Maharashtra Seamless Limited · NSE:MAHSEAMLES
Maharashtra Seamless — Q3 FY2023 Earnings Presentation
26 slides from Maharashtra Seamless's earnings presentation, Jan 23, 2023
Slide 1: Stock exchange cover letter
E-Communication MSL/SEC/SE/202 2-23 23rd January, 2023 BSE Limited National Stock Exchange of India Limited 25th Floor, P.J. Towers, Exchange Plaza, C-1, Block-G, Dalal Street, Mumbai-400001 Bandra - Kurla Complex Bandra (E), Mumbai-400051 Stock Code: 500265 Scrip Code: MAHSEAMLES Sub: Earnings Pres
Slide 2: Earnings Presentation Quarter ending 31 December 2022
Earnings Presentation Quarter ending 31 December 2022 23 January 2023 1
Slide 3: Forward Looking & Disclaimer Statement
Forward Looking & Disclaimer Statement This document contains “forward-looking statements” about our business, financial performance, skills and prospects. Statements about our plans, intentions, expectation, beliefs, estimates, prediction or similar expression for the future are forward-looking sta
Slide 4: Maharashtra Seamless – Segments & Capacities
Maharashtra Seamless – Segments & Capacities Seamless Pipes ERW Pipes Renewable Energy Rig • MSL • New generation • Wind • 450,000 mt/annum offshore jack up rig • 7 MW at • API certified Maharashtra • USTPL • Operating with • High frequency • 100% subsidiary 98% efficiency on 3 • PSL 2 • Solar • 200
Slide 5: Products & Industries served
Products & Industries served Industries Seamless ERW Others Served Pipes Pipes (Coated & Premium Connections, Pipe Fittings) Agriculture Automotive Bearing Chemical Drinking Water Engineering Fertilizers Housing Irrigation Mechanical Oil and Gas Petrochemical Power
Slide 6: Highlights – Maharashtra Seamless (Consolidated)
Highlights – Maharashtra Seamless (Consolidated) Total revenue EBIDTA & EBIDTA margin 2100 300 30% 250 246 1444 1436 220 1353 1357 1400 1162 200 160 168 20% 18% 18% 16% 700 100 14% 10% Rs. crore Rs. crore 12% 0 0 0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 PAT & PAT marg
Slide 7: Highlights – Maharashtra Seamless (Standalone)
Highlights – Maharashtra Seamless (Standalone) Total revenue EBIDTA & EBIDTA margin 1800 240 30% 180 181 182 1195 1168 1131 159 1200 969 1068 160 139 20% 17% 16% 16% 600 80 15% 10% 13% Rs. crore Rs. crore 0 0 0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 PAT & PAT margin E
Slide 8: Highlights – United Seamless Tubulaar
Highlights – United Seamless Tubulaar Total revenue EBIDTA & EBIDTA margin 390 75 67 64 45% 279 269 53 260 226 228 50 30% 193 30 36 28% 25% 130 25 19% 15% Rs. crore Rs. crore 16% 16% 0 0 0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 PAT & PAT margin Earnings per share (ass
Slide 9: Standalone Profit & Loss for Q3 FY23 v/s Q2 FY23
Standalone Profit & Loss for Q3 FY23 v/s Q2 FY23 Rs. crore Particulars MSL USTPL Q3 FY23 Q2 FY23 Q3 FY23 Q2 FY23 • USTPL is a wholly owned Revenue from operations 1114 1148 226 263 subsidiary of MSL. Add: Other income 17 20 2 5 • Scheme of Total revenue 1131 1168 228 268 amalgamation has been filed
Slide 10: Annual Highlights – Maharashtra Seamless
Annual Highlights – Maharashtra Seamless Total revenue EBIDTA & EBIDTA margin 4500 780 664 45% 3644 3110 551 539 3000 2668 520 446 30% 2228 2316 306 1500 260 22% 21% 20% 15% Rs. crore Rs. crore 14% 15% 0 0 0% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PAT & PAT margin Earnings per share (ex-b
Slide 11: Operational & Financial Performance
Operational & Financial Performance Maharashtra Seamless Limited (MSL) Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 FY22 Seamless ERW Seamless ERW Seamless ERW Seamless ERW Seamless ERW Seamless ERW Production (kMT) 76* 21 89 13 79 19 248 53 217 55 315 74 Sales (kMT) 78* 24 90 13 80 23 253 54
Slide 12: EBIDTA Mix – Maharashtra Seamless
EBIDTA Mix – Maharashtra Seamless Q3 FY23 Q2 FY23 Rs. crore 15 6 15 2 1 24 Total Total EBIDTA - 182 EBIDTA - 181 Seamless 137 163 ERW Renewable Energy Q3 FY22 9M FY23 5 42 2 Rig 13 45 8 Total Total EBIDTA - 139 EBIDTA - 543 113 454 www.alimtiaz.com 11
Slide 13: Key Balance Sheet Items
Key Balance Sheet Items Unquoted Equity/Preference Share investments & ICDs given Rs. crore Particulars December 22 March 22 March 21 • Preference shares of Rs. 500 crore, ICD of Preference / Preference / Preference / Rs. 50.51 crore & Equity Equity Equity ICD ICD ICD equity shares of Rs. Indian Ent
Slide 14: Key Balance Sheet Items: Liquid investments
Key Balance Sheet Items Liquid investments – Long term & short term Rs. crore Particulars Dec 22 March 22 March 21 Long term Bonds (PSU) & Debentures 302 307 283 • Investments in bonds are sub-divided into tax free bonds (40%) and Listed Equity Investments 12 16 14 perpetual bonds (60%). (A) 314 323
Slide 15: Key Balance Sheet Items: Borrowings – Gross & Net Debt
Key Balance Sheet Items Borrowings – Gross & Net Debt Rs. crore Particulars Dec 22 March 22 March 21 • In view of sufficient internal accruals and Loan for USTPL acquisition rising interest rates, loan taken for USTPL - 336 375 acquisition was prepaid in full on 10 October (Prepaid in full on 10 Oct
Slide 16: Key Balance Sheet Items
Key Balance Sheet Items Corporate Guarantee & SBLC reduction schedule Rs. crore Particulars Actual Projected March 21 March 22 December 22 March 23 March 24 September 24 Discovery Drilling 257 218 197 183 118 - Maharashtra Seamless (Singapore) 147 76 41 - - - Total 404 294 238 183 118 - • Corporate
Slide 17: Capital Allocation
Capital Allocation Industry – From and Market FY 24 to FY 26 Trends Estimated annual Sl. Particulars Rs. crore Location turnover increase 1 Heat treatment, finishing facilities & EMI for capacity enhancement 184 Narketpally By Rs. 800 crores 2 Solar plant (captive) to enhance annual cost savings by
Slide 18: Order book of MSL + USTPL as on 15 January 2023
Order book of MSL + USTPL as on 15 January 2023 Rs. crore MSL MSL Segment USTPL Total % Remarks Seamless ERW *Includes ONGC & OIL orders of Rs. 541 crores Domestic 1379* 76** 159 1614 83% **Includes cylinder pipes orders of Rs. 28 crores. Export 281 46 3 330 17% Total 1660 122 162 1944 100% •Sustain
Slide 19: Dispatch Target & Margin Outlook for FY 2022-23
Dispatch Target & Margin Outlook for FY 2022-23 MSL FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY23 % achieved in Segment Actual kMT Actual kMT Actual kMT Actual kMT Target kMT 9M FY23 Seamless 315 85 90 78 365 69% ERW 80 17 13 24 80 68% USTPL FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY23 % achieved in Segment Actual kMT Act
Slide 20: Government Policies
Government Policies Export Duty: • Imposition of export duty on iron-ore & certain steel products excludes seamless & ERW pipes. • This has improved domestic raw material availability and lead to reactivation of projects. Anti-Dumping Duty: • The Ministry of Finance, on recommendation of Directorate
Slide 21: MSL – Sales & Marketing Update
MSL – Sales Industry & Marketing and Update Market Trends Export market for OCTG continues to be buoyant as US rig counts have remained firm (>700 since June 2022 and currently at 771). Orders from USA and Canada are steady and they remain our largest export markets. Whilst steel prices internationa
Slide 22: USTPL – Sales & Marketing Update
USTPL – Sales Industry and & Marketing Market Update Trends Mill has been certified by American Petroleum Institute with API 5CT for Casings & Coupling Stock, API 5L for Line Pipes and API Q1 (Quality Management System) licenses. USTPL has been certified for Indian Boiler Regulations (IBR) and has a
Slide 23: Market Trends – Huge Potential
Market Trends – Huge Potential OPEC sees global oil demand hitting 101.8 mn barrels per day in 2023, up from 99.55 mn barrels per day in 2022 with increased requirement being met from non-OPEC countries such as USA, Norway & Canada. Rig counts in USA remain at pre-COVID levels at 771, a 41% increase
Slide 24: Shareholding Structure – 31 December 2022
Shareholding Structure – 31 December 2022 3.89% 3.08% 67.63% Key changes – Q3 FY 2023 v/s Q2 FY 2023 25.40% • Bonus shares in the ratio of 1:1 were issued. • Promoter holding increased from 67.25% to 67.63%. Promoters • DII holding reduced from 4.12% to 3.89%. Others • FII holding increased from 2.6
Slide 25: Marquee Customers
Marquee Customers Oil and Gas Infrastructure www.alimtiaz.com 24
Slide 26: Investor Contact
Investor Contact Kaushal Bengani Senior Manager – Investor Relations Tel. No.: +91-124-4624177 E-Mail: kaushal@mahaseam.com www.jindal.com CIN: L99999MH1988PLC080545 25
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