Ador Welding Limited · NSE:ADOR
Ador Welding — Investor Presentation (November 2022)
23 slides from Ador Welding's investor presentation, Nov 15, 2022
Slide 1: Exchange cover letter for investor meet presentation
AWL/SEC/SE/2022-23/72 15th November, 2022 BSE LTD. NATIONAL STOCK EXCHANGE OF INDIA LTD. Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, 1st Floor, Dalal Street, Bandra-Kurla Complex Fort, Mumbai – 400 023 Bandra (East), Mumbai - 400 051. Company Scrip Code: 517041 Company Symbol: ADORWELD
Slide 2: Investor Presentation 15th November 2022
INVESTOR PRESENTATION 15th November 2022 Creating The Best Welding Experience 1
Slide 3: Agenda
Agenda I Business Overview I Updates I Performance I Status of Merger Creating The Best Welding Experience 2
Slide 4: Disclaimer
Disclaimer I This Investor Presentation by Ador Welding Ltd. (“Ador / the Company”) is solely for informational purposes. This presentation does not constitute an offer or invitation, directly or indirectly, to purchase or subscribe for any securities of Ador. I The information contained herein has
Slide 5: Business Overview
Business Overview Q2 Sales Q2 PBT HY1 PBT Rs. 185 Cr. 7.2% 8.3% • Highest sales in Q2 • Expansion of 60 bps from Q2-FY’22 • Expansion of 150 bps from HY1-FY’22 • Q-o-Q increase of 17% • On-par with FY’22 • Expansion of 90 bps from FY’22 • Steel Output & Consumption showing upward trend • Pickup in C
Slide 6: Updates
Updates Creating the best welding experience 5
Slide 7: New Product Launch Ultra Durable Champ 400 X
New Product Launch Ultra Durable Champ 400 X Creating the best welding experience 6
Slide 8: Ador International
Ador International Values in INR Cr. AI sales • New showroom/office in JAFZA 14 12 • On track to achieve 50% growth 12 10 9 • Position ADOR as an MNC 9 9 8 8 • Restructure Distribution Network in Middle East 6 5 • Focus on Key Accounts and New market 4 development 2 - • Entered new markets (Brazil)
Slide 9: Ador International
Ador International Creating the best welding experience 8
Slide 10: Uran Project
Uran Project • Design, engineering, fabrication, erection & commissioning of complete demountable flare package • Order Value of Rs. 145 Cr. (inclusive of GST) • Execution timeline of 30 months Creating The Best Welding Experience 9
Slide 11: Performance
Performance Creating the best welding experience 10
Slide 12: PBT and RoCE
PBT and RoCE 20 18 15 9.5 8.3 7.4 7.2 11 10 5.6 7 4.1 3.6 2.1 FY'18 FY'19 FY'20 FY'21 FY'22 Q-1 FY'23 Q-2 HY-1 FY'18 FY'19 FY'20 FY'21 FY'22 HY-1 FY'23 FY'23 FY'23 (Annualized) PBT Margins (%) RoCE (%) All numbers are w/o exceptional items Creating The Best Welding Experience 11
Slide 13: Working Capital & Borrowings
Working Capital & Borrowings 193 81 82 0.4 173 163 65 0.33 147 146 125 0.26 107 156 118 120 87 28 0.12 0.0024 69 77 74 18 1 9 31959 0.07 0.03 FY'18 FY'19 FY'20 FY'21 FY'22 Q-1 Q-2 FY 18 FY 19 FY 20 FY 21 FY 22 Q-1 Q-2 FY 18 FY 19 FY 20 FY 21 FY 22 Q-1 Q-2 FY'23 FY'23 FY'23 FY'23 FY'23 FY'23 Working
Slide 14: Issues & Improvements
Issues & Improvements Issues • Fluctuation in steel prices • Unstable geopolitical issues • Increasing interest rates • Supply Chain Disruptions Improvements • We are playing on our strengths • Effects of strengthening of Supply Chain Management are visible • Investment in Technology Upgradation – W
Slide 15: Variations in Key RM Prices
Variations in Key RM Prices Indexed Wire Prices Indexed Other Materials Prices 130 160 125 150 120 140 115 130 110 120 105 110 100 95 100 90 90 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 • Fluctuation in Steel prices
Slide 16: Segment Performance - Consumables
Segment Performance - Consumables Values in INR Cr. Segment Revenue Segment Results 190 20.0 18.6 18.4 169 19.0 18.0 170 18.0 148 17.0 16.4 150 142 16.0 128 121 130 15.0 14.0 106 110 13.0 12.8 12.0 11.3 90 11.0 70 10.0 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Q2 FY'23 Q1 FY'22 Q2 FY'22 Q3 FY'22
Slide 17: Segment Performance - Equipment
Segment Performance - Equipment Values in INR Cr. Segment Revenue Segment Results 31 3.5 3.1 28 29 3.0 27 25 2.5 2.2 25 24 22 2.0 1.7 23 1.5 23 1.5 1.0 21 18 1.0 0.7 19 17 0.5 15 - Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Q2 FY'23 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Q2 FY'23 Results as
Slide 18: Segment Performance - FPED
Segment Performance - FPED Values in INR Cr. Segment Revenue Segment Results 16 2.5 14 2 14 2.0 12 10 1.5 10 8 7 1.0 8 0.5 6 0.5 0.1 6 4 -0.04 0.0 4 -0.5 -0.7 -0.8 2 - -1.0 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Q2 FY'23 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Q2 FY'23 Results as % of Rev
Slide 19: CAPEX
CAPEX Values in INR Cr. Particular HY-1 HY-2 Total (Actual) (Planned) Technology upgradation and capacity enhancement 2.5 10 12.5 – Welding Business Technology upgradation and capacity enhancement 1.2 2.5 3.7 – FPED General / IT / Others 2 5 7 Total 5.7 17.5 23.2 Creating the best welding experience
Slide 20: Status of Merger
Status of Merger Updates on Amalgamation of ADFL with AWL : • The no-objection certificate (NOC) for the proposed scheme of amalgamation of ADFL with AWL have been received from Stock Exchanges. • Company is in process of filling application in NCLT. Creating the best welding experience 19
Slide 21: Q&A
Q&A Creating The Best Welding Experience 20
Slide 22: Guidelines
Guidelines Strengths • Due to the time constraints, we would be limiting a maximum of 2 to 3 questions per participant. Please be quick & precise with your questions • Please avoid asking questions, already answered or covered in the presentation • Anyone interested in asking questions are requested
Slide 23: Thank You
THANK YOU Creating The Best Welding Experience 22