scrip Code: 543
Slide 2: Q4 & FY23 Results Presentation
TEGA INDUSTRIES LIMITED Q4 & FY23 Results Presentation May 2023
Slide 3: Company Overview
COMPANY OVERVIEW TEGA INDUSTRIES LIMITED
Slide 4: Tega Industries Limited
Tega Industries Limited Leading manufacturer & Commenced operations in India Catering to global mineral distributor of specialized ‘critical in 1978, in collaboration with beneficiation, mining & bulk to operate’ & recurring Skega AB, Sweden solids handling industry consumable products Immunity from
Slide 5: Corporate Structure
Corporate Structure Tega Industries Ltd 100% 100% 50%JV McNally Sayaji Tega Holdings Pte Ltd Hosch Engineering Limited 100% 100% 100% Tega Industries Africa Tega Industries Chile Losugen Pty Ltd Proprietary Ltd. SpA 4 TEGA INDUSTRIES LIMITED
Slide 6: Evolution into a Global Multi-product Player
Evolution into a Global Multi-product Player Intellectual Property, Additional Patent, Initial Public Foundation Buyout Acquisition Greenfield Project Offering Collaboration of our Buyout by Madan Mohan Grant of patent in relation to Grant of patent in relation to The shares of the company Promoter,
Slide 7: The Focus Behind Our Vision
The Focus Behind Our Vision TEGA is committed to engineering flawless solutions that enrich the future of mining Committed: We have made long-term investments to deepen our core competence. Engineering: We are a technology-led and specialized competence- driven company that addresses complex custome
Slide 8: Our Value-accretive Business Model
Our Value-accretive Business Model Experience Wallet Share Mission-Critical Productivity Driver Developed rich insight into the Products with established ore quality and terrain realities productivity and efficacy. across 70 countries, helping to Majority customers buy large continuously provide imp
Slide 9: Our Value-accretive Business Model
Our Value-accretive Business Model Inherent Advantages Strategic Positioning Supply chain High Entry Barrier Proximity Customized design Low reliance on outsourcing Presence in high entry moderates its dependence on barriers of technology and vendors minimizing the knowledge. We operate in possibili
Slide 10: Our digitalization momentum (Industry 4.0)
Our digitalization momentum (Industry 4.0) Digital Transformation Disruption Initiatives to enhance systemic Ground-shifting sensor- based efficiency, moderate redundancy, product. This IoT-driven product safeguard from viruses and cyber- will send out real-time alerts on attacks, accelerate data re
Slide 11: Q4 & FY23 Performance Highlights
Q4 & FY23 Performance Highlights TEGA INDUSTRIES LIMITED
Slide 12: Acquisition of McNally Sayaji Engineering Limited
Acquisition of McNally Sayaji Engineering Limited 4 Manufacturing Facilities • McNally Sayaji Engineering Limited (MSEL) offers pioneering solutions in the field of manufacturing and marketing of crushing, screening, grinding, material handling, and mineral processing equipment coupled with integrat
Slide 13: Post acquisition of MSEL - Added Equipment and services component
Tega's Holistic Value Chain Integration Tega Industries Ltd – Focused on MSEL - Focused on Equipment and Consumables services component • Build a more sustainable business. • Tap the new market- global market size • Designs and manufactures critical-to- • Original Equipment Manufacturer (OEM) for th
Slide 14: Financial Performance
Financial Performance Q4 FY23 FY23 YoY YoY Operating Revenue Operating Revenue +36.7% +27.6% Rs. 3,964 mn Rs. 12,140 mn Operating EBITDA Operating EBITDA +49.2% +47.9% Rs. 1,028 mn Rs. 2,704 mn PAT PAT +57.4% +58.2% Rs. 773 mn Rs. 1,840 mn 13 TEGA INDUSTRIES LIMITED
Slide 15: Consolidated financial performance
Consolidated financial performance Quarterly Revenue (Rs mn) & Operating EBITDA % 23.8% 19.8% 25.9% FY23 Revenue (In Rs mn) & 30. 0% 22.7% 6000 17.1% 18.9% 19.6% 25. 0% Operating EBITDA % 13.6% 5000 3,964 20. 0% 2,901 4000 2578 2969 15. 0% 2360 3000 2444 2762 18000 1732 10. 0% 33% 12% 13% 13% 8% 34%
Slide 16: Q4 & FY23 - Consolidated P&L
Q4 & FY23 - Consolidated P&L Particulars (Rs in mn) Q4FY23 Q4FY22 Y‐o‐Y FY23 FY22 Y‐o‐Y Revenue from Operations 3,964 2,901 36.67% 12,140 9,518 27.55% Cost of Materials consumed 1,682 1,110 5,291 4,036 Changes in Inventories 78 150 -15 ‐10.1 Material Margin 2,205 1,641 34.34% 6,864 5,491 24.99% Marg
Slide 17: FY23 - Consolidated Balance Sheet
FY23 - Consolidated Balance Sheet Equity & Liabilities (Rs in Mn) Mar’23 Mar’22 Assets (Rs in Mn) Mar’23 Mar’22 Equity Share Capital 664 663 Property, plant and equipment 3,055 1,711 Other Equity 9,826 6,697 Capital Work‐in‐Progress 120 102 Total Equity 10,490 7,360 Right of Use Asset 1,729 572 Fina
Slide 18: Consolidated financial performance
Consolidated financial performance Cash Flow Statement (Rs. In Mn) FY23 FY22 Cash Flow from Operating Activities Profit before Tax 2,361.0 1,549.7 Adjustment for Non-Operating Items 629.1 -481.5 Operating Profit before Working Capital Changes 2,990.1 2,031.2 Changes in Working Capital -747.7 -1,463.
Slide 19: Operations & Growth Strategy
Operations & Growth Strategy TEGA INDUSTRIES LIMITED
Slide 20: Strategic Advantages
Strategic Advantages 1 Diverse & Innovative Products with Low 2 Insulated from Capex Cyclicity of 3 Strong R&D leading to Multiple Patents, Substitution Threat Mining Players with focus on Quality 4 Diverse Global Presence with 5 Consistent Growth with Operational 6 Track Record of Successful Strong
Slide 21: Diverse & Innovative Products
1 Diverse & Innovative Products FLAGSHIP PRODUCTS MILL LINERS HYDROCYCLONES SCREENS & TROMMELS CONVEYOR PRODUCTS SALE OF PRODUCTS Rapido Spillex Specialized, ‘critical to operate’ And recurring consumable products DynaPrime DynaPulp Tega Cyclone (PExEL) Trommel Centrax Sale of Services Screening Sol
Slide 22: Insulated from Capex Cyclicity of Mining Players
2 Insulated from Capex Cyclicity of Mining Players Upfront capex & After-market spend over the lifecycle of a mill Recurring cost for miners 1X Approx. split 3X Upfront Capex After market spend ~75% Repeat Orders (over last 3 years) 21 TEGA INDUSTRIES LIMITED
Slide 23: Strong R&D leading to Multiple Patents
3 Strong R&D leading to Multiple Patents Track record of bringing multiple innovative products to the market ISO 45001:2018 India 2018 – Rapido 2018 – DynaPrime 2016 – Chutes 2015 – Trommels R&D Capability Quality Control ISO 9001:2015 India, South Africa o We do not rely on outsourcing: reduces our
Slide 24: Diverse Global Presence - Manufacturing & Sales Capabilities
4 Diverse Global Presence - Manufacturing & Sales Capabilities International manufacturing operations Chile South Africa Australia Commissioning/Acquisition: Commissioning/Acquisition : Commissioning/Acquisition: 2011 2006 2010 Product capabilities: Product capabilities: Product capabilities: Mill l
Slide 25: Consistent Growth & Long-Term Repeat Business
5 Consistent Growth & Long-Term Repeat Business ESTABLISHED TRACK RECORD CAGR 17% Revenue from Operations FY19-23 Growth Momentum CAGR 29% Robust market position Built Inherent Strength Forged Strong Relations Operating EBITDA from FY 19-23 Differentiated, High Margin Business Successfully maintaine
Slide 26: Successful Track Record of Inorganic Growth Strategy
6 Successful Track Record of Inorganic Growth Strategy JV in 1991 Acquisition in 2006 Acquisition in 2010 Acquisition in 2011 Acquisition in 2023 • Expand operations • Access to the Latin • Offers pioneering globally • Increased market share American markets solutions in the field of • Provided acce
Slide 27: Key Growth Drivers Going Forward
Key Growth Drivers Going Forward Diverse & Innovative Leverage in-house R&D to Expand manufacturing Explore opportunities Operational efficiencies Products with Low grow product offerings & capabilities to optimise for inorganic growth & margin expansion Substitution Threat capitalize on future tren
Slide 28: Key Growth Drivers Going Forward
Key Growth Drivers Going Forward Capitalise on growing relevance Disrupt the market Balance Sheet integrity • Ore grades depleting in gold mines • Penetrate the market with the distinctive • Expand largely out of accruals • Disproportionate growth in mining and mineral DynaPrime product • Fund worki
Slide 29: Experienced Board of Directors
Experienced Board of Directors MADAN M. MOHANKA MEHUL MOHANKA SYED YAVER IMAM Chairman and Executive Director Managing Director and Group CEO Executive Director Appointed: Since inception Appointed: Jun-02 Appointed: Jul-05 Promoter, Founder and Chairman One of the Promoters, MD & Group CEO Serves a
Slide 30: Management Team
Management Team MEHUL MOHANKA SYED YAVER IMAM MD and Group CEO Director – Global Product Management Group & Head of Sales One of the Promoters of the Company, MD & Group CEO Associated with Tega for four decades Associated with Tega for almost two decades Joined as a Trainee in 1981 and climbed up t
Slide 31: Thank You!
THANK YOU! Kaushal Sureka : DGM - Finance & Accounts Manjuree Rai : Company Secretary investor.relations@tegaindustries.com Mr. Nachiket Kale +91 9920940808 nachiket.kale@linkintime.co.in Mr. Rajesh Agrawal Sr. Vice President +91 99674 91495 Rajesh.Agrawal@linkintime.co.in