Rathi Steel & Power Ltd. · BSE:RATHIST
Rathi Steel & Power — Q3 FY25 Earnings Presentation
41 slides from Rathi Steel & Power's earnings presentation, Feb 18, 2025
Slide 1: Cover letter to BSE on analyst presentation
RSPL/BSE/2024-25/ Date: 18.02.2025 To The Department of Corporate Affairs The Bombay Stock Exchange Limited Phiroze, Jeejeebhoy Towers, Dalal Street, Mumbai-400001 Maharashtra Scrip Code: 504903 Dear Sir, Subject: Presentation to the analysts, on the Unaudited Financial Results for the quarter and n
Slide 2: Investor Presentation Q3 & 9M FY25
RATHI . Steel for Modern Engineering Investor Presentation Q3 & 9M FY25
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Rathi Steel and Power Limited (the “Company ”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Table of Contents
Company Overview Business Overview Tableof Industry Scenario Contents Financial Overview Way Ahead
Slide 5: Company Overview
Slide 6: Preferred choice of consumers
Popular brand, Known for identified with steel quality & reliability Preferred choice of consumers
Slide 7: About Us
ABOUT US Rathi Steel And Power Ltd (erstwhile Rathi Udyog Ltd) – part of Pradeep Rathi Group Business started out as a small re-rolling mill in Delhi in the early 1940s. Since then the Group has grown continuously. Founded by Shri Punam Chand Rathi (1934-2010) who was well known in the Steel Ind
Slide 8: Our Journey
Our 2000s – 20 2020 – Present Journey • 2003 – Adopted TMT technology with “Thermax” • 2020-21 – Odisha unit was sold • Debts assigned to ARCs, subsequently trademark settled with ARCs & banks by 2024 • 2005-06 – Started setting up • Company successfully completes fund Stainless Steel manufacturing
Slide 9: Key Strengths
Key Strengths Technological prowess Strong Manufacturing Wide Distribution Network Continuous Improvement Least Leveraged & advancements Muscle & Market Presence in Product Portfolio Capital/Debt Position Investment in Installed capacity of Pan India Presence with Strategic shift to Stainles
Slide 10: Dynamic Leadership
Dynamic Leadership Promoter Managing Director President, SMS President, Rolling Mill Shri Udit Rathi Shri Prem Narain Varshney Mr. Naveen Gang Mr. Rajeev Bhattarya Industrial Engineer from Purdue University, US, he Aged 70 years, holds post- Aged 59 years, he is a technical Aged 68 Years, holds a Ba
Slide 11: Dynamic Leadership
Dynamic Leadership Chief Compliance Officer General Manager, General Manager, General Manager, Quality Vice President, Accounts & & Company Secretary Administration Project & Marketing Control Taxation Mrs. Shobhita Singh Mr. Ram Babu Dwivedi Mr. Kushal Kumar Agarwal Mr. O.P. Sharma Mr. Shyam Bagesh
Slide 12: State-of-Art Manufacturing Facility
State-of-Art Manufacturing Facility Steel Melting Refining Casting Testing facilities Rolling Spread across 12+ acres in Ghaziabad (close to NCR)
Slide 13: Manufacturing Capabilities
Manufacturing Capabilities Steel Melting Steel Refining Steel Casting Rolling – Wire Rod & TMT Rod Mills UPCOMING FACILITY (Under Planning) Solution Annealing Furnace Wire Drawing Tube Strand Furnace Stainless Steel Rebar Facility Surface Treatment Facility Cold Forging Bright Bars Facility Fastener
Slide 14: Product Portfolio
Product Portfolio Present Portfolio Under Trial S.S. Billets S.S. Wire Rods M.S. TMT Bars S.S. Rebars Future Products S.S. Bright Bars S.S. Annealed Pickled Bars & Rods S.S. Fasteners Wire Rods Rathi received license to use BIS Standards mark for SS 550 reinforcement bars under title “High Strength
Slide 15: Strong Market Foothold
Strong Market Foothold in stainless-steel billets, wire rods & rebars in North India Wire & bright bars Construction meshes Wire rods B2B Application Fasteners Hardware & cabinet fittings Geographically widespread customer- base for SS Rebars Self Steel billets consumption B2B applications Rebars B2
Slide 16: Ready market for SS rebars & value-added products
Ready market for SS rebars & value-added product, also supported by the huge B2C network SS value-added products End Applications Bright bar Auto Metro & Railway Kitchen-ware Stainless Sold to B2B steel wire industries Annealed & pickled wire rod Medical Tower Bolts
Slide 17: Ready market for SS rebars & value-added products
Ready market for SS rebars & value-added product, also supported by the huge B2C network Ready market for SS Rebars The Company aims to leverage the ‘Rathi’ brand, which has a 500+ Established Network of shops strong market recall, coupled to supply SS Rebars with retail network, to roll out stainle
Slide 18: Marquee Clientele
© Marquee Clientele — BANSAL ae, e DLF& MODI, NSA es MVAVA itech ncia lta. iS Rigaipd Siren gth Since 1938 ro i i IndianOil % G = 7 AHLUWALIA A AR. . GAMMON od CONTRACTS Be Builders to the Nation VIVIDH (INDIA) LTD. STA, TESTE er eee | GR J AYPER Ree SUPRON 5 +
Slide 19: Flagship Projects
Flagship Projects Which used Rathi products Lotus Temple LIC Building, New Delhi Atomic Power Station, Narora Delhi Metro Rail Corporation Chattarpur Mandir Complex Tehri Dam, Garhwal
Slide 20: Industry Overview
Slide 21: Industry Scenario
Industry Scenario Growth Triggers Robust Demand Rising Investments Policy Support Competitive Advantage India’s finished steel PLI short-listed companies In February 2024, Govt. Easy availability of low-cost consumption grew from expected to invest USD 1.2 implemented measures to manpower an
Slide 22: Government Impetus
Government Impetus Increased Demand for Stainless Steel: Government policies requiring stainless steel for bridges, railway over- bridges (ROBs), & foot over-bridges (FOBs) boost demand for corrosion-resistant materials Specialization in High-Quality Stainless Steel: With expertise in producing high
Slide 23: Government Impetus
Government Impetus Government recommending use of stainless steel in new infrastructure development, especially in coastal areas Union Road Transport and Highways minister recommended a policy to make use of stainless steel mandatory in bridges in areas that are close to sea Alignment with Governmen
Slide 24: Financial Overview
Slide 25: Resilience in Adversity
Resilience in Adversity Commitment Sambalpur, Odisha Non-operative for allotment of raw 2008 Integrated, Manufacturing materials mines by capital-intensive steel capacity in Odisha Orissa Government plant commissioned Bank account NPAs Adverse impact on financial health of Ghaziabad unit Unit closur
Slide 26: Strategic Financial Turnaround
Strategic Financial Turnaround Debt assignment to ARCs & settlement with lenders Achieved sustainable debt levels by March ‘23 One of the Only Steel Debt Company of relative scale to restructuring be ZERO DEBT* As on March ‘24 Brought Down to Zero Level Repayment from cash flows Optimizing product m
Slide 27: Successful Fund-Raise addressed legacy issues to propel growth
Successful Fund-Raise addressed legacy issues to propel growth Need based CAPEX Equity Raised through Preferential Allotment in Feb W.C. Shoring up ‘24 Rs. 114.71 Crores Debt Repayment
Slide 28: Evolution of Debt Profile & Net worth
Evolution of Debt Profile & Net worth 600 500 466.95 400 300 216.15 200 100 50.16 0 FY20 FY21 FY22 FY23 FY24 -100 -200 -96.82 -300 -252.64 Net Worth (Rs. Cr.) 700 641.8 600 500 390.62 400 300 286.8 200 123.9 100 0 0 FY20 FY21 FY22 FY23 FY24 Debt (Rs. Cr.) Strategic initiatives to reduce debt and imp
Slide 29: Management Comment
Management Comment “The Company sustained through market headwinds during the third quarter successfully. Despite macro- economic uncertainties and volatility, we have demonstrated resilience in operations. The market slowdown during the first half of the fiscal continued this quarter as well to som
Slide 30: Financial Highlights – Quarterly
Financial Highlights – Quarterly Quarterly Revenue (Rs. Crs.) Production Volume (MT) 140 127.73 30,000 118.35 121.43 26,332 26925 120 26,069 101.22 104.43 25,000 23,746 100 21,123 20,000 80 15,000 60 40 10,000 20 5,000 0 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 0 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY
Slide 31: Financial Highlights – Quarterly
Financial Highlights – Quarterly Particulars (Rs. Cr.) Q3 FY25 Q3 FY24 Y-o-Y (%) Q2 FY25 Net Revenue 104.43 101.22 3.17% 121.43 Cost of Materials consumed 87.13 68.66 90.60 Employee Expenses 2.65 2.16 3.06 Other Expenses 17.50 19.98 24.72 Total Expenditure 101.40 95.12 116.29 EBITDA (Excl. Other Inc
Slide 32: Financial Highlights – Nine Monthly
Financial Highlights – Nine Monthly Particulars (Rs. Cr.) 9M FY25 9M FY24 Y-o-Y (%) Net Revenue 353.58 374.47 (5.58%) Cost of Materials consumed 277.50 269.70 Employee Expenses 8.80 6.69 Other Expenses 65.41 69.72 Total Expenditure 339.45 357.63 EBITDA (Excl. Other Income) 14.13 16.84 (16.10%) EBITD
Slide 33: Financial Highlights – Annual
Financial Highlights – Annual Production Volume of SS Products (MT) Yearly Revenue 1,40,000 800 727.57 700 1,20,000 115002 109359 100027 600 545.81 1,00,000 95,589 496.28 500 437.47 80,000 400 60,000 300 40,000 200 20,000 100 0 0 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 100 15.00% 35 7.00% 87.22 32.6
Slide 34: Financial Highlights – Annual
Financial Highlights – Annual Particulars (Rs. Cr.) FY20 FY21 FY22 FY23 FY24 Net Revenue 100.01 437.47 545.78 727.57 496.28 Total Raw Material cost 67.45 366.23 449.98 587.71 375.07 Employee Expenses 6.53 5.22 6.13 6.81 9.51 Other Expenses 41.00 42.66 58.47 100.37 87.45 Total Expenditure 114.98 414.
Slide 35: Balance Sheet Highlights
Balance Sheet Highlights Equity and Labilities (Rs. Cr.) As on March ’24 As on Sept ‘24 Assets (Rs. Cr.) As on March ‘24 As on Sept ‘24 Share Capital 95.46 95.46 Property Plant & Equipment 70.35 66.82 Reserves and Surplus 27.61 37.23 Non-current Investment 0.11 0.11 Total Equity 123.07 132.70 Capita
Slide 36: Way Ahead
Slide 37: Future Roadmap
Future Roadmap Growth over low capital investment Enhance existing Utilize existing infrastructure Set up value added capacity utilization to manufacture SS Rebars & downstream facilities from 60% to 100% expand SS product portfolio 100% utilization of retail network Capitalizing on existing brand t
Slide 38: Product of Future
Product of Future Pioneering shift from MS TMT to Stainless Steel rebar Government push EU norms Highway, bridges, railways Shift from MS to SS inevitable MS TMT especially in coastal region to be built with more sustainable due to focus on low carbon metal – domestic & imported & corrosion free mat
Slide 39: Stainless steel rebar: the stronger, safer, eco-friendly choice
Stainless steel rebar The stronger, safer, eco-friendly choice Strong & durable Safer & sustainable Eco-friendly Ease of use Value for money • Corrosion free • Earthquake proof • Recyclable • Easy to manage • Minimal short-term on-site cost impact of Rs. • Environmental • Fire-resistant: • Lower car
Slide 40: Strategy to Drive Growth & Profitability
Strategy to Drive Growth & Profitability Enhancing Capacity & Utilizations Ramp up existing capacity utilization while sweating out existing assets to the fullest Enhance capacity of steel melting shop at minimal cost – lower than industry average Boost Product Portfolio Foraying into stainles
Slide 41: Thank You
Rathi Steel and Power — Q3 FY25 Earnings Presentation on 6ix