Frontier Springs Limited. · NSE:FRONTSP
Frontier Springs — Q3 FY2024 Earnings Presentation
27 slides from Frontier Springs's earnings presentation, Feb 9, 2024
Slide 1: Cover letter to BSE on Q3 results disclosure
Frontier Springs Ltd. REGD. OFFICE & FACTORY : KM 25/4, KALP| ROAD, RANIA, KANPUR DEHAT - 209 304 U.P. (INDIA) Tele Office : +91-5111-240212, 240213 » Fax : +91-5111-240214 e-mail : info@frontiersprings.co.in « Website : http://www.frontiersprings.co.in CIN No. : L17119UP1981PLC005212 February 9, 20
Slide 2: Frontier Springs Limited Investor Presentation Q3FY24
Frontier Investor Presentation Springs Limited Q3FY24
Slide 3: Safe harbour statement
Safe harbour statement This presentation may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of these expressions or n
Slide 4: A glimpse of Frontier Springs
A glimpse of Frontier Springs Company Overview 04 Our Journey 06 Business Divisions 07 Our Products 10 Marquee Clientele 11 Esteemed Board 12
Slide 5: Company Overview
Company Overview ESTABLISHED IN A DISTINGUISHED THE COMPANY’S SPRINGS CERTIFIED BY THE MANUFACTURER OF HOT USED ON THE FASTEST INTERNATIONAL RAIL 1981 COILED COMPRESSION TRAIN IN INDIA - VANDE INDUSTRY STANDARD SPRINGS, AIR SPRINGS AND BHARAT EXPRESS (IRIS), WHICH ENABLES FORGING FOR WAGONS, US TO D
Slide 6: Company Overview
Company Overview 40+ Two APPROVAL FROM OF EXPERIENCE AND SKILLED EMPLOYEES MANUFACTURING EXPERTISE FACILITIES FOR SPRING-SINGLE COIL FOR EMD LOCOMOTIVES RECEIVED FOR OUR CERTIFIED MANAGEMENT SYSTEM 05 | F R O N TI E R S P R I N G S L I MI TE D frontiersprings.co.in
Slide 7: Our Journey
Our Journey From a small family business to supplying springs and forgings for Indian Railways 1968 1981 1981-1990 1991 1992-2015 In 2011 2022 Began making Leaf Incorporation of Frontier • Enjoyed a monopoly in Set up two plants in Set up another Forayed into Forayed into Springs for trucks and Spri
Slide 8: Business Divisions (1/3)
Business Divisions (1/3) SPRINGS DIVISION In 1991, we shifted from Leaf Springs to Hot Coiled Springs for the Indian Railways, which has been our mainstay business for the past 30 years What do we do? • Manufacture different kinds of Coil Springs to use space better, reduce tiredness and weight • Us
Slide 9: Business Divisions (2/3)
Business Divisions (2/3) FORGING DIVISION In 2011, we forayed into the forging business by setting up a manufacturing plant in Kanpur What do we do? • Manufacture train parts such as Anti Roll Bar Assembly, Screw Couplings, Draft Gear Assembly and BSS Hangers • Have big hammers of 1 tonne, 3 tonnes
Slide 10: Business Divisions (3/3)
Business Divisions (3/3) AIR SPRING DIVISION We now create Air Spring suspension systems for LHB coaches for Indian Railways What do we do? • Signed an MoU with Contitech Germany to supply Air Springs to Indian Railways 2022 FY25 ~12 Cr ~120Cr MANUFACTURING RAMP UP CAPEX INCURRED REVENUE PLANT EXPEC
Slide 11: Products
Products Air Springs for LHB coaches Suspension Coil Springs for Suspension Coil Springs for freight stock coaching stock Suspension Coil Springs for diesel TMCLH and VLH Coil Springs for Forging components such as Brake and electrical locomotives the power sector Block Hanger, Knuckle Thrower, Top
Slide 12: Marquee Clientele
Marquee Clientele • Chittranjan Locomotive Works • Banaras Locomotive Works • Frontier Alloy Steels Limited • Patiala Locomotive Works 11 | F R O N TI E R S P R I N G S L I MI TE D frontiersprings.co.in
Slide 13: Esteemed Board
Esteemed Board Mr. Kundan Lal Bhatia CHAIRMAN CUM MANAGING DIRECTOR Mr. Kapil Bhatia Mr. Neeraj Bhatia Mrs. Mamta Bhatia MANAGING DIRECTOR CEO AND W HOLETIME DIRECTOR W HOLETIME DIRECTOR Mrs. Manju Bhatia Mr. Yashpal Mr. K. P. Somkuwar W HOLETIME DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR Mr
Slide 14: Quality products for modern needs
Quality products for modern needs Indian Railways – Our Primary Customer 14 Different types of Springs 16 Advantages of Air Springs and Hot Coil Springs 17
Slide 15: Indian Railways – Our Primary Customer
Indian Railways – Our Primary Customer I N D I A N R A I LWAYS I S T H E F O U RT H L A R G E S T R A I LWAY N E T W OR K I N T H E W O R LD . G O V E R N M E N T I N I T I AT IV ES Freight loading and revenue Automatic signalling 1,512 MT of freight loaded in Upgraded 530 km with automatic FY2023 s
Slide 16: Indian Railways – Our Primary Customer
Indian Railways – Our Primary Customer GOVERNMENT INITIATIVES NATIONAL RAIL PLAN (NRP) FOREIGN DIRECT INVESTMENT INDIAN RAILWAY INNOVATION POLICY 58 super-critical projects of a total length The government has cleared the proposal The intention is to work with entrepreneurs, of 3,750 km costing ₹39,
Slide 17: Different Types of Springs
Different Types of Springs FACTORS LEAF LAMINATED BEARING HOT COIL AIR SPRINGS SPRINGS SPRINGS SPRINGS CONSTRUCTION Made of a series of long, Made of multiple layers of Made of steel and are Made of rubber and are thin metal strips that are steel plates that are heated and shaped into filled with co
Slide 18: Advantages of Air Springs and Hot Coil Springs
Advantages of Air Springs and Hot Coil Springs Smoother Ride Comfort Can absorb more shock and provide a smoother ride Better handling Can better absorb the weight of the train and provide better handling, thus preventing derailments More Resilient Can withstand more stress and abuse and thus, run e
Slide 19: Performance
Performance From the Managing Director 19 Quarterly Highlights 20 5-year performance 22
Slide 20: From The Managing Director
From The Managing Director ‘‘ We are pleased to report that both our business verticals, the coil springs business and the forging business, have sustained their robust performance, contributing to an improved profitability for the quarter. Our optimistic outlook is further bolstered by the progress
Slide 21: Quarterly Highlights
Quarterly Highlights Revenue from operations EBITDA & EBITDA Margin PAT (IN ₹ CRORE ) (IN ₹ CRORE & %) (IN ₹ CRORE ) 32.75 33.02 15.63% 2.85 3.22 14.40% 9.70% 1.51 27.76 2.69 4.72 5.16 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Revenue from operations EBITDA & EBITDA Margin PAT (
Slide 22: Summary of Profit and Loss Statement
Summary of Profit and Loss Statement (IN ₹ CRORE ) PARTICULARS Q3FY24 Q2FY24 Q3FY23 Q-o-Q Y-o-Y 9MFY24 9MFY23 Y-o-Y REVENUE FROM OPERATIONS 33.02 32.75 27.76 0.83% 18.95% 91.27 78.20 16.71% OTHER INCOME 0.05 0.05 0.14 -9.34% -65.63% 0.15 0.43 -64.59% TOTAL INCOME 33.07 32.81 27.91 0.81% 18.51% 91.42
Slide 23: 5-year Performance
5-year Performance Revenue from operations EBITDA EBITDA margin (IN H CRORE ) (IN H CRORE ) (IN %) FY23 107.36 FY23 13.31 FY23 12.40% FY22 83.66 FY22 13.21 FY22 15.79% FY21 77.94 FY21 13.70 FY21 17.58% FY20 100.78 FY20 20.70 FY20 20.58% FY19 83.84 FY19 13.35 FY19 15.92% 28.33% Y-O-Y GROWTH 0.75% Y-O
Slide 24: The Future
The Future Ready to Leverage Opportunities 24 Why Invest in Us 25
Slide 25: Ready to Leverage Opportunities
Ready to Leverage Opportunities INDIAN RAILWAY GROWTH OPPORTUNITY Historic Budget Allocation Freight Corridor Impact Vande Bharat & Metro Expansion For railway-Capex – a 51% Run, with 73.5% of DFC commissioned. Target to reduce Incorporated, with an opportunity size of ₹58,000 Cr and increase from t
Slide 26: Why Invest in Us
Why Invest in Us Robust balance sheet New (Air Springs) to help improve New product (Air Springs) to the margin profile of the business significantly contribute to the topline growth Experienced Management at Strong Industry Tailwinds and the helm of operations growth visibility 25 | F R O N TI E R
Slide 27: Thank You
Thank You For further details, please get in touch Dhruv Bhasin Abhishek Mehra COMPANY SECRETARY Investor Relations Advisor Frontier Springs Limited TIL Advisors Private Limited c.s@frontiersprings.co.in abhishek@theinvestmentlab.in