Salasar Techno Engineering Ltd. · NSE:SALASAR
Salasar Techno Engineering — Q1 FY22 Earnings Presentation
27 slides from Salasar Techno Engineering's earnings presentation, Aug 16, 2021
Slide 1: Salasar Techno Engineering Limited
To, Salasar Techno Engineering Limited SALASAR Building a stronger future Dated: 15.08.2021 The Manager — Listing National Stock Exchange of India Ltd. Exchange Plaza, BandraKurla Complex Bandra East Mumbai — 400051 Symbol — SALASAR The Secretary Corporate Relationship Dept. BSE Limited P.J.Tower, D
Slide 2: Investor Presentation Q1 FY22
Investor Presentation Q1 FY22
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Salasar Techno Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Contents
Contents 01 | Q1 FY22 Highlights 02 | Company Overview 03 | Industry Opportunities 04 | Growth Strategy 05 | Historical Financial Performance
Slide 5: Q1 FY22 Highlights
Q1 FY22 Highlights
Slide 6: Q1 FY22 consolidated P&L statement
Q1 FY22 consolidated P&L statement Particulars (INR Cr) Q1 FY22 Q1 FY21 YoY Net Sales 132.8 63.2 110% Cost of Goods Sold 102.2 49.8 Employee Cost 8.3 5.4 Other Indirect Expenses 7.5 3.2 Total Expenditure 118.0 58.3 102% EBITDA 14.7 4.8 206% EBITDA Margin% 11.1% 7.6% 347 bps Other Income 2.1 0.6 Inte
Slide 7: Key orders secured during the quarter
Key orders secured during the quarter 01 02 03 04 Secured order from Secured orders from Received project from Secured a project from ITI DMRC, New Delhi Rajasthan Rajya Vidyut PowerGrid Corporation of Bangalore - Scope: Modification Prasaran Nigam Limited India - Scope: Construction of and raising
Slide 8: Order book position as on 31st July 2021
Order book position as on 31st July 2021 Particulars Value Orders EPC outstanding as on 30th June 2021 Rs. 561 crore + L-1 EPC orders for which LOI awaited Rs. 87 crore + Manufacturing orders outstanding under new manufacturing plant as on 30th June 2021 Rs. 69 crore + EPC orders under execution in
Slide 9: Segmental revenue breakup
Segmental revenue breakup Manufacturing - Steel Structures and Others Manufacturing - Steel Structures and Others EPC - Power Transmission EPC - Power Transmission EPC - Railway Electrification EPC - Railway Electrification 18% 21% 15% 5% 74% 67% Q1FY21 Revenue by Segments Q1FY22 Revenue by Segments
Slide 10: Company Overview
SALASAR Company Overview
Slide 11: Diversified product portfolio
Diversified product portfolio Telecom Towers 50K ▪ Production of towers and monopoles that are designed as per time-tested Ramboll designs, in-house IIT certified designs, or tailored as per customer design Transmission Line Towers ▪ Manufacturing and deployment of transmission towers for EPC busine
Slide 12: Technology driven facilities
Technology driven facilities 3 State-of-art Steel Structure Manufacturing and Galvanising Facilities Total Area: 1 Location: District Hapur (UP) 3 1,50,000 Square yards Unit-I, Jindal Nagar Installed Capacity: Unit-II, Khera, Pilkhuwa 1,00,000 MT of Steel Galvanizing Unit-III, Khera, Pilkhuwa 15,000
Slide 13: Technical Tie-up with Ramboll, Denmark
Technical Tie-up with Ramboll, Denmark To manufacture lighter and lower costing tower structures and high mast poles. Their designs reduce the cost by 20% compared to conventional angular towers. Client Implications: Ramboll Telecom is a world leader in designing telecom and high mast Poles. With th
Slide 14: Experienced management team
Experienced management team Board of Directors: Mr. Alok Kumar B.Sc from Punjab University, Chandigarh Mr. Shalabh Agarwal Mr. Mukesh Kumar Garg 1 4 • Wide experience spanning over 4 decades in Director Non-Executive Independent Director trading, manufacturing and fabrication of iron & Ms. Tripti Gu
Slide 15: Strong client base
Strong client base Approved vendor for Power Qualified by CORE (Central Qualified to bid for rural Grid Corporation Ltd. Organization for Railway electrification projects Electrification) Telecom Sector Power Sector Others/ EPC 14
Slide 16: Industry Opportunities
SALASAR Industry Opportunities
Slide 17: Industry opportunity - Telecom
Industry opportunity - Telecom India is the second largest telecom market in the world with a subscriber base of 1.17 billion Cumulative industry capex and yearly growth of towers and base stations (BTS) (‘000s) Tower 2,206.1 2,211.6 BTS 2,000.1 1,713.0 1,371.9 775.0 581.1 630.8 439.0 440.4 461.4 50
Slide 18: Industry opportunity - Power Transmission
Industry opportunity - Power Transmission Robust growth outlook driven by strong policy support India’s electricity consumption can continue to grow at >5% on At a conservative avg. GDP growth rate of 5% over next a low base decade power demand estimated to rise by 1.6x Estimated INR 6 - 8 trillion
Slide 19: Industry opportunity – Railway
Industry opportunity – Railway Growth of railway electrification (Route Km, RKM) Budget allocation for railway electrification (Rs. crore) 7,542 6,960 6,601 6,302 29,201* 3,396 3,457 13687 2,163 830 1,005 1,206 2150 3038 2004-09 2009-14 2014-19 2019-24 (Planned) 2012-13 2013-14 2014-15 2015-16 2016-
Slide 20: Growth Strategy
SALASAR Growth Strategy
Slide 21: Growth strategy
Growth strategy New business of manufacturing of heavy structures such as ROB, PEB, etc. Tapping industry opportunities by expanding product portfolio and optimal utilization of existing capacity Expanding tower designs and leveraging on their tie-ups with Ramboll to provide value to the clients Str
Slide 22: Historical Financial Performance
Historical Financial Performance
Slide 23: Consolidated P&L statement
Consolidated P&L statement Particulars (INR Cr) FY21 FY20 FY19 Net Sales 596.6 526.3 654.9 Cost of Goods Sold 473.0 415.1 526.0 Employee Cost 30.9 31.0 28.0 Other Indirect Expenses 35.7 28.3 27.5 Total Expenditure 539.6 474.5 581.5 EBITDA 57.0 51.8 73.4 EBITDA Margin% 9.6% 9.8% 11.2% Other Income 10
Slide 24: Consolidated balance sheet
Consolidated balance sheet Particulars (INR Cr) Mar-21 Mar-20 Particulars (INR Cr) Mar-21 Mar-20 EQUITY & LIABILITY ASSETS Share Capital 14.3 13.3 Other Equity 238.4 193.9 Non-Current Assets: Non- Controlling Interest 0.3 - Net Block 112.4 91.1 Shareholder's Funds 253.0 207.1 Capital Work in Progres
Slide 25: Key financial highlights
Key financial highlights Sales Volumes (MT) Revenue (Rs. Crore) 655 74,993 597 495 526 55,657 58,619 58,776 51,956 384 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (Rs. Crs) / Margin (%) PAT (Rs. Crs) / Margin (%) 10.9% 11.2% 40 6.0% 7% 80 10.1% 12% 9.8% 9.6% 10% 4.9% 5.1% 5.0% 6% 60 30
Slide 26: Key financial ratios
Key financial ratios RoCE ROE 22% 23% 24% 23% 23% 19% 19% 15% 11% 12% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Debt to Equity 0.8 0.8 0.7 0.7 0.7 FY17 FY18 FY19 FY20 FY21 RoCE – EBIT/ Average Capital Employed, ROE – Profit/Average Shareholders Funds, D/E – Average Debt/ Average Equity 25
Slide 27: Thank You
Thank You Salasar Techno Eng Pramod Kala - CFO pramod.kala@salasartechno.com investor.relations@salasartechno.com Pareto Capital (Investor Relations) Pooja Dokania pooja.dokania@paretocapital.in Smit Shah smit.shah@paretocapital.in
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