Rama Steel Tubes Ltd. · NSE:RAMASTEEL
Rama Steel Tubes — Q3 FY2017 Earnings Presentation
27 slides from Rama Steel Tubes's earnings presentation, February 2017
Slide 1: Rama Steel Tubes Limited Q3 & 9M FY17 Result Update Presentation
Rama Steel Tubes Limited Q3 & 9M FY17 Result Update Presentation February 2017
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Rama Steel Tubes 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 with any
Slide 3: Table of Contents
Table of Contents CEO’s Message Q3 & 9M FY17 Financial Performance Annual Financial Performance Company Overview 3
Slide 4: CEO's Message
CEO’s Message a
Slide 5: CEO's Message – Q3 FY17
CEO’s Message – Q3 FY17 Commenting on the results, Mr. Richi Bansal, Director & CEO, Rama Steel Tubes Limited said : "This quarter we have delivered strong growth across all product segments, despite being briefly impacted by demonetisation. Our operating efficiency combined with favourable raw mate
Slide 6: Q3 & 9M FY17 Financial Performance
Q3 & 9M FY17 Financial Performance
Slide 7: Consolidated Financial Highlights – Q3 FY17
Consolidated Financial Highlights – Q3 FY17 41% 44% 23bps Revenue EBITDA EBITDA Margin Rs. 66.8 cr Rs 6.0 cr 9.0 % 61% 50bps 61% PAT PAT Margin *EPS Rs 2.6 cr 3.9 % Rs. 1.8 (Q3 FY17) Vs Rs. 1.1 (Q3 FY16) *Company declared bonus in 4:1 ratio and split the shares into two *Number of shares increased b
Slide 8: Consolidated Financial Highlights – 9M FY17
Consolidated Financial Highlights – 9M FY17 18% 61% 236bps Revenue EBITDA EBITDA Margin Rs 191.2 cr Rs 16.6 cr 8.7 % 111% 182bps 110% PAT PAT Margin *EPS Rs 7.9 cr 4.1 % Rs. 5.3 ( 9M FY17) Vs Rs. 2.5 (9M FY16) *Company declared bonus in 4:1 ratio and split the shares into two *Number of shares incre
Slide 9: Quarterly Financial Highlights – Q3 FY17
Quarterly Financial Consolidated Highlights- Financial Q2–FY17 Highlights Q3 FY17 Revenue (Rs. Crore) 80.7 65.6 66.8 58.8 47.5 Q3 FY16 Q4 FY16 Q1 FY17 Q2FY17 Q3 FY17 EBITDA* (Rs. Crore) PAT (Rs. Crore) 6.0 2.6 2.6 2.6 5.6 5.4 5.2 2.3 4.2 1.6 Q3 FY16 Q4 FY16 Q1 FY17 Q2FY17 Q3 FY17 Q3 FY16 Q4 FY16 Q1
Slide 10: Quarterly Financial Highlights – 9M FY17
Quarterly Financial Consolidated Highlights- Financial Q2–FY17 Highlights 9M FY17 Revenue (Rs. Crore) 191.2 162.6 9M FY16 9M FY17 EBITDA* (Rs. Crore) PAT (Rs. Crore) 16.6 7.9 10.3 3.7 9M FY16 9M FY17 9M FY16 9M FY17 *EBITDA is inclusive of other operating income, but excludes other income and Foreig
Slide 11: Consolidated Quarterly Performance
Consolidated Quarterly Performance Rs. Crore Q3 FY17 Q3 FY16 YoY % Q2 FY17 QoQ % Total Income from Operations 66.78 47.48 41% 58.79 14% Raw Materials 57.52 39.50 50.23 Employee Cost 0.83 0.92 0.76 Other Cost 2.42 2.89 2.38 Total Expenditure 60.77 43.31 53.37 EBITDA 6.01 4.17 44% 5.42 11% EBIDTA marg
Slide 12: Consolidated Nine Months Profitability Highlights
Consolidated Nine Months Profitability Highlights Rs. Crores 9M FY17 9M FY16 YoY % Total Income from Operations 191.17 162.61 18% Raw Materials 164.51 141.61 Employee Cost 2.30 2.45 Other Cost 7.76 8.27 Total Expenditure 174.57 152.33 EBITDA 16.60 10.28 61% EBIDTA margin (%) 8.68% 6.32% Interest 4.8
Slide 13: Annual Financial Performance
Annual Financial Performance
Slide 14: Consolidated Financial Highlights - FY16
Consolidated Financial Highlights - FY16 26% 143% 316bps Revenue EBITDA EBITDA Margin Rs. 243.3 cr Rs 15.9 cr 6.6% 1,930 bps 990 bps 13.8x RoE RoCE Asset TO 23% 18% Vs 10.6x (FY15) ...Highest Industry Asset Turnover 14
Slide 15: Strong Operational Performance
Strong Operational Performance Volume (MT) 62,092 Revenue (Rs. Crore) 43,929 45,504 243.3 42,229 185.2 181.4 193.4 32,567 153.7 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 EBITDA (Rs. Crore) / Margin (%) PAT (Rs. Crore) / Margin (%) 18.0 7.00% 7.0 3.00% 6.6% 2.5% 16.0 6.0 6.00% 2.50% 14.0 5.00
Slide 16: Strengthening Balance Sheet
Strengthening Balance Sheet Total Asset Turnover (x) Net Debt/Equity (x) 13.8 12.0 12.0 10.4 10.6 2.9 2.2 2.2 1.8 1.8 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 RoE (%) 22.7% RoCE (%) 18.3% 10.6% 9.1% 8.4% 6.6% 3.4% 4.6% 3.5% 1.7% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 16
Slide 17: Consolidated Annual Profitability Highlights
Consolidated Annual Profitability Highlights Rs. Crores FY16 FY15 YoY % Total Income from Operations 243.28 193.21 26% Raw Materials 212.20 169.44 Employee Cost 3.11 2.78 Other Cost 12.03 14.44 Total Expenditure 227.34 186.66 EBITDA 15.94 6.55 143% EBIDTA margin (%) 6.55% 3.39% 316 bps Interest 6.18
Slide 18: Consolidated Balance Sheet Highlights
Consolidated Balance Sheet Highlights Rs. Crores Mar-16 Mar-15 Rs. Crores Mar-16 Mar-15 Shareholder’s Funds 26.72 20.70 Non-current assets 30.94 32.06 Share capital 8.47 2.49 Fixed assets 17.68 18.19 Reserves & Surplus 18.25 18.20 12.74 Non-current Investments 12.16 Non-current liabilities 17.15 17.
Slide 19: Company Overview
Company Overview a
Slide 20: Pioneer in Steel Tubes Industry
Pioneer in Steel Tubes Industry Incorporated in 1974 • Over 4 decades of presence in Steel Industry • Well established and strong brand Wide Product Suite • Presence across key sectors • Applications in automobiles, infrastructure, real estate, furniture State of Art manufacturing facilities • Two s
Slide 21: Journey So Far
Journey So Far • Set up initial unit at Sahibabad, UP with • Increased capacity • Started manufacturing • Further, Increased Installed capacity of to 25,000 metric larger dia Pipes under capacity to 24,000 10,000 metric tonnes tonnes p.a. IS Specification and metric tonnes p.a. p.a. trademark “TTT R
Slide 22: Key Management Team
Key Management Team • More then 3 decades of experience in manufacturing Industry of “Steel Tubes” with dynamic vision and sharp Naresh Bansal business acumen Managing Director • Graduate in law Richi Bansal Rajkumar Malik Rajendra Tiwari Director & CEO CFO President Marketing • Responsible for Acco
Slide 23: Diverse Product Portfolio
Diverse Product Portfolio Product Application ERW Galvanised Steel Water pipeline, Tubewells, Gas Pipelines, Oil Pipelines, Cross Country Pipelines Pipes & Tubes ERW Black Steel Pipes & Road Barriers, Temporary Fencing, Steel Gates and Windows, Horse Riding Fence, Tubes Parking Lots, Steel Buildings
Slide 24: Products Well Accepted Over Globe
Products Well Accepted Over Globe United Kingdom UAE & Kuwait India Guyana Africa Kenya Sri Lanka Ghana Uganda Congo Ethiopia Established & Strong Brand Name - “TTT RAMA” 24
Slide 25: Key Strategic Advantages
Key Strategic Advantages Industry presence since 4 Catering to overseas clientele decades with dedicated and across globe along with disciplined functioning domestic market Diversified clientele with over Close proximity to SAIL and 200 dealer distributors & other big steel suppliers association wit
Slide 26: Fungible Manufacturing Facilities with Locational Advantage
Fungible Manufacturing Facilities with Locational Advantage Khopoli and Lepaskhi plants - close Sahibabad, Uttar Pradesh proximity to ports and market Capacity - 60,000 MT Caters to demand across Maharashtra, Gujarat, Madhya Pradesh, Andhra Pradesh & Tamil Nadu, Kerala, Karnataka, Goa, Telangana
Slide 27: For further information, please contact
539309 RAMASTEEL RASTL RAMA.NS For further information, please contact: Company : Investor Relations Advisors : Rama Steel Tubes Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Richi Bansal Ms. Savli Mangle CEO savli@bridge-ir.com md@ramasteel.com Mr. Amit Sharma Website amit@bridge-ir.com www.ramastee