Vardhman Textiles Limited · NSE:VTL

Vardhman Textiles — Vardhman Special Steels — Q1 FY19 Earnings Presentation

36 slides from Vardhman Textiles's earnings presentation, August 2018

  1. Slide 1: Vardhman Special Steels Limited Result Update Presentation

    Vardhman Special Steels Limited Result Update Presentation August 2018

  2. Slide 2: 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

  3. Slide 3: Table of Contents

    Table of Contents Quarterly Financial Highlights Annual Financial Highlights Company Overview Business Overview Way Ahead 3

  4. Slide 4: Quarterly Financial Highlights

    Quarterly Financial Highlights

  5. Slide 5: Management's Message

    Management’s Message Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said – “This quarter, we have demonstrated a good growth. This growth has come on the back of growth in our volumes, rich raw material mix which led to a higher output combined with lower power consum

  6. Slide 6: Quarterly Financial Highlights – Q1 FY19 (YoY)

    Quarterly Financial Highlights – Q1 FY19 (YoY) 12% 33% 58% Volume (MT) Revenue EBTIDA* 41,587 MT Rs. 269.50 cr Rs. 17.84 cr 271% 167% PAT EPS Rs. 9.08 cr Rs. 2.54 vs. Rs. 0.95 Q1 FY18 • Growth driven by increase in sales volumes, realizations and operational efficiencies • EBITDA growth driven by op

  7. Slide 7: Quarterly Highlights – Q1 FY19

    Quarterly Highlights – Q1 FY19 Sales Volumes (MT) Net Revenue (Rs. Crore) 269.50 218.42 231.36 41,587 202.12 207.06 38,142 38,275 38,455 37,289 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 EBITDA* (Rs. Crore) PAT (Rs. Crore) 20 12.00 18.90 17.84 18 17.20 10.00 9.54

  8. Slide 8: Quarterly Profitability Highlights – Q1 FY19

    Quarterly Profitability Highlights – Q1 FY19 INR Crore Q1 FY19 Q1 FY18 Y-o-Y % Q4 FY18 Q-o-Q% Income from Operations 269.50 221.05 231.36 Excise Duty 0.00 18.93 0.00 Net Sales 269.50 202.12 33.34% 231.36 16.49% Cost of Materials Consumed 169.83 105.32 147.63 Changes In Inventory (13.64) 9.36 (20.44)

  9. Slide 9: Annual Financial Highlights

    Annual Financial Highlights

  10. Slide 10: Annual Financial Highlights – FY18

    Annual Financial Highlights – FY18 16% 27% 3% Volume (MT) Revenue EBTIDA** 152,161 MT Rs. 858.96 cr Rs. 61.93 cr 31% 1% PAT EPS Rs. 25.03 cr Rs. 7.88 vs. Rs. 7.80* FY17 *Re-instated EPS w.r.t. Right Issue; **EBITDA is excluding Other Income During FY18 Company raised Rs. 68 cr through Rights Issue a

  11. Slide 11: Annual Financial Highlights – FY18

    Annual Financial Highlights – FY18 Volume (MT) Net Revenue (Rs. Crs) 1,52,161 858.96 1,31,636 656.34 652.74 673.81 1,16,401 1,21,303 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 EBITDA* (Rs. Crs) PAT (Rs. Crs) / Margin (%) 70 59.84 61.93 30 25.04 60 25 19.13 20 50 41.61 15 40 10 4.22 5 30 0 -5 20 FY15 FY

  12. Slide 12: Revenue Break up – FY18

    Revenue Break up – FY18 Geography Wise Sector wise Commercial Vehicles, 16% Engineering & Off. Highway, 14% Exports, Domestic, 5.0% Two Bearings, 95.0% Wheeler, 4% 32% Passenger Vehicles, 34% 12

  13. Slide 13: Annual Financial Highlights – FY18

    Annual Financial Highlights – FY18 INR Crore FY18 FY17 Y-o-Y % Income from Operations 877.89 753.13 Excise Duty 18.93 79.32 Net Sales 858.96 673.81 27.48% Cost of Materials Consumed 488.90 364.22 Changes In Inventory (19.22) (11.65) Employee Expenses 46.73 39.80 Power & Fuel 127.81 109.48 Other Expe

  14. Slide 14: Annual Balance sheet Highlights – FY18

    Annual Balance sheet Highlights – FY18 RoCE (%) 11.66% 11.07% 8.30% 2.29% FY15 FY16 FY17 FY18* RoE (%) Net Debt to Equity 9.67% 1.98 1.82 7.38% 1.59 2.35% 0.65 FY15 FY16 FY17 FY18* -8.91% FY15 FY16 FY17 FY18* * During FY18 Company raised Rs. 68 cr through Rights Issue and Rs. 50 cr through QIP (subs

  15. Slide 15: Balance Sheet as on 31st March

    Balance Sheet as on 31st March INR Crore Mar’18 Mar’17 INR Crore Mar’18 Mar’17 Equity* 339.32 198.08 Non Current Assets 278.83 277.60 Equity Share Capital 35.70 18.56 Property Plant & Equipment 249.27 264.18 Other Equity 303.62 179.53 Capital work in progress 6.99 1.11 Non-current liabilities 102.33

  16. Slide 16: Company Overview

    — ‘Company Overview =e9 —««n © ——* é |

  17. Slide 17: Company Overview

    Company Overview Amongst India’s Leading Steel Bar Reputed and long term customers Producer for Automotive Application  Toyota, Hero Moto Corp,  Incorporated in May 2010 Caterpillar, Hino Motors, Maruti,  Headquartered in Ludhiana, Bajaj and Hyundai, among others Punjab  More than 200+ Clients a

  18. Slide 18: Journey So Far

    Journey So Far  1973 - Commissioning of Oswal  July 2015 – Installed Fume Steels at Faridabad, with initial  2010 - Incorporated as Extraction system for pollution & capacity to produce 50,000 independent identity dust control worth Rs. 12 Crore metric tonnes of special & alloy under Vardhman Gro

  19. Slide 19: Strong & Experienced Board of Directors

    Strong & Experienced Board of Directors Mr. Sachit Jain – Vice Chairman & MD Mr. Rajeev Gupta – Chairman & Independent  B. Tech (Electrical) from IIT, New Delhi, MBA (Gold medallist) Director from IIM, Ahmedabad and Owner/President Management  B. Tech from BHU/IIT, Varanasi and MBA from IIM, Ahmed

  20. Slide 20: Strong & Experienced Board of Directors cont…

    Strong & Experienced Board of Directors cont… Mr. Sanjeev Pahwa – Director Mr. Sanjoy Bhattacharyya – Director  B. Tech from IIT, Delhi  Renowned Industrialist  Bachelor of Science (Statistics Honours) and M.B.A. from IIM, Ahmedabad  Rich Experience of more than 25 years in bicycle/automobile ty

  21. Slide 21: Business Overview

    Business Overview

  22. Slide 22: Wide Range of Sizes for Rolled Products

    Wide Range of Sizes for Rolled Products Hot Rolled Bars Bright Bars  Diameter Size : Increased from 25-70  Size : 14.66 to 78 mm (Peeled), 21.35 to MM in 2012 to 16-120 MM in 2017-18 50 mm (Drawn) 22

  23. Slide 23: With State-of-the-art manufacturing facilities

    With State-of-the-art manufacturing facilities Steel Melting Shop Rolling Mill Bright Bars  Annual Capacity : 2,00,000 MT  Annual Capacity : 1,80,000 MT  Annual Capacity : 36,000 MT  30 MT Ultra High Power (UHP) Eccentric  High Rolling Mill installed in 2013  Bar Peeling & Centreless Grinding

  24. Slide 24: Process Flow

    @Q VARDHMAN SPECIAL STEELS LTD. Process Flow QP snr oa Sponge, ORI, PIG IRON, bas asl => Piports Domestic Shipment we } Final Inspection and Dispatch Ba A — Bright Bar Shop 1 5 30 TON ELECTRIC ARC FURNACE Spherodize Annealing Vaccum Degassing Unit —_Laddle Refining Unit = Continous Casting Facility

  25. Slide 25: Steel Melting Shop

    Steel Melting Shop Electric Arc Furnace Ladle Refining Furnace Continuous Casting Machine Vacuum Degassing 25

  26. Slide 26: Rolling Mill & Bright Bars

    Rolling Mill & Bright Bars Rolling Mill Bright Bar Shop Reheating Furnace Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop 26

  27. Slide 27: 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 27

  28. Slide 28: With best in class R&D Facility

    With best in class R&D Facility  Spectrometer : ARL 4460:1454 for Chemical Analysis. It 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 Me

  29. Slide 29: Strategically located Warehousing Facilities

    Strategically located Warehousing Facilities  One Owned Warehouse Bilaspur  Bilaspur Haryana Rudrapur  Five Leased Warehouses in India  Bangalore  Chennai Aurangabad  Rudrapur  Pune Pune  Aurangabad Bangalore Chennai 29

  30. Slide 30: 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

  31. Slide 31: Strong Global Customer Base

    Strong Global Customer Base Russia Germany Spain USA Turkey Taiwan Thailand 31

  32. Slide 32: Reputed & long term customers

    Reputed & long term customers Cars Two wheelers HCL/LCV Auto Components Tractor Automotive Off Highway Over 200 Clients across different sectors 32

  33. Slide 33: Quality Certifications

    Quality Certifications ISO 9001 : 2008 ISO 14001 : 2004 ISO/TS 16949:2009 OHSAS 18001 : 2007 (non-accr.) India's Best Companies To Work For 2012 33

  34. Slide 34: Way Ahead

    Way Ahead

  35. Slide 35: Way Ahead

    Way Ahead Capacity Expansion  Increase melting capacity to 2,40,000 MT and Rolling Capacity to 2,20,000 MT over next 3 years - expected capex of approx. Rs. 200 Cr.  Target of achieving full capacity utilization soon after completing capex Joint Venture & Acquisition  Looking for Joint venture op

  36. 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 Bridge Investor Relations Pvt. Ltd. CIN:L27100PB2010PLC033930 CIN: U74900MH2016PTC273679 Mr. Sanjeev Singla Mr. Amit Sharma sanjeevsingla@vardhman.co

Vardhman Special Steels — Q1 FY19 Earnings Presentation on 6ix