Maithan Alloys Ltd. · NSE:MAITHANALL
Maithan Alloys — FY2019 Earnings Presentation
29 slides from Maithan Alloys's earnings presentation, May 4, 2019
Slide 1: Cover letter to stock exchanges
ISO 9001 : 2008 COMPANY Registered Office : ldeal Centre, 4th Floor r 9, A.J.C. Bose Road, Kolkata - 700 017 T (033) 4063 2393 F (033) 2290 0383' 4rhMay,2ole =;mil:illllSilSl!!3il CIN : 1271 01W81985P1C039503 11 2l The Secretary Listing Department The Calcutta Stock Exchange Limited National Stock E
Slide 2: Investor Presentation
Investor Presentation April 1 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Maithan Alloys 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 securi
Slide 4: Mission, Vision & Values
Mission, Vision & Values Vision Mission To be India’s premiere Alloy Company by: To be India’s premiere Alloy Company that is built on • Promising excellent shareholder value: Guarantee a high ROC coupled with lower-than- the solid foundation of shareholder trust, customer market debt ratios commitm
Slide 5: Values
Values Commitment: is passion for us. We are extremely committed to serving our shareholders and customers to the best of our abilities. Our promise to our stakeholders is a hard-ironed commitment and we aim to exhibit this value in everything that we do. Loyalty: is the very fabric that runs beneat
Slide 6: Key Differentiators
Key Differentiators Optimising Facilities Diversified Efficiency Strong Credibility Expansion Plans for Maximising Customer Base Returns • Lowest in the Cost Curve • Strong credibility in the market • Sources raw materials when it • International clients across 35 • Inorganic Growth Opportunities •
Slide 7: The Leadership Team
The Leadership Team Mr. Subodh Agarwalla Mr. S. C. Agarwalla Mr. Sudhanshu Agarwalla (Whole Time Director and CEO) (Chairman and Managing Director) (President and CFO) ) Ferro Alloys industry • 30 years of rich experience in ) • A M.B.A. from XLRI Jamshedpur • A B.Tech from IIT BHU and M.B.A. from I
Slide 8: Experienced Board
Experienced Board Mr. Nand Kishore Agarwal Mr. Ashok Bhandari Mr. Vikash Kumar Jewrajka (Independent Director) (Independent Director) (Independent Director) Experienced in the field of Accounts, Finance and negotiation with banks, Experienced in the field of Monolithic Finance and Tax Laws governmen
Slide 9: Financials
Financials
Slide 10: Manufacturing vs Trading – FY19
Manufacturing –vs- Trading – FY19 Manufacturing Trading Revenue TOTAL Revenue* Revenue* +6% +1% +6% 1,812 176 177 1,988 1,703 1,879 FY18 FY19 FY18 FY19 FY18 FY19 ₹ Crs Manufacturing business is consistently growing *Revenue are net of GST/Excise duty Financials are as on Consolidated basis and as pe
Slide 11: Performance Highlights – FY19
Performance Highlights – FY19 Revenue* Operating EBITDA PAT +6% -15% -13% 1,879 1,988 381 292 322 255 FY18 FY19 FY18 FY19 FY18 FY19 Mfg. Revenue Mfg. EBITDA +6% -16% 1,703 1,812 369 312 ₹ Crs *Revenue are net of GST/Excise duty FY18 FY19 FY18 FY19 Financials are as on Consolidated basis and as per I
Slide 12: Maintaining Sustainable Margins
Maintaining Sustainable Margins Revenues EBITDA % 22.2% 21.7% Demand of our product continues to be robust 20.6% 20.3% 17.2% 1,988 1,879 Long-term sustainable EBITDA 16.2% 12.0% margin range 15%-17% 1,342 11.1% 1,151 FY16 FY17^ FY18 FY19 Performance improved Demand overpassed Supply catching up with
Slide 13: Doing Profitable Business is the key…
Doing Profitable Business is the key… Debt & Current Invts. Operating RoCE (%) 664 FINANCIAL FLEXIBILITY Higher Return Ratio is because of prudent capital allocation and superlative operating efficiency • Announced Greenfield project in West Bengal • Working on other expansion plans 22.6% 53.6% 65.4
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ Crs) FY19* FY18* FY17* FY16 Revenue (Net of Excise Duty/ GST) 1,988 1,879 1,342 1,151 Raw Material 1,126 970 628 597 Employee Expenses 44 45 33 23 Power 373 367 280 315 Other Expenses 122 117 128 89 Operating EBITDA 323 380 273 127 Depreciation 16
Slide 15: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (₹ Crs) FY19* FY18* FY17* FY16 Revenue (Net of Excise Duty/ GST) 1,988 1,879 1,342 1,151 Raw Material 1,126 970 628 597 Employee Expenses 44 45 33 23 Power 373 367 280 315 Other Expenses 122 117 124 89 Operating EBITDA 322 381 277 127 Depreciation 16 15
Slide 16: Consolidated Balance Sheet as on 31st March 2019
Consolidated Balance Sheet as on 31st March 2019 (As per IND AS) Particulars (₹ Crs) Mar-19 Mar-18 Particulars (₹ Crs) Mar-19 Mar-18 Equity 1,113 868 Non-Current Assets 278 280 Equity share capital 29 29 Property, plant and equipment 229 238 Other Equity 1,083 838 Intangible Assets 0 0 Non Controlli
Slide 17: Performance Snapshot
Performance Snapshot Operating Income (₹ Crs) EBITDA (₹ Crs) EBIT (₹ Crs) 1,052 201 208 201 988 962 188 903 169 166 161 159 793 156 148 604 547 549 76 64 63 63 52 52 H1FY16 H2FY16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19 H2FY19 H1FY16 H2FY16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19 H2FY19 H1FY16 H2FY16 H1FY17 H
Slide 18: Maintaining the Maithan Edge
Maintaining the Maithan Edge
Slide 19: The Maithan Edge
The Maithan Edge Largest 20 Years Rich Manufacturer Experience Stake Holder Return’s ▪ ROCE Increased by + 4,000 bps ▪ ROE Increased by + 1,800 bps . India’s largest Revenue Two decades of Manganese Alloy Increased by +19% CAGR experience and Producer and continuous growth Exporter EBIDTA Increased
Slide 20: Product Offerings
Product Offerings Ferro alloys enhance steel strength, durability, anti-corrosion and anti-stain properties and acts as de-oxidant for Steel Manufacturing Ferro Manganese Ferro Silicon Silicon Manganese • An alloy of iron and • An alloy of iron and silicon • An alloy of silicon and manganese • Silic
Slide 21: Capacity addition to support Growth
Capacity addition to support Growth Capacity Built-up Production Visakhapatnam 226 225 137 213 206 36 +15.0% Byrnihat, Meghalaya 158 149 141 36 Kalyaneshwari 82 89 24 16 76 66 70 25 42 2006 2007 2009 2012 2013 Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 In MVA Increase in
Slide 22: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities Installed Capacity of 137.25 MVA 72.0 48.75 MVA MVA 16.5 MVA Visakhapatnam Kalyaneshwari Byrnihat (SEZ) • Smelters: • Smelters: • 2 x 5.0 MVA • 4 x MVA 18.0 MVA • 1 x 6.5 MVA • Products: Ferro Manganese/ • 1 x 8.25 MVA • Smelters: Silicon Manganese • 2 x 12.
Slide 23: Self Sustaining Business Model
Self Sustaining Business Model We have an ability to Input of sized and graded Raw Material generate a Larger Throughput Feed in day bins through conveyors from our manufacturing facilities Automated Batch preparation and Charge into Furnace Reaction in furnace and discharge of Silico Manganese Slag
Slide 24: Strong Client Relationships
Strong Client Relationships 75% Repeat Clients “We are pleased to have formed a partnership with Shift of focus from ‘Stable’ Maithan Alloys and we truly appreciate their Europe to ‘Growing’ Asia commitment to quality and customer service. They helping in better realizations have put forth all effor
Slide 25: Asian Economies to drive the Global Steel Demand
Asian Economies to drive the Global Steel Demand Global Steel Demand 2018 : 1,548.5 Mn T EU 13% NAFTA CIS 9% 3% It caters 70% of Global Steel demand Avg. rate of growth is Asia, Oceania expected to be & Middle in the range East ~1%-~2% 70% AFRICA Central & 3% South America 3% Asia Ex-China Growth is
Slide 26: Advantage India
Advantage India Favourable Demand –Supply Dynamics in Indian Steel Industry 100 % FDI allowed in the mining 2017 Budget outlay of ~ ₹ 4 tn ‘Housing For All’ to drive housing sector & exploration of metal & non in infrastructure to drive demand thereby benefitting steel metal ores under the Automatic
Slide 27: Support from Government of India
Support from Government of India Alloy Producers to benefit from NSP 2017 Capacity (Mn MT) Production (Mn MT) Per Capita Consumption (kg) CAGR +6% CAGR +7% CAGR +7% 300 255 158 122 92 61 2015-16 2030-31 2015-16 2030-31 2015-16 2030-31 National Steel Policy (NSP) 2017 Highlights Reduce dependence on
Slide 28: Advantage Maithan
Advantage Maithan World Crude Steel Demand (Mn MT) India Crude Steel Demand (Mn MT) 2,000 110 +3% 100 90 +7% 1,500 80 70 60 1,000 50 40 500 30 20 10 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Better Product Mix Strong C
Slide 29: For further information, please contact
For further information, please contact: Company Investor Relations Advisors: Maithan Alloys Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L27101WB1985PLC039503 CIN: U74140MH2010PTC204285 Ms. Neha Shroff/ Mr. Deven Dhruva Mr. Rajesh K. Shah neha.shroff@sgapl.net / deven.dhruva@sgapl.net rajesh@maith